Mar 29

Monro Q4 2025 Earnings Report

Monro reported a net loss in Q4 2025 with declining revenue and a swing to negative operating income.

Key Takeaways

Monro faced a challenging Q4 2025, posting a net loss and decreased revenue driven by fewer selling days and increased impairment costs. Despite this, comparable store sales adjusted for days showed growth.

Revenue decreased to $295.0M, impacted by six fewer selling days.

Net loss reached $21.3M, compared to a net income of $3.7M in the prior year.

Comparable store sales increased 2.8% when adjusted for selling days.

145 underperforming stores identified for closure in Q1 FY26.

Total Revenue
$295M
Previous year: $310M
-4.9%
EPS
-$0.09
Previous year: $0.21
-142.9%
Comparable store sales
2.8%
Previous year: -7.2%
-138.9%
Gross margin
33%
Previous year: 35.5%
-7.0%
Unadjusted comp store sales
-3.6%
Gross Profit
$97.3M
Previous year: $110M
-11.6%
Cash and Equivalents
$20.8M
Previous year: $6.56M
+216.4%
Total Assets
$1.64B
Previous year: $1.69B
-3.0%

Monro

Monro

Forward Guidance

No formal guidance was issued for FY26, but the company outlined strategic priorities and noted strong sales momentum in Q1 FY26.

Positive Outlook

  • Preliminary Q1 FY26 comparable store sales up ~7%
  • Strategic closure of 145 underperforming stores planned
  • Focus on customer experience and selling effectiveness
  • Initiatives to improve merchandising and mitigate tariff risk
  • Strong operating cash flow of $132M in FY25

Challenges Ahead

  • No formal financial guidance provided for FY26
  • Q4 operating loss of $23.8M due to impairment costs
  • Revenue decline partly driven by fewer selling days
  • Continued pressure on low-to-middle income consumer spending
  • Gross margin impacted by inflation and promotional costs