Revenue growth remains steady at 6.2% in 2026Q1, though gross margins have shown significant volatility, fluctuating between 31.6% and 71.1% over the last ten quarters.
| Sales/Revenue | 1.07B | 1.05B | 994.73M | 927.07M | 876.51M | 758.36M | 574.94M | 629.53M |
| Revenue Growth % | 4.99% | 5.73% | 7.3% | 5.77% | 15.58% | 31.9% | -8.67% | - |
| Cost of Goods Sold | 441.23M | 390.51M | 290.7M | 363.72M | 586.25M | 265.17M | 193.97M | 243.91M |
| COGS % of Revenue | - | 37.13% | 29.22% | 39.23% | 66.88% | 34.97% | 33.74% | 38.75% |
| Gross Profit | 626.76M | 661.22M | 704.02M | 563.35M | 290.26M | 493.19M | 380.97M | 385.62M |
| Gross Margin % | 58.69% | 62.87% | 70.78% | 60.77% | 33.12% | 65.03% | 66.26% | 61.25% |
| Gross Profit Growth % | - | -6.08% | 24.97% | 94.09% | -41.15% | 29.46% | -1.2% | - |
| Operating Expenses | 409.52M | 446.48M | 525.09M | 385.21M | 102.54M | 497.7M | 237.87M | 310.55M |
| OpEx % of Revenue | - | 42.45% | 52.79% | 41.55% | 11.7% | 65.63% | 41.37% | 49.33% |
| Selling, General & Admin | 187.58M | 98.01M | 107.98M | 105.71M | 102.84M | 254.81M | 51.34M | 84.81M |
| SG&A % of Revenue | - | 9.32% | 10.86% | 11.4% | 11.73% | 33.6% | 8.93% | 13.47% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 2.12M | 348.47M | 417.11M | 279.5M | -302K | 242.88M | 186.53M | 225.75M |
| Operating Income | 217.24M | 214.74M | 178.93M | 178.15M | 187.72M | -4.51M | 143.1M | 75.06M |
| Operating Margin % | 20.34% | 20.42% | 17.99% | 19.22% | 21.42% | -0.59% | 24.89% | 11.92% |
| Operating Income Growth % | - | 20.01% | 0.44% | -5.1% | 4262.28% | -103.15% | 90.64% | - |
| EBITDA | 307.96M | 302.95M | 175.71M | 248.14M | 249.3M | 46.05M | 188.39M | 114.53M |
| EBITDA Margin % | 28.84% | 28.8% | 17.66% | 26.77% | 28.44% | 6.07% | 32.77% | 18.19% |
| EBITDA Growth % | 13.2% | 72.41% | -29.19% | -0.47% | 441.38% | -75.56% | 64.49% | - |
| D&A (Non-Cash Add-back) | 90.72M | 88.2M | -3.22M | 69.99M | 61.58M | 50.56M | 45.29M | 39.47M |
| EBIT | 205.76M | 199.72M | 182.16M | 178.15M | 187.42M | -7.71M | 141.18M | 65.89M |
| Net Interest Income | -55.14M | -58.88M | -79.49M | -75.1M | -41.9M | -39.42M | -64.01M | -67.61M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 55.14M | 58.88M | 79.49M | 75.1M | 41.9M | 39.42M | 64.01M | 67.61M |
| Other Income/Expense | -66.62M | -73.91M | -76.27M | -75.1M | -41.9M | -42.63M | -65.93M | -76.78M |
| Pretax Income | 150.62M | 140.84M | 102.67M | 103.04M | 145.82M | -47.14M | 77.17M | -1.72M |
| Pretax Margin % | 14.1% | 13.39% | 10.32% | 11.11% | 16.64% | -6.22% | 13.42% | -0.27% |
| Income Tax | 40.36M | 37.76M | 32.43M | 22.91M | 32.92M | -25.09M | 16.77M | -2.64M |
| Effective Tax Rate % | 26.8% | 26.81% | 31.59% | 22.23% | 22.58% | 53.23% | 21.73% | 153.61% |
| Net Income | 110.26M | 103.08M | 70.24M | 80.13M | 112.9M | -22.05M | 60.4M | 920K |
| Net Margin % | 10.32% | 9.8% | 7.06% | 8.64% | 12.88% | -2.91% | 10.51% | 0.15% |
| Net Income Growth % | 36.79% | 46.75% | -12.34% | -29.03% | 612.13% | -136.5% | 6465.54% | - |
| Net Income (Continuing) | 110.26M | 103.08M | 70.24M | 80.13M | 112.9M | -22.05M | 60.4M | 920K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.33 | 0.31 | 0.21 | 0.24 | 0.34 | -0.07 | 0.20 | 0.00 |
| EPS Growth % | 35.32% | 47.62% | -12.5% | -29.41% | 562.59% | -136.75% | - | - |
| EPS (Basic) | - | 0.32 | 0.22 | 0.26 | 0.37 | -0.07 | 0.20 | 0.00 |
| Diluted Shares Outstanding | 334.31M | 332.1M | 329.51M | 328.24M | 327.56M | 300.12M | 296.06M | 296.06M |
| Basic Shares Outstanding | 328.48M | 326.25M | 320.03M | 311.04M | 303.37M | 300.12M | 296.06M | 296.06M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | 21166.09% |
Subscription saturation and labor costs
According to recent financial disclosures, MCW maintained a consistent revenue growth trajectory, posting a 6.2% year-over-year increase in 2026Q1, which suggests that the company's transition toward a Greenfield development strategy is successfully sustaining top-line momentum despite the inherent challenges of scaling a physical retail footprint.
The revenue growth appears resilient, supported by the recurring nature of the Unlimited Wash Club model. Investors should monitor whether this growth rate can be sustained as the company shifts away from acquisition-led expansion, which historically provided faster, albeit more expensive, inorganic revenue jumps.
As reported in quarterly filings, MCW's gross margin has exhibited significant volatility, swinging from 31.6% in 2026Q1 to as high as 71.1% in 2025Q2, a fluctuation that warrants further investigation into the accounting treatment of site-level costs and the impact of seasonal operational expenses.
The wide variance in gross margins suggests that the company's cost structure is highly sensitive to periodic spikes in maintenance or utility-related expenditures. This inconsistency makes it difficult to ascertain the true underlying pricing power of the subscription model without adjusting for these recurring, yet lumpy, operational costs.
Based on the reported figures, MCW has demonstrated an ability to maintain operating margins near the 20% threshold, with 2026Q1 operating income reaching $59.0M, indicating that the company is effectively managing its SG&A overhead relative to the growth in its recurring subscription revenue base.
The stability of operating margins suggests that the company is successfully leveraging its centralized management and training programs to offset labor inflation. However, the reliance on sale-leaseback transactions may be masking the true extent of fixed-cost obligations, which could limit future operating leverage if lease costs escalate.
Financial statements indicate that MCW consistently incurs stock-based compensation expenses of approximately $6.6M to $7.3M per quarter, which serves as a persistent drag on net income and suggests that reported EPS may overstate the cash-generative capacity of the business for common shareholders.
While the company remains profitable, the consistent level of stock-based compensation warrants caution regarding the quality of earnings. Investors should focus on the gap between net income and cash flow from operations to determine if the current compensation structure aligns with long-term shareholder value creation.
Analysis of the income statement suggests that the primary risk to the current valuation is potential margin compression, as evidenced by the 2026Q1 gross margin contraction to 31.6%, which may indicate that the costs of maintaining a high-density network are beginning to outpace subscription revenue growth.
Short-sellers may focus on the potential for subscription saturation in core Sunbelt markets, where the cost of acquiring new members could rise significantly. If the company cannot maintain its historical margin profile, the premium valuation relative to traditional automotive service peers may face a downward correction.
Quick answers to the most common questions about buying MCW stock.
For fiscal year 2025, Mister Car Wash, Inc. (MCW) reported total revenue of $1.05B. This represents a 67.1% increase compared to $629.5M in 2019.
Mister Car Wash, Inc. (MCW) is profitable, generating $103.1M in net income for the fiscal year ending 2025 with a net profit margin of 9.8%.
Mister Car Wash, Inc. (MCW) reported an operating income of $214.7M, resulting in an operating profit margin of 20.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Mister Car Wash, Inc. (MCW) generated $661.2M in gross profit for the year, representing a gross profit margin of 62.9%. This demonstrates the company's core pricing power and production efficiency.