Key Highlights

● Revenue rose to US$920.8 million from US$677.7 million.

● Net Income was US$29.7 million.

● Adjusted EBITDA reached US$70.9 million.

● 2026 adjusted EBITDA guidance rose to US$235 million to US$245 million.

Yesway, Inc. (NASDAQ:YSWY) is in focus because its second-quarter 2026 results, published on 13 August 2026, were described by management as a milestone, and because the company raised its full-year Earnings guidance at the same time. The Texas-based convenience store and fuel operator, which listed on Nasdaq in April 2026, reported higher revenue, net income and adjusted EBITDA for the three months ended 30 June 2026.

What the quarter showed

According to the company's results release, revenues were US$920.8 million, against US$677.7 million in the second quarter of 2025. Net income was US$29.7 million, compared with US$24.2 million a year earlier, while adjusted EBITDA reached US$70.9 million, up from US$52.5 million. Income from operations was US$47.7 million, against US$36.7 million, and store contribution rose to US$87.7 million from US$67.7 million.

Total fuel gallons sold increased 6.9% to 159.5 million, and total inside merchandise sales rose to US$240.1 million. On a same-store basis, growth was more modest: inside merchandise sales were up 1.2% and fuel gallons up 1.4%. Excluding 29 stores earmarked for sale, the company said same-store merchandise sales rose 1.5% and gallons 1.8%.

Fuel Margin and guidance

Fuel profitability was a notable feature. The company reported a fuel margin of 52.6 cents per gallon and fuel Gross Profit of US$84.0 million, while the inside merchandise margin was 35.7%, an improvement of 50 basis points. Management also lifted its 2026 adjusted EBITDA guidance to a range of US$235 million to US$245 million, from US$210 million to US$220 million.

Other guidance items were unchanged: same-store inside merchandise sales growth of 1.25% to 3.25%, Capital Expenditure of US$85 million to US$95 million, and six to eight new store openings. Chief executive Thomas N. Trkla said the quarter was "a milestone in our company's history, reflecting broad-based execution across both our fuel and inside merchandise businesses."

Growth plans and portfolio changes

Yesway operated 450 stores under the Yesway and Allsup's brands at 30 June 2026. Management is pursuing a five-year plan that includes 130 new-to-industry stores, mainly in Arizona, Oklahoma, New Mexico and Texas, alongside possible acquisitions. Mr Trkla said the company is now "much more active" in looking at accretive acquisitions than in the previous five years.

The 29 Iowa and Kansas stores are expected to be sold to Nebraska-based Mega Saver for US$17.5 million by the end of 2026. Selling these sites narrows the network towards the company's core south-western markets.

Balance sheet and cash

At 30 June 2026, the company held US$81.6 million of cash and US$618.4 million of total debt. Operating Cash Flow for the six months ended 30 June 2026 was US$104.9 million, compared with US$49.2 million in the same period of 2025, and second-quarter capital expenditure was US$24.2 million. Management said the cash generation is increasing its flexibility to fund organic growth and pursue acquisitions.

Fuel Margin Strength and a Five-Year Growth Plan

Several points temper the headline growth. Same-store sales growth was low single digit, so much of the rise in revenue and gallons reflects the wider store base rather than existing sites alone. Fuel margins can move with wholesale prices and competition, and the 52.6 cents per gallon reported for the quarter should not be read as a fixed level. Debt of US$618.4 million also remains substantial against cash.

Investors may watch for completion of the Iowa and Kansas sale by year-end, progress on the six to eight planned openings, any Acquisition announcements, and the next quarterly report.