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

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 $35.0million 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.

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

⁽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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Investor Relations

Edward Plank, Mister Car Wash, Inc.

IR@mistercarwash.com

Media

media@mistercarwash.com

Mister Car Wash Announces First Quarter 2025 Results