Yesway, Inc. — Second Quarter 2026 Earnings Summary

Financial Performance

• Net income increased to $29.7 million from $24.2 million in the prior-year period.
• Adjusted EBITDA increased 35.0% year-over-year to $70.9 million.
• Income from operations increased to $47.7 million from $36.7 million in the prior-year period.
• Store Contribution increased 29.5% year-over-year to $87.7 million.
• Total revenues were $920.8 million for the three months ended June 30, 2026, compared to $677.7 million in the prior-year period.
• Fuel sales increased 52.7% year-over-year to $673.1 million, with fuel gross profit increasing 36.2% to $84.0 million.
• Fuel margin increased 27.4% year-over-year to 52.6 cents per gallon.
• Inside merchandise sales increased 4.4% year-over-year to $240.1 million, with inside merchandise gross profit increasing 5.8% to $85.8 million.
• Inside merchandise margin increased 50 basis points to 35.7%.
• Net cash provided by operating activities was $56.6 million for the three months ended June 30, 2026, compared to $35.7 million in the prior-year period.
• Capital expenditures totaled $24.2 million for the three months ended June 30, 2026, compared to $21.8 million in the prior-year period.
• As of June 30, 2026, the Company had cash and cash equivalents of $81.6 million and total debt of $618.4 million.

Guidance and Future Outlook

• Full year 2026 Adjusted EBITDA outlook increased to $235 million to $245 million from a previous range of $210 million to $220 million.
• The updated outlook assumes fuel margin will moderate to the low-40-cent-per-gallon range for the second half of the year, consistent with historical averages.
• Same-store inside merchandise sales growth is reaffirmed at 1.25% to 3.25%.
• Capital expenditures are reaffirmed at $85 million to $95 million.
• New store openings are reaffirmed at 6 to 8 new stores.
• The outlook assumes the sale of the 29 stores in the Iowa and Kansas portfolio will close by the end of 2026.

Business Segments and Product Lines

• Same-store inside merchandise sales increased 1.2% year-over-year; excluding the 29 Iowa and Kansas stores, this increased 1.5%.
• Same-store fuel gallons sold increased 1.4% year-over-year; excluding the 29 Iowa and Kansas stores, this increased 1.8%.
• Total fuel gallons sold increased 6.9% year-over-year.
• Total inside merchandise sales increased 4.4% year-over-year.
• The Company operated 450 stores as of June 30, 2026, under the Yesway and Allsup's brands.
• One store was opened during the three months ended June 30, 2026, and two stores were opened during the six months ended June 30, 2026.
• Same-store fuel gross profit increased 29.0% year-over-year.
• Same-store inside merchandise gross profit increased 2.5% year-over-year.
• Total inside merchandise and fuel gross profit increased 14.0% year-over-year on a same-store basis.

Market and Competitive Landscape

• The Company delivered same-store inside merchandise sales growth in 18 of the past 19 quarters.
• The Company generated positive same-store fuel gallons growth in the second quarter of 2026.
• The business model demonstrated resilience amid continued inflationary pressures and volatile fuel markets.

Risks and Challenges

• Forward-looking statements involve risks including volatility in global oil prices and availability of petroleum products.
• Risks include general economic conditions, interest rates, and the ability to maintain an adequate pipeline of suitable locations for new stores.
• Potential risks involve the ability to successfully implement a rapid growth strategy and new store development.
• Challenges include recruiting, hiring, and retaining qualified personnel and dependence on market acceptance by consumers.
• Risks include changes to wage regulations, employment laws, and demand for fuel-based transportation due to advancements in hybrid and electric vehicles.
• Risks include dependence on a limited number of suppliers for fuel and merchandise, operational hazards, and weather/climate change effects.
• Risks include changes to tobacco legislation, court rulings, and tax increases on tobacco and nicotine products.
• The Company notes the significant influence of Brookwood Financial Partners, LLC, including control over decisions requiring stockholder approval.

Management Commentary and Tone

• Thomas N. Trkla, Chairman, President and CEO, described the second quarter as a milestone reflecting broad-based execution across fuel and inside merchandise businesses.
• Management noted setting new records across fuel gallons sold, fuel gross profit, inside merchandise sales, inside merchandise gross profit, and Store Contribution.
• Management highlighted that strong operating performance and significant cash generation are increasing financial flexibility to fund organic growth and pursue acquisitions.
• The tone emphasized the strength of the platform, advantages of differentiated market positioning, and disciplined execution.

Other Key Points

• The Company expects to close the sale of 29 stores in its Iowa and Kansas portfolio by the end of 2026.
• Yesway completed its initial public offering in April 2026, consolidating results of BW Ultimate Parent, LLC.
• The Company reported $301.1 million in proceeds from the issuance of common stock and $7.3 million in cash paid for IPO issuance costs in the six months ended June 30, 2026.
• Distributions to redeemable senior preferred membership interests totaled $252.3 million in the six months ended June 30, 2026.
• A conference call and webcast were held on August 13, 2026, to discuss the results.
• The Company operates approximately 450 stores across nine states in the Midwest and Southwest.