Mister Car Wash, Inc.

Third-quarter net revenues increased 6% to $263 million. Adjusted EBITDA rose 10% to $87 million, adjusted EBITDA margin expanded 130 basis points to 32.9%, and adjusted EPS was $0.11, up 38% year over year. Comparable store sales grew 3.1%, UWC membership increased 6% year over year to approximately 2.2 million, and Express revenue per member rose approximately 4% to $29.56. Total operating expenses were $177 million, or 67.1% of revenue, down 130 basis points year over year; labor and chemicals improved to 28% of revenue, other store operating expenses were 32.7%, and G&A was 6.4%. Interest expense improved 32% to $14 million, net income was $37 million, cash and cash equivalents were $36 million, and long-term debt was $827 million. For 2025, management reaffirmed guidance and now expects comps to finish at the high end or slightly above the 1.5% to 2.5% range, revenue near the high end of $1.046 billion to $1.054 billion, and adjusted EBITDA at the high end of $338 million to $342 million. They also said Q4 marketing tests will require about $2 million of spend, while the five-store Lubbock acquisition is incremental to the prior store-opening guidance and expected to be immaterial financially.

John Lai’s tone was upbeat and confident, emphasizing that the company is gaining share through strong execution, premium membership growth, and a healthier competitive backdrop. He highlighted the 25% Titanium penetration, the successful rollout of the base price increase, and the potential for future innovation and marketing to support growth in 2026 and beyond. He also framed M&A and greenfield expansion as complementary levers, saying the company is only about halfway to its long-term goal of more than 1,000 locations.

Jed Gold focused on the strength of the quarter’s operating leverage and cash generation. He cited 6% revenue growth, $87 million of adjusted EBITDA, 32.9% EBITDA margin, and $0.11 adjusted EPS, then noted cash of $36 million, debt of $827 million, and leverage of 2.4x adjusted EBITDA. He also pointed to free cash flow of $202 million for the nine months ended September 30, versus $174 million a year ago, and said sale-leaseback demand has improved, with one transaction closed for $5 million and seven carwashes under LOI or contract for Q4. On capital allocation, he said greenfield remains the highest and best use of capital, but the company is also evaluating debt paydown, share repurchases, and M&A.

Analysts focused on what drove the Q3 sales upside, the effects of the base price increase, and whether weak retail comps reflect consumer stress. Management said all months of the quarter were positive, with July the strongest, and that higher revenue per member came mainly from Titanium mix and the price increase; they also said lower-income consumers appear more pressured and that retail comps in Q4 are expected to remain negative even as company-wide comps stay positive. Questions also centered on marketing tests, pricing flexibility, and membership trends. Management said Q2 marketing tests produced a mid-single-digit comp lift in pilot markets, Q4 testing is still early, and the goal is roughly a 3x return on ad spend; on membership, they said total member count was relatively flat sequentially, churn was roughly 5%, and growth depends on improving retail traffic and member onboarding.