Mister Car Wash, Inc.

Good afternoon and welcome to Mr. Carwash third quarter 2025 conference call. At this time, all participants are in listen-only mode. Later, we'll conduct a question and answer session and instructions will follow at that time. Please note that this is being recorded and a reproduction of this call in whole or in part is not permitted without written authorization from the company. I will now turn the call over to Eddie Plank, Vice President of Investor Relations.

Good afternoon, everyone, and thank you for joining us to discuss our third quarter financial results. With me on the call today are John Lai, Chairman and Chief Executive Officer, and Jed Gold, Chief Financial Officer. After John and Jed have made their formal remarks, we'll open the call to questions. During this conference call, references to non-GAAP financial measures will be made. A complete reconciliation of these measures to the most comparable GAAP measures have been included in the company's earnings press release issued earlier today and posted to the investor relations section of the company's website at mrcarwash.com. As a reminder, comments made on today's call may include forward-looking statements, which are subject to significant risks and uncertainties that could cause the company's actual results to differ materially from management's current expectations. While the company may choose to update these statements in the future, it is under no obligation to do so unless required by applicable law or regulation. Please review the forward-looking statements disclaimer contained in the company's SEC filings, including its most recent 10-K and 10-Q reports, as such factors may be updated from time to time with the Securities and Exchange Commission. I'll now turn the call over to John.

Thanks, Eddie. Good afternoon, everyone, and thanks for joining our third quarter 2025 earnings call. We are very pleased with our performance in Q3. Our team delivered strong growth with revenue up 6% to $263 million and adjusted EBITDA increasing 10% to $87 million. In addition, our 3.1% comparable store sales growth marks the 10th consecutive quarter of comp gains. These results were fueled by strong UWC growth and exceptional execution from our powerhouse operations team, who consistently raised the bar and reset our high standard for excellence. We ended Q3 with approximately 2.2 million UWC members, a 6% increase year over year. I'm particularly pleased with the continued strong capture rates experienced across our stores. Our UWC performance was led by our titanium 360 tier, which reached approximately 25% penetration of our total membership base. During the quarter, we completed the rollout of our base membership price increase and are encouraged by the member adoption and retention trends today. These initial results demonstrate the strong price to value relationship and speaks to future opportunities to drive revenue growth. Importantly, our commitment to delivering high quality service at an accessible price point continues to be a key objective for our brand. Separately, after the quarter closed, we announced the acquisition of five stores in Lubbock, Texas. This expands our footprint in this market to nine locations, more than doubling our market share and offering customers greater convenience and more choices, amplifying our network effect. We have a strong track record of successfully acquiring and integrating businesses and look forward to reopening under the MR flag once all the value-added improvements have been put in place. As the industry continues to streamline and consolidate, We anticipate further opportunities to drive growth through strategic M&A. Building on that thought, we believe the industry is entering a healthier, more rational phase. The pace of new competitor openings in our markets continues to moderate, reducing pressure on trade areas. Over time, we also expect the rapid expansion that peaked in 2023 to lead to some capacity exiting the market, creating room for strong operators like Mr. to capture incremental market share and drive growth. Ultimately, we're setting the stage for meaningful, sustainable performance by investing strategically, driving innovation, and sharpening our competitive edge, all while delivering on our mission to produce a clean, dry, shiny car with unparalleled customer service. With the largest subscription base in the industry, strong unit economics, and a long history of innovation, we're exceptionally well-positioned to accelerate growth and elevate our brand for the long term. Now let's discuss the progress we've made on our strategic imperatives during the third quarter. Let me start with expanding our footprint. During the quarter, we opened five new Greenfield locations, bringing our total store count to 527 stores across 21 states. And just a few days ago, we celebrated the grand reopening of one of our flagship stores in Tucson at the corner of Speedway Boulevard and Country Club, which we fundamentally transformed to deliver an even better customer experience. With one quarter left in 2025, we remain on track to open approximately 30 new stores this year, in addition to the five stores we recently acquired. What's most exciting is that we're only about halfway to our long-term goal of more than 1,000 Mr. locations across the U.S., underscoring the growth opportunity in front of us. Moving on to increasing our innovative solutions. At Mr., innovation is more than just ideas. It's a launchpad for growth and delivering differentiated solutions that further separate MISTER from other operators in the marketplace. From improving the quality of the water we use, to fine-tuning our chemistry and tunnel equipment, to introducing proprietary extra services like Titanium 360, innovation is at the heart of who we are at MISTER. We continue to put our capital to work where it will have the biggest impact on sales, our stores, and improving the customer experience. And we remain committed to investing in technology and R&D to further differentiate and extend our lead. Our innovation pipeline is strong, and although it's too early to discuss details, we aim to bring our newest major innovation to market in 2026. Next, driving traffic and growing membership. We were encouraged by the results of our marketing tests in Q2, and in Q4, we're stepping up our marketing investment and expanding our testing program in a select number of markets. Our goal is clear. build a strong foundation where marketing becomes a scalable growth engine for Mr. 2026 and beyond. This phase is all about focus and precision, zeroing in on what matters most to understand which channels and tactics drive efficient, incremental sales growth. Once we've established that baseline, we'll look to broaden our efforts, exploring new channels and creative promotional offers that generate a meaningful return on our advertising investments. With a long runway of opportunity ahead, We're excited about what this program can unlock for Mr's long-term growth, particularly within our retail business. Finally, building a best-in-class team. We have the best team in the industry, and it shows. From our frontline team members in the stores all the way up to our senior leadership, our people and culture are woven into every layer of the business, driving performance, innovation, and customer experience. Our team has been the high-octane fuel behind our success. As we continue to scale, we remain fully committed to investing in their growth and development and long-term potential. Before I wrap up my prepared remarks, I want to thank our amazing people across the entire company for their ongoing contributions and commitment to our customers, which allows us to deliver solid results. In summary, this is an exciting time for Mr., and we're energized by where our business stands today and where we're going tomorrow. Industry headwinds are clearing. We're actively managing variability in our retail performance and we're capitalizing on M&A opportunities to fuel additional growth. By strengthening our core, driving innovation, and expanding both organically and inorganically, we're not only meeting strong customer demand, we're reshaping our category for the future. We've laid a strong foundation for sustainable growth and are well positioned to lead both our business and the broader industry into its next chapter. I'll now turn the call over to Jed to provide more commentary on our financial results.