Mister Car Wash Announces Second Quarter 2025 Results

Net revenues increased 4%Comparable-store sales increased 1.2%Unlimited Wash Club® (“UWC”) memberships increased 5%Opened 4 new greenfield locationsUpdates full year 2025 outlook TUSCON, Ariz., July 30, 2025 (GLOBE NEWSWIRE) -- Mister Car Wash, Inc. (the “Company”) (Nasdaq: MCW), the nation’s leading car wash brand, today announced its financial results for the quarter ended June 30, 2025. “Fueled by the strength of our UWC subscription model and the solid execution of our teams, we delivered our ninth consecutive quarter of positive comp-store sales growth in the second quarter—even amidst a challenging retail environment. Our membership base grew 5% year-over-year, underscoring the effectiveness of our model in converting retail traffic into a robust stream of recurring revenue,” commented John Lai, Chairperson, President and CEO of Mister Car Wash. “With strong cash flow generation powering reinvestment and innovation, our results through the first-half of 2025 reinforce the durability of our strategy and our commitment to delivering long-term value to customers and shareholders alike.” Second Quarter 2025 Highlights: Net revenues increased 4% to $265.4 million, up from $255.0 million in the second quarter of 2024.Comparable-store sales increased 1.2% during the quarter.UWC sales represented 76% of total wash sales compared to 72% in the second quarter of 2024.Ended the quarter with over 2.2 million UWC members representing a year-over-year increase of 102 thousand members or 5%.Opened 4 new greenfield locations, bringing the total net number of car wash locations operated to 522 as of June 30, 2025, an increase of 6% compared to 491 car wash locations as of June 30, 2024.Net income and net income per diluted share were $28.6 million and $0.09, respectively.Adjusted net income(1) and adjusted net income per diluted share(1) were $36.5 million and $0.11, respectively.Adjusted EBITDA(1) decreased 2% to $87.0 million from $88.7 million in the second quarter of 2024. Six Month 2025 Highlights: Net revenues increased 7% to $527.1 million, up from $494.2 million in the prior year.Comparable-store sales increased 3.6%.The Company opened 8 new greenfield locations.Net income and net income per diluted share were $55.6 million and $0.17, respectively.Adjusted net income(1) and adjusted net income per diluted share(1) were $71.6 million and $0.22, respectively.Adjusted EBITDA(1) increased 5% to $172.7 million from $163.9 million in 2024. (1) Adjusted net income, adjusted EBITDA and adjusted net income per diluted share are non-GAAP financial measures. See Use of Non-GAAP Financial Measures and GAAP to Non-GAAP Reconciliations disclosures included below in this press release. Location Count Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 Beginning location count 518 482 514 Greenfield locations opened 4 9 8 Ending location count 522 491 522 Balance Sheet and Cash Flow Highlights: As of June 30, 2025, cash and cash equivalents totaled $26.4 million, compared to cash and cash equivalents of $67.5 million as of December 31, 2024. There were no borrowings under the Company’s Revolving Commitment as of June 30, 2025 and December 31, 2024.Net cash provided by operating activities totaled $134.4 million compared to $118.9 million for the six months ended June 30, 2025 and 2024, respectively. Sale-Leasebacks and Rent Expense: In the second quarter of 2025, the Company had no sale-leaseback transactions.With 475 car wash leases as of June 30, 2025, versus 439 leases as of June 30, 2024, rent expense, net increased 12% to $30.2 million, compared to the second quarter of 2024. 2025 Outlook The Company has revised its outlook for the full fiscal year ended December 31, 2025, and now expects the following: Current PreviousNet revenues $1,046 to $1,054 million $1,046 to $1,064 millionComparable-store sales growth % 1.5% to 2.5% 1.5% to 3.0%Adjusted EBITDA $338 to $342 million $338 to $346 millionAdjusted net income $140 to $143 million $140 to $147 millionAdjusted net income per diluted share $0.42 to $0.43 $0.42 to $0.44Interest expense, net $61 million $61 millionRent expense, net Approx. $123 million Approx. $123 millionWeighted average common shares outstanding, diluted, full year Approx. 332 million Approx. 332 millionNew greenfield locations Approx. 30 30 to 35Capital expenditures(1) $255 to $275 million $275 to $305 millionSale leasebacks $40 to $50 million $40 to $50 million (1) Total capital expenditures for the year ending December 31, 2025 are expected to consist of approximately $205 million to $220 million of new store growth capital expenditures and $50 million to $55 million of other capital expenditures related to store-level maintenance, productivity improvements and the integration of acquired locations. Conference Call Details A conference call to discuss the Company’s financial results for the second quarter of fiscal 2025 and to provide a business update is scheduled for today, July 30, 2025, at 4:30 p.m. Eastern Time. Investors and analysts interested in participating in the call are invited to dial 855-209-8213 (international callers please dial 1-412-542-4146) approximately 10 minutes prior to the start of the call. A live audio webcast of the conference call will be available online at https://ir.mistercarwash.com/. A recorded replay of the conference call will be available within approximately three hours of the conclusion of the call and can be accessed online at https://ir.mistercarwash.com/ for 90 days. About Mister Car Wash® | Inspiring People to Shine® Headquartered in Tucson, Arizona, Mister Car Wash, Inc. (Nasdaq: MCW) operates over 500 locations and has the largest car wash subscription program in North America. With a passionate team of professionals, advanced technology, and a commitment to exceptional customer experiences, Mister Car Wash is dedicated to providing a clean, shiny, and dry vehicle every time. The Mister brand is deeply rooted in delivering quality service, fostering friendliness, and demonstrating a genuine commitment to the communities it serves while prioritizing responsible environmental practices and resource management. To learn more, visit www.mistercarwash.com. Use of Non-GAAP Financial Measures This press release includes references to non-GAAP financial measures, including adjusted EBITDA, adjusted net income, and adjusted net income per diluted share (the “Company’s Non-GAAP Financial Measures”). These non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles and should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and may be different from similarly titled non-GAAP financial measures used by other companies. In addition, the Company’s Non-GAAP Financial Measures should be read in conjunction with the Company’s financial statements prepared in accordance with GAAP. The reconciliations of the Company’s Non-GAAP Financial Measures to the corresponding GAAP measures should be carefully evaluated. The Company’s Non-GAAP Financial Measures are non-GAAP measures of the Company’s operating performance and should not be considered as an alternative to net income as a measure of financial performance or any other performance measure derived in accordance with U.S. GAAP and should not be construed as an inference that the Company’s future results will be unaffected by unusual or nonrecurring items. Adjusted EBITDA is defined as net income before interest expense, net, income tax provision, depreciation and amortization expense, (gain) loss on sale of assets, net, stock-based compensation expense and related taxes, acquisition expenses, non-cash rent expense, debt refinancing costs, and other nonrecurring charges. Beginning in 2025, the Company has made certain changes to its definitions for adjusted net income and adjusted net income per diluted share that impact the comparability of the metrics to prior periods. Specifically, the Company will no longer include non-cash rent expense in its reconciliation of net income to adjusted net income. Accordingly, the Company's 2025 adjusted net income and adjusted net income per diluted share guidance reflects the Company's updated definition of adjusted net income and adjusted net income per diluted share. Adjusted net income is defined as net income before (gain) loss on sale of assets, net, stock-based compensation expense, acquisition expenses, debt refinancing costs, other nonrecurring charges, income tax impact of stock award exercises and the tax impact of adjustments to net income. Adjusted net income per share is defined as basic net income per share before (gain) loss on sale of assets, net, stock-based compensation expense and related taxes, acquisition expenses, loss on extinguishment of debt, other nonrecurring charges, income tax impact of stock award exercises and the tax impact of adjustments to basic net income per share. Adjusted net income per diluted share is defined as diluted net income per share before (gain) loss on sale of assets, net, stock-based compensation expense, acquisition expenses, debt refinancing costs, other nonrecurring charges, income tax impact of stock award exercises and the tax impact of adjustments to basic net income per share. Management believes the Company’s Non-GAAP Financial Measures assist investors and analysts in comparing the Company’s operating performance across reporting periods on a consistent basis by excluding items that management does not believe are indicative of the Company’s ongoing operating performance. Investors are encouraged to evaluate these adjustments and the reasons the Company considers them appropriate for supplemental analysis. In evaluating the Company’s Non-GAAP Financial Measures, investors should be aware that in the future the Company may incur expenses that are the same as or similar to some of the adjustments in the Company’s presentation of the Company’s Non-GAAP Financial Measures. There can be no assurance that the Company will not modify the presentation of the Company’s Non-GAAP Financial Measures in future periods, and any such modification may be material. Management believes that the Company’s Non-GAAP Financial Measures are helpful in highlighting trends in the Company’s core operating performance compared to other measures, which can differ significantly depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which the Company operates, and capital investments. Management also uses adjusted EBITDA in connection with establishing discretionary annual incentive compensation; to supplement U.S. GAAP measures of performance in the evaluation of the effectiveness of the Company’s business strategies; to make budgeting decisions, and because the Company’s credit agreement uses measures similar to adjusted EBITDA to measure the Company’s compliance with certain covenants. The Company’s Non-GAAP Financial Measures have limitations as analytical tools, and investors should not consider these measures in isolation or as substitutes for analysis of the Company’s results as reported under U.S. GAAP. Some of these limitations include, for example, adjusted EBITDA does not reflect: the Company’s cash expenditure or future requirements for capital expenditures or contractual commitments; the Company’s cash requirements for the Company’s working capital needs; the interest expense and the cash requirements necessary to service interest or principal payments on the Company’s debt, cash requirements for replacement of assets that are being depreciated and amortized, and the impact of certain cash charges or cash receipts resulting from matters management does not find indicative of the Company’s ongoing operations. The Company is not providing a reconciliation of the 2025 outlook for adjusted EBITDA, adjusted net income, and adjusted net income per diluted share because we are unable to predict with reasonable certainty the reconciling items that may affect the most directly comparable GAAP financial measures without unreasonable efforts. The amounts that are necessary for such reconciliations, including acquisition expenses, other expenses, and the other adjustments reflected, are uncertain, depend on various factors, and could significantly impact, either individually or in the aggregate, the GAAP measures. Forward-Looking Statements This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release other than statements of historical fact, including, without limitation, statements regarding Mister Car Wash’s expansion efforts and expected growth and financial and operational results for 2025 are forward-looking statements. Words including “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “potential,” “predict,” “seek,” “should,” “will,” “would” or the negative thereof or other variations thereon or comparable terminology are intended to identify forward-looking statements, though not all forward-looking statements use these words or expressions. In addition, any statements or information that refer to expectations, beliefs, plans, projections, objectives, performance or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking. These forward-looking statements are based on management’s current expectations and beliefs. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause the Company’s actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements, including, but not limited to: our inability to attract new customers, retain existing customers and maintain or grow the number of UWC members, which could adversely affect our business, financial condition and results of operations and rate of growth; our failure to acquire, or open and operate new locations in a timely and cost-effective manner, and enter into new markets or leverage new technologies, may materially and adversely affect our competitive advantage or financial performance; our inability to successfully implement our growth strategies on a timely basis or at all; we are subject to a number of risks and regulations related to credit card and debit card payments we accept; an overall decline in the health of the economy and other factors impacting consumer spending, such as natural disasters and fluctuations in inflation, may affect consumer purchases, reduce demand for our services and materially and adversely affect our business, results of operations and financial condition; inflation, supply chain disruption and other increased operating costs could materially and adversely affect our results of operations; our locations may experience difficulty hiring and retaining qualified personnel, resulting in higher labor costs; we lease or sublease the land and buildings where a number of our locations are situated, which could expose us to possible liabilities and losses; our indebtedness could adversely affect our financial health and competitive position; our business is subject to various laws and regulations and changes in such laws and regulations, or failure to comply with existing or future laws and regulations, may result in litigation, investigation or claims by third parties or employees that could adversely affect our business; our locations are subject to certain environmental laws and regulations; we are subject to data security and privacy risks that could negatively impact our results of operations or reputation; we may be unable to adequately protect, and we may incur significant costs in enforcing or defending, our intellectual property and other proprietary rights; stockholders’ ability to influence corporate matters may be limited because a small number of stockholders beneficially own a substantial amount of our common stock and continue to have substantial control over us; our stock price may be volatile or may decline regardless of our operating performance, resulting in substantial losses for investors purchasing shares of our common stock; and the other important factors discussed under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, as such factors may be updated from time to time in its other filings with the SEC accessible on the SEC’s website at www.sec.gov and the Investors Relations section of the Company’s website at www.mistercarwash.com. Any forward-looking statement that the Company makes in this press release speaks only as of the date hereof. Except as required by law, the Company does not undertake any obligation to update or revise, or to publicly announce any update or revision to, any of the forward-looking statements, whether as a result of new information, future events or otherwise. Contacts Investor RelationsEdward Plank, Mister Car Wash, Inc.IR@mistercarwash.comMediamedia@mistercarwash.com Consolidated Statements of Operations and Comprehensive Income(Amounts in thousands, except share and per share data)(Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net revenues$265,415 $255,043 $527,071 $494,226 Costs and expenses: Cost of labor and chemicals 76,627 72,691 150,879 144,349 Other store operating expenses 108,850 99,543 218,517 196,346 General and administrative 25,113 24,912 49,772 54,622 Loss on sale of assets, net 679 2,897 790 1,364 Total costs and expenses 211,269 200,043 419,958 396,681 Operating income 54,146 55,000 107,113 97,545 Other (income) expense: Interest expense, net 15,172 20,254 31,195 40,278 Loss on extinguishment of debt — — — 1,882 Other income (21) — (21) (5,189)Total other expense, net 15,151 20,254 31,174 36,971 Income before taxes 38,995 34,746 75,939 60,574 Income tax provision 10,400 12,655 20,344 21,846 Net income$28,595 $22,091 $55,595 $38,728 Other comprehensive income, net of tax: Gain on interest rate swap 350 — 350 — Total comprehensive income$28,945 $22,091 $55,945 $38,728 Earnings per share: Basic$0.09 $0.07 $0.17 $0.12 Diluted$0.09 $0.07 $0.17 $0.12 Weighted-average common shares outstanding: Basic 325,561,496 319,415,156 324,884,649 317,626,972 Diluted 331,824,299 328,325,135 331,655,434 329,168,640 Consolidated Statements of Cash Flows(Amounts in thousands)(Unaudited) Six Months Ended June 30, 2025 2024 Cash flows from operating activities: Net income$55,595 $38,728 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization expense 42,655 39,856 Stock-based compensation expense 13,320 12,152 Loss on sale of assets, net 790 1,364 Loss on extinguishment of debt — 1,882 Amortization of deferred debt issuance costs 574 713 Non-cash lease expense 27,262 24,037 Deferred income tax 17,131 19,903 Changes in assets and liabilities: Accounts receivable, net (1,852) (2,222)Other receivables 230 (5,846)Inventory, net 314 3,093 Prepaid expenses and other current assets 969 (1,267)Accounts payable 2,471 3,251 Accrued expenses (3,764) 3,022 Deferred revenue 2,554 2,070 Operating lease liability (23,654) (21,025)Other noncurrent assets and liabilities (217) (829)Net cash provided by operating activities$134,378 $118,882 Cash flows from investing activities: Purchases of property and equipment (113,112) (163,096)Proceeds from sale of property and equipment 1,783 18,454 Net cash used in investing activities$(111,329) $(144,642) Cash flows from financing activities: Proceeds from issuance of common stock under employee plans 3,662 2,773 Payments for repurchases of common stock — (19,290)Proceeds from debt borrowings — 925,000 Proceeds from revolving line of credit — 92,000 Payments on debt borrowings (67,307) (901,201)Payments on revolving line of credit — (84,000)Payments of deferred debt issuance costs — (4,525)Principal payments on finance lease obligations (387) (362)Net cash provided by (used in) financing activities$(64,032) $10,395 Net change in cash and cash equivalents, and restricted cash during period (40,983) (15,365)Cash and cash equivalents, and restricted cash at beginning of period 67,612 19,119 Cash and cash equivalents, and restricted cash at end of period$26,629 $3,754 Reconciliation of cash, cash equivalents, and restricted cash to the consolidated balance sheets: Cash and cash equivalents 26,405 3,609 Restricted cash, included in prepaid expenses and other current assets 224 145 Total cash, cash equivalents, and restricted cash$26,629 $3,754 Supplemental disclosure of cash flow information: Cash paid for interest$32,245 $39,646 Cash paid for income taxes$2,204 $2,181 Supplemental disclosure of non-cash investing and financing activities: Property and equipment in accounts payable$9,545 $21,119 Property and equipment accrued in other accrued expenses$3,983 $— Payment of debt financing costs in other accrued expenses$— $735 Consolidated Balance Sheets(Amounts in thousands, except share and per share data)(Unaudited) As of June 30, 2025 December 31, 2024 Assets Current assets: Cash and cash equivalents$26,405 $67,463 Accounts receivable, net 2,642 791 Other receivables 11,423 13,518 Inventory, net 5,414 5,728 Prepaid expenses and other current assets 11,792 11,590 Total current assets 57,676 99,090 Property and equipment, net 880,527 814,600 Operating lease right of use assets, net 905,229 924,896 Other intangible assets, net 111,577 112,507 Goodwill 1,134,734 1,134,734 Other assets 16,254 15,969 Total assets$3,105,997 $3,101,796 Liabilities and stockholders’ equity Current liabilities: Accounts payable$31,122 $30,020 Accrued payroll and related expenses 21,990 27,116 Other accrued expenses 34,908 39,162 Current maturities of long-term debt — 6,920 Current maturities of operating lease liability 51,020 48,986 Current maturities of finance lease liability 834 804 Deferred revenue 36,514 33,960 Total current liabilities 176,388 186,968 Long-term debt, net 849,055 909,094 Operating lease liability 874,858 890,613 Financing lease liability 12,795 13,262 Deferred tax liabilities, net 118,988 101,741 Other long-term liabilities 2,930 1,766 Total liabilities 2,035,014 2,103,444 Stockholders’ equity: Common stock, $0.01 par value, 1,000,000,000 shares authorized, 327,257,547 and 323,693,863 shares outstanding as of June 30, 2025 and December 31, 2024, respectively 3,278 3,242 Additional paid-in capital 846,914 830,264 Accumulated other comprehensive income 350 — Retained earnings 220,441 164,846 Total stockholders’ equity 1,070,983 998,352 Total liabilities and stockholders’ equity$3,105,997 $3,101,796 GAAP to Non-GAAP Reconciliations(Amounts in thousands, except share and per share data)(Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Reconciliation of net income to adjusted EBITDA: Net income$28,595 $22,091 $55,595 $38,728 Interest expense, net 15,172 20,254 31,195 40,278 Income tax provision 10,400 12,655 20,344 21,846 Depreciation and amortization expense 21,738 20,261 42,655 39,856 Loss on sale of assets, net 679 2,897 790 1,364 Stock-based compensation expense 7,274 6,791 14,390 13,593 Acquisition expenses 1,199 548 2,613 1,113 Non-cash rent expense 1,652 1,495 3,618 2,982 Debt refinancing costs — — — 1,882 Employee retention credit — — — (5,189)Other 337 1,700 1,495 7,411 Adjusted EBITDA$87,046 $88,692 $172,695 $163,864 Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Reconciliation of net income to adjusted net income: Net income$28,595 $22,091 $55,595 $38,728 Loss on sale of assets, net 679 2,897 790 1,364 Stock-based compensation expense 7,274 6,791 14,390 13,593 Acquisition expenses 1,199 548 2,613 1,113 Non-cash rent expense (1) 1,652 1,495 3,618 2,982 Debt refinancing costs — — — 1,882 Employee retention credit — — — (5,189)Other 337 1,700 1,495 7,411 Income tax impact of stock award exercises 465 3,742 793 6,002 Tax impact of adjustments to net income (2) (2,398) (2,480) (4,929) (4,515)Adjusted net income, as defined through 2024$37,803 $36,784 $74,365 $63,371 Non-cash rent expense (1) (1,652) (1,495) (3,618) (2,982)Tax impact of adjustments to net income (2) 385 33 838 381 Adjusted net income, as defined beginning 2025$36,536 $35,322 $71,585 $60,770 Diluted adjusted net income per Share, as defined through 2024$0.11 $0.11 $0.22 $0.19 Diluted adjusted net income per Share, as defined beginning 2025$0.11 $0.11 $0.22 $0.18 Adjusted weighted-average common shares outstanding - diluted 331,824,299 328,325,135 331,655,434 329,168,640 (1) Non-cash rent expense was included in the reconciliation of net income to adjusted net income and adjusted net income per diluted share for periods prior to fiscal 2025. Beginning in fiscal 2025, such expenses will no longer be included in the calculation of adjusted net income and adjusted net income per diluted share.(2) Tax impacts of adjustments to net income were adjusted prior to and beginning in 2025 for changes in expenses adjusting net income.

Mister Car Wash Announces Second Quarter 2025 Results

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