Total Net Revenue

+1.9% (from USD 553,677K in Q4 2023 to USD 564,117K in Q4 2024)

Total net revenue saw a modest increase of 1.9%, reflecting steady demand and slight volumetric gains despite broader operational challenges. The minimal revenue growth contrasts sharply with deteriorations in profitability, highlighting challenges in cost management relative to prior periods. " "

Operating Income

Shift from +USD 45,545K in Q4 2023 to –USD 318,763K in Q4 2024 (700% deterioration)

Operating income plunged dramatically by roughly 700% due to a steep increase in operating expenses and margin compression. Despite the slight revenue uptick, increased costs—likely from higher SG&A, impairments, or other expense items—erased previous profitability seen in Q4 2023. " "

Net Loss

Expanded from USD 13,149K profit (Q4 2023) to –USD 311,969K in Q4 2024; Basic EPS worsened to –$1.91

Net loss widened significantly as the dramatic drop in operating income transferred to the bottom line. The sharp swing from a small net profit to a substantial net loss indicates escalating cost pressures and possible non‐cash charges that were not as pronounced in the prior period, further reflected in the substantial worsening of basic EPS from –$0.10 to –$1.91. " "

Independently-operated Store Sales

Increased by 26.7% YoY (from USD 38,748K to USD 49,110K)

Independently-operated store sales surged by nearly 26.7%, driven by robust same-store sales and an improved product mix, suggesting that this segment continued to benefit from favorable market conditions and pricing strategies, considerably outperforming its previous period. " "

Company-operated Store Sales

Increased by 5.8% YoY (from USD 366,668K to USD 387,663K)

Company-operated store sales experienced modest growth of 5.8%, indicating that while same-store sales improved, the net store growth did not fully counterbalance other challenges, leading to only moderate gains compared to the previous period's figures. " "

Supply and Other Revenue

Declined by 21% YoY (from USD 73,273K to USD 57,747K)

Supply and other revenue dropped by approximately 21% likely due to a combination of decreased product/service volumes and strategic divestitures, such as the sale of the Canadian distribution business, which negatively impacted this revenue stream relative to the prior year. " "

Operating Cash Flow

Improved by 42% YoY (from USD 23,134K to USD 32,939K)

Operating cash flow increased by about 42% despite deeper operating losses. This improvement is attributable to non-cash charges and better working capital management, which yielded higher cash from operations relative to Q4 2023, even as other operating metrics worsened. " "

Liability-to-Equity Ratio

Approximately 7.66x in Q4 2024

The liability-to-equity ratio remains high at approximately 7.66x, reflecting a significant reliance on debt financing. In Q4 2024, shareholders’ equity stood at USD 607,334K versus total liabilities of USD 4,654,453K, underscoring the long-term impact of prior losses and the continued high leverage compared to earlier periods. "

Revenue

FY 2025

$2.33 billion to $2.43 billion "

$2.05 billion to $2.15 billion "

lowered

Adjusted EBITDA

FY 2025

$529 million to $559 million "

$520 million to $550 million "

lowered

Adjusted Diluted EPS

FY 2025

$0.88 to $1.00 "

$1.15 to $1.25 per share "

raised

Same-store sales growth

FY 2025

1% to 3% "

1% to 3% "

no change

Net store growth

FY 2025

205 to 220 stores "

175 to 200 units "

lowered

Net capital expenditures

FY 2025

no prior guidance

6.5% to 7.5% of revenue "

no prior guidance

Interest expense

FY 2025

no prior guidance

$125 million to $130 million "

no prior guidance

Effective annual tax rate

FY 2025

no prior guidance

26% to 27% "

no prior guidance

Take 5 Oil Change Performance

Q1–Q3 consistently emphasized robust growth with consecutive positive same‐store sales (15–17 quarters), strong revenue, EBITDA growth, premiumization, and aggressive store expansion " " " " "

Q4 highlighted the 18th consecutive quarter of positive same‐store sales, 9.2% same‐store sales growth, enhanced EBITDA margins, robust ticket growth (including non‐oil change services), and aggressive unit expansion " " "

Consistent robust performance with a mature growth trajectory; while Q4 continues the strong momentum, there is an expectation of a more normalized same‐store sales growth in the future " "

U.S. Car Wash Membership & Conversion

Q1 featured pricing test initiatives, improved conversion and reduced churn; Q2 demonstrated tripled conversion rates with 200,000 new members added; Q3 celebrated surpassing 1 million members with significant membership strategy improvements " " " "

Q4 did not specifically address new membership or conversion updates in the available documents "

Previously a key focus with clear operational improvements; current period shows less emphasis, suggesting that the topic may have faded in prominence this quarter "

Strategic Deleveraging & Capital Allocation

Q1 discussed debt reduction targets and early divestiture proceeds; Q2 emphasized refinancing actions and asset sales generating over $100 million in proceeds; Q3 detailed continued debt paydowns and strategic divestitures such as PH Vitres " " " "

Q4 reiterated the focus on reducing leverage to 4.4x net debt to adjusted EBITDA, highlighted additional debt paydowns of $248 million for 2024, and noted the upcoming sale of the U.S. Car Wash business as part of portfolio optimization " " "

A consistent and central theme across all periods with ongoing divestiture and debt reduction activities; maintained as a top strategic priority " " "

Operational Efficiency, Margin Expansion & Free Cash Flow

Q1 through Q3 described strong operational efficiency initiatives, margin expansion in key segments (e.g., Maintenance, DRPs, Platform Services) and robust free cash flow generation used for deleveraging and investment " " "

Q4 continued to highlight disciplined cost management, improved EBITDA margins across segments (including a 60 basis point improvement for corporate margins and significant improvements in Take 5 Oil Change), and strong free cash flow generation aiding further debt reductions " " "

Consistent focus on efficiency and margin improvements across segments; free cash flow generation remains strong and integral to funding growth and deleveraging efforts " "

Macroeconomic Headwinds

Q1–Q3 discussed the inflationary environment, tariff pressures, and soft consumer spending affecting lower-income households, with strategies in place to mitigate impact through needs-based and commercial business strengths " " " "

Q4 continued to acknowledge inflation, tariff pressures, and stagnant consumer spending impacting margins, with cautious pricing adjustments and focus on passing through cost pressures where possible " " "

Persistent macroeconomic challenges remain across periods with a consistent strategy to mitigate impact through disciplined cost management and focus on needs-based segments " " "

Recurring Weather Vulnerability

Q1 highlighted extreme winter weather causing over 200 lost retail days; Q2 noted inclement weather impacting Car Wash same‐store sales; Q3 detailed hurricane effects causing 1,500 lost retail days and a $10 million sales impact in key regions " " " "

Q4 did not mention recurring weather challenges or their impacts on retail and same‐store sales in the available documents "

Previously a recurring concern with significant operational implications; its absence in Q4 suggests a reduced emphasis or lower impact during the current period " "

Execution Risks in Segmentation & Divestitures

Q1 implicitly noted risks with refranchising and divestiture strategies; Q2 provided a detailed discussion on divestiture proceeds, ERP rollouts, and transformation initiatives acknowledging execution challenges; Q3 elaborated on divestiture activities (e.g. PH Vitres, U.S. Car Wash review) " " "

Q4 did not specifically call out execution risks related to segmentation changes or divestiture processes, though divestitures like the U.S. Car Wash sale continue " "

Execution risks were prominent in earlier periods as the company navigated portfolio optimization; current calls show reduced emphasis on these risks, implying smoother execution or less perceived volatility " "

Emerging Auto Glass Business Focus

Q1 introduced Auto Glass Now as an early-stage strategic initiative with a focus on building insurance partnerships; Q2 detailed pipeline agreements with regional carriers and rental companies; Q3 showcased secured TPA deals and system improvements " " "

Q4 continued to focus on transitioning Auto Glass from an integration phase to a growth-focused strategy, with new partnerships and an active push to operationalize a key TPA deal expected to drive revenue in Q1–Q2 2025 " "

An emerging, strategically significant area showing progressive maturation; while still in early stages, the focus is shifting from initial pipeline building to executing and scaling commercial partnerships " " "

Softness in Collision Segment

Q1 noted softness partly due to refranchising of collision centers that reduced revenue; Q2 described softness driven by lower industry claims and refranchising impact; Q3 noted a recovery with positive same‐store growth and improved DRPs despite overall softness " " "

Q4 mentioned that despite a 7% decline in collision repair estimates industry-wide, same‐store sales turned positive (up 1%), indicating stability and a fading concern over softness "

Concerns about collision softness have faded as the segment shows signs of stabilization and recovery; the focus has shifted to market share gains and DRP expansion " "

Leadership Turnover & Management Transitions

Q1 discussed CFO Gary Ferrera’s departure and the appointment of an Interim CFO; Q2 introduced Mike Diamond as the new CFO and recognized interim leadership contributions; Q3 highlighted the smooth integration of the new CFO " " "

Q4 featured a major transition with CEO Jonathan Fitzpatrick announcing his planned exit post–Q1 2025 and the succession of COO Danny Rivera as CEO, alongside continued CFO integration, emphasizing robust succession planning and management continuity " "

Leadership transitions have been an evolving narrative; earlier CFO changes have now culminated in a high-profile CEO succession plan, demonstrating proactive and well-communicated management evolution " "

Evolution of Pricing Strategies for Car Wash Membership

Q1 introduced testing of new pricing strategies aimed at boosting membership conversion; Q2 detailed a nationwide rollout aligning subscription prices with single wash prices resulting in tripled conversion rates and significant new membership growth; Q3 reinforced these improvements " " " "

Q4 did not mention new pricing initiatives or updates for the Car Wash segment's membership conversion strategy, with the focus shifting away from pricing evolution "

Previously a dynamic area with evolving pricing strategies that yielded strong early results; the current period sees a de‐emphasis of this topic, suggesting maturity or a temporary reduction in focus "