Mister Car Wash (MCW) Q3 2025 Earnings Transcript

Core Insights - The company is well-positioned for long-term growth with the largest subscription base in the industry, strong unit economics, and a history of innovation [1][4][10] Expansion and Market Position - The company opened five new Greenfield locations, increasing the total store count to 527 across 21 states, and celebrated the grand reopening of a flagship store in Tucson [1][4] - The expansion in the market has more than doubled the company's market share, enhancing customer convenience and choices [2] - The company successfully acquired five stores in Lubbock, Texas, strengthening its market position [3][25] Financial Performance - Revenue increased by 6% to $263 million, with adjusted EBITDA rising 10% to $87 million, marking the highest Q3 EBITDA margin ever reported at 32.9% [4][21] - Comparable store sales grew by 3.1%, marking the tenth consecutive quarter of comp gains, with UWC (Unlimited Wash Club) members increasing by 6% year-over-year to approximately 2.2 million [4][12] - The company achieved a 4% year-over-year increase in Express revenue per member, driven by base membership price increases and a shift towards higher-tier memberships [19][22] Innovation and Customer Experience - The Titanium 360 tier reached approximately 25% penetration of the total membership base, indicating strong adoption and retention trends [3][12] - The company is committed to innovation, focusing on improving service quality and introducing proprietary services to differentiate from competitors [5][6] Marketing and Growth Strategy - The company plans to increase marketing investments in Q4 to build a scalable growth engine for 2026 and beyond [7][8] - The marketing tests conducted in Q2 showed promising results, leading to an expansion of the testing program in select markets [7][8] Future Outlook - The company is on track to open approximately 30 new stores in 2025, with a long-term goal of over 1,000 locations across the U.S. [5][26] - Full-year revenue is expected to land near the high end of the guidance range of $1.046 billion to $1.054 billion, incorporating new store openings and marketing test contributions [28][29]