Open the filing on EDGARCrossAmerica Partners LP Reports Fourth Quarter and Full Year 2025 Results
Reported Fourth Quarter of 2025 Net Income of $10.2 million, Adjusted EBITDA of $43.4 million and Distributable Cash Flow of $28.5 million compared to Fourth Quarter of 2024 Net Income of $16.9 million, Adjusted EBITDA of $35.5 million and Distributable Cash Flow of $21.1 million
Generated Full Year of 2025 Net Income of $41.8 million, Adjusted EBITDA of $146.0 million and Distributable Cash Flow of $87.8 million compared to Full Year of 2024 Net Income of $22.5 million, Adjusted EBITDA of $145.5 million and Distributable Cash Flow of $86.0 million
Reported Fourth Quarter of 2025 Gross Profit for the Retail Segment of $82.9 million compared to $75.1 million of Gross Profit for the Fourth Quarter of 2024 and Fourth Quarter of 2025 Gross Profit for the Wholesale Segment of $24.2 million compared to $25.9 million of Gross Profit for the Fourth Quarter of 2024
Generated Full Year of 2025 Gross Profit for the Retail Segment of $302.2 million compared to $289.7 million of Gross Profit for the Full Year of 2024 and Full Year of 2025 Gross Profit for the Wholesale Segment of $100.5 million compared to $108.6 million of Gross Profit for the Full Year of 2024
Leverage, as defined in the CAPL Credit Facility, was 3.51 times as of December 31. 2025, compared to 4.36 times as of December 31, 2024
The Distribution Coverage Ratio was 1.43 times for the Fourth Quarter of 2025 compared to 1.06 times for the Fourth Quarter of 2024 and for the Full Year of 2025 was 1.10 times compared to 1.08 times for the comparable period of 2024
Allentown, PA February 25, 2026 - CrossAmerica Partners LP (NYSE: CAPL) (“CrossAmerica” or the “Partnership”), a leading wholesale fuels distributor, convenience store operator, and owner and lessor of real estate used in the retail distribution of motor fuels, today reported financial results for the fourth quarter and full year ended December 31, 2025.
“We delivered a solid fourth quarter, driven by strong retail and wholesale fuel margins, along with growth in same-store sales and store margin percentage, resulting in performance well above the prior year,” said Charles Nifong, President & CEO of CrossAmerica. “The quarter highlights the benefits of our strategic site conversions to retail, which enabled us to capitalize on a favorable margin environment. Throughout the year, we successfully divested non-core locations, generating over $100 million in proceeds that we used to materially reduce our debt and enhance our financial flexibility. As a result, we enter 2026 with a solid core business and a strong balance sheet to support future growth.”
Fourth Quarter and Full Year Results
Consolidated Results
| Key Operating Metrics | Q4 2025 | Q4 2024 | FY2025 | FY2024 |
| Net Income | $10.2M | $16.9M | $41.8M | $22.5M |
| Adjusted EBITDA | $43.4M | $35.5M | $146.0M | $145.5M |
| Distributable Cash Flow | $28.5M | $21.1M | $87.8M | $86.0M |
| Distribution Coverage Ratio | 1.43x | 1.06x | 1.10x | 1.08x |
CrossAmerica reported increases in Adjusted EBITDA, Distributable Cash Flow and its Distribution Coverage Ratio for the fourth quarter of 2025 compared to the fourth quarter of 2024. These increases were primarily driven by an increase in motor fuel margin per gallon in the retail and wholesale segments, an increase in merchandise gross profit in the retail segment and a decline in operating expenses. Net Income for the quarter declined year-over-year primarily due to lower net gains on asset dispositions compared to the prior-year period.
For the full year of 2025, CrossAmerica reported increases in Net Income, Adjusted EBITDA, Distributable Cash Flow and its Distribution Coverage Ratio when compared to the full year of 2024 primarily due to an increase in motor fuel and merchandise gross profit in the retail segment. The year-over-year increase in Net Income, Distributable Cash Flow and Distribution Coverage was primarily driven by the increase in Adjusted EBITDA noted above in addition to a $4.2 million decrease in interest expense due to a lower average interest rate along with a lower average outstanding debt balance.
Retail Segment
| Key Operating Metrics | Q4 2025 | Q4 2024 | FY2025 | FY2024 |
| Retail segment gross profit | $82.9M | $75.1M | $302.2M | $289.7M |
| Retail segment motor fuel gallons distributed | 132.1M | 141.4M | 542.1M | 554.5M |
| Same store motor fuel gallons distributed | 121.8M | 131.8M | 444.2M | 463.9M |
| Retail segment motor fuel gross profit | $46.5M | $39.8M | $157.2M | $150.9M |
| Retail segment margin per gallon, before deducting credit card fees and commissions | $0.449 | $0.376 | $0.386 | $0.368 |
| Same store merchandise sales excluding cigarettes* | $65.4M | $64.6M | $215.7M | $210.9M |
| Merchandise gross profit* | $28.8M | $28.1M | $116.2M | $109.9M |
| Merchandise gross profit percentage* | 29.1% | 28.4% | 28.5% | 28.2% |
| Operating Expenses | $51.5M | $52.2M | $204.7M | $196.2M |
| Retail Sites (end of period) | 583 | 594 | 583 | 594 |
*Includes only company operated retail sites
Retail Segment - Fourth Quarter
For the fourth quarter of 2025, the retail segment generated a 10% increase in gross profit compared to the fourth quarter of 2024, driven by higher motor fuel and merchandise margins, partially offset by lower fuel volumes. Operating expenses declined year-over-year for the quarter as well. Average site count in the segment declined 2% year-over-year due to the sale of certain company operated sites in connection with its real estate optimization effort, partially offset by the conversion of certain lessee dealer sites to company operated and commission agent sites.
Motor fuel gross profit increased $6.7 million or 17%, attributable to a 19% increase in the margin per gallon for the quarter compared to prior year, partially offset by a 7% decline in volume primarily driven by a decline in same store volumes, relative to a particularly strong fourth quarter in 2024, when same store volumes were up 2% over the prior year.
Merchandise gross profit increased 3% year-over-year, despite a 4% decline in the average company operated site count for the quarter compared to the prior year. Same store merchandise sales excluding cigarettes increased 1% and merchandise gross profit percentage expanded to 29.1% from 28.4% for the prior-year period. The increase in merchandise gross profit was partially due to the transition of certain merchandise products from a scan-based trading model to a gross profit model.
Operating expenses for the retail segment declined 1% or $0.7 million primarily driven by the 2% decline in average segment site count and, to a lesser extent, a decline in same store operating expenses.
Retail Segment - Full Year
For the full year of 2025, CrossAmerica's retail segment generated a 4% increase in gross profit compared to the full year of 2024. The increase was driven by higher motor fuel and merchandise gross margins, offset partially by higher operating expenses. Average site count in the segment increased 4% year-over-year due to the conversion of certain lessee dealer sites to company operated sites, partially offset by the sale of certain company operated sites in connection with its real estate optimization effort.
The retail segment's motor fuel gross profit increased $6.3 million or 4%, attributable to a 5% increase in the margin per gallon, driven by improved sourcing costs, the relative movement in crude oil prices over the periods, and local retail market dynamics. This was partially offset by a 2% decline in volume primarily driven by a 4% decrease in same store volumes compared to the prior year.
Merchandise gross profit increased $6.3 million or 6% year-over-year, driven by an increase in sales in CrossAmerica's base business and a 2% increase in the average company operated site count. Same store merchandise sales excluding cigarettes increased 2% for the year and merchandise gross profit percentage increased to 28.5% from 28.2%. The increase in merchandise gross profit was partially due to the transition of certain merchandise products from a scan-based trading model to a gross profit model.
Operating expenses increased 4% primarily due to the 4% increase in the average segment site count. Increased labor expense due to the opening of branded food operations as same store locations during the year also contributed to the operating expense increase for the year.
Wholesale Segment
| Key Operating Metrics | Q4 2025 | Q4 2024 | FY2025 | FY2024 |
| Wholesale segment gross profit | $24.2M | $25.9M | $100.5M | $108.6M |
| Wholesale motor fuel gallons distributed | 168.9M | 180.5M | 688.7M | 743.5M |
| Average wholesale gross margin per gallon | $0.093 | $0.082 | $0.091 | $0.085 |
Wholesale Segment - Fourth Quarter
During the fourth quarter of 2025, CrossAmerica’s wholesale segment gross profit decreased 7% compared to the fourth quarter of 2024. This was driven by a decline in rent gross profit primarily due to the conversion of sites to the retail segment. Motor fuel gross profit increased 6% during the fourth quarter of 2025, primarily driven by a 13% increase in margin per gallon, partially offset by a 6% decline in wholesale volume. The increase in margin per gallon was primarily driven by better sourcing costs and the relative movement of crude oil prices in the two periods. The decline in wholesale volumes was largely attributable to the continued conversion of wholesale locations to the retail class of trade. The total average site count in the wholesale segment during the fourth quarter of 2025 declined 6% compared to the fourth quarter of 2024, including a 23% decline in lessee dealer locations, primarily due to the sale of certain lessee dealer sites, often with supply, in connection with CrossAmerica’s real estate optimization effort.
Wholesale Segment - Full Year
For the full year of 2025, the wholesale segment's gross profit declined 7% year-over-year. The decline was driven by lower rent gross profit and fuel volumes. Total average segment site count declined 8% year-over-year, including a 23% decline in lessee dealer locations, primarily due to the real estate optimization efforts. Motor fuel gross profit declined 1%, with a 7% decrease in wholesale volume distributed, partially offset by a 7% increase in margin per gallon, due to the factors noted previously. The decline in wholesale volume was largely attributable to the conversion of lessee dealer sites to the retail segment, the net loss of independent dealer contracts and lower same store volumes. These decreases were partially offset by asset sales with continued fuel supply, which convert sites to independent dealer sites, which are included in wholesale volumes.
Rent gross profit decreased $7.9 million or 19%, reflecting site sales and conversions associated with CrossAmerica’s real estate and portfolio optimization strategy.
Divestment Activity
During the three months ended December 31, 2025, CrossAmerica sold eleven sites for $8.8 million in proceeds, resulting in net gains of $3.4 million. CrossAmerica maintained a supply relationship post sale with substantially all of the locations divested during the quarter. For the twelve months ended December 31, 2025, CrossAmerica sold 107 properties for $103.3 million in proceeds, resulting in net gains of $45.9 million. In comparison, for the twelve months ended December 31, 2024, CrossAmerica sold thirty sites for $36.3 million in proceeds, resulting in net gains of $23.3 million.
Liquidity and Capital Resources
As of December 31, 2025, CrossAmerica had $692.3 million outstanding under its CAPL Credit Facility. As of February 20, 2026, after taking into consideration debt covenant restrictions, approximately $216.6 million was available for future borrowings under the CAPL Credit Facility. Leverage, as defined in the CAPL Credit Facility, was 3.51 times as of December 31, 2025, compared to 4.36 times as of December 31, 2024. As of December 31, 2025, CrossAmerica was in compliance with its financial covenants under the credit facility.
Distributions
On January 21, 2026, the Board of the Directors of CrossAmerica’s General Partner (“Board”) declared a quarterly distribution of $0.5250 per limited partner unit attributable to the fourth quarter of 2025. As previously announced, the distribution was paid on February 12, 2026, to all unitholders of record as of February 2, 2026. The amount and timing of any future distributions is subject to the discretion of the Board as provided in CrossAmerica’s Partnership Agreement.
Conference Call
The Partnership will host a conference call on February 26, 2026, at 9:00 a.m. Eastern Time to discuss the fourth quarter and full year 2025 earnings results. The conference call numbers are 800-717-1738 or 646-307-1865 and the passcode for both is 288997. A live audio webcast of the conference call and the related earnings materials, including reconciliations of any non-GAAP financial measures to GAAP financial measures and any other applicable disclosures, will be available on that same day on the investor section of the CrossAmerica website (www.crossamericapartners.com). After the live conference call, an archive of the webcast will be available on the investor section of the CrossAmerica site at https://caplp.gcs-web.com/webcasts-presentations within 24 hours after the call for a period of sixty days.
Non-GAAP Measures and Same Store Metrics
Non-GAAP measures used in this release include EBITDA, Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio. These Non-GAAP measures are further described and reconciled to their most directly comparable GAAP measures in the Supplemental Disclosure Regarding Non-GAAP Financial Measures section of this release.
Same store fuel volume and same store merchandise sales include aggregated individual store results for all stores that had fuel volume or merchandise sales in all months for both periods within the same segment. Same store merchandise sales excludes other revenues such as lottery commissions and car wash sales. Certain merchandise products have been transitioned from a scan-based trading model (whereby a third party owns the inventory and CrossAmerica records a commission in other revenues) to a gross profit model (whereby CrossAmerica owns the inventory and records merchandise sales and cost of sales). Same store merchandise sales for the three and twelve months ended December 31, 2024, were adjusted to gross it up for the sales that would have been recorded had CrossAmerica been on the gross profit model in the prior year.
CROSSAMERICA PARTNERS LP
CONSOLIDATED BALANCE SHEETS
(Thousands of Dollars, except unit data)
| December 31, |
|---|
| 2025 | 2024 |
|---|
| ASSETS | | |
| Current assets: | | |
| Cash and cash equivalents | $3,137 | $3,381 |
| Accounts receivable, net of allowances of $635 and $757, respectively | 28,566 | 31,603 |
| Accounts receivable from related parties | 687 | 634 |
| Inventory | 59,610 | 63,169 |
| Assets held for sale | 9,690 | 8,994 |
| Current portion of interest rate swap contracts | 801 | 2,958 |
| Other current assets | 8,590 | 8,091 |
| Total current assets | 111,081 | 118,830 |
| Property and equipment, net | 547,686 | 656,300 |
| Right-of-use assets, net | 121,636 | 136,430 |
| Intangible assets, net | 61,638 | 77,242 |
| Goodwill | 99,409 | 99,409 |
| Deferred tax assets | 760 | 1,001 |
| Interest rate swap contracts, less current portion | 325 | 5,133 |
| Other assets | 22,199 | 20,380 |
| Total assets | $964,734 | $1,114,725 |
| LIABILITIES AND EQUITY | | |
| Current liabilities: | | |
| Current portion of debt and finance lease obligations | $3,465 | $3,266 |
| Current portion of operating lease obligations | 34,715 | 35,065 |
| Accounts payable | 63,413 | 73,986 |
| Accounts payable to related parties | 6,536 | 7,729 |
| Current portion of interest rate swap contracts | 697 | - |
| Accrued expenses and other current liabilities | 27,378 | 24,044 |
| Motor fuel and sales taxes payable | 19,013 | 18,756 |
| Total current liabilities | 155,217 | 162,846 |
| Debt and finance lease obligations, less current portion | 687,187 | 763,932 |
| Operating lease obligations, less current portion | 91,267 | 106,296 |
| Deferred tax liabilities, net | 7,409 | 7,424 |
| Asset retirement obligations | 45,014 | 48,251 |
| Interest rate swap contracts, less current portion | 1,390 | 311 |
| Other long-term liabilities | 49,289 | 50,448 |
| Total liabilities | 1,036,773 | 1,139,508 |
| Commitments and contingencies (Notes 15 and 16) | | |
| Preferred membership interests | 30,289 | 28,993 |
| Equity: | | |
| Common units - 38,135,078 and 38,059,702 units issued and outstanding at December 31, 2025 and 2024, respectively | (101,280) | (61,371) |
| Accumulated other comprehensive (loss) income | (1,048) | 7,595 |
| Total deficit | (102,328) | (53,776) |
| Total liabilities and equity | $964,734 | $1,114,725 |
CROSSAMERICA PARTNERS LP
CONSOLIDATED STATEMENTS OF OPERATIONS
(Thousands of Dollars, Except Unit and Per Unit Amounts)
| (Unaudited) Three Months Ended December 31, | Year Ended December 31, |
|---|
| 2025 | 2024 | 2025 | 2024 |
|---|
| Operating revenues | $866,287 | $944,222 | $3,662,534 | $4,098,288 |
| Cost of sales | 759,156 | 843,239 | 3,259,827 | 3,699,969 |
| Gross profit | 107,131 | 100,983 | 402,707 | 398,319 |
| Operating expenses: | | | | |
| Operating expenses | 57,348 | 59,367 | 231,712 | 227,986 |
| General and administrative expenses | 7,243 | 6,716 | 27,988 | 28,756 |
| Depreciation, amortization and accretion expense | 19,916 | 18,080 | 89,587 | 75,983 |
| Total operating expenses | 84,507 | 84,163 | 349,287 | 332,725 |
| Gain on dispositions and lease terminations, net | 3,440 | 11,512 | 44,229 | 4,966 |
| Operating income | 26,064 | 28,332 | 97,649 | 70,560 |
| Other income, net | 159 | 176 | 577 | 780 |
| Interest expense | (10,941) | (13,402) | (48,140) | (52,320) |
| Income before income taxes | 15,282 | 15,106 | 50,086 | 19,020 |
| Income tax expense (benefit) | 5,090 | (1,755) | 8,253 | (3,433) |
| Net income | 10,192 | 16,861 | 41,833 | 22,453 |
| Accretion of preferred membership interests | 679 | 650 | 2,720 | 2,561 |
| Net income available to limited partners | $9,513 | $16,211 | $39,113 | $19,892 |
| Earnings per common unit | | | | |
| Basic | $0.25 | $0.43 | $1.03 | $0.52 |
| Diluted | $0.25 | $0.42 | $1.02 | $0.52 |
| Weighted-average common units: | | | | |
| Basic | 38,120,481 | 38,046,688 | 38,101,239 | 38,027,587 |
| Diluted | 38,258,380 | 38,192,104 | 38,247,289 | 38,172,434 |
| Supplemental information: | | | | |
| (a) includes excise taxes of: | $77,674 | $82,583 | $316,968 | $321,798 |
| (a) includes rent income of: | 14,718 | 17,225 | 62,546 | 71,184 |
| (b) excludes depreciation, amortization and accretion | | | | |
| (b) includes rent expense of: | 4,791 | 5,030 | 19,443 | 20,651 |
| (c) includes rent expense of: | 4,724 | 4,468 | 18,698 | 17,440 |
CROSSAMERICA PARTNERS LP
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Thousands of Dollars)
| For the Year Ended December 31, |
|---|
| 2025 | 2024 | 2023 |
|---|
| Cash flows from operating activities: | | | |
| Net income | $41,833 | $22,453 | $42,592 |
| Adjustments to reconcile net income to net cash provided by operating activities: | | | |
| Depreciation, amortization and accretion expense | 89,587 | 75,983 | 77,158 |
| Amortization of deferred financing costs | 1,939 | 1,937 | 3,287 |
| Credit loss expense | - | 157 | 40 |
| Deferred income tax (benefit) expense | (161) | (6,147) | 1,572 |
| Equity-based employee and director compensation expense | 1,854 | 1,508 | 3,031 |
| Gain on dispositions and lease terminations, net | (44,229) | (4,966) | (4,737) |
| Changes in operating assets and liabilities, net of acquisitions | 673 | (3,143) | (5,860) |
| Net cash provided by operating activities | 91,496 | 87,782 | 117,083 |
| Cash flows from investing activities: | | | |
| Principal payments received on notes receivable | 118 | 152 | 213 |
| Proceeds from sale of assets | 104,052 | 35,374 | 6,234 |
| Capital expenditures | (35,729) | (26,318) | (34,628) |
| Lease termination payments to Applegreen, including inventory purchases | - | (25,517) | - |
| Net cash provided by (used in) investing activities | 68,441 | (16,309) | (28,181) |
| Cash flows from financing activities: | | | |
| Borrowings under the Credit Facility | 77,795 | 113,000 | 240,900 |
| Repayments on the Credit Facility | (153,000) | (101,500) | (91,037) |
| Repayments on the Term Loan Facility | - | - | (158,980) |
| Payments of finance lease obligations | (3,261) | (3,082) | (2,890) |
| Payments of deferred financing costs | - | (74) | (7,106) |
| Distributions paid on distribution equivalent rights | (284) | (260) | (241) |
| Income tax distributions paid on preferred membership interests | (1,424) | (1,312) | (900) |
| Distributions paid on common units | (80,007) | (79,854) | (79,712) |
| Net cash used in financing activities | (160,181) | (73,082) | (99,966) |
| Net decrease in cash and cash equivalents | (244) | (1,609) | (11,064) |
| Cash and cash equivalents at beginning of period | 3,381 | 4,990 | 16,054 |
| Cash and cash equivalents at end of period | $3,137 | $3,381 | $4,990 |
Segment Results
Retail
The following table highlights the results of operations and certain operating metrics of the Retail segment (in thousands, except for the number of retail sites and per gallon amounts):
| Three Months Ended December 31, | Year Ended December 31, |
|---|
| 2025 | 2024 | 2025 | 2024 |
|---|
| Gross profit: | | | | |
| Motor fuel | $46,538 | $39,832 | $157,239 | $150,916 |
| Merchandise | 28,835 | 28,124 | 116,235 | 109,910 |
| Rent | 2,563 | 2,442 | 9,885 | 9,411 |
| Other revenue | 4,986 | 4,689 | 18,834 | 19,467 |
| Total gross profit | 82,922 | 75,087 | 302,193 | 289,704 |
| Operating expenses | (51,521) | (52,246) | (204,693) | (196,232) |
| Operating income | $31,401 | $22,841 | $97,500 | $93,472 |
| Retail sites (end of period): | | | | |
| Company operated retail sites | 352 | 365 | 352 | 365 |
| Commission agents | 231 | 229 | 231 | 229 |
| Total retail sites | 583 | 594 | 583 | 594 |
| Total retail segment statistics: | | | | |
| Volume of gallons sold | 132,115 | 141,377 | 542,137 | 554,490 |
| Same store total system gallons sold | 121,822 | 131,810 | 444,183 | 463,873 |
| Average retail fuel sites | 584 | 595 | 594 | 569 |
| Margin per gallon, before deducting credit card fees and commissions | $0.449 | $0.376 | $0.386 | $0.368 |
| Company operated site statistics: | | | | |
| Average retail fuel sites | 352 | 368 | 361 | 354 |
| Same store fuel volume | 86,820 | 92,446 | 312,456 | 323,262 |
| Margin per gallon, before deducting credit card fees | $0.483 | $0.401 | $0.414 | $0.394 |
| Same store merchandise sales | 91,331 | 91,151 | 302,793 | 298,475 |
| Same store merchandise sales excluding cigarettes | 65,402 | 64,626 | 215,686 | 210,946 |
| Merchandise gross profit percentage | 29.1% | 28.4% | 28.5% | 28.2% |
| Commission site statistics: | | | | |
| Average retail fuel sites | 232 | 227 | 233 | 215 |
| Margin per gallon, before deducting credit card fees and commissions | $0.366 | $0.318 | $0.320 | $0.309 |
(a) The decrease in the company operated site count from December 31, 2024 to December 31, 2025 was primarily attributable to the sale of certain company operated sites in connection with CrossAmerica's real estate rationalization effort, partially offset by the conversion of certain lessee dealer to company operated sites.
(b) The increase in the commission agent site count from December 31, 2024 to December 31, 2025 was primarily attributable to the conversion of certain lessee dealer sites to commission agent sites, partially offset by the sale of certain commission sites in connection with CrossAmerica's real estate rationalization effort.
(c) Same store fuel volume and same store merchandise sales include aggregated individual store results for all stores that had fuel volume or merchandise sales in all months for both periods. Same store merchandise sales excludes other revenues such as lottery commissions and car wash sales. Certain merchandise products have been transitioned from a scan-based trading model (whereby a third party owns the inventory and CrossAmerica records a commission in other revenues) to a gross profit model (whereby CrossAmerica owns the inventory and records merchandise sales and cost of sales). Same store merchandise sales for the three and twelve months ended December 31, 2024, were adjusted to gross it up for the sales that would have been recorded had CrossAmerica been on the gross profit model in the prior year.
Wholesale
The following table highlights the results of operations and certain operating metrics of the Wholesale segment (thousands of dollars, except for the number of distribution sites and per gallon amounts):
| Three Months Ended December 31, | Year Ended December 31, |
|---|
| 2025 | 2024 | 2025 | 2024 |
|---|
| Gross profit: | | | | |
| Motor fuel gross profit | $15,686 | $14,780 | $62,333 | $62,892 |
| Rent gross profit | 7,364 | 9,753 | 33,218 | 41,122 |
| Other revenues | 1,159 | 1,363 | 4,963 | 4,601 |
| Total gross profit | 24,209 | 25,896 | 100,514 | 108,615 |
| Operating expenses | (5,827) | (7,121) | (27,019) | (31,754) |
| Operating Income | $18,382 | $18,775 | $73,495 | $76,861 |
| Motor fuel distribution sites (end of period): | | | | |
| Independent dealers | 653 | 607 | 653 | 607 |
| Lessee dealers | 333 | 434 | 333 | 434 |
| Total motor fuel distribution sites | 986 | 1,041 | 986 | 1,041 |
| Average motor fuel distribution sites | 986 | 1,044 | 1,007 | 1,093 |
| Volume of gallons distributed | 168,852 | 180,453 | 688,673 | 743,535 |
| Margin per gallon | $0.093 | $0.082 | $0.091 | $0.085 |
(a) In addition, CrossAmerica distributed motor fuel to sub-wholesalers who distributed to additional sites.
(b) The increase in the independent dealer site count from December 31, 2024 to December 31, 2025 was primarily attributable to the sale of certain lessee dealer, company operated and commission agent sites but with continued fuel supply, partially offset by the net loss of independent dealer contracts.
(c) The decrease in the lessee dealer site count from December 31, 2024 to December 31, 2025 was primarily attributable to the sale of certain lessee dealer sites in connection with CrossAmerica's real estate rationalization effort (generally with continued fuel supply, thereby converting the site to an independent dealer site) as well as the conversion of certain lessee dealer sites to company operated and commission agent sites.
Supplemental Disclosure Regarding Non-GAAP Financial Measures
CrossAmerica uses the non-GAAP financial measures EBITDA, Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio. EBITDA represents net income (loss) before deducting interest expense, income taxes and depreciation, amortization and accretion (which includes certain impairment charges). Adjusted EBITDA represents EBITDA as further adjusted to exclude equity-based compensation expense, gains or losses on dispositions and lease terminations, net and certain discrete acquisition related costs, such as legal and other professional fees, separation benefit costs and certain other discrete non-cash items arising from purchase accounting. Distributable Cash Flow represents Adjusted EBITDA less cash interest expense, sustaining capital expenditures and current income tax expense. The Distribution Coverage Ratio is computed by dividing Distributable Cash Flow by distributions paid on common units.
EBITDA, Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio are used as supplemental financial measures by management and by external users of CrossAmerica's financial statements, such as investors and lenders. EBITDA and Adjusted EBITDA are used to assess CrossAmerica’s financial performance without regard to financing methods, capital structure or income taxes and the ability to incur and service debt and to fund capital expenditures. In addition, Adjusted EBITDA is used to assess the operating performance of the Partnership’s business on a consistent basis by excluding the impact of items which do not result directly from the wholesale distribution of motor fuel, the leasing of real property, or the day to day operations of CrossAmerica’s retail site activities. EBITDA, Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio are also used to assess the ability to generate cash sufficient to make distributions to CrossAmerica’s unitholders.
CrossAmerica believes the presentation of EBITDA, Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio provides useful information to investors in assessing the financial condition and results of operations. EBITDA, Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio should not be considered alternatives to net income or any other measure of financial performance or liquidity presented in accordance with U.S. GAAP. EBITDA, Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio have important limitations as analytical tools because they exclude some but not all items that affect net income. Additionally, because EBITDA, Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio may be defined differently by other companies in the industry, CrossAmerica’s definitions may not be comparable to similarly titled measures of other companies, thereby diminishing their utility.
The following table presents reconciliations of EBITDA, Adjusted EBITDA, and Distributable Cash Flow to net income, the most directly comparable U.S. GAAP financial measure, for each of the periods indicated (in thousands, except for the Distribution Coverage Ratio):
| Three Months Ended December 31, | Year Ended December 31, |
|---|
| 2025 | 2024 | 2025 | 2024 |
|---|
| Net income | $10,192 | $16,861 | $41,833 | $22,453 |
| Interest expense | 10,941 | 13,402 | 48,140 | 52,320 |
| Income tax expense (benefit) | 5,090 | (1,755) | 8,253 | (3,433) |
| Depreciation, amortization and accretion expense | 19,916 | 18,080 | 89,587 | 75,983 |
| EBITDA | 46,139 | 46,588 | 187,813 | 147,323 |
| Equity-based employee and director compensation expense | 501 | 374 | 1,854 | 1,508 |
| Gain on dispositions and lease terminations, net | (3,440) | (11,512) | (44,229) | (4,966) |
| Acquisition-related costs | 153 | 13 | 576 | 1,674 |
| Adjusted EBITDA | 43,353 | 35,463 | 146,014 | 145,539 |
| Cash interest expense | (10,456) | (12,918) | (46,201) | (50,384) |
| Sustaining capital expenditures | (1,398) | (2,125) | (8,522) | (8,287) |
| Current income tax (expense) benefit | (2,977) | 662 | (3,505) | (864) |
| Distributable Cash Flow | $28,522 | $21,082 | $87,786 | $86,004 |
| Distributions paid | $20,013 | $19,975 | $80,007 | $79,854 |
| Distribution Coverage Ratio | 1.43x | 1.06x | 1.10x | 1.08x |
(a) During the three months ended December 31, 2025, CrossAmerica recorded $3.4 million in net gains in connection with the Partnership's ongoing real estate rationalization effort. During the three months ended December 31, 2024, CrossAmerica recorded $11.6 million in net gains in connection with the Partnership's ongoing real estate rationalization effort. The Partnership also recorded $0.1 million of other net losses on lease terminations and asset disposals. During the twelve months ended December 31, 2025, CrossAmerica recorded $45.9 million in net gains in connection with the Partnership's ongoing real estate rationalization effort, partially offset by $1.7 million of net losses on lease terminations and asset disposals. During the twelve months ended December 31, 2024, CrossAmerica recorded $23.3 million in net gains in connection with its ongoing real estate rationalization effort. The Partnership also recorded a $16.0 million loss on lease terminations with Applegreen, including a $1.5 million non-cash write-off of deferred rent income. In addition, CrossAmerica recorded $2.4 million of other net losses on lease terminations and asset disposals.
(b) Relates to certain acquisition-related costs, such as legal and other professional fees, separation benefit costs and purchase accounting adjustments associated with recent acquisitions.
(c) Under the Partnership Agreement, sustaining capital expenditures are capital expenditures made to maintain CrossAmerica's long-term operating income or operating capacity. Examples of sustaining capital expenditures are those made to maintain existing contract volumes or to maintain the sites in conditions suitable to operate or lease, such as parking lot or roof replacement/renovation, or to replace equipment required to operate the existing business.
(d) Excludes current income tax (benefit) expense related to sales of sites amounting to $(0.6) million and $0.3 million for the fourth quarter 2025 and 2024 and $4.9 million and $1.9 million for 2025 and 2024, respectively.
About CrossAmerica Partners LP
CrossAmerica Partners LP is a leading wholesale distributor of motor fuels, convenience store operator, and owner and lessee of real estate used in the retail distribution of motor fuels. Its general partner, CrossAmerica GP LLC, is indirectly owned and controlled by entities affiliated with Joseph V. Topper, Jr., the founder of CrossAmerica Partners and a member of the board of the general partner since 2012. Formed in 2012, CrossAmerica Partners LP is a distributor of branded and unbranded petroleum for motor vehicles in the United States and distributes fuel to approximately 1,600 locations and owns or leases approximately 1,000 sites. With a geographic footprint covering 34 states, the Partnership has well-established relationships with several major oil brands, including ExxonMobil, BP, Shell, Marathon, Valero, Phillips 66 and other major brands. CrossAmerica Partners LP ranks as one of ExxonMobil’s largest distributors by fuel volume in the United States and in the top 10 for additional brands. For additional information, please visit www.crossamericapartners.com.
Cautionary Statement Regarding Forward-Looking Statements
Statements contained in this release that state the Partnership’s or management’s expectations or predictions of the future are forward-looking statements. The words “believe,” “expect,” “should,” “intends,” “estimates,” “target” and other similar expressions identify forward-looking statements. It is important to note that actual results could differ materially from those projected in such forward-looking statements. For more information concerning factors that could cause actual results to differ from those expressed or forecasted, see CrossAmerica’s Form 10-K or Forms 10-Q filed with the Securities and Exchange Commission, and available on CrossAmerica’s website at www.crossamericapartners.com. The Partnership undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events or otherwise.
Contacts
Investor Relations: Randy Palmer, rpalmer@caplp.com or 610-625-8000