Mister Car Wash’s third quarter results saw a positive market response, with management attributing the strong performance to a combination of pricing initiatives, steady subscription growth, and disciplined cost management. CEO John Lai highlighted the company’s ongoing success with its Unlimited Wash Club (UWC), noting a 6% increase in membership and the rising adoption of the premium Titanium 360 tier. Lai credited the company’s operations team for “consistently raising the bar” and pointed to a completed base membership price increase that contributed to higher revenue per member.
Is now the time to buy MCW? Find out in our full research report (it’s free for active Edge members).
Mister Car Wash (MCW) Q3 CY2025 Highlights:
- Revenue: $263.4 million vs analyst estimates of $261.1 million (5.7% year-on-year growth, 0.9% beat)
- Adjusted EPS: $0.11 vs analyst estimates of $0.10 (in line)
- Adjusted EBITDA: $86.79 million vs analyst estimates of $83.79 million (32.9% margin, 3.6% beat)
- The company reconfirmed its revenue guidance for the full year of $1.05 billion at the midpoint
- Adjusted EPS guidance for the full year is $0.43 at the midpoint, beating analyst estimates by 0.6%
- EBITDA guidance for the full year is $340 million at the midpoint, in line with analyst expectations
- Operating Margin: 19.7%, in line with the same quarter last year
- Locations: 527 at quarter end, up from 501 in the same quarter last year
- Same-Store Sales rose 3.1% year on year, in line with the same quarter last year
- Market Capitalization: $1.79 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Mister Car Wash’s Q3 Earnings Call
- David Bellinger (Mizuho): Asked about sources of sales upside and cash flow allocation. CFO Jed Gold said July was a particularly strong month, with Titanium mix and price increases fueling revenue per member. Gold stated greenfield development remains the top use of cash, but highlighted flexibility for M&A and possible buybacks.
- Justin Kleber (Baird): Asked how the base price increase will impact 2026 and about localized pricing strategies. CEO John Lai confirmed base price increases were phased and will benefit 2026, while pricing remains market-specific and not uniform nationally.
- Alexia Morgan (Piper Sandler): Inquired about sequential membership trends and the impact of marketing tests. Lai explained membership per store was relatively flat, tied to lower retail traffic, but emphasized strong member engagement and onboarding practices.
- Michael Lasser (UBS): Pressed on economic sensitivity and willingness to accept fewer members per location for higher revenue per member. Lai responded that Mister Car Wash is focused on both growing the member base and increasing value per member, not sacrificing one for the other.
- Phillip Blee (William Blair): Questioned the future greenfield run rate and whether M&A changes impact new builds. Gold indicated greenfield plans remain at about 30 per year, with acquisitions considered incremental to that target.
Catalysts in Upcoming Quarters
Going forward, our analysts will closely monitor (1) the traction and return on investment from expanded marketing campaigns, (2) the company’s ability to drive recurring revenue growth through premium tier adoption and further price optimization, and (3) progress on disciplined greenfield and acquisition-driven expansion. Additional focus will be placed on competitive dynamics and the normalization of retail traffic trends.
Mister Car Wash currently trades at $5.39, up from $5.22 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free for active Edge members).
High-Quality Stocks for All Market Conditions
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
