CrossAmerica Partners LP — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported Net Income of $8.8 million for Q3 2026, down from $13.6 million in Q3 2025.
• Reported Adjusted EBITDA of $38.7 million for Q3 2026, down from $41.3 million in Q3 2025.
• Reported Distributable Cash Flow of $21.8 million for Q3 2026, down from $27.8 million in Q3 2025.
• Consolidated Gross Profit was $101.1 million for Q3 2026 compared to $104.8 million in Q3 2025.
• Operating expenses were $56.3 million for Q3 2026 compared to $57.5 million in Q3 2025.
• Leverage was 3.72 times as of September 30, 2026, compared to 3.56 times as of September 30, 2025.
• Distribution Coverage Ratio for the trailing twelve months ended September 30, 2026, was 1.32 times, compared to 1.00 times for the comparable period in 2025.
• Net cash provided by operating activities was $85.6 million for the nine months ended September 30, 2026, compared to $62.1 million in the prior year period.
• Cash and cash equivalents were $7.8 million as of September 30, 2026, compared to $3.1 million as of December 31, 2025.
• Total assets were $975.8 million as of September 30, 2026, compared to $964.7 million as of December 31, 2025.
• Total liabilities were $1,060.5 million as of September 30, 2026, compared to $1,036.8 million as of December 31, 2025.
• Outstanding debt under the Credit Facility was $674.5 million as of September 30, 2026.

Guidance and Future Outlook:

• Management stated that results through the first nine months of 2026 are materially ahead of last year in both Adjusted EBITDA and Distributable Cash Flow.
• The Board declared a quarterly distribution of $0.5250 per limited partner unit for Q3 2026, payable November 12, 2026.
• Future distribution amounts and timing remain subject to the discretion of the Board.

Business Segments and Product Lines:

• Retail Segment: Gross profit was $78.0 million for Q3 2026, down from $80.0 million in Q3 2025.
  • Motor fuel gross profit declined $3.2 million (8%) to $37.6 million, driven by a 9% decrease in volume (128.6 million gallons vs. 141.8 million gallons).
  • Same store motor fuel gallons decreased 7% to 123.2 million.
  • Margin per gallon increased 5% to $0.404, driven by crude oil price volatility.
  • Merchandise gross profit increased 2% to $32.8 million, with gross profit percentage rising to 30.3% from 28.9%.
  • Average retail site count decreased to 549 from 592.
• Wholesale Segment: Gross profit was $23.1 million for Q3 2026, down from $24.8 million in Q3 2025.
  • Motor fuel gross profit declined $1.4 million (8%) due to an 8% decline in volume distributed (162.8 million gallons vs. 177.7 million gallons).
  • Average wholesale gross profit per gallon remained flat at $0.088.
  • Operating expenses declined 16% to $5.8 million, primarily due to a decrease in average controlled site count.

Market and Competitive Landscape:

• Higher fuel prices pressured volumes in the third quarter.
• The Partnership maintains relationships with major oil brands including ExxonMobil, BP, Shell, Marathon, Valero, and Phillips 66.
• CrossAmerica ranks as one of ExxonMobil's largest distributors by fuel volume in the United States.

Risks and Challenges:

• Declines in motor fuel volumes in both retail and wholesale segments impacted gross profit.
• Real estate optimization efforts resulted in a decrease in the average retail site count and wholesale controlled site count.
• Net gains on dispositions decreased to $2.4 million in Q3 2026 from $7.4 million in Q3 2025.
• Increases in sustaining capital expenditures and current income tax expense contributed to the decline in Distributable Cash Flow.

Management Commentary and Tone:

• CEO Maura Topper noted that while higher fuel prices pressured volumes, the team delivered on controllable factors.
• Management highlighted continued growth in merchandise margin percentage and lower operating expenses driven by cost management.
• The tone emphasized resilience in merchandise business performance and solid fuel margins despite volume headwinds.

Other Key Points:

• Sold 15 retail sites for $10.6 million in proceeds during Q3 2026, resulting in a net gain of $2.9 million.
• Sold 36 sites for $26.0 million in proceeds year-to-date, resulting in a net gain of $10.3 million.
• Maintained supply relationships with substantially all locations divested during the periods.
• Invested $7.2 million in capital expenditures during Q3 2026, including $1.9 million in growth capital and $5.3 million in sustaining capital.
• Approximately $237 million was available for future borrowings under the Credit Facility as of October 30, 2026.
• The Partnership is in compliance with all financial covenants under the Credit Facility.