Strong Top-Line Growth
Net sales of $462.0M, up 11% reported year-over-year and up 15% when adjusted for prior-year refranchising; system-wide same-store sales grew 13.8% on a two-year stack driven largely by ticket increases, net price and premiumization.
Profit and Margin Expansion
Adjusted EBITDA margin expanded to 25.4%, up 60 basis points year-over-year; gross margin rate improved to 37.4%, up 50 basis points. Adjusted income from continuing operations was $47.6M; EPS increased 16% (28% when adjusted for refranchising).
Improved Cash Generation
Operating cash flow improved to $64.8M and free cash flow was $7.4M, an improvement of approximately $20M versus the prior year quarter.
Network Growth and Strategic Acquisition
Added 162 Breeze stores in a one-time contribution as part of the Breeze transaction and 38 net new stores outside Breeze (including 10 franchise); acquisition moves the company toward its 3,500+ store network target.
Expected Financial Contribution from Breeze
Management expects Breeze to contribute roughly $160M in incremental top-line (for the ten months owned in FY2026) and about $31M of EBITDA, while delivering integration opportunities and best-practice sharing across the network.
Strong Customer & Brand Metrics and Recognition
Network consumer rating of 4.7 stars and NPS scores >80%; named #1 in the automotive services category for Entrepreneur Franchise 500 for the fourth consecutive year and recognized as one of Yelp's most loved brands; raised >$1.8M for Children's Miracle Network (~40% increase YoY).