Financial Performance - In 2025, the total gallons of motor fuel distributed amounted to 1,231 million, a decrease from 1,299 million in 2024 and 1,350 million in 2023[23]. - Retail segment revenues from convenience merchandise sales reached $407 million in 2025, up from $390 million in 2024 and $316 million in 2023[23]. - Wholesale segment revenues were $1,568 million in 2025, down from $1,872 million in 2024 and $2,290 million in 2023[27]. - Operating income for the wholesale segment was $73 million in 2025, compared to $77 million in 2024 and $91 million in 2023[27]. - Rental income totaled $62.5 million in 2025, down from $71.2 million in 2024 and $82.3 million in 2023[25]. - In 2025, motor fuel revenues accounted for 87% of total revenues, with motor fuel gross profit representing 55% of total gross profit[68]. - The company’s gross profit is affected by wholesale motor fuel prices, with lower prices negatively impacting gross profit due to prompt payment discounts[208]. - Inflation has increased costs in goods sold and operating expenses, impacting overall financial performance[212]. Operational Metrics - The company operated 352 sites as of December 31, 2025, a decrease from 365 sites in 2024 and an increase from 296 sites in 2023[23]. - As of December 31, 2025, the company owned or leased a total of 973 sites, comprising 549 owned and 424 leased properties[193]. - The company experienced a net divestiture of 112 sites during 2025, reducing the total from 1,080 to 973 sites[195]. - The company operates in 33 states for wholesale and 27 states for retail segments as of December 31, 2025[194]. - Seasonal trends indicate that sales volumes peak in the second and third quarters, while the first and fourth quarters see lower volumes[211]. Supply Chain and Procurement - Approximately 79% of motor fuel was purchased from four suppliers in 2025, with supply agreements having a weighted-average remaining term of 5.6 years[40]. - The company purchased approximately 79% of its motor fuel from four principal suppliers in 2025, and approximately 53% of its merchandise from one principal supplier[107]. - The company relies on four principal suppliers for the majority of its motor fuel, which poses a risk to revenue stability[54]. - The company relies on third-party transportation providers for all motor fuel distribution, and any disruption could adversely affect its financial condition and operations[114]. Financial Strategy and Distributions - The business strategy focuses on increasing cash flows from operations to enhance quarterly cash distributions while maintaining leverage discipline[38]. - The amount of cash available for distribution is primarily dependent on cash flow rather than profitability, which may affect distribution capabilities[59]. - The company intends to distribute a minimum quarterly distribution of $0.4375 per unit, contingent on sufficient cash from operations after expenses[133]. - The cash distribution policy mandates a minimum quarterly distribution of $0.4375 per unit, with the latest declared distribution being $0.5250 per unit, or $2.10 on an annualized basis[203]. - The company may distribute up to $15 million as operating surplus, even if generated from asset sales or non-working capital borrowings[141]. Regulatory and Compliance Risks - The company is subject to extensive government regulations, which can materially impact compliance costs[49]. - The company is subject to extensive federal, state, and local environmental laws, which may require significant expenditures for compliance and remediation[89]. - Compliance with extensive government regulations can have a material adverse effect on operating results and financial condition[84]. - Changes in U.S. trade policy and tariffs may adversely affect the company's business and financial condition[49]. - The company faces risks related to soil and groundwater contamination from its motor fuel operations, which could lead to substantial remediation costs[94]. - Compliance with employment laws and regulations could lead to increased labor costs, adversely affecting the company's financial condition[86]. Market and Economic Conditions - Economic conditions, including inflation and higher energy costs, may adversely affect consumer spending and demand for motor fuel and convenience merchandise[74]. - The company faces risks from volatility in crude oil and wholesale motor fuel costs, impacting financial condition and distributions[53]. - Changes in U.S. trade policy, including potential tariff increases, could adversely impact the company's business and financial condition[97]. - Intense competition in the wholesale motor fuel distribution and retail convenience store industries leads to narrow margins and potential adverse effects on financial performance[71]. - The company is exposed to competition in the convenience store industry, which could reduce gross profits[53]. Management and Governance - The company has 257 management employees and 2,790 store employees as of December 31, 2025[50]. - The company is dependent on its ability to attract and retain a strong management team, which is critical for its business operations[106]. - The Topper Group controls the sole member of the General Partner, which may lead to conflicts of interest that could adversely affect unitholders[132]. - The General Partner can modify or revoke the cash distribution policy at any time, potentially reducing distributions to unitholders[134]. - Unitholders have limited voting rights and cannot elect the Board, which may affect the trading price of common units[146]. Taxation and Financial Liabilities - The anticipated cash available for distribution could be substantially reduced if the company is treated as a corporation for U.S. federal income tax purposes, which is currently at a corporate tax rate of 21%[161]. - The company has subsidiaries treated as corporations for tax purposes, which are subject to corporate-level taxes, further reducing cash available for distribution[164]. - Unitholders are required to pay taxes on their share of income even if no cash distributions are received, potentially leading to tax liabilities without corresponding cash inflows[168][169]. - The IRS may challenge the company's tax treatment methods, potentially affecting the value of common units and tax benefits for unitholders[177]. Cybersecurity and Risk Management - The company has implemented a cybersecurity risk management program guided by the National Institute of Standards and Technology Cybersecurity Framework[188]. - Regular assessments and incident response plans are in place to manage cybersecurity threats and ensure timely responses to incidents[190].

Financial Performance - CrossAmerica reported Q4 2025 net income of $10.2 million, down from $16.9 million in Q4 2024, while full year net income increased to $41.8 million from $22.5 million in 2024[4]. - Adjusted EBITDA for Q4 2025 was $43.4 million, up from $35.5 million in Q4 2024, and for the full year 2025, it was $146.0 million compared to $145.5 million in 2024[4]. - Distributable Cash Flow for Q4 2025 was $28.5 million, an increase from $21.1 million in Q4 2024, and for the full year 2025, it rose to $87.8 million from $86.0 million in 2024[4]. - Operating revenues for the year ended December 31, 2025, were $3,662,534 thousand, down 10.7% from $4,098,288 thousand in 2024[32]. - Gross profit increased slightly from $398,319 thousand in 2024 to $402,707 thousand in 2025, representing a growth of 1%[32]. - Net income for 2025 was $41,833 thousand, a significant increase of 86.5% compared to $22,453 thousand in 2024[34]. - Cash flows from operating activities rose to $91,496 thousand in 2025, compared to $87,782 thousand in 2024, an increase of 3.9%[34]. - Earnings per common unit for 2025 were $1.03, up from $0.52 in 2024, reflecting a growth of 98.1%[32]. Segment Performance - Retail segment gross profit for Q4 2025 was $82.9 million, a 10% increase from $75.1 million in Q4 2024, while wholesale segment gross profit decreased to $24.2 million from $25.9 million[4]. - The retail segment's motor fuel gross profit increased by $6.7 million or 17% in Q4 2025, driven by a 19% increase in margin per gallon[10]. - Operating income for the Retail segment rose to $31,401,000 in Q4 2025, up from $22,841,000 in Q4 2024, marking a significant increase of 37.5%[35]. - The volume of gallons sold in the Retail segment decreased to 132,115,000 gallons in Q4 2025 from 141,377,000 gallons in Q4 2024, a decline of 6.5%[35]. - Wholesale segment total gross profit for the three months ended December 31, 2025, was $24,209,000, down from $25,896,000 in Q4 2024, a decrease of 6.5%[38]. - Operating income for the Wholesale segment was $18,382,000 in Q4 2025, slightly down from $18,775,000 in Q4 2024, reflecting a decrease of 2.1%[38]. Asset and Liability Management - Total assets decreased from $1,114,725 thousand in 2024 to $964,734 thousand in 2025, a decline of approximately 13.4%[30]. - Total current liabilities decreased from $162,846 thousand in 2024 to $155,217 thousand in 2025, a reduction of about 4.2%[30]. - The total deficit increased from $53,776 thousand in 2024 to $102,328 thousand in 2025, indicating a worsening financial position[30]. - As of December 31, 2025, leverage was 3.51 times, down from 4.36 times a year earlier, indicating improved financial flexibility[23]. Cash Flow and Financing Activities - The company reported a net cash used in financing activities of $160,181 thousand in 2025, compared to $73,082 thousand in 2024, indicating increased financing activity[34]. - Distributable Cash Flow for the year ended December 31, 2025, was $87,786,000, compared to $86,004,000 for 2024, indicating a growth of 2.1%[45]. - The Distribution Coverage Ratio improved to 1.43 times in Q4 2025 from 1.06 times in Q4 2024, and for the full year 2025, it was 1.10 times compared to 1.08 times in 2024[4]. Real Estate and Rationalization Efforts - CrossAmerica divested 107 properties for $103.3 million in proceeds during 2025, resulting in net gains of $45.9 million, compared to 30 sites for $36.3 million in proceeds in 2024[22]. - For the three months ended December 31, 2025, CrossAmerica recorded net gains of $3.4 million from its real estate rationalization efforts, compared to $11.6 million in the same period of 2024[47]. - For the twelve months ended December 31, 2025, CrossAmerica achieved net gains of $45.9 million from real estate rationalization, partially offset by $1.7 million in net losses on lease terminations and asset disposals[47]. - The Partnership recorded a $16.0 million loss on lease terminations with Applegreen, which included a $1.5 million non-cash write-off of deferred rent income[47]. - CrossAmerica's ongoing real estate rationalization efforts resulted in net gains of $23.3 million for the twelve months ended December 31, 2024[47]. Operational Efficiency - Operating expenses for the retail segment declined by 1% year-over-year in Q4 2025, primarily due to a decrease in average site count[12]. - The average wholesale gross margin per gallon increased to $0.093 in Q4 2025 from $0.082 in Q4 2024, despite a 6% decline in wholesale volume[17]. - The average margin per gallon for the Retail segment increased to $0.449 in Q4 2025 from $0.376 in Q4 2024, an increase of 19.4%[35]. - The total number of retail sites at the end of 2025 was 583, a decrease from 594 sites at the end of 2024, primarily due to the sale of certain company-operated sites[35][36]. Taxation - Current income tax expenses related to site sales were $(0.6) million and $0.3 million for the fourth quarters of 2025 and 2024, respectively[47]. - For the full years 2025 and 2024, current income tax expenses related to site sales were $4.9 million and $1.9 million, respectively[47].

Core Insights - CrossAmerica Partners LP reported strong financial performance for Q4 and FY2025, driven by improved fuel margins and strategic site conversions [3][4][6] Financial Performance - Q4 2025 net income was $10.2 million, down from $16.9 million in Q4 2024, while FY2025 net income increased to $41.8 million from $22.5 million in FY2024 [4][5] - Adjusted EBITDA for Q4 2025 was $43.4 million, up from $35.5 million in Q4 2024, and for FY2025 it was $146.0 million, slightly up from $145.5 million in FY2024 [4][5] - Distributable Cash Flow for Q4 2025 was $28.5 million, compared to $21.1 million in Q4 2024, and for FY2025 it was $87.8 million, up from $86.0 million in FY2024 [4][5] Retail Segment Performance - Retail segment gross profit for Q4 2025 was $82.9 million, a 10% increase from $75.1 million in Q4 2024, while FY2025 gross profit was $302.2 million, up from $289.7 million in FY2024 [8][9] - Motor fuel gross profit in the retail segment increased by $6.7 million or 17% in Q4 2025, driven by a 19% increase in margin per gallon [10] - Merchandise gross profit increased by 3% year-over-year in Q4 2025, with same-store merchandise sales excluding cigarettes rising by 1% [11] Wholesale Segment Performance - Wholesale segment gross profit for Q4 2025 was $24.2 million, down from $25.9 million in Q4 2024, while FY2025 gross profit was $100.5 million, down from $108.6 million in FY2024 [17][19] - Motor fuel gross profit in the wholesale segment increased by 6% in Q4 2025, attributed to a 13% increase in margin per gallon, despite a 6% decline in wholesale volume [18] - The total average site count in the wholesale segment declined by 6% year-over-year due to site conversions to retail [18] Divestment Activity - In Q4 2025, CrossAmerica sold eleven sites for $8.8 million, generating net gains of $3.4 million, while for FY2025, 107 properties were sold for $103.3 million, resulting in net gains of $45.9 million [22] Liquidity and Capital Resources - As of December 31, 2025, CrossAmerica had $692.3 million outstanding under its credit facility, with approximately $216.6 million available for future borrowings [23] - Leverage was reported at 3.51 times as of December 31, 2025, down from 4.36 times a year earlier [23] Distributions - The Board declared a quarterly distribution of $0.5250 per limited partner unit for Q4 2025, paid on February 12, 2026 [24]

Company Overview - CrossAmerica Partners LP is a leading wholesale distributor of motor fuels and convenience store operator, formed in 2012 [4] - The company distributes branded and unbranded petroleum for motor vehicles across approximately 1,600 locations and owns or leases around 1,000 sites [4] - CrossAmerica Partners operates in 34 states and has established relationships with major oil brands including ExxonMobil, BP, Shell, Marathon, Valero, and Phillips 66 [4] - It ranks as one of ExxonMobil's largest distributors by fuel volume in the United States and is in the top 10 for additional brands [4] Earnings Announcement - CrossAmerica Partners will release its fourth quarter and full year 2025 earnings results on February 25, 2026, after market close [1] - A conference call will be hosted on February 26, 2026, at 9:00 a.m. Eastern Time to discuss the earnings results [1] - The conference call can be accessed via phone numbers 800-717-1738 or 646-307-1865 with the passcode 288997 [2] Webcast and Archive - A live audio webcast of the conference call and related earnings materials will be available on the investor section of the CrossAmerica website on the same day [2] - An archive of the webcast will be accessible within 24 hours after the call for a period of sixty days [3]

Core Viewpoint - CrossAmerica Partners LP is set to announce its fourth quarter and full year 2025 earnings results on February 25, 2026, with a conference call scheduled for February 26, 2026, at 9:00 a.m. Eastern Time [1]. Company Overview - CrossAmerica Partners LP is a leading wholesale distributor of motor fuels and convenience store operator, formed in 2012 [4]. - The company distributes branded and unbranded petroleum for motor vehicles across approximately 1,600 locations and owns or leases around 1,000 sites in 34 states [4]. - CrossAmerica Partners has established relationships with major oil brands, including ExxonMobil, BP, Shell, Marathon, Valero, and Phillips 66, ranking as one of ExxonMobil's largest distributors by fuel volume in the U.S. [4].

Core Insights - The article discusses an update on small and mid-cap stock ideas that are being actively purchased by insiders, indicating potential investment opportunities [1][2] - The Insiders Forum, led by Bret Jensen, focuses on a portfolio of 12-25 stocks that are attractively valued and have seen significant insider buying, aiming to outperform the Russell 2000 benchmark [2] Group 1 - The Insiders Forum has achieved more than double the return of the Russell 2000 since its launch, showcasing the effectiveness of its investment strategy [1][2] - The portfolio consists of stocks from various sectors, emphasizing diversification while targeting companies with recent insider purchases [2] Group 2 - The article does not provide specific stock recommendations or investment advice, maintaining a neutral stance on the suitability of investments for individual investors [3][4] - The analysts involved in the article do not hold any positions in the mentioned companies, ensuring an unbiased perspective [3]

Core Points - The article discusses the importance of enabling Javascript and cookies in browsers to prevent access issues [1] - It highlights that ad-blockers may interfere with website functionality, suggesting users disable them for better access [1] Summary by Categories Technical Requirements - Users are advised to enable Javascript and cookies in their browsers to ensure proper website functionality [1] - The presence of ad-blockers can lead to access restrictions, and users are encouraged to disable them [1]

Financial Data and Key Metrics Changes - For Q3 2025, the company reported a net income of $13.6 million, an increase from $10.7 million in Q3 2024, driven by asset sales and reduced interest expenses [17][18] - Adjusted EBITDA for Q3 2025 was $41.3 million, a decline of $2.6 million or 6% compared to the prior year, primarily due to lower fuel and rent gross profit [18][19] - Distributable cash flow increased slightly to $27.8 million from $27.1 million in Q3 2024, attributed to lower cash interest expenses [19] Business Line Data and Key Metrics Changes - Retail segment gross profit decreased 4% to $80 million in Q3 2025 from $83.6 million in Q3 2024, mainly due to lower motor fuel gross profit [4][12] - Retail fuel margin decreased 5% year over year to 38.4 cents per gallon, down from 40.6 cents per gallon [5] - Inside sales on a same-store basis increased approximately 3%, with a 4% increase excluding cigarettes, driven by strong performance in packaged beverages and tobacco products [9][10] Market Data and Key Metrics Changes - National gasoline demand was down approximately 2.5% for the quarter, impacting the company's same-store volume performance [7][14] - The company's overall retail same-store volume declined slightly more than the national average, reflecting strategic pricing adjustments [8][11] Company Strategy and Development Direction - The company continues to focus on strategic asset sales, realizing approximately $100 million year to date, which has strengthened its balance sheet and reduced debt [16][26] - The retail strategy remains unchanged, with a focus on being in the right markets with the right assets [11][28] Management's Comments on Operating Environment and Future Outlook - Management noted a favorable fuel margin environment in October following the quarter end, which is expected to positively impact future results [12][17] - The company is focused on maintaining a strong balance sheet and generating value for unitholders as it looks forward to 2026 [28] Other Important Information - The company reported a decrease in operating expenses by $3.2 million year over year, with G&A expenses down by $0.8 million [21][24] - Capital expenditures for Q3 totaled $6.7 million, with $4.8 million allocated to growth-related projects [25] Q&A Session Summary - No questions were raised during the Q&A session, indicating a lack of immediate inquiries from analysts or investors [29]

Financial Performance - Net income increased by 27% from $10708 thousand in Q3 2024 to $13588 thousand in Q3 2025[9] - Adjusted EBITDA decreased by 6% from $43938 thousand in Q3 2024 to $41309 thousand in Q3 2025[9] - Distributable Cash Flow increased by 2% from $27140 thousand in Q3 2024 to $27773 thousand in Q3 2025[9] - Distribution coverage (paid basis current quarter) increased by 2% from 136x in Q3 2024 to 139x in Q3 2025[9] - Distribution paid per LP Unit remained the same at $05250[9] Retail Segment - Retail gross profit decreased by 4% from $83587 thousand to $79985 thousand[7] - Retail operating income decreased by 6% from $31363 thousand to $29345 thousand[7] - Motor fuel gross profit decreased by 11% from $45759 thousand to $40732 thousand[7] - Merchandise gross profit increased by 5% from $30494 thousand to $31981 thousand[7] - Volume of gallons sold decreased by 4% from 148380 thousand to 141806 thousand[7] Wholesale Segment - Wholesale gross profit decreased by 10% from $27639 thousand to $24785 thousand[7] - Wholesale operating income decreased by 6% from $19097 thousand to $17884 thousand[7] - Motor Fuel Gross Profit decreased by 7% from $16870 thousand to $15718 thousand[7] - Volume of Gallons Distributed decreased by 5% from 186946 thousand to 177662 thousand[7] Capital & Debt - Third quarter 2025 capital expenditures were $67 million, including $48 million of growth capex[13] - Credit facility balance at 09/30/25 was $7055 million[13] - Leverage ratio was 356x at 09/30/25[13]

Financial Performance - CrossAmerica reported a net income of $13.6 million for Q3 2025, up from $10.7 million in Q3 2024, driven by asset sales and reduced interest expenses[4]. - Adjusted EBITDA for Q3 2025 was $41.3 million, a decrease of 6% from $43.9 million in Q3 2024, primarily due to lower fuel and rent gross profit[4]. - Distributable Cash Flow increased to $27.8 million in Q3 2025, compared to $27.1 million in Q3 2024, supported by lower cash interest and capital expenditures[5]. - Operating revenues for the nine months ended September 30, 2025, were $2,796,247, a decrease of 11.3% compared to $3,154,066 in 2024[21]. - Gross profit for the nine months ended September 30, 2025, was $295,576, slightly down from $297,336 in 2024, reflecting a decrease of 0.6%[21]. - Net income for the nine months ended September 30, 2025, increased significantly to $31,641, compared to $5,592 in 2024, representing a growth of 465.5%[23]. - Total EBITDA for the nine months ended September 30, 2025, was $141.7 million, compared to $100.7 million in 2024, marking a 40.7% increase[32]. - For the three months ended September 30, 2025, net income was $13.6 million, compared to $10.7 million for the same period in 2024, representing a 27.5% increase[32]. - Adjusted EBITDA for the three months ended September 30, 2025, was $41.3 million, down from $43.9 million in 2024, indicating a decrease of 3.7%[32]. - Distributable Cash Flow for the three months ended September 30, 2025, was $27.8 million, compared to $27.1 million in 2024, reflecting a 2.6% increase[32]. - The Distribution Coverage Ratio for the three months ended September 30, 2025, was 1.39x, slightly up from 1.36x in 2024[32]. Asset Management - CrossAmerica completed asset sales totaling approximately $22 million in Q3 2025, contributing to a net gain of $7.4 million[3][11]. - CrossAmerica recorded $7.4 million in net gains from real estate rationalization efforts during the three months ended September 30, 2025[36]. - As of September 30, 2025, total assets were $998.9 million, a decrease from $1,114.7 million at the end of 2024[19]. Segment Performance - Retail segment gross profit decreased by 4% to $80.0 million in Q3 2025, while wholesale segment gross profit fell by 10% to $24.8 million[6][10]. - Same-store merchandise sales excluding cigarettes rose by 4% to $75.8 million in Q3 2025, with merchandise gross profit percentage increasing to 28.9%[8]. - Total retail segment gross profit for the nine months ended September 30, 2025, was $219,271, up from $214,617 in 2024, an increase of 2.5%[24]. - Operating income for the Retail segment for the nine months ended September 30, 2025, was $66,099, down from $70,631 in 2024, a decrease of 6.4%[24]. - Total motor fuel distribution sites decreased to 988 as of September 30, 2025, from 1,046 in 2024, a reduction of 5.5%[26]. - Volume of gallons distributed in the Wholesale segment for the nine months ended September 30, 2025, was 519,821, down from 563,082 in 2024, a decrease of 7.7%[26]. - Margin per gallon in the Wholesale segment for the nine months ended September 30, 2025, was $0.090, compared to $0.085 in 2024, an increase of 5.9%[26]. Cost Management - Operating expenses declined by 5% from $60.8 million in Q3 2024 to $57.5 million in Q3 2025, reflecting cost management efforts[4]. - Cash flows from operating activities for the nine months ended September 30, 2025, were $62,065, down from $76,672 in 2024, a decrease of 18.9%[23]. - Cash interest expense for the three months ended September 30, 2025, was $11.3 million, down from $13.7 million in 2024, a decrease of 17.5%[32]. Leverage and Financing - Leverage ratio improved to 3.56 times as of September 30, 2025, down from 4.36 times at the end of 2024[4][12]. - Net cash used in financing activities for the nine months ended September 30, 2025, was $125,903, compared to $47,335 in 2024, indicating a significant increase in cash outflows[23]. Company Overview - CrossAmerica operates approximately 1,600 locations and owns or leases around 1,000 sites across 34 states[33]. - The company has established relationships with major oil brands, including ExxonMobil, BP, and Shell, ranking among the top distributors by fuel volume in the U.S.[33].