Yesway, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net income increased to $24.8 million from $15.9 million in the prior-year period.
• Adjusted EBITDA increased 8.6% year-over-year to $59.6 million.
• Income from operations increased to $38.8 million from $35.4 million in the prior-year period.
• Store Contribution increased 9.2% year-over-year to $77.0 million.
• Total revenues were $969.2 million for the three months ended September 30, 2026, compared to $715.9 million in the prior year.
• Fuel sales increased 51.6% year-over-year to $713.5 million, with fuel gross profit increasing 19.8% to $76.0 million.
• Inside merchandise sales increased 4.0% year-over-year to $246.4 million, with inside merchandise gross profit increasing 3.8% to $86.6 million.
• Net cash provided by operating activities was $66.1 million for the three months ended September 30, 2026, compared to $54.2 million in the prior year.
• Capital expenditures totaled $36.7 million for the three months ended September 30, 2026, compared to $11.3 million in the prior year.
• As of September 30, 2026, cash and cash equivalents were $104.6 million, and total debt (including financing and finance lease obligations) was $607.9 million.

Guidance and Future Outlook:

• The Company reaffirmed its full-year 2026 Adjusted EBITDA outlook of $235 million to $245 million.
• Full-year 2026 same-store inside merchandise sales growth guidance remains 1.25% to 3.25%.
• Full-year 2026 capital expenditures guidance remains $85 million to $95 million.
• Full-year 2026 new store openings guidance remains 6 to 8 stores.

Business Segments and Product Lines:

• Same-store inside merchandise sales increased 1.9% year-over-year.
• Same-store fuel gallons sold increased 1.1% year-over-year.
• Total inside merchandise margin was 35.1%.
• Total fuel margin was 46.1 cents per gallon, an increase of 14.4% year-over-year.
• The Company opened two new stores in the third quarter, including its first location in Arizona.
• Inside merchandise sales growth was driven by incremental sales from new stores and pricing actions taken during 2026 and late 2025.
• Fuel gross profit growth was driven by increased fuel margin cents per gallon and increased fuel volumes.

Market and Competitive Landscape:

• The Company delivered same-store inside merchandise sales growth in 19 of the past 20 quarters.
• The Company delivered positive same-store fuel gallons growth for the fifth consecutive quarter.
• Management noted continued momentum in market share expansion.
• The Company operates 423 stores as of September 30, 2026, under the Yesway and Allsup's brands.
• The store count roll forward shows 4 stores opened and 29 stores sold during the quarter.
• The 29 sold stores were located in Iowa and Kansas.

Risks and Challenges:

• Risks include volatility in global oil and petroleum prices, general economic conditions, and interest rates.
• Challenges include the ability to maintain a pipeline of suitable locations for new stores and successfully implementing rapid growth strategies.
• Risks involve dependence on a limited number of suppliers for fuel and merchandise.
• Potential risks include changes in demand for fuel-based transportation due to advancements in hybrid and electric vehicles.
• Risks include changes to tobacco legislation, potential court rulings, and increases in tobacco/nicotine taxes and wholesale costs.
• The Company faces risks related to the significant influence of Brookwood Financial Partners, LLC over stockholder approval decisions.

Management Commentary and Tone:

• Thomas N. Trkla, Chairman, President and CEO, described the quarter as "exceptional" and noted strong profitability against a challenging consumer environment.
• Management attributed performance to differentiated market positioning, deliberate geographic focus, significant diesel exposure, and a destination foodservice platform.
• Management highlighted three growth priorities: new store development, initiatives to strengthen existing operations, and selective acquisitions.
• Management expressed confidence in driving long-term value for stakeholders.

Other Key Points:

• The Company completed its initial public offering (IPO) in April 2026, resulting in the consolidation of BW Ultimate Parent, LLC results.
• Proceeds from the issuance of common stock were $301.1 million in the nine months ended September 30, 2026.
• Cash paid for IPO issuance costs totaled $7.4 million in the nine months ended September 30, 2026.
• Distributions to redeemable senior preferred membership interests were $252.3 million in the nine months ended September 30, 2026.
• Equity-based compensation expense was $6.3 million for the three months and $11.0 million for the nine months ended September 30, 2026.
• A gain on disposal of assets of $4.1 million was recorded for the three months ended September 30, 2026.
• The Company operates approximately 420 stores across eight states in the Midwest and Southwest.