Mister Car Wash Crosses Billion-Dollar Mark, Announces $3.1 Billion Deal to Go Private

TUCSON, AZ – February 18, 2026 – Mister Car Wash, Inc. today announced a landmark achievement, surpassing $1 billion in annual revenue for the first time in its history, capping a year of robust growth. However, the celebratory financial report was immediately overshadowed by a far more transformative announcement: the company has entered a definitive agreement to be taken private by its majority shareholder, private equity firm Leonard Green & Partners (LGP), in a deal that values the car wash giant at approximately $3.1 billion.

The dual announcements paint a picture of a company at the peak of its public market performance making a strategic pivot toward a new, more aggressive phase of privately-funded expansion. The take-private transaction will see LGP acquire all outstanding shares of Mister Car Wash it does not already own for $7.00 per share in cash, a significant 29% premium over the stock's recent 90-day volume-weighted average price. In response to the news, the company’s stock surged over 16% in trading, signaling strong shareholder approval for the offer.

Reflecting the gravity of the change, Mister Car Wash abruptly canceled its scheduled earnings conference call and announced it would not be providing a financial outlook for 2026, directing all focus to the impending shift away from the public markets.

Record Performance Sets the Stage

Before the strategic shake-up was revealed, the company's full-year 2025 results stood as a testament to its operational strength and the success of its subscription-based model. Net revenues for the year climbed 6% to $1.05 billion, a historic milestone driven by steady expansion and deepening customer loyalty. Comparable-store sales, a key metric of organic growth, increased by a healthy 2.9% for the full year.

Central to this success is the company's Unlimited Wash Club® (UWC), a subscription program that has become the engine of its growth and a model for the service industry. UWC memberships grew by 7% in the fourth quarter, ending the year with nearly 2.3 million members. These subscriptions now account for a staggering 79% of total wash sales, up from 75% in the prior year, providing a consistent and predictable stream of revenue that is highly attractive to investors.

“We delivered a strong finish to 2025, highlighted by solid membership growth,” said John Lai, Chairperson and CEO of Mister Car Wash, in the earnings release. “These results reflect the consistency of our operating model, the strength of our customer value proposition, and the outstanding execution of our teams across the business.”

The company also continued its aggressive physical expansion, opening 29 new greenfield locations and acquiring five existing washes during 2025. This brought its total footprint to 548 locations across the nation, cementing its status as the country's largest car wash brand.

The $3.1 Billion Deal to Go Private

The take-private transaction represents a significant consolidation of control by Leonard Green & Partners, which has been a strategic partner since first investing in the company in 2014 and already holds a commanding 67% of its common stock. The move to acquire the remaining public float and delist Mister Car Wash from the Nasdaq exchange marks a new chapter for the brand.

According to statements from company leadership, the primary motivation for going private is to unlock a more aggressive, long-term growth strategy without the constraints and short-term pressures of public market scrutiny. As a private entity, Mister Car Wash will no longer need to manage quarterly earnings expectations, freeing up capital and management focus for bolder investments in new locations, technology, and personnel. The company has publicly stated an ambitious vision of eventually tripling its national footprint, a goal that becomes more feasible under a private ownership structure that prioritizes long-range expansion over immediate shareholder returns.

The transaction, which was unanimously recommended by a special committee of independent directors, is expected to close in the first half of 2026. To finance the deal, LGP has secured commitments for a $900 million term loan, providing substantial capital to not only complete the acquisition but also to fuel the initial stages of its accelerated growth plan.

Private Equity Doubles Down on a Proven Model

The deal is emblematic of a larger trend within the private equity world: a fervent pursuit of businesses with strong, recurring-revenue models. The car wash industry, once a fragmented landscape of small, independent operators, has become a hotbed of private equity investment precisely because of the success of subscription programs like the Unlimited Wash Club.

For an investor like LGP, the UWC provides a moat of predictable cash flow that is resilient across different economic cycles. By taking Mister Car Wash private, LGP can now nurture this powerful business model with a long-term perspective, reinvesting heavily to scale the brand's dominance. This move allows for strategic patience, enabling investments in new sites or technology upgrades that may take several years to mature—a timeline often at odds with the quarterly demands of the public stock market.

LGP's decade-long involvement with Mister Car Wash suggests a deep understanding of the business and a strong conviction in its future potential. Rather than being a new suitor, LGP is an incumbent partner choosing to double down, removing the company from public oversight to execute a grander vision for its growth.

Reshaping the Competitive Car Wash Landscape

As the undisputed market leader, Mister Car Wash's move to accelerate its expansion under private ownership is set to send shockwaves through the competitive landscape. The car wash industry is already in a period of intense consolidation, and this transaction will undoubtedly pour fuel on the fire. With the financial backing and strategic flexibility afforded by LGP, Mister Car Wash is poised to aggressively build new locations and potentially acquire smaller regional chains, further solidifying its market share.

This will likely increase pressure on the thousands of smaller, independent car wash operators who lack the scale, brand recognition, and capital resources to compete with a rapidly expanding giant. The industry is already facing a period of recalibration, with analysts forecasting more modest single-digit growth in the coming years. In this environment, operational efficiency, technological differentiation, and disciplined investment become paramount for survival and success.

The Mister Car Wash and LGP partnership is built to thrive in such a climate. By leveraging its proven subscription model, investing heavily in a standardized and high-quality customer experience, and now operating with the long-term, aggressive mindset of a private equity-backed powerhouse, Mister Car Wash is not just preparing for the future of the car care industry—it is actively shaping it.