Net revenues increased 9%

Comparable-store sales increased 6.0%

Unlimited Wash Club® ("UWC") memberships increased 5% year-over-year

Opened 4 new greenfield locations

Company raises low end of guidance

TUCSON, Ariz., April 30, 2025--(BUSINESS WIRE)--Mister Car Wash, Inc. (the "Company") (Nasdaq: MCW), the nation’s largest car wash brand, today announced its financial results for the quarter ended March 31, 2025.

"I am proud of our team for building on last year's momentum and delivering a solid start to 2025. Record first quarter revenue and EBITDA exceeded our expectations, reflecting our team's unwavering dedication and strategic execution. Our performance was highlighted by strong comp store sales growth driven by an acceleration in our retail business, coupled with the ongoing strength of our UWC subscription business," commented John Lai, Chairperson and CEO of Mister Car Wash. "These results underscore our commitment to innovation, operational excellence, and generating value for our shareholders. Moving forward, I remain confident in our ability to drive growth and build upon our foundation as the premier car wash player in the industry."

First Quarter 2025 Highlights:

Net revenues increased 9% to $261.7 million, up from $239.2 million in the first quarter of 2024. Comparable-store sales increased 6.0% during the quarter. UWC sales represented 73% of total wash sales compared to 74% in the first quarter of 2024. Added approximately 103 thousand net new UWC members in the first quarter and had over 2.2 million members as of March 31, 2025. Opened 4 new greenfield locations, bringing the total net number of car wash locations operated to 518 as of March 31, 2025, an increase of 7% compared to 482 car wash locations as of March 31, 2024. Net income and net income per diluted share were $27.0 million and $0.08, respectively. Adjusted net income(1) and adjusted net income per diluted share(1) were $35.0 million and $0.11, respectively. Adjusted EBITDA(1) increased 14% to $85.6 million from $75.2 million in the first quarter of 2024.

(1) Adjusted net income, adjusted EBITDA and adjusted net income per diluted share are non-GAAP financial measures. Beginning in 2025, the Company made certain changes to how it defines adjusted net income and adjusted net income per diluted share that impact the comparability to prior periods. 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 March 31,  2025   2024  Beginning location count   514    476  Greenfield locations opened   4    6  Ending location count   518    482

Balance Sheet and Cash Flow Highlights

As of March 31, 2025, cash and cash equivalents totaled $39.1 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 March 31, 2025 and 2024. Net cash provided by operating activities totaled $87.6 million compared to $58.0 million for the three months ended March 31, 2025 and 2024, respectively.

Story Continues

Sale-Leasebacks and Rent Expense

In the first quarter of 2025, the Company had no sale-leaseback transactions. With 474 car wash leases as of March 31, 2025, versus 435 leases as of March 31, 2024, rent expense, net increased 12% to $29.8 million, compared to the first 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  Previous Net revenues  $1,046 to $1,064 million  $1,038 to $1,064 million Comparable-store sales growth %  1.5% to 3.0%  1.0% to 3.0% Adjusted EBITDA  $338 to $346 million  $334 to $346 million Adjusted net income as defined beginning 2025(1)  $140 to $147 million  Adjusted net income as defined through 2024(1)  $145 to $152 million  $141 to $149 million Adjusted net income per diluted share as defined beginning 2025(1)  $0.42 to $0.44  Adjusted net income per diluted share as defined through 2024(1)  $0.44 to $0.46  $0.43 to $0.45 Interest expense, net  $61 million  $63 million Rent expense, net  Approx. $123 million  Approx. $123 million Weighted average common shares outstanding, diluted, full year  Approx. 332 million  Approx. 330 million New greenfield locations  30 to 35  30 to 35 Capital expenditures(2)  $275 to $305 million  $275 to $305 million Sale leasebacks  $40 to $50 million  $40 to $50 million

(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) Total capital expenditures for the year ending December 31, 2025 are expected to consist of approximately $225 million to $250 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 first quarter of fiscal 2025 and to provide a business update is scheduled for today, April 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 facilities use 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," or "should," 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.

Consolidated Statements of Operations

(Amounts in thousands, except share and per share data)

(Unaudited) Three Months Ended March 31,  2025   2024  Net revenues  $ 261,656   $ 239,183   Costs and expenses:  Cost of labor and chemicals   74,252    71,658  Other store operating expenses   109,667    96,803  General and administrative   24,659    29,710  (Gain) loss on sale of assets, net   111    (1,533 ) Total costs and expenses   208,689    196,638  Operating income   52,967    42,545   Other (income) expense:  Interest expense, net   16,023    20,024  Loss on extinguishment of debt   —    1,882  Other income   —    (5,189 ) Total other expense, net   16,023    16,717  Income before taxes   36,944    25,828  Income tax provision   9,944    9,191  Net income  $ 27,000   $ 16,637   Earnings per share:  Basic  $ 0.08   $ 0.05  Diluted  $ 0.08   $ 0.05  Weighted-average common shares outstanding:  Basic   324,200,282    315,838,788  Diluted   331,479,048    330,012,144

Consolidated Statements of Cash Flows

(Amounts in thousands)

(Unaudited) Three Months Ended March 31,  2025   2024  Cash flows from operating activities:  Net income  $ 27,000   $ 16,637  Adjustments to reconcile net income to net cash provided by operating activities:  Depreciation and amortization expense   20,917    19,595  Stock-based compensation expense   6,843    6,246  Loss on sale of assets, net   111    (1,533 ) Loss on extinguishment of debt   —    1,882  Amortization of deferred debt issuance costs   285    410  Non-cash lease expense   13,535    11,917  Deferred income tax   7,484    7,849  Changes in assets and liabilities:  Accounts receivable, net   354    (172 ) Other receivables   1,965    (4,096 ) Inventory, net   490    1,305  Prepaid expenses and other current assets   2,356    1,703  Accounts payable   5,677    2,344  Accrued expenses   10,480    3,615  Deferred revenue   1,266    1,214  Operating lease liability   (11,604 )   (10,499 ) Other noncurrent assets and liabilities   391    (427 ) Net cash provided by operating activities  $ 87,550   $ 57,990   Cash flows from investing activities:  Purchases of property and equipment   (55,081 )   (81,844 ) Proceeds from sale of property and equipment   120    4,900  Net cash used in investing activities  $ (54,961 )  $ (76,944 )  Cash flows from financing activities:  Proceeds from issuance of common stock under employee plans   1,587    729  Payments for repurchases of common stock   —    (9,924 ) Proceeds from debt borrowings   —    925,000  Proceeds from revolving line of credit   —    23,000  Payments on debt borrowings   (62,307 )   (901,201 ) Payments on revolving line of credit   —    (23,000 ) Payments of deferred debt issuance costs   —    (3,772 ) Principal payments on finance lease obligations   (193 )   (180 ) Net cash provided by (used in) financing activities  $ (60,913 )  $ 10,652   Net change in cash and cash equivalents, and restricted cash during period   (28,324 )   (8,302 ) 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  $ 39,288   $ 10,817   Reconciliation of cash, cash equivalents, and restricted cash to the consolidated balance sheets:  Cash and cash equivalents   39,133    10,701  Restricted cash, included in prepaid expenses and other current assets   155    116  Total cash, cash equivalents, and restricted cash  $ 39,288   $ 10,817   Supplemental disclosure of cash flow information:  Cash paid for interest  $ 7,032   $ 19,233  Cash paid for income taxes  $ 60   $ 264   Supplemental disclosure of non-cash investing and financing activities:  Property and equipment in accounts payable  $ 11,416   $ 15,596  Property and equipment accrued in other accrued expenses  $ 4,223   $ 4,234  Payment of debt financing costs in other accrued expenses  $ —   $ 1,503  Stock option exercise proceeds in other receivables  $ 113   $ -

Consolidated Balance Sheets

(Amounts in thousands, except share and per share data)

(Unaudited) As of  March 31, 2025   December 31, 2024  Assets  Current assets:  Cash and cash equivalents  $ 39,133   $ 67,463  Accounts receivable, net   437    791  Other receivables   11,666    13,518  Inventory, net   5,237    5,728  Prepaid expenses and other current assets   9,241    11,590  Total current assets   65,714    99,090  Property and equipment, net   843,704    814,600  Operating lease right of use assets, net   918,624    924,896  Other intangible assets, net   112,041    112,507  Goodwill   1,134,734    1,134,734  Other assets   15,767    15,969  Total assets  $ 3,090,584   $ 3,101,796   Liabilities and stockholders’ equity  Current liabilities:  Accounts payable  $ 36,200   $ 30,020  Accrued payroll and related expenses   28,180    27,116  Other accrued expenses   43,020    39,162  Current maturities of long-term debt   —    6,920  Current maturities of operating lease liability   50,127    48,986  Current maturities of finance lease liability   812    804  Deferred revenue   35,226    33,960  Total current liabilities   193,565    186,968  Long-term debt, net   853,881    909,094  Operating lease liability   884,812    890,613  Financing lease liability   13,011    13,262  Deferred tax liabilities, net   109,225    101,741  Other long-term liabilities   2,195    1,766  Total liabilities   2,056,689    2,103,444  Stockholders’ equity:  Common stock, $0.01 par value, 1,000,000,000 shares authorized,
324,814,438 and 323,693,863 shares outstanding as of
March 31, 2025 and December 31, 2024, respectively   3,254    3,242  Additional paid-in capital   838,795    830,264  Retained earnings   191,846    164,846  Total stockholders’ equity   1,033,895    998,352  Total liabilities and stockholders’ equity  $ 3,090,584   $ 3,101,796

GAAP to Non-GAAP Reconciliations

(Amounts in thousands, except share and per share data)

(Unaudited) Three Months Ended March 31,  2025   2024  Reconciliation of net income to adjusted EBITDA:  Net income  $ 27,000   $ 16,637  Interest expense, net   16,023    20,024  Income tax provision   9,944    9,191  Depreciation and amortization expense   20,917    19,595  (Gain) loss on sale of assets, net   111    (1,533 ) Stock-based compensation expense   7,116    6,802  Acquisition expenses   1,414    565  Non-cash rent expense   1,966    1,487  Debt refinancing costs   —    1,882  Employee retention credit   —    (5,189 ) Other   1,158    5,711  Adjusted EBITDA  $ 85,649   $ 75,172

Three Months Ended March 31,  2025   2024  Reconciliation of net income to adjusted net income:  Net income  $ 27,000   $ 16,637  (Gain) loss on sale of assets, net   111    (1,533 ) Stock-based compensation expense   7,116    6,802  Acquisition expenses   1,414    565  Non-cash rent expense (1)   1,966    1,487  Debt refinancing costs   —    1,882  Employee retention credit   —    (5,189 ) Other   1,158    5,711  Income tax impact of stock award exercises   328    2,260  Tax impact of adjustments to net income (2)   (2,532 )   (2,035 ) Adjusted net income, as defined through 2024  $ 36,561   $ 26,587   Non-cash rent expense (1)   (1,966 )   (1,487 ) Tax impact of adjustments to net income (2)   454    347  Adjusted net income, as defined beginning 2025  $ 35,049   $ 25,447   Diluted adjusted net income per Share, as defined through 2024  $ 0.11   $ 0.08  Diluted adjusted net income per Share, as defined beginning 2025  $ 0.11   $ 0.08  Adjusted weighted-average common shares outstanding - diluted   331,479,048    330,012,144

(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.

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Contacts

Investor Relations 
Edward Plank, Mister Car Wash, Inc.
[email protected] 

Media 
[email protected]

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