--- title: "Monro | 10-K: FY2026 Revenue Misses Estimate at USD 1.157 B" type: "News" locale: "en" url: "https://longbridge.com/en/news/287771847.md" datetime: "2026-05-27T12:32:23.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/287771847.md) - [en](https://longbridge.com/en/news/287771847.md) - [zh-HK](https://longbridge.com/zh-HK/news/287771847.md) --- # Monro | 10-K: FY2026 Revenue Misses Estimate at USD 1.157 B Revenue: As of FY2026, the actual value is USD 1.157 B, missing the estimate of USD 1.167 B. EPS: As of FY2026, the actual value is USD 0.03, missing the estimate of USD 0.3567. EBIT: As of FY2026, the actual value is USD 37.26 M. Monro, Inc. operates as a single reportable operating segment, focusing on automotive undercar repair, tire replacement, and tire-related services. #### Revenue - **Total Sales**: Monro, Inc.’s total sales were $1,157,176 thousand in 2026, marking a -3.2% decrease from $1,195,334 thousand in 2025. This decrease was primarily attributed to closed stores (-4.6%), partially offset by a 1.4% increase in comparable store sales. - **Comparable Store Sales**: Comparable store sales increased by 1.4% in 2026 compared to the prior year. - **Product Category Sales Change (2026 vs. 2025)**: Front end/shocks sales increased by 12%, brakes by 4%, and tires by 2%. Maintenance service sales showed no change, while alignment decreased by -6% and batteries by -9%. - **Sales by Product Category (as % of total sales)**: Tires accounted for 48% of total sales in 2026 (47% in 2025), maintenance service 27% (28% in 2025), brakes 13% (13% in 2025), steering (including front end/shocks and alignment) 9% (9% in 2025), batteries 2% (2% in 2025), and other 1% (1% in 2025). - **Specific Revenue Figures (thousands)**: Exhaust sales were $15,015 in 2026, down from $16,703 in 2025. Franchise royalties were $1,526 in 2026, an increase from $1,489 in 2025. #### Operational Performance - **Cost of Sales, including occupancy costs**: These costs were $751,915 thousand in 2026, a -3.3% decrease from $777,689 thousand in 2025. - **Gross Profit**: Gross profit was $405,261 thousand in 2026, representing 35.0% of sales, compared to $417,645 thousand or 34.9% of sales in 2025. The gross profit percentage increased by 10 basis points, driven by decreased occupancy costs (60 bps) partially offset by increased technician labor costs (-50 bps). - **Operating, Selling, General and Administrative Expenses (OSG&A)**: These expenses were $385,232 thousand in 2026, or 33.3% of sales, a -4.9% decrease from $405,080 thousand or 33.9% of sales in 2025. This reduction was primarily due to lower costs from closed stores and reduced store impairment charges, partially offset by increased store advertising and consulting costs related to the Operational Improvement Plan. - **Operating Income**: Operating income increased by 59.4% to $20,029 thousand in 2026 from $12,565 thousand in 2025. - **Adjusted Operating Income**: Adjusted operating income was $35,774 thousand in 2026, compared to $40,306 thousand in 2025. - **Net Income (Loss)**: Monro, Inc. reported a net income of $2,173 thousand in 2026, a significant improvement from a net loss of -$5,182 thousand in 2025. - **Adjusted Net Income**: Adjusted net income was $14,018 thousand in 2026, compared to $15,624 thousand in 2025. - **Net Interest Expense**: Net interest expense was $17,233 thousand in 2026, a decrease of $1,700 thousand from 2025, and decreased as a percentage of sales from 1.6% to 1.5%. - **Provision for Income Taxes**: The provision for income taxes was $927 thousand in 2026, with an effective tax rate of 29.9%, compared to -$731 thousand in 2025, with an effective tax rate of 12.4%. #### Cash Flow - **Cash Provided by Operating Activities**: Cash provided by operating activities was $70,438 thousand in 2026, compared to $131,912 thousand in 2025. - **Cash Used for Investing Activities**: Cash used for investing activities was -$1,196 thousand in 2026, compared to -$1,231 thousand in 2025, and included capital expenditures of $31,657 thousand in 2026. - **Cash Used for Financing Activities**: Cash used for financing activities was -$75,371 thousand in 2026, compared to -$116,480 thousand in 2025. - **Cash and Equivalents at End of Period**: Cash and equivalents at the end of the period totaled $14,633 thousand in 2026. #### Unique Metrics and Initiatives - **Store Count**: As of March 28, 2026, Monro operated 1,115 retail tire and automotive repair stores, a decrease from 1,260 stores as of March 29, 2025. - **Store Closure Plan**: In the first quarter of fiscal 2026, 145 underperforming stores were closed, incurring $14,800 thousand in closing costs. The company generated $19,700 thousand in net proceeds and a $9,900 thousand net gain from selling 26 owned stores and related equipment. Additionally, assigning 36 leases and early terminating 32 resulted in $5,600 thousand in net proceeds and a $12,200 thousand net gain. - **Goodwill**: Goodwill remained at $736,435 thousand as of March 28, 2026, and March 29, 2025, with no impairment recorded in fiscal 2026 or 2025. - **Long-term Debt**: Long-term debt outstanding under the Credit Facility was $60,000 thousand as of March 28, 2026. - **Working Capital Deficit**: The working capital deficit increased to $281,200 thousand as of March 28, 2026, from $246,900 thousand as of March 29, 2025. #### Outlook / Guidance Monro, Inc. anticipates that its current liquidity sources, including operating cash flow, available Credit Facility funds, and cash on hand, will adequately cover contractual obligations, working capital, and capital expenditure needs for at least the next 12 months and the foreseeable future. The company plans to continue its dividend program to return cash to shareholders and may pursue future growth through retail store acquisitions or new greenfield stores. As of May 15, 2026, Monro had approximately $2,400 thousand in cash on hand and $382,000 thousand available under its Credit Facility, subject to covenant compliance. ### Related Stocks - [MNRO.US](https://longbridge.com/en/quote/MNRO.US.md) ## Related News & Research - [Monro Q1 FY27 adjusted loss widens to $(0.09) per share; sales fall 4.6% to $287.1 million](https://longbridge.com/en/news/294200388.md) - [Monro (MNRO) Q2 Earnings Report Preview: What To Look For](https://longbridge.com/en/news/294005332.md) - [Monro Muffler Brake, Inc. 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