MONRO, INC.
For the period ended Dec 27, 2025. Filed Jan 28, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Dec 27, 2025 · Filed Jan 28, 2026
MNRO$10.95-3.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-27; filed 2025-10-29.
0000876427-25-000005
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-12-27; filed 2026-01-28.
0000876427-26-000004
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 106 previous paragraphs and 113 current paragraphs.
65 unchanged; 32 reworded; 16 added; 9 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 24 previous and 24 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (16)
Current report
On November 9, 2025, the Board of Directors approved the adoption of a limited-duration shareholder rights plan (the “Rights Plan”), intended to protect the best interests of all Company shareholders and enable them to realize the full potential value of their investment in the Company. The Rights Plan is designed to reduce the likelihood that any entity, person or group would gain control of the Company through the open-market or other accumulation of the Company’s shares without appropriately compensating all shareholders for control. The Rights Plan is not intended to prevent or interfere with any attempt to purchase the entire Company. It is also not intended to prevent or interfere with any action with respect to the Company that the Board determines to be in the best interests of the Company and its shareholders. Instead, it will position the Board to fulfill its fiduciary duties on behalf of all shareholders by ensuring that the Board has sufficient time to make informed judgments about any attempts to control or significantly influence the Company. The Rights Plan will encourage anyone seeking to gain a significant interest in the Company to negotiate directly with the Board prior to attempting to control or significantly influence the Company. Pursuant to the Rights Plan, the Company issued one right for each common share outstanding as of the close of business on November 24, 2025. The rights will initially trade with the Company’s common stock and will generally become exercisable only if an entity, person or group acquires beneficial ownership of 17.5% or more of the Company’s outstanding shares (the “triggering percentage”). Under the Rights Plan, any person that owns more than the triggering percentage as of the adoption of the Rights Plan may continue to own its shares of common stock but may not acquire any additional shares without triggering the Rights Plan. The Rights Plan has a one-year duration, expiring on November 6, 2026. The Board of Directors may consider an earlier termination of the Rights Plan as circumstances warrant. See additional discussion related to the Rights Plan in Note 11 to our consolidated financial statements.
Current report
As a result, net gain on closings included in operating, selling, general and administrative expenses in our Consolidated Statements of Income and Comprehensive Income was $6.3 million for the nine months ended December 27, 2025. Net store closing costs/net gain on closings represent expected costs to be incurred related to the vacating of stores, utilities, real estate taxes, maintenance, other on-going costs related to the properties, and the disposal of inventory and other store assets, net of gains on early lease terminations, lease assignments and sales of owned locations. See additional discussion related to the Store Closure Plan in Note 1 to our consolidated financial statements.
Current report
On December 2, 2025, the Company entered into an employment agreement with Peter Fitzsimmons whereby he will continue to serve as the President and Chief Executive Officer and appointed him as a member of the Board of Directors. Prior to December 2, 2025, Mr. Fitzsimmons served as the President and Chief Executive Officer, pursuant to an engagement letter between the Company and AP Services, LLC, an affiliate of AlixPartners, LLP (“AlixPartners”). Following Mr. Fitzsimmons’ departure from AlixPartners, on December 23, 2025 the Company and AlixPartners entered into a master service agreement pursuant to which AlixPartners will be able to serve promptly in consulting roles as needed at its standard engagement rates to support the development and implementation of the Company’s long-term growth strategy to improve the Company’s financial performance. See additional discussion in Note 13 to our consolidated financial statements.
Current report
Operating income was $18.6 million.
Current report
Net income was $11.1 million.
Current report
(a)The comparable store product category sales change for the three and nine months ended December 28, 2024, are adjusted for selling days.
Current report
For the three months and nine months ended December 27, 2025, our effective income tax rate was 23.6 percent and 28.9 percent, respectively, compared to 21.2 percent and 27.5 percent for the three months and nine months ended December 28, 2024, respectively.
Current report
The year-over-year difference in the effective rate is primarily related to the impact of an income tax benefit in the prior year period from the settlement of certain state income tax returns and the impact from other discrete tax adjustments, none of which are individually significant.
Current report
(a) Amounts in fiscal 2025 include the gain on sale of the corporate headquarters building net of associated closing and relocation costs.
Current report
(b) Amounts in fiscal 2026 include the gain on the sale of closed stores, lease assignments and early lease terminations net of closing costs and asset write-offs related to the closure of 145 underperforming stores, in accordance with the Store Closure Plan.
Current report
(a) Amounts in fiscal 2025 include the gain on sale of the corporate headquarters building net of associated closing and relocation costs.
Current report
(b) Amounts in fiscal 2026 include the gain on the sale of closed stores, lease assignments and early lease terminations net of closing costs and asset write-offs related to the closure of 145 underperforming stores, in accordance with the Store Closure Plan.
Current report
(a) Amounts, in the periods presented, may be too minor in amount, net of the impact from income taxes, to have an impact on the calculation of adjusted diluted EPS.
Current report
(b) Amounts in fiscal 2025 include the gain on sale of the corporate headquarters building net of associated closing and relocation costs.
Current report
(c) Amounts in fiscal 2026 include the gain on the sale of closed stores, lease assignments and early lease terminations net of closing costs and asset write-offs related to the closure of 145 underperforming stores, in accordance with the Store Closure Plan.
Current report
Cash provided by investing activities
Removed paragraphs (9)
Previous report
On August 18, 2025, the Company entered into Amendment 1 to Addendum 1 of its consulting agreement with AlixPartners, LLP (“AlixPartners”), effective as of July 31, 2025, pursuant to which AlixPartners will continue to provide services to implement the next phase of the plan developed from its detailed assessment of the Company(the “Operational Improvement Plan”) through November 1, 2025. Such services will include store operations and selling effectiveness, marketing and pricing, merchandising and inventory management, customer segmentation and insights. See additional discussion in Note 13 to our consolidated financial statements.
Previous report
Operating income was $12.8 million.
Previous report
Net income was $5.7 million.
Previous report
Note: Amounts may not foot due to rounding.
Previous report
Our effective income tax rate for the three months and six months ended September 27, 2025 was 32.9 percent and (5.4) percent, respectively, compared with 30.9 percent and 29.7 percent in the comparable prior-year period. The year-over-year difference in effective tax rate is primarily related to the discrete tax expenses impact related to share-based awards and other adjustments, none of which are individually significant.
Previous report
(a) Amounts include the closing costs and asset write-offs related to the closure of 145 underperforming stores, in accordance with the Store Closure Plan, net of gains on the sale of closed stores, lease assignments and early lease terminations.
Previous report
(a) Amounts include the closing costs and asset write-offs related to the closure of 145 underperforming stores, in accordance with the Store Closure Plan, net of gains on the sale of closed stores, lease assignments and early lease terminations.
Previous report
(a) Amounts include the closing costs and asset write-offs related to the closure of 145 underperforming stores, in accordance with the Store Closure Plan, net of gains on the sale of closed stores, lease assignments and early lease terminations.
Previous report
Cash (used for) provided by investing activities
Reworded paragraphs (32)
Previous wording
On May 23, 2025, following an evaluation of market segmentation and demographic data specific to geographic areas where our stores are located, our Board of Directors approved a plan to close 145 underperforming stores that we identified to have failed to maintain an acceptable level of profitability (the “Store Closure Plan”). These stores were closed during the first quarter of fiscal 2026 and $14.8 million of net store closing costs were recorded during the quarter ended June 28, 2025. During the three months ended September 27, 2025, the Company sold three owned stores, early terminated three leases, and assigned 18 leases to a third party. We received net proceeds of approximately $5.5 million and recorded a net gain of approximately $7.6 million in operating, selling, general and administrative expenses in our Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) for the quarter ended September 27, 2025. As a result of the store closures, we recorded net store closing costs of $7.2 million during the six months ended September 27, 2025. See additional discussion related to the Store Closure Plan in Note 1 to our consolidated financial statements.
Current wording
On May 23, 2025, following an evaluation of market segmentation and demographic data specific to geographic areas where our stores are located, our Board of Directors approved a plan to close 145 underperforming stores that we identified to have failed to maintain an acceptable level of profitability (the “Store Closure Plan”). These stores were closed during the first quarter of fiscal 2026 and $14.8 million of net store closing costs were recorded during the quarter ended June 28, 2025. During the nine months ended December 27, 2025, the Company sold 25 owned stores and related equipment. We received net proceeds of $17.4 million and recorded a net gain of $9.1 million. Additionally, the Company assigned 35 leases to third parties and early terminated 22 leases. We received net proceeds of $5.4 million and recorded a net gain of $12.0 million, which included the derecognition of lease liabilities. The total net gain of $21.1 million was recorded in operating, selling, general and administrative expenses in our Consolidated Statements of Income and Comprehensive Income for the nine months ended December 27, 2025.
Previous wording
Second quarter 2026 included the following notable items:
Current wording
Third quarter 2026 included the following notable items:
Previous wording
Diluted earnings per common share (“EPS”) was $0.18.
Current wording
Diluted earnings per common share (“EPS”) was $0.35.
Previous wording
Adjusted diluted EPS, a non-GAAP measure, was $0.21.
Current wording
Adjusted diluted EPS, a non-GAAP measure, was $0.16.
Previous wording
Sales decreased 4.1 percent, due to closed stores partially offset by higher overall comparable store sales.
Current wording
Sales decreased 4.0 percent, due to closed stores partially offset by higher comparable store sales.
Previous wording
Comparable store sales increased 1.1 percent from the prior year period.
Current wording
Comparable store sales increased 1.2 percent from the prior year period.
Previous wording
Adjusted operating income, a non-GAAP measure, was $14.0 million.
Current wording
Adjusted operating income, a non-GAAP measure, was $10.3 million.
Previous wording
Adjusted net income, a non-GAAP measure, was $6.6 million.
Current wording
Adjusted net income, a non-GAAP measure, was $5.0 million.
Previous wording
Adjusted operating income, adjusted net income and adjusted diluted EPS, each of which is a measure not derived in accordance with GAAP, exclude the impact of certain items. Management believes that adjusted operating income, adjusted net income and adjusted diluted EPS are useful in providing period-to-period comparisons of the results of our operations by excluding certain items that are not part of our core operations, such as consulting costs related to the Company’s Operational Improvement Plan, store closing costs net of gains on sales of closed stores, lease assignments and early lease terminations, transition costs related to back-office optimization, store impairment charges, write-off of debt issuance costs, and gain on the sale of corporate headquarters net of closing and relocation costs. Reconciliations of these non-GAAP financial measures to GAAP measures are provided beginning onpage 19 under “Non-GAAP Financial Measures.”
Current wording
Adjusted operating income, adjusted net income and adjusted diluted EPS, each of which is a measure not derived in accordance with GAAP, exclude the impact of certain items. Management believes that adjusted operating income, adjusted net income and adjusted diluted EPS are useful in providing period-to-period comparisons of the results of our operations by excluding certain items that are not part of our core operations, such as consulting costs related to the Company’s Operational Improvement Plan, transition costs related to back-office optimization, costs related to shareholder matters, store impairment charges, write-off of debt issuance costs, litigation reserve costs, store closing costs, net of gains on sales of closed stores, lease assignments and early lease terminations, and gain on sale of corporate headquarters net of closing and relocation costs. Reconciliations of these non-GAAP financial measures to GAAP measures are provided beginning onpage 20 under “Non-GAAP Financial Measures.”
Previous wording
Sales include automotive undercar repair, tire replacement and tire related service sales, net of discounts, returns, and revenue from the sale of warranty agreements and commissions earned from the delivery of tires. See Note 7 to our consolidated financial statements for further information. We use comparable store sales to evaluate the performance of our existing stores by measuring the change in sales for a period over the comparable, prior-year period. There were 91 selling days in each of the three months ended September 27, 2025 and September 28, 2024, and 181 selling days in each of the six months ended September 27, 2025 and September 28, 2024.
Current wording
Sales include automotive undercar repair, tire replacement and tire related service sales, net of discounts, returns, and revenue from the sale of warranty agreements and commissions earned from the delivery of tires. See Note 7 to our consolidated financial statements for further information. We use comparable store sales to evaluate the performance of our existing stores by measuring the change in sales for a period over the comparable, prior-year period. There were 89 selling days in each of the three months ended December 27, 2025 and December 28, 2024, and 270 selling days in each of the nine months ended December 27, 2025 and December 28, 2024.
Previous wording
The sales decrease was due to a decrease in sales from closed stores partially offset by an increase in comparable store sales. The following table shows the primary drivers of the change in sales for the three months and six months ended September 27, 2025, as compared to the same periods ended September 28, 2024.
Current wording
The sales decrease was due toclosed stores partially offset by an increase in comparable store sales. The following table shows the primary drivers of the change in sales for the three months and nine months ended December 27, 2025, as compared to the same periods ended December 28, 2024.
Previous wording
During the three months and six months ended September 27, 2025, comparable store sales increased in our front end/shocks category, as well as our brakes category, each of which experienced declines during the three months and six months ended September 28, 2024. The following table shows the primary drivers of the comparable store product category sales change for the three months and six months ended September 27, 2025, as compared to the same periods ended September 28, 2024.
Current wording
During the three months ended December 27, 2025, comparable store sales increased in our front end/shocks category and our tires category. During the nine months ended December 27, 2025, comparable store sales increased in our front end/shocks, tires, brakes and maintenance service categories, each of which experienced declines during the nine months ended December 28, 2024. The following table shows the primary drivers of the comparable store product category sales change for the three months and nine months ended December 27, 2025, as compared to the same periods ended December 28, 2024.
Previous wording
(a)We reopened a store that was temporarily closed in a prior year during the three months ended September 27, 2025.
Current wording
(a)We reopened a store that was temporarily closed in a prior year during the nine months ended December 27, 2025.
Previous wording
(b)All 145 stores were closed in the first quarter of fiscal 2026 as a result of the Store Closure Plan.
Current wording
(b)Includes 145 stores closed in the first quarter of fiscal 2026 as a result of the Store Closure Plan.
Previous wording
Gross profit, as a percentage of sales, increased 40 basis points (“bps”) for the three months ended September 27, 2025, as compared to the prior year comparable period. Occupancy costs decreased, as a percentage of sales, as we gained leverage on these largely fixed costs with higher comparable store sales and benefit from store closures. Material costs decreased, as a percentage of sales, due primarily to better material margin on our service categories. Partially offsetting this was an increase in technician labor costs, as a percentage of sales, due primarily to wage inflation. Gross profit, as a percentage of sales, decreased 70 basis points for the six months ended September 27, 2025, as compared to the prior year comparable period. The decrease in gross profit, as a percentage of sales, was primarily due to increased technician labor, due primarily to wage inflation, and increased material costs, due primarily to mix within tires, partially offset by a decrease in occupancy costs.
Current wording
Gross profit, as a percentage of sales, increased 60 basis points (“bps”) for the three months ended December 27, 2025, as compared to the prior year comparable period. Material costs decreased, as a percentage of sales, due primarily to better material margin in our service categories. Occupancy costs decreased, as a percentage of sales, as we gained leverage on these largely fixed costs with higher comparable store sales and benefit from store closures. Partially offsetting this was an increase in technician labor costs, as a percentage of sales, due primarily to wage inflation. Gross profit, as a percentage of sales, decreased 20 basis points for the nine months ended December 27, 2025, as compared to the prior year comparable period. The decrease in gross profit, as a percentage of sales, was primarily due to increased technician labor, due primarily to wage inflation, partially offset by decreased occupancy costs and decreased material costs, due primarily to better material margin in our service categories.
Previous wording
The decrease of $2.8 million in operating, selling, general and administrative (“OSG&A”) expenses for the three months ended September 27, 2025, from the comparable prior year period is primarily due to a decrease in store closing costs net of gains on the sales of closed stores, lease assignments and early lease terminations and a decrease in costs from closed stores, partially offset by consulting costs related to our Operational Improvement Plan. The following table shows the impact of these costs on the change in OSG&A expenses for the three months and six months ended September 27, 2025, as compared to the same periods ended September 28, 2024.
Current wording
Thedecrease of $11.0 million in operating, selling, general and administrative (“OSG&A”) expenses for the three months ended December 27, 2025, from the comparable prior year period is primarily due to a decrease in store closing costs, net of gains on sales of closed stores, lease assignments and early lease terminations and a decrease in costs from closed stores, partially offset by increased store advertising costs and consulting costs related to our Operational Improvement Plan. The following table shows the impact of these costs on the change in OSG&A expenses for the three months and nine months ended December 27, 2025, as compared to the same periods ended December 28, 2024.
Previous wording
Net interest expense of $9.1 million for the six months ended September 27, 2025 decreased $1.1 million compared to the prior year period, and decreased as a percentage of sales from 1.7 percent to 1.5 percent. Weighted average debt outstanding for the six months ended September 27, 2025 decreased by approximately $55.0 million as compared to the prior year period. The weighted average interest rate for the six months ended September 27, 2025 remained relatively flat as compared to the prior year period.
Current wording
Net interest expense of $4.0 million for the three months ended December 27, 2025 decreased $0.2 million as compared to the prior year period, and remained as a percentage of sales at 1.4 percent. Weighted average debt outstanding for the three months ended December 27, 2025 decreased by approximately $25.5 million as compared to the three months ended December 28, 2024. This decrease is primarily related to lower finance lease debt related to our stores. The weighted average interest rate increased approximately 30 basis pointsas compared to the same period of the prior year.
Previous wording
Net interest expense of $4.4 million for the three months ended September 27, 2025 decreased $0.8 million as compared to the prior year period, and decreased as a percentage of sales from 1.7 percent to 1.5 percent. Weighted average debt outstanding for the three months ended September 27, 2025 decreased by approximately $48.9 million as compared to the three months ended September 28, 2024. This decrease is primarily related to lower debt outstanding under the Credit Facility as well as lower finance lease debt related to our stores. The weighted average interest rate decreased approximately 20 basis pointsas compared to the same period of the prior year.
Current wording
Net interest expense of $13.2 million for the nine months ended December 27, 2025 decreased $1.3 million compared to the prior year period, and decreased as a percentage of sales from 1.6 percent to 1.5 percent. Weighted average debt outstanding for the nine months ended December 27, 2025 decreased by approximately $45.1 million as compared to the prior year period due primarily to lower finance lease debt related to our stores as well as lower debt outstanding under the Credit Facility. The weighted average interest rate increased approximately 10 basis points as compared to the same period of the prior year.
Previous wording
On July 4, 2025, the “H.R.1: One Big Beautiful Bill Act” (OBBBA) became law. The OBBBA contains a broad range of tax reform provisions with various effective dates affecting business taxpayers. The legislation did not have a material impact on our effective income tax rate for the three and six months ended September 27, 2025, and we do not expect it to have a material impact on our consolidated financial statements for the year ending March 28, 2026.
Current wording
On July 4, 2025, the “H.R.1: One Big Beautiful Bill Act” (OBBBA) became law. The OBBBA contains a broad range of tax reform provisions with various effective dates affecting business taxpayers. The legislation did not have a material impact on our effective tax rate for the three andnine months ended December 27, 2025, and we do not expect it to have a material impact on our consolidated financial statements for the year ending March 28, 2026.
Previous wording
In addition to reporting operating income, net income (loss) and diluted earnings (loss) per common share, which are GAAP measures, this Form 10-Q includes adjusted operating income, adjusted net income and adjusted diluted EPS, which are non-GAAP financial measures. We have included reconciliations to adjusted operating income, adjusted net income and adjusted diluted EPS from our most directly comparable GAAP measures, operating income, net income (loss), and diluted earnings (loss) per common share, below. Management views these non-GAAP financial measures as indicators to better assess comparability between periods because management believes these non-GAAP financial measures reflect our core business operations while excluding certain items that are not part of our core operations, such as consulting costs related to the Company’s Operational Improvement Plan, store closing costs net of gains on sales of closed stores, lease assignments and early lease terminations, transition costs related to back-office optimization, store impairment charges, write-off of debt issuance costs, and gain on sale of corporate headquarters net of closing and relocation costs.
Current wording
In addition to reporting operating income, net income and diluted EPS, which are GAAP measures, this Form 10-Q includes adjusted operating income, adjusted net income and adjusted diluted EPS, which are non-GAAP financial measures. We have included reconciliations to adjusted operating income, adjusted net income and adjusted diluted EPS from our most directly comparable GAAP measures, operating income, net income, and diluted EPS, below. Management views these non-GAAP financial measures as indicators to better assess comparability between periods because management believes these non-GAAP financial measures reflect our core business operations while excluding certain items that are not part of our core operations, such as consulting costs related to the Company’s Operational Improvement Plan, transition costs related to back-office optimization, costs related to shareholder matters, store impairment charges, write-off of debt issuance costs, litigation reserve costs, store closing costs, net of gains on sales of closed stores, lease assignments and early lease terminations, and gain on sale of corporate headquarters net of closing and relocation costs.
Previous wording
The other adjustments to diluted EPS reflect estimated annual effective income tax rates of 26.0 percent and 27.3 percent for the three months ended September 27, 2025 and September 28, 2024, respectively and 26.0 percent and 27.1 percent for the six months ended September 27, 2025 and September 28, 2024, respectively. This represents the tax effect of non-GAAP adjustments calculated at an estimated blended statutory tax rate. See adjustments from the Reconciliation of Adjusted Net Income table above for pre-tax amounts.
Current wording
The other adjustments to diluted EPS reflect estimated annual effective income tax rates of 26.0 percent and 28.4 percent for the three months ended December 27, 2025 and December 28, 2024, respectively and 26.0 percent and 28.0 percent for the nine months ended December 27, 2025 and December 28, 2024, respectively. This represents the tax effect of non-GAAP adjustments calculated at an estimated blended statutory tax rate. See adjustments from the Reconciliation of Adjusted Net Income table above for pre-tax amounts.
Previous wording
We currently expect our capital expenditures to support our projects, including upgrading our facilities and systems, to be $25 million to $35 million in the aggregate in fiscal 2026. Additionally, we have contractual finance lease and operating lease commitments with landlords through October 2040 for $442.3 million in lease payments, of which $95.4 million is due within one year. For details regarding these lease commitments, see Note 9 to our consolidated financial statements.
Current wording
We currently expect our capital expenditures to support our projects, including upgrading our facilities and systems, to be $25 million to $35 million in the aggregate in fiscal 2026. Additionally, we have contractual finance lease and operating lease commitments with landlords through October 2040 for $449.1 million in lease payments, of which $93.7 million is due within one year. For details regarding these lease commitments, see Note 9 to our consolidated financial statements.
Previous wording
As of September 27, 2025 we had $60.0 million outstanding under the Credit Facility, none of which is due in the succeeding 12 months. For details regarding our indebtedness that is due, see Note 8 to our consolidated financial statements.
Current wording
As of December 27, 2025 we had $45.0 million outstanding under the Credit Facility, none of which is due in the succeeding 12 months. For details regarding our indebtedness that is due, see Note 8 to our consolidated financial statements.
Previous wording
We declared and paid dividends of $0.28 per share totaling $8.7 million for each of the three months ended September 27, 2025 and September 28, 2024 and $0.56 per share totaling $17.5 million and $17.4 million for each of the six months ended September 27, 2025 and September 28, 2024, respectively.
Current wording
We declared dividends of $0.28 per share totaling $8.7 million for each of the three months ended December 27, 2025 and December 28, 2024 and $0.84 per share totaling $26.2 million for each of the nine months ended December 27, 2025 and December 28, 2024, respectively.
Previous wording
As of September 27, 2025, we had a working capital deficit of $268.4 million, an increase of $21.5 million from a deficit of $246.9 million as of March 29, 2025. The overall working capital deficit is a result of extended payment terms negotiated with certain suppliers. As part of our working capital management, we facilitate a voluntary supply chain finance program to provide our suppliers with the opportunity to sell receivables due from Monro to a participating financial institution subject to the independent discretion of both the supplier and participating financial institution. For details regarding our supply chain finance program, see Note 10 to our consolidated financial statements.
Current wording
As of December 27, 2025, we had a working capital deficit of $274.5 million, an increase of $27.6 million from a deficit of $246.9 million as of March 29, 2025. The overall working capital deficit is a result of extended payment terms negotiated with suppliers. As part of our working capital management, we facilitate a voluntary supply chain finance program to provide our suppliers with the opportunity to sell receivables due from Monro to a participating financial institution subject to the independent discretion of both the supplier and participating financial institution. For details regarding our supply chain finance program, see Note 10 to our consolidated financial statements.
Previous wording
As of September 27, 2025, we had $10.5 million of cash and equivalents. In addition, we had $409.9 million available under the Credit Facility as of September 27, 2025, subject to compliance with our covenants.
Current wording
As of December 27, 2025, we had $4.9 million of cash and equivalents. In addition, we had $424.9 million available under the Credit Facility as of December 27, 2025, subject to compliance with our covenants. We are, and expect to remain, in compliance with these covenants.
Previous wording
For the six months ended September 27, 2025, cash provided by operating activities was $30.4 million, which consisted of a net loss of $2.4 million, offset by non-cash adjustments of $27.1 million, and a change in operating assets and liabilities of $5.7 million. The non-cash charges were largely driven by $30.9 million of depreciation and amortization, as well as $1.2 million in share-based compensation expense, partially offset by a $5.1 million net gain on disposal of assets. The change in operating assets and liabilities was primarily driven by our inventory balance providing a source of cash of $18.0 million. This was partially offset by timing of payments that caused accounts payable and accrued expenses to be a use of cash of $13.4 million.
Current wording
For the nine months ended December 27, 2025, cash provided by operating activities was $48.2 million, which consisted of net income of $8.8 million, increased by non-cash adjustments of $33.1 million, and a change in operating assets and liabilities of $6.4 million. The non-cash charges were largely driven by $46.2 million of depreciation and amortization, as well as $2.3 million in share-based compensation expense and $3.5 million in deferred income tax expense, partially offset by a $18.9 million net gain on disposal of assets. The change in operating assets and liabilities was driven by our inventory balance providing a source of cash of $25.3 million. This was partially offset by timing of payments that caused accounts payable and accrued expenses to be a use of cash of $21.5 million.
Previous wording
For the six months ended September 28, 2024, cash provided by operating activities was $88.2 million, which consisted of net income of $11.5 million, increased by non-cash adjustments of $39.0 million and net change in operating assets and liabilities of $37.7 million. The non-cash charges were largely driven by $35.2 million of depreciation and amortization, as well as $3.4 million in deferred income tax expense. The change in operating assets and liabilities was primarily due to our supply chain finance program being a source of cash as we improved our cash flow by $67.5 million. This was partially offset by accrued expenses and other current assets being a use of cash of $17.0 million, as well as our inventory balance being a use of cash of $7.7 million.
Current wording
For the nine months ended December 28, 2024, cash provided by operating activities was $103.0 million, which consisted of net income of $16.1 million, increased by non-cash adjustments of $58.3 million and net change in operating assets and liabilities of $28.6 million. The non-cash charges were largely driven by $52.4 million of depreciation and amortization, as well as $5.7 million in deferred income tax expense. The change in operating assets and liabilities was primarily due to our supply chain finance program being a source of cash as we improved our cash flow by $80.7 million. This was partially offset by accrued expenses and other current assets being a use of cash of $24.4 million driven by timing of payments, as well as our inventory balance being a use of cash of $22.2 million due to increased inventory purchases.
Previous wording
For the six months ended September 27, 2025, cash used for investing activities was $2.4 million. This was primarily due to cash used for capital expenditures, including property and equipment, of $13.1 million, partially offset by subsequent proceeds from the sale of our wholesale tire locations and distribution assets and proceeds from the disposal of property and equipment of $3.5 million and $7.2 million, respectively.
Current wording
For the nine months ended December 27, 2025, cash provided by investing activities was $7.0 million. This was due to cash proceeds from the disposal of assets primarily related to our Store Closure Plan, of $25.3 million and the final proceeds from the sale of our wholesale tire locations and distribution assets of $3.5 million, partially offset by cash used for capital expenditures, including property and equipment, of $21.8 million.
Previous wording
For the six months ended September 28, 2024, cash provided by investing activities was $4.6 million. This was primarily due to cash provided by payments from the disposal of property and equipment, including the proceeds related to the sale of our corporate headquarters, for $9.9 million, and cash provided by the earnout payment from the sale of our wholesale tire locations and distribution assets of $8.5 million. This was partially offset by cash used for capital expenditures, including property and equipment, of $13.8 million.
Current wording
For the nine months ended December 28, 2024, cash provided by investing activities was $0.1 million. This was due to cash provided by payments from the disposal of property and equipment, including the proceeds related to the sale of our corporate headquarters, for $12.3 million, and subsequent proceeds from the sale of our wholesale tire locations and distribution assets of $8.5 million, partially offset by cash used for capital expenditures, including property and equipment, of $20.7 million.
Previous wording
For the six months ended September 27, 2025, cash used for financing activities was $38.3 million. This wasprimarily due to payment of finance lease principal and dividends of $19.1 million and $17.5 million, respectively, deferred financing costs of $0.5 million, and payments on our Credit Facility, net of amounts borrowed during the period, of $1.2 million.
Current wording
For the nine months ended December 27, 2025, cash used for financing activities was $71.0 million. This wasprimarily due to payment of finance lease principal and dividends of $28.1 million and $26.2 million, respectively, as well as payments on our Credit Facility, net of amounts borrowed during the period, of $16.3 million.
Previous wording
For the six months ended September 28, 2024, cash used for financing activities was $78.5 million, which was primarily due to payments on our Credit Facility, net of amounts borrowed during the period, of $40.0 million, as well as payment of finance lease principal and dividends of $20.0 million and $17.4 million, respectively.
Current wording
For the nine months ended December 28, 2024, cash used for financing activities was $99.5 million, which was primarily due to payments on our Credit Facility, net of amounts borrowed during the period, of $42.8 million, as well as payment of finance lease principal and dividends of $29.8 million and $25.8 million, respectively.