Executive Summary

Q4 revenue grew 1.9% year over year to $564.1M, Adjusted EBITDA increased 4.6% to $130.7M, and Adjusted EPS rose to $0.30; GAAP diluted EPS was a loss of $1.94 driven by impairment and lease termination charges tied to the car wash review .
Management announced a definitive agreement to divest the U.S. Car Wash business for $385M (≈$255M cash + $130M seller note), with closing targeted in Q2 2025; proceeds earmarked for deleveraging toward a ≤3x net leverage target by end-2026 .
2025 outlook (ex-U.S. Car Wash): revenue ~$2.05–$2.15B, Adjusted EBITDA ~$520–$550M, Adjusted EPS ~$1.15–$1.25; management also guided to 1–3% SSS growth, 175–200 net store adds, lower interest expense ($125–$130M), and net capex at 6.5–7.5% of revenue .
Strategic and leadership updates: re-segmentation beginning Q1 2025 (Take 5, Franchise Brands, International Car Wash, Corporate & Other) and CEO transition to COO Daniel Rivera on May 9, 2025, with current CEO Jonathan Fitzpatrick becoming Non‑Executive Chair .

What Went Well and What Went Wrong

What Went Well

Take 5 Oil Change remained the growth engine: Q4 SSS +9.2%, 61 new stores (174 net new in FY24), and ~21% FY24 Adjusted EBITDA growth with ~33% EBITDA margins, supported by higher attachment rates and premium oil mix .
Q4 consolidated SSS +2.9% (16th consecutive positive quarter); Maintenance, Car Wash, and Collision all posted positive Q4 SSS, with Car Wash SSS +7.9% and collision +1.0% .
Deleveraging progress and liquidity intact: ended Q4 with $648.7M total liquidity and continued debt paydown; reiterated path to ≤3x net leverage by 2026 .

What Went Wrong

GAAP results impacted by non-cash and restructuring items: Q4 net loss of $(312)M and operating loss of $(319)M, mainly from ~$333M asset impairment/lease terminations and higher SG&A, tied to U.S. Car Wash strategic review and asset actions .
Sequential softness in consolidated Adjusted EBITDA vs Q3 ($130.7M in Q4 vs $138.8M in Q3), and adj. EBITDA margin moderated to 23.2% in Q4 from 23.5% in Q3 .
Macro/industry headwinds persist into 2025 outlook (consumer pressure, potential tariffs), prompting prudent guidance despite strong Take 5 momentum .

Financial Results

Consolidated results: Q4 vs prior quarter and prior year

Metric	Q4 2023	Q3 2024	Q4 2024
Revenue ($M)	553.7	591.7	564.1
Net (Loss) Income ($M)	(13.1)	(14.9)	(312.0)
GAAP Diluted EPS ($)	(0.08)	(0.09)	(1.94)
Adjusted Net Income ($M)	27.8	41.8	48.4
Adjusted EPS (Diluted) ($)	0.17	0.26	0.30
Adjusted EBITDA ($M)	125.0	138.8	130.7
Adj. EBITDA Margin (%)	—	23.5	23.2

Note: Adjusted results per company-defined non-GAAP reconciliations .

Segment performance (Q4 vs Q3)

Segment	Revenue ($M) Q3 2024	Revenue ($M) Q4 2024	Adj. EBITDA ($M) Q3 2024	Adj. EBITDA ($M) Q4 2024
Maintenance	278.2	286.3	96.7	98.3
Car Wash	142.2	143.4	25.6	28.7
Paint, Collision & Glass	109.0	97.3	34.7	33.0
Platform Services	52.2	40.2	22.5	16.3
Corporate/Other	10.1	(3.1)	(39.1)	(45.6)
Total	591.7	564.1	138.8	130.7

KPIs (Q4 2024 vs Q3 2024)

KPI	Q3 2024	Q4 2024
System-wide Sales ($M) Total	1,641.8	1,595.6
System-wide Sales ($M) Maintenance	535.9	532.9
System-wide Sales ($M) Car Wash	140.4	141.4
System-wide Sales ($M) PC&G	857.2	849.2
System-wide Sales ($M) Platform Svcs	108.2	72.2
Store Count Total	5,109	5,179
SSS (%) Total	1.1	2.9
SSS (%) Maintenance	3.0	6.0
SSS (%) Car Wash	1.8	7.9
SSS (%) PC&G	1.3	1.0

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY 2025 (ex-U.S. Car Wash)	N/A	~$2.05–$2.15B	New
Adjusted EBITDA	FY 2025 (ex-U.S. Car Wash)	N/A	~$520–$550M	New
Adjusted EPS	FY 2025 (ex-U.S. Car Wash)	N/A	~$1.15–$1.25	New
SSS Growth	FY 2025	N/A	1%–3%	New
Net Store Growth	FY 2025	N/A	~175–200	New
Interest Expense	FY 2025	N/A	$125–$130M	New
Net Capex	FY 2025	N/A	6.5%–7.5% of revenue	New
Effective Tax Rate	FY 2025	N/A	26%–27%	New

Note: Company also announced re-segmentation effective Q1 2025 (Take 5, Franchise Brands, International Car Wash, Corporate & Other) .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 & Q3 2024)	Current Period (Q4 2024)	Trend
Portfolio management / Car Wash	Strategic review ongoing; stabilization; U.S. membership surpassed 1M; considering options	Signed agreement to sell U.S. Car Wash for $385M; terms include $130M seller note; expected Q2 2025 close	Execution accelerating
Deleveraging	Target <4.5x by YE24 achieved in Q3; path to <3x by 2026	Liquidity $648.7M; reiterate ≤3x by end-2026; proceeds from divestiture + FCF to pay down debt	Maintaining
Take 5 growth	Q2/Q3 SSS +5–6%; pipeline ~1,000 sites; ~150+ openings/yr	Q4 SSS +9.2%; 61 new openings; FY24 net +174; margin ~33%; expect “normalized” SSS in 2025	Strong but normalizing
Collision/PC&G	Industry claims down; DRP gains offset; sequential improvement in Q3	Q4 SSS +1%; continued DRP partnerships	Stabilizing
Auto Glass Now	Building insurance/commercial; first regional TPA win in Q3; more contracts	Q4: contract activated Q1’25; momentum continues	Building
Tariffs/macro	Consumer pressure; cautious view	Outlook prudence; potential tariff impact discussed	Watching

Management Commentary

“Following a very robust sale process, we have entered into a definitive agreement to sell our U.S. carwash business… likely [to] be a Q2 closing.” .
“Our focus for 2025 is clear: delivering on our outlook, reducing debt and active portfolio management.” .
“Take 5 Oil Change… same-store sales… 9.2% in Q4… EBITDA margins of 33.3%.” .
“We maintain our commitment to achieve our net leverage target of 3x by the end of 2026.” .
CEO transition: “COO Daniel Rivera… to be President and CEO… May 9, 2025; Mr. Fitzpatrick to become Non‑Executive Chair.” .

Q&A Highlights

2025 growth composition: Take 5 is primary driver; U.S. Car Wash contributed roughly $50M of 2024 EBITDA; international car wash retained; prudence embedded in outlook .
Leverage trajectory post-transaction: seller note = leverage initially neutral; free cash flow and asset sales to drive “drumbeat of deleverage,” still aiming for ≤3x by 2026 .
Take 5 comp normalization: Q4’s 9%+ SSS seen as elevated; 2025 expected below that level though growth remains healthy .
Tariffs: nondiscretionary nature and pricing flexibility discussed; intention not to shift burden to franchisees .
Glass TPA: Q4 contract activated Q1’25; continued buildout of insurance and commercial channels .

Estimates Context

S&P Global consensus for Q4 2024 EPS and revenue was unavailable at time of analysis due to provider request limits. As a result, we cannot present beat/miss vs Street for Q4. When available, we will update with S&P Global consensus for EPS and revenue for Q4 2024 and reassess performance relative to expectations.

Key Takeaways for Investors

Portfolio simplification unlocks deleveraging: The U.S. Car Wash sale (cash + interest-bearing seller note) is a step toward balance sheet repair; management reiterated ≤3x leverage by end‑2026 .
Take 5 remains the central thesis: outsized SSS, unit growth and high-30%ish margins support multi‑year EBITDA compounding; expect moderated but durable growth in 2025 .
2025 reset improves visibility: ex‑U.S. Car Wash guidance establishes cleaner base; net stores (175–200) and capex intensity (6.5–7.5% of revenue) align capital to highest-ROIC growth .
Operational momentum beyond Take 5: Car Wash SSS inflected in Q4; collision SSS positive; Glass advancing insurance/commercial channels—each a potential incremental EBITDA tailwind as execution continues .
Leadership and reporting changes are catalysts: CEO transition and re-segmentation should sharpen external focus on the Take 5 growth algorithm and Franchise Brands’ cash generation .
Watch list: timing/close of car wash divestiture; margin trajectory as mix shifts; consumer/tariff backdrop; cadence of Glass wins converting to revenue .

Appendix: Additional Press Releases (Q4 timing)

Agreement to divest U.S. Car Wash business for $385M (structure, timing, leverage intent) .
CEO transition announcement (effective May 9, 2025) .

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