CrossAmerica Partners LP
For the period ended Jun 30, 2026. Filed Aug 5, 2026.
View on SEC.govAbout this filing
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.
Jun 30, 2026 · Filed Aug 5, 2026
CAPL$19.77+0.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-06.
0001193125-26-209202
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-05.
0001193125-26-335346
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 160 previous paragraphs and 189 current paragraphs.
125 unchanged; 23 reworded; 34 added; 11 removed; 1 previous and 7 current paragraphs rearranged.
Tables are not compared: 8 previous and 8 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 (34)
Current report
Revenues from fuel sales increased $220 million (26%) due primarily to a 43% increase in our consolidated average fuel selling price. The average spot price of WTI crude oil increased 48% to $95.65 per barrel for the second quarter of 2026, compared to $64.57 per barrel for the second quarter of 2025. This increase was partially offset by an 11% decrease in volume due to a reduction in volume in our base business and the net loss of independent dealer contracts.
Current report
Cost of sales increased $205 million (24%), due to a higher cost per gallon, partially offset by lower volume due to the same drivers discussed above.
Current report
General and administrative expenses increased $0.2 million (4%) primarily driven by higher legal fees and equity compensation expense, partially offset by lower acquisition-related costs.
Current report
During the three months ended June 30, 2026, we recorded $1.1 million in net gains in connection with our ongoing real estate optimization effort.
Current report
During the three months ended June 30, 2025, we recorded $29.7 million in net gains in connection with our ongoing real estate optimization effort, partially offset by $1.3 million of net losses on lease terminations and asset disposals.
Current report
Income tax expense
Current report
Operating revenues increased $196 million (11%) and operating income increased $15.5 million (36%). Significant items impacting these results were:
Current report
Operating revenues
Current report
Revenues from fuel sales increased $200 million (13%) due primarily to a 24% increase in our consolidated average fuel selling price. The average spot price of WTI crude oil increased 24% to $84.29 per barrel for the first half of 2026, compared to $68.12 per barrel for the first half of 2025. This increase was partially offset by a 9% decrease in volume due to a reduction in volume in our base business and the net loss of independent dealer contracts.
Current report
Cost of sales
Current report
Cost of sales increased $177 million (11%), due to a higher cost per gallon, partially offset by lower volume due to the same drivers discussed above.
Current report
Gross profit increased $19.6 million (10%) due primarily to an increase in motor fuel gross profit in both our retail and wholesale segments. See “Results of Operations—Segment Results” for additional gross profit analyses.
Current report
General and administrative expenses
Current report
Depreciation, amortization and accretion expense
Current report
During the six months ended June 30, 2025, we recorded $35.2 million in net gains in connection with our ongoing real estate optimization effort, partially offset by $1.8 million of net losses on lease terminations and asset disposals.
Current report
Interest expense
Current report
Income tax expense
Current report
Other revenues increased $0.8 million (18%) driven by higher income from skills games and fuel sold on a commission basis.
Current report
Gross profit increased $20.7 million (15%) and operating income increased $24.5 million (67%). These results were impacted by:
Current report
Our motor fuel gross profit increased $16.4 million (23%), attributable to a 31% increase in our margin per gallon due to greater volatility in the price of crude oil for the six months ended June 30, 2026 as compared to the same period of 2025. This increase was partially offset by a volume decrease of 10% due primarily to a decrease in volume in our base business as well as a decrease in our average retail site count due to the sale of certain sites in connection with our real estate optimization effort.
Current report
Other revenues increased $1.2 million (13%) driven by higher income from skills games and fuel sold on a commission basis.
Current report
Operating expenses decreased $3.8 million (4%) driven by a decrease in store labor as well as a decrease in the average retail site count due to the sale of certain sites in connection with our real estate optimization effort.
Current report
Gross profit increased $2.2 million (9%) and operating income increased $3.0 million (17%). These results were impacted by:
Current report
The $2.6 million increase (17%) in motor fuel gross profit was attributable to a 31% increase in our margin per gallon due to greater volatility in the price of crude oil for the three months ended June 30, 2026 as compared to the same period of 2025 as well as higher payment terms discounts due to the higher cost of fuel. This increase was partially offset by an 11% decrease in volume driven by a reduction in volume in our base business and the net loss of independent dealer contracts.
Current report
Rent gross profit decreased $0.2 million (2%) primarily due to the sale of certain lessee dealer sites in connection with our real estate optimization effort. This decrease was partially offset by an increase in rent gross profit as a result of the reassessment of the accounting for our lease with Getty required by the amendment of this lease during the first quarter of 2026, which resulted in certain payments to Getty that were previously accounted for as rent expense now being accounted for as principal payments and interest expense.
Current report
Operating expenses decreased $0.8 million (11%), primarily due to the sale of certain lessee dealer sites in connection with our real estate optimization effort.
Current report
Gross profit decreased $1.1 million (2%) and operating income increased $0.4 million (1%). These results were impacted by:
Current report
Motor fuel gross profit
Current report
The $1.3 million increase (4%) in motor fuel gross profit was attributable to a 14% increase in our margin per gallon due to greater volatility in the price of crude oil for the six months ended June 30, 2026 as compared to the same period of 2025 as well as higher payment terms discounts due to the higher cost of fuel. This increase was partially offset by an 8% decrease in volume driven by a reduction in volume in our base business and the net loss of independent dealer contracts.
Current report
Rent gross profit
Current report
Rent gross profit decreased $2.1 million (12%) primarily due to the sale of certain lessee dealer sites in connection with our real estate optimization effort. This decrease was partially offset by an increase in rent gross profit as a result of the reassessment of the accounting for our lease with Getty required by the amendment of this lease during the first quarter of 2026, which resulted in certain payments to Getty that were previously accounted for as rent expense now being accounted for as principal payments and interest expense.
Current report
Operating expenses decreased $1.5 million (11%), primarily due to the sale of certain lessee dealer sites in connection with our real estate optimization effort.
Current report
Excludes current income tax expense incurred on the sales of sites.
Current report
On July 15, 2026, the Partnership and its subsidiary, Lehigh Gas Wholesale Services, Inc., entered into an amendment to the Credit Facility (the "Credit Facility Amendment"). The Credit Facility Amendment, among other things, (x) extends the maturity date from March 31, 2028 to July 15, 2031, (y) removes the SOFR credit spread adjustment and (z) amends the applicable financial covenant to require the Partnership to maintain a Consolidated Leverage Ratio (as defined in the Credit Facility) of (i) for each fiscal quarter ending June 30, 2026, September 30, 2026, December 31, 2026, March 31, 2027, June 30, 2027 and September 30, 2027, not greater than 5.00 to 1.00, and (ii) for each fiscal quarter ending December 31, 2027 and thereafter, not greater than 4.75 to 1.00. All other terms and conditions of the Credit Facility remain in full force and effect.
Removed paragraphs (11)
Previous report
Revenues from fuel sales decreased $19.6 million (3%) due primarily to a 6% decrease in volume due to the net loss of independent dealer contracts and a reduction in volume in our base business. Rent income decreased $2.6 million (15%) due to the sale of certain lessee dealer sites in connection with our real estate optimization effort as well as the conversion of certain lessee dealer sites to company operated and commission agent sites. These decreases were partially offset by a $1.3 million (1%) increase in merchandise revenues driven by an increase in sales in our base business.
Previous report
Cost of sales decreased $28.5 million (4%), due primarily to lower volume, driven by the same drivers as discussed above.
Previous report
Gross profit
Previous report
During the three months ended March 31, 2025, we recorded $5.6 million in net gains in connection with our ongoing real estate rationalization effort, partially offset by $0.6 million of net losses on lease terminations and asset disposals.
Previous report
Income tax expense (benefit)
Previous report
Gross profit increased $11.1 million (18%) and operating income increased $12.8 million (112%). These results were impacted by:
Previous report
Gross profit
Previous report
The $1.3 million decrease (8%) in motor fuel gross profit was primarily due to a 6% decrease in volume driven by the net loss of independent dealer contracts as well as the conversion of certain lessee dealer sites to company operated sites and commission agent sites.
Previous report
Rent gross profit decreased $1.9 million (20%) for the first quarter of 2026 compared to the same period of 2025, primarily due to the sale of certain lessee dealer sites in connection with our real estate rationalization effort as well as the conversion of certain lessee dealer sites to company operated and commission agent sites.
Previous report
Operating expenses decreased $0.7 million (10%), primarily due to the sale of certain lessee dealer sites in connection with our real estate rationalization effort as well as the conversion of certain lessee dealer sites to company operated and commission agent sites.
Previous report
Excludes $0.5 million of current income tax incurred on sales of sites for the first quarter of 2026.
Reworded paragraphs (23)
Previous wording
Operating revenues decreased $20.6 million (2%) and operating income increased $21.7 million. Significant items impacting these results were:
Current wording
Operating revenues increased $217 million (23%) and operating income decreased $6.2 million (15%). Significant items impacting these results were:
Previous wording
Gross profit increased $7.8 million (9%) due primarily to an increase in motor fuel and merchandise gross profit in our retail segment, partially offset by a decrease in motor fuel and rent gross profit in our wholesale segment. See “Results of Operations—Segment Results” for additional gross profit analyses.
Current wording
Gross profit increased $11.8 million (12%) due primarily to an increase in motor fuel gross profit in both our retail and wholesale segments. See “Results of Operations—Segment Results” for additional gross profit analyses.
Previous wording
Depreciation, amortization and accretion expense decreased $9.2 million (35%) primarily due to a $7.3 million decrease in impairment charges in comparison to prior year, as well as the impact of our site sales.
Current wording
Depreciation, amortization and accretion expense decreased $6.6 million (28%) primarily due to a $4.9 million decrease in impairment charges in comparison to prior year, as well as lower depreciation expense resulting from the impact of our site sales.
Previous wording
Interest expense decreased $2.1 million (16%) due to a lower average outstanding debt balance resulting from applying the proceeds from site sales to our Credit Facility as well as a lower average SOFR rate. These decreases were partially offset by a $0.2 million increase in interest expense on our finance lease obligations as a result of the reassessment of the accounting for our lease with Getty required by the amendment of this lease during the first quarter of 2026. See Note 6 to the financial statements for additional information.
Current wording
Interest expense decreased $1.2 million (10%) due to a lower average outstanding debt balance resulting from applying the proceeds from site sales to our Credit Facility as well as a lower average SOFR rate. These decreases were partially offset by a $0.8 million increase in interest expense on our finance lease obligations as a result of the reassessment of the accounting for our lease with Getty required by the amendment of this lease during the first quarter of 2026. See Note 6 to the financial statements for additional information.
Previous wording
We recorded income tax expense (benefit) of $2.5 million and ($3.6) million for the three months ended March 31, 2026 and 2025, respectively, driven by income generated (losses incurred) by our taxable subsidiaries.
Current wording
We recorded income tax expense of $3.3 million and $3.9 million for the three months ended June 30, 2026 and 2025, respectively, driven by income generated by our taxable subsidiaries.
Previous wording
General and administrative expenses decreased $1.2 million (15%) primarily driven by lower legal fees and equity compensation expense.
Current wording
General and administrative expenses decreased $0.9 million (7%) primarily driven by lower equity compensation expense, acquisition-related costs and management fees.
Previous wording
During the three months ended March 31, 2026, we recorded $6.3 million in net gains in connection with our ongoing real estate rationalization effort, partially offset by $0.2 million of net losses on lease terminations and asset disposals.
Current wording
During the six months ended June 30, 2026, we recorded $7.4 million in net gains in connection with our ongoing real estate optimization effort, partially offset by $0.2 million of net losses on lease terminations and asset disposals.
Previous wording
The decrease in the company operated site count was primarily attributable to the sale of certain company operated sites in connection with our real estate rationalization effort, partially offset by the conversion of certain lessee dealer sites to company operated sites.
Current wording
The decrease in the company operated site count was primarily attributable to the sale of certain company operated sites in connection with our real estate optimization effort.
Previous wording
The decrease in the commission agent site count was primarily attributable to the sale of certain commission agent sites in connection with our real estate rationalization effort, partially offset by the conversion of certain lessee dealer sites to commission agent sites.
Current wording
The decrease in the commission agent site count was primarily attributable to the sale of certain commission agent sites in connection with our real estate optimization effort.
Previous wording
Gross profit decreased $3.3 million (13%) and operating income decreased $2.6 million (13%). These results were impacted by:
Current wording
Gross profit increased $9.6 million (13%) and operating income increased $11.7 million (46%). These results were impacted by:
Previous wording
Our motor fuel gross profit increased $8.7 million (28%), attributable to a 29% increase in our margin per gallon for the three months ended March 31, 2026 as compared to the same period in 2025 due to greater volatility in the price of crude oil for the three months ended March 31, 2026 as compared to the same period of 2025. This increase was partially offset by a volume decrease of 7% due primarily to a 4% decrease in our average retail site count due to the sale of certain company operated sites in connection with our real estate optimization effort as well as a decrease in volume in our base business.
Current wording
Our motor fuel gross profit increased $7.7 million (20%), attributable to a 33% increase in our margin per gallon due to greater volatility in the price of crude oil for the three months ended June 30, 2026 as compared to the same period of 2025. This increase was partially offset by a volume decrease of 12% due primarily to a decrease in volume in our base business as well as a decrease in our average retail site count due to the sale of certain sites in connection with our real estate optimization effort.
Previous wording
Operating expenses decreased $1.7 million (3%) driven by a 4% decrease in the average retail site count due to the sale of certain company operated and commission agent sites in connection with our real estate optimization effort, partially offset by the conversion of certain lessee dealer sites to company operated and commission agent sites.
Current wording
Operating expenses decreased $2.1 million (4%) driven by a decrease in store labor as well as a decrease in the average retail site count due to the sale of certain sites in connection with our real estate optimization effort.
Previous wording
Our merchandise gross profit increased $2.0 million (8%) due primarily to an increase in sales in our base business as well as an increase in our merchandise gross profit percentage. These increases were partially offset by a 6% reduction in our average company operated site count due primarily to the sale of certain company operated sites in connection with our real estate optimization effort.
Current wording
Our merchandise gross profit increased $2.6 million (5%) due primarily to an increase in our merchandise gross profit percentage as well as an increase in sales in our base business. These increases were partially offset by a reduction in our average company operated site count due primarily to the sale of certain company operated sites in connection with our real estate optimization effort.
Previous wording
The decrease in the lessee dealer site count was primarily attributable to the sale of certain lessee dealer sites in connection with our 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.
Current wording
The decrease in the lessee dealer site count was primarily attributable to the sale of certain lessee dealer sites in connection with our real estate optimization 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.
Previous wording
Our principal liquidity requirements are to finance our operations, fund acquisitions, service our debt and pay distributions to our unitholders. We expect our ongoing sources of liquidity to include cash generated by operations, proceeds from sales of sites in connection with our real estate rationalization efforts, borrowings under the Credit Facility, and if available to us on acceptable terms, issuances of equity and debt securities. We regularly evaluate alternate sources of capital to support our liquidity requirements.
Current wording
Our principal liquidity requirements are to finance our operations, fund acquisitions, service our debt and pay distributions to our unitholders. We expect our ongoing sources of liquidity to include cash generated by operations, proceeds from sales of sites in connection with our real estate optimization efforts, borrowings under the Credit Facility, and if available to us on acceptable terms, issuances of equity and debt securities. We regularly evaluate alternate sources of capital to support our liquidity requirements.
Previous wording
Net cash provided by operating activities increased $13 million for the three months ended March 31, 2026 compared to the same period in 2025, primarily due to stronger operating results in 2026 and a decrease in interest expense driven by a lower average outstanding debt balance as well as a lower average SOFR rate.
Current wording
Net cash provided by operating activities increased $23 million for the six months ended June 30, 2026 compared to the same period in 2025, primarily due to stronger operating results in 2026 and a decrease in interest expense driven by a lower average outstanding debt balance as well as a lower average SOFR rate, partially offset by higher income tax payments in 2026 compared to 2025.
Previous wording
We incurred capital expenditures of $3 million and $10 million for the three months ended March 31, 2026 and 2025, respectively. We received $13 million and $9 million in proceeds primarily from the sale of sites in connection with our real estate rationalization effort for the three months ended March 31, 2026 and 2025, respectively. We also paid $1.8 million as a final payment in connection with a prior-year acquisition.
Current wording
We incurred capital expenditures of $11 million and $22 million for the six months ended June 30, 2026 and 2025, respectively. We received $16 million and $73 million in proceeds primarily from the sale of sites in connection with our real estate optimization effort for the six months ended June 30, 2026 and 2025, respectively. We also paid $1.8 million as a final payment in connection with a prior-year acquisition.
Previous wording
We paid $20 million in distributions for each of the three months ended March 31, 2026 and 2025. For the three months ended March 31, 2026 and 2025, we made total net (repayments) borrowings on the Credit Facility of ($10) million and $11 million, respectively.
Current wording
We paid $40 million in distributions for each of the six months ended June 30, 2026 and 2025. For the six months ended June 30, 2026 and 2025, we made total net repayments on the Credit Facility of $21 million and $41 million, respectively.
Previous wording
The amount of any distribution is subject to the discretion of the Board, which may modify or revoke our cash distribution policy at any time. Our Partnership Agreement does not require us to pay any distributions. As such, there can be no assurance we will continue to pay distributions in the future.
Current wording
The amount of any distribution is subject to the discretion of the Board, which may reduce or eliminate the cash distribution at any time. Our Partnership Agreement does not require us to pay any distributions. As such, there can be no assurance we will continue to pay distributions in the future.
Previous wording
Taking the interest rate swap contracts into account, the effective interest rate on our Credit Facility at March 31, 2026 was 5.6% (our applicable margin was 2.00% as of March 31, 2026). Letters of credit outstanding at March 31, 2026 totaled $4.9 million.
Current wording
Taking the interest rate swap contracts into account, the effective interest rate on our Credit Facility at June 30, 2026 was 5.5% (our applicable margin was 2.0% as of June 30, 2026). Letters of credit outstanding at June 30, 2026 totaled $4.9 million.
Previous wording
The amount of availability under our Credit Facility at May 1, 2026, after taking into consideration debt covenant restrictions, was $230 million.
Current wording
The amount of availability under our Credit Facility at July 31, 2026, after taking into consideration debt covenant restrictions, was $244.2 million.
Previous wording
We make investments to expand, upgrade and enhance existing assets. We categorize our capital requirements as either sustaining capital expenditures, growth capital expenditures or acquisition capital expenditures. Sustaining capital expenditures are those capital expenditures required to maintain our long-term operating income or operating capacity. Growth capital expenditures, which include individual site purchases, and acquisition capital expenditures are those capital expenditures that we expect will increase our operating income or operating capacity over the long term. We have the ability to fund our capital expenditures by additional borrowings under our Credit Facility, or, if available to us on acceptable terms, accessing the capital markets and issuing additional equity, debt securities or other options, such as the sale of assets. Our ability to access the capital markets may have an impact on our ability to fund acquisitions. We may not be able to complete any offering of securities or other options on terms acceptable to us, if at all.
Current wording
We have the ability to fund our capital expenditures by additional borrowings under our Credit Facility, or, if available to us on acceptable terms, accessing the capital markets and issuing additional equity, debt securities or other options, such as the sale of assets. Our ability to access the capital markets may have an impact on our ability to fund acquisitions. We may not be able to complete any offering of securities or other options on terms acceptable to us, if at all.
Previous wording
A significant portion of our growth capital expenditures are discretionary and we regularly review our capital plans in light of anticipated proceeds from sales of sites.
Current wording
A significant portion of our growth capital expenditures are discretionary and we regularly review our capital plans in light of our operational results, anticipated proceeds from sales of sites and credit facility capacity as well as capital market opportunities.
Rearranged current paragraphs (7)
Current report — wording carried from elsewhere
See “Results of Operations—Segment Results” for analyses.
Current report — wording carried from elsewhere
Depreciation, amortization and accretion expense decreased $15.8 million (32%) primarily due to a $12.2 million decrease in impairment charges in comparison to prior year, as well as lower depreciation expense resulting from the impact of our site sales.
Current report — wording carried from elsewhere
Gain on dispositions and lease terminations, net
Current report — wording carried from elsewhere
Interest expense decreased $3.3 million (13%) due to a lower average outstanding debt balance resulting from applying the proceeds from site sales to our Credit Facility as well as a lower average SOFR rate. These decreases were partially offset by a $1.1 million increase in interest expense on our finance lease obligations as a result of the reassessment of the accounting for our lease with Getty required by the amendment of this lease during the first quarter of 2026. See Note 6 to the financial statements for additional information.
Current report — wording carried from elsewhere
We recorded income tax expense of $5.8 million and $0.3 million for the six months ended June 30, 2026 and 2025, respectively, driven by income generated by our taxable subsidiaries.
Current report — wording carried from elsewhere
Our merchandise gross profit increased $0.5 million (2%) due primarily to an increase in our merchandise gross profit percentage. This increase was partially offset by a reduction in our average company operated site count due primarily to the sale of certain company operated sites in connection with our real estate optimization effort.
Current report — wording carried from elsewhere
We make investments to expand, upgrade and enhance existing assets. We categorize our capital requirements as either sustaining capital expenditures, growth capital expenditures or acquisition capital expenditures. Sustaining capital expenditures are those capital expenditures required to maintain our long-term operating income or operating capacity. Growth capital expenditures, which include individual site purchases, and acquisition capital expenditures are those capital expenditures that we expect will increase our operating income or operating capacity over the long term.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS