In This Article:
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Revenue: Increased by 9% in Q1 2025.
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Adjusted EBITDA: Grew by 14% in Q1 2025.
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Comparable Store Sales Growth: 6% in Q1 2025.
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New Store Openings: 4 new greenfield stores opened in Q1 2025.
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UWC Membership Growth: Increased by 5% year-over-year to over 2.2 million members.
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Net Income: $35 million in Q1 2025.
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Net Income Per Diluted Share: $0.11 in Q1 2025.
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Operating Expenses: Total operating expenses were $176 million, decreased 130 basis points to 67.3% of revenue.
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EBITDA Margin: Increased 130 basis points to 32.7% in Q1 2025.
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Debt Reduction: Paid down approximately $62 million of debt during Q1 2025.
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Cash and Cash Equivalents: $39 million at the end of Q1 2025.
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Outstanding Long-term Debt: $858 million, a $67 million sequential decrease.
Release Date: April 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Mister Car Wash Inc (NASDAQ:MCW) reported strong comp store sales growth of 6% and record revenues, with adjusted EBITDA increasing by 14%.
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The company opened 4 new greenfield stores in Q1 and plans to add 30 to 35 new stores in 2025, indicating a strong expansion strategy.
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UWC membership grew by 5% year-over-year, reaching over 2.2 million members, showcasing successful membership growth initiatives.
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The company successfully implemented a $3 price increase in most markets for its base OBC program, aligning with competitors and marking the first increase since inception.
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Mister Car Wash Inc (NASDAQ:MCW) voluntarily paid down approximately $62 million of debt during the quarter, improving its net leverage ratio to just under 2.5x adjusted EBITDA by year-end.
Negative Points
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Comp store trends moderated through April due to a stronger lap and the timing of Easter, creating a slight headwind to Q2 comp.
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The company faces uncertainty around the tariff environment, which could indirectly impact consumer spending and the supplier base.
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Despite strong Q1 results, the company remains cautious about the consumer environment and potential economic fallout from tariff negotiations.
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Operating expenses increased due to higher rent expenses related to new store growth and sale leasebacks, as well as higher utilities and maintenance costs.
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The company anticipates a slight uptick in churn due to the base price increase, although it expects churn levels to stabilize after a month.
Q & A Highlights
Q: Can you elaborate on the comp guidance for the next three quarters? Is the scenario of weaker consumer and tough compares factored in? A: Jedidiah Gold, CFO: We are pleased with the quarter's performance, but the environment remains challenging. We expect revenue per member growth to be in the low to mid-single digits, consistent with previous guidance. Comp store member growth is expected to be slightly positive to low single digits. We have adjusted our retail sales expectations to account for a choppy backdrop and potential tariff impacts.