Yesway, Inc. (YSWY) Q1 2026: Record Net Income and Strong Growth — Positive Outlook

Yesway, Inc. (Nasdaq: YSWY) reported impressive financial results for the first quarter of fiscal 2026, achieving a record net income of $30.2 million, a significant turnaround from a net loss of $5.6 million in the prior-year period. This marks a $35.8 million improvement, showcasing a remarkable recovery and growth trajectory for the company.

Key Financial Metrics

• Net Income: $30.2 million (compared to a net loss of $5.6 million in Q1 2025)
• Adjusted EBITDA: Increased 112.9% year-over-year to $59.2 million
• Total Revenues: $683.6 million, up from $600.3 million in Q1 2025
• Same-Store Inside Merchandise Sales Growth: 4.5%
• Total Inside Merchandise Sales Growth: 9.5%
• Same-Store Fuel Gallons Sold Growth: 0.2%
• Total Fuel Gallons Sold Growth: 8.0%
• Store Contribution: Increased 72.7% year-over-year to $74.6 million
• Total Fuel Sales: Increased 16.0% year-over-year to $464.3 million
• Fuel Gross Profit: Increased 48.6% year-over-year to $71.6 million
• Total Inside Margin: 36.1%
• Total Fuel Margin: 49.4 cents per gallon

Analyst View

This quarter is undoubtedly a positive outcome for shareholders. The substantial increase in net income and adjusted EBITDA reflects Yesway's effective execution of its growth strategy and operational improvements. The company has demonstrated resilience and adaptability, particularly in its fuel and merchandise segments, which are critical to its business model.

The 112.9% increase in adjusted EBITDA indicates that the company is not only recovering but also enhancing its profitability. The growth in same-store sales, both in merchandise and fuel, suggests that Yesway is successfully attracting and retaining customers, which is vital for long-term sustainability.

Dividend and Guidance

Yesway has not announced any changes to its dividend policy or share buybacks in this quarter. However, the company has introduced its fiscal year 2026 outlook, which includes:

• Same-store Inside Merchandise Sales Growth: 1.25% - 3.25%
• Adjusted EBITDA: Projected between $210 million - $220 million
• Capital Expenditures: Expected to be between $85 million - $95 million
• New Store Openings: Anticipated 6 - 8 new stores

This guidance reflects the company's confidence in its growth strategy and operational momentum, which should be closely monitored by investors.

Forward Catalyst

Looking ahead, investors should watch for continued momentum in the second quarter, particularly in the execution of new store openings and the performance of existing stores. The company's ability to maintain or exceed its guidance for same-store sales growth and adjusted EBITDA will be crucial indicators of its ongoing success. Additionally, any updates regarding the sale of the Iowa and Kansas stores, which Yesway expects to complete by the end of 2026, could also impact investor sentiment and stock performance.

In conclusion, Yesway's first quarter results for fiscal 2026 highlight a significant turnaround and a strong foundation for future growth, making it an attractive prospect for shareholders.

Condensed Consolidated Statements of Income (Unaudited) (dollars in thousands)

Note: All amounts are in thousands.

Three months ended March 31,	2026	2025
Revenues (a)	$683,630	$600,318
Expenses:
Cost of goods sold (exclusive of depreciation and amortization, shown separately below) (a)	529,215	480,452
Salaries and employee benefits	49,712	49,096
Selling, general, and administrative expenses	46,357	45,798
Depreciation, amortization, and accretion	15,988	15,517
(Gain) loss on disposal of assets	(86)	(745)
Total operating expenses	641,186	590,118
Income from operations	42,444	10,200
Other expense
Interest expense, net	12,208	14,534
Change in fair value of derivative liability	—	1,300
Total other expense, net	12,208	15,834
Income before income tax expense	30,236	(5,634)
Income tax expense	—	—
Net income (loss)	30,236	(5,634)
Net income attributable to non-controlling interest	—	—
Net income (loss) attributable to BW Ultimate Parent, LLC	$30,236	$(5,634)
(a) Includes excise taxes of approximately:	$58,973	$54,317

Condensed Consolidated Balance Sheets (Unaudited) (dollars in thousands)

Note: All amounts are in thousands.

	March 31, 2026	December 31, 2025
Assets
Current assets:
Cash and cash equivalents	$56,472	$36,592
Accounts receivable, net of allowance for credit losses of $138 and $147 as of March 31, 2026, and December 31, 2025, respectively	32,213	24,538
Inventories	88,282	83,171
Prepaid expenses	5,183	6,158
Other current assets	18,500	13,235
Total current assets	200,650	163,694
Property and equipment, net	860,351	868,559
Intangible assets	280,946	280,946
Goodwill	277,996	277,996
Operating lease right-of-use assets, net	338,635	332,655
Finance lease right-of-use assets, net	1,902	1,931
Assets held for sale	16,599	16,501
Other assets	11,692	6,892
Total assets	$1,988,771	$1,949,174
Liabilities, redeemable senior preferred membership interests, and members’ equity
Current liabilities:
Current maturities of debt	4,100	4,100
Current maturities of financing obligations	2,065	2,034
Current maturities of operating lease liabilities	5,456	5,417
Current maturities of finance lease liabilities	69	68
Due to affiliates	58	46
Accounts payable	98,805	72,964
Accrued expenses and other current liabilities	41,961	49,072
Total current liabilities	$152,514	$133,701
Debt, net of current maturities, debt discount, and debt issuance costs	418,163	428,211
Financing obligations, net of current maturities, debt discount, and debt issuance costs	223,002	222,851
Operating lease liabilities, net of current maturities	323,080	316,451
Finance lease liabilities, net of current maturities	2,162	2,180
Asset retirement obligations	10,272	10,096
Liabilities held for sale	1,422	1,422
Other noncurrent liabilities	10,981	11,465
Total liabilities	$1,141,596	$1,126,377
Commitments and contingencies
Redeemable senior preferred membership interests (150,000 shares authorized and outstanding, redemption value of $249,287 and $239,628 and liquidation preference amount of $249,287 and $239,628 as of March 31, 2026, and December 31, 2025, respectively)	249,287	239,628
Members’ equity
Members’ capital	596,789	582,070
Non-controlling interest	1,099	1,099
Total members' equity	597,888	583,169
Total liabilities, senior preferred membership interests, equity, and members’ equity	$1,988,771	$1,949,174

Disclaimer

The content on MarketsFN.com is provided for educational and informational purposes only. It does not constitute financial advice, investment recommendations, or trading guidance. All investments carry risk and past performance does not guarantee future results. You are solely responsible for your investment decisions and should conduct independent research and consult a qualified financial advisor before acting. MarketsFN.com and its authors are not liable for any losses or damages arising from the use of this information.