CrossAmerica's Second-Quarter Ebitda Gain Reverses

The Tip Desk · November 11, 2026 · 3 min read

Adjusted EBITDA was $38.7 million in the third quarter, down from $51.8 million in the second, as fuel volumes fell in both retail and wholesale.

CrossAmerica Partners LP (CAPL), a wholesale fuels distributor and convenience store operator, reported Adjusted EBITDA of $38.7 million for the third quarter ended September 30, 2026, reversing the year-over-year expansion recorded in the second quarter, when Adjusted EBITDA was $51.8 million versus $37.1 million a year earlier.

Net income was $8.8 million, or $0.21 a share, compared with $13.6 million, or $0.34 a share, in the year-ago quarter. Distributable Cash Flow was $21.8 million. The company said the Adjusted EBITDA decline was driven primarily by lower motor fuel volume in both the retail and wholesale segments, partially offset by higher merchandise gross profit in retail and an overall decline in operating expenses.

The company attributed the net income decline also to lower gains from its real estate optimization program: $2.4 million of net gains in the third quarter of 2026 versus $7.4 million a year earlier. Distributable Cash Flow and current-quarter distribution coverage of 1.09 times were also lower, which the company tied to the Adjusted EBITDA decline plus higher sustaining capital expenditures and current income tax expense, partly offset by lower cash interest.

Retail segment gross profit was $78.0 million, down from $80.0 million a year earlier. Motor fuel gallons distributed in retail were 128.6 million, versus 141.8 million in the third quarter of 2025. The company said the volume drop reflected a 7% decline in same-store gallons and a lower average retail site count after sales of company-operated and commission-agent sites under the optimization effort. Retail motor fuel gross profit fell $3.2 million, or 8%. Margin per gallon, before credit-card fees and commissions, rose 5% to $0.404 from $0.384, which the company said was driven primarily by greater crude oil price volatility.

Merchandise gross profit at company-operated sites was $32.8 million. The merchandise gross profit percentage rose to 30.3% from 28.9%, which the company attributed to a mix shift toward higher food-margin categories and improved category-level margins. Same-store merchandise sales excluding cigarettes were $74.6 million. Retail operating expenses were $50.5 million. Average retail sites were 549.

Wholesale segment gross profit was $23.1 million, versus $24.8 million a year earlier. Wholesale gallons distributed were 162.8 million, an 8% volume decline the company tied to a reduction in base-business volume and the net loss of independent dealer contracts. Average wholesale gross profit per gallon held at $0.088. Wholesale operating expenses fell $1.1 million, or 16%, which the company said was primarily due to a lower average controlled site count from the optimization effort.

During the quarter the company sold 15 sites for $10.6 million in proceeds, producing a $2.9 million net gain. It invested $7.2 million in capital expenditures, including $1.9 million of growth capital and $5.3 million of sustaining capital.

Leverage under the Credit Facility was 3.72 times as of September 30, 2026, compared with 3.56 times a year earlier. Credit-facility borrowings outstanding were $674.5 million. After debt-covenant restrictions, about $237 million was available for future borrowings as of October 30, 2026. The company said it was in compliance with its financial covenants.

The board of the general partner declared a quarterly distribution of $0.5250 per limited partner unit attributable to the third quarter of 2026, matching the second- and first-quarter declarations. The distribution was to be paid November 12, 2026, to unitholders of record as of November 2, 2026. Trailing-twelve-month distribution coverage ended September 30, 2026, was 1.32 times.