CASEYS GENERAL STORES INC

Previous wording

As of October 31, 2025, Casey’s General Stores, Inc. and its direct and indirect wholly-owned subsidiaries operate convenience stores primarily under the names "Casey's" and "Casey’s General Store" (collectively, with the stores below referenced as "GoodStop", "CEFCO", "Bucky's", or "Lone Star Food Store", referred to as "Casey's" or the "Company") throughout 19 states, approximately half of which are located in Iowa, Missouri and Illinois.

Current wording

As of January 31, 2026, Casey’s General Stores, Inc. and its direct and indirect wholly-owned subsidiaries operate convenience stores primarily under the names "Casey's" and "Casey’s General Store" (collectively, with the stores below referenced as "GoodStop (by Casey's)", or "CEFCO", referred to as "Casey's" or the "Company") throughout 19 states, approximately half of which are located in Iowa, Missouri and Illinois.

Previous wording

As of October 31, 2025, there were 2,921 stores in operation. Approximately 71% of all stores were opened in areas with populations of fewer than 20,000 persons. The Company competes on the basis of price, as well as on the basis of traditional features of convenience store operations such as location, extended hours, product offerings, and quality of service.

Current wording

As of January 31, 2026, there were 2,924 stores in operation. Approximately 71% of all stores were opened in areas with populations of fewer than 20,000 persons. The Company competes on the basis of price, as well as on the basis of traditional features of convenience store operations such as location, extended hours, product offerings, and quality of service.

Previous wording

All convenience stores carry a broad selection of food items (which at most stores includes, but is not limited to, freshly prepared foods such as regular and breakfast pizza, donuts, hot breakfast items, and hot and cold sandwiches), beverages, tobacco and nicotine products, groceries, health and beauty aids, automotive products, and other non-food items. As of October 31, 2025, 247 store locations offered car washes. In addition, all but six store locations offer fuel.

Current wording

All convenience stores carry a broad selection of food items (which at most stores includes, but is not limited to, freshly prepared foods such as regular and breakfast pizza, donuts, hot breakfast items, and hot and cold sandwiches), beverages, tobacco and nicotine products, groceries, health and beauty aids, automotive products, and other non-food items. As of January 31, 2026, 236 store locations offered car washes. In addition, all but six store locations offer fuel.

Previous wording

The Company operates a wholesale network where Casey’s manages fuel wholesale supply agreements to certain dealer sites and other wholesale locations. During the prior year, the Company expanded its fuel wholesale network through the Fikes acquisition. The dealer and wholesale locations are not operated by Casey's and are not included in our overall store count in the table below. Approximately 3% of total revenue for the three and six-months ended October 31, 2025, relates to the fuel wholesale network.

Current wording

The Company operates a wholesale network where Casey’s manages fuel wholesale supply agreements to certain dealer sites and other wholesale locations. During the prior year, the Company expanded its fuel wholesale network through the Fikes acquisition. The dealer and wholesale locations are not operated by Casey's and are not included in our overall store count in the table below. For the three and nine-months ended January 31, 2026, approximately 2% and 3%, of total revenue relates to the fuel wholesale network.

Previous wording

The Company operates three distribution centers, through which certain grocery and general merchandise and prepared food and dispensed beverage items are supplied to most of our stores. One distribution center is adjacent to our corporate headquarters, which we refer to as the Store Support Center in Ankeny, Iowa. The other two distribution centers are located in Terre Haute, Indiana and Joplin, Missouri. Additionally, the Company owns and operates a fuel terminal in Waco, Texas, which was acquired from Fikes in the prior year. The Company also self-distributes the majority of fuel to our stores.

Current wording

The Company operates three distribution centers, through which certain grocery and general merchandise and prepared food and dispensed beverage items are supplied to most of our stores. One distribution center is adjacent to our corporate headquarters, which we refer to as the Store Support Center in Ankeny, Iowa. The other two distribution centers are located in Terre Haute, Indiana and Joplin, Missouri. Additionally, the Company owns and operates a fuel terminal in Waco, Texas, which was acquired from Fikes in the prior year. The Company self-distributes the majority of fuel to our stores.

Previous wording

The Company reported diluted earnings per common share of $5.53 for the second quarter of fiscal 2026. For the same quarter a year-ago, diluted earnings per common share was $4.85.

Current wording

The Company reported diluted earnings per common share of $3.49 for the third quarter of fiscal 2026. For the same quarter a year-ago, diluted earnings per common share was $2.33.

Previous wording

The following table represents the roll forward of store count through the second quarter of fiscal 2026:

Current wording

The following table represents the roll forward of store count through the third quarter of fiscal 2026:

Previous wording

Casey's continues its process of implementing an electric vehicle ("EV") strategy and our management team remains committed to understanding how the increased demand for, and usage of, EVs impacts consumer behavior across our store footprint and beyond. As consumer demand for alternative fuel options continues to grow, Casey’s has continued to add EV charging stations across our 19-state footprint. As of October 31, 2025, the Company has 232 charging stations at 48 stores, across 13 states. Our EV growth strategy is currently designed to selectively increase our charging stations at locations within our region where we see higher levels of consumer EV buying trends and demand for EV charging. To date, consumer EV demand within our Midwest footprint has been comparatively lower than the levels along the coasts. As EV demand from our guests increases, we are prepared to strategically integrate charging station options at select stores.

Current wording

Casey's continues to implement our electric vehicle ("EV") strategy and our management team remains committed to understanding how the increased demand for, and usage of, EVs impacts consumer behavior across our store footprint and beyond. As consumer demand for alternative fuel options continues to grow, Casey’s has continued to add EV charging stations across our 19-state footprint. As of January 31, 2026, the Company has 269 charging stations at 58 stores, across 13 states. Our EV growth strategy is currently designed to selectively increase our charging stations at locations within our region where we see higher levels of consumer EV buying trends and demand for EV charging. To date, consumer EV demand within our Midwest footprint has been comparatively lower than the levels along the coasts. As EV demand from our guests increases, we are prepared to strategically integrate charging station options at select stores.

Previous wording

Same-store sales of prepared food and dispensed beverage increased 4.8% and grocery and general merchandise increased 2.7% during the quarter. The increase in prepared food and dispensed beverage same-store sales was attributable to strong sales of whole pizzas and hot sandwiches. The increase in grocery and general merchandise same-store sales was primarily due to sales of non-alcoholic beverages. Additionally, the second quarter results reflected a 0.8% increase in same-store fuel gallons sold.

Current wording

Same-store sales of prepared food and dispensed beverage increased 4.3% and grocery and general merchandise increased 4.0% during the quarter. The increase in prepared food and dispensed beverage same-store sales was attributable to strong sales of whole pizzas and hot sandwiches. The increase in grocery and general merchandise same-store sales was primarily due to sales of non-alcoholic beverages. Additionally, the third quarter results reflected a 0.4% increase in same-store fuel gallons sold.

Previous wording

Total revenue for the second quarter of fiscal 2026 increased by $559,313 (14.2%) over the comparable period in fiscal 2025, primarily driven by $511,805 of additional revenue from the Fikes acquisition. Prepared food and dispensed beverage revenue increased by $49,972 (12.0%), due to an increase in same-store sales of 4.8% driven by strong sales of whole pizzas and hot sandwiches, as well as an increase of approximately 7.2% related to store growth, due to operating 236 more stores than a year ago. Grocery and general merchandise revenue increased by $140,943 (13.4%), due to an increase in same-store sales of 2.7% driven by sales of non-alcoholic beverages, as well as an increase of approximately 10.7% related to store growth. Retail fuel revenue increased by $272,657 (11.3%) due to an increase in the number of gallons sold of 130,738 (16.8%). This was partially offset by a decrease in the average retail price per gallon of 4.8%.

Current wording

Total revenue for the third quarter of fiscal 2026 increased by $12,499 (0.3%) over the comparable period in fiscal 2025. Prepared food and dispensed beverage revenue increased by $25,824 (6.5%), due to an increase in same-store sales of 4.3% driven by strong sales of whole pizzas and hot sandwiches, as well as an increase of approximately 2.2% related to store growth, due to operating 31 more stores than a year ago. Grocery and general merchandise revenue increased by $53,954 (5.4%), due to an increase in same-store sales of 4.0% driven by sales of non-alcoholic beverages, as well as an increase of approximately 1.4% related to store growth. Retail fuel revenue decreased by $57,115 (2.4%) due to a decrease in the average retail price per gallon of 4.6%. This was partially offset by an increase in the number of gallons sold of 18,673 (2.3%).

Previous wording

Total revenue less cost of goods sold (exclusive of depreciation and amortization) was 24.9% of revenue for the second quarter of fiscal 2026, compared to 24.3% for the comparable period in the prior year. Prepared food and dispensed beverage revenue less related cost of goods sold (exclusive of depreciation and amortization) decreased to 58.6% of prepared food and dispensed beverage revenue for the second quarter of fiscal 2026, compared to 58.7% for the comparable period in the prior year driven primarily by the acquisition of Fikes, as the CEFCO stores contribute a lower percentage than a typical Casey's store. Grocery and general merchandise revenue less related cost of goods sold (exclusive of depreciation and amortization) increased to 36.0% of grocery and general merchandise revenue for the second quarter of fiscal 2026, compared to 35.6% of grocery and general merchandise revenue for the comparable period in the prior year driven primarily by product mix.

Current wording

Total revenue less cost of goods sold (exclusive of depreciation and amortization) was 25.7% of revenue for the third quarter of fiscal 2026, compared to 23.4% for the comparable period in the prior year. Prepared food and dispensed beverage revenue less related cost of goods sold (exclusive of depreciation and amortization) increased to 58.3% of prepared food and dispensed beverage revenue for the third quarter of fiscal 2026, compared to 57.8% for the comparable period in the prior year due to strong cost of goods management. Grocery and general merchandise revenue less related cost of goods sold (exclusive of depreciation and amortization) increased to 35.7% of grocery and general merchandise revenue for the third quarter of fiscal 2026, compared to 34.2% of grocery and general merchandise revenue for the comparable period in the prior year, primarily due to a favorable product mix shift.

Previous wording

Fuel revenue less related cost of goods sold (exclusive of depreciation and amortization) was 14.0% of fuel revenue during the second quarter of fiscal 2026, compared to 12.9% for the comparable period in the prior year. Revenue less cost of goods sold (exclusive of depreciation and amortization) per gallon increased to 41.6 cents in the second quarter of fiscal 2026, compared to 40.2 cents for the comparable period in the prior year. The Company sold 7.0 million RINs (renewable identification numbers) for $7,222 during the quarter, compared to the sale of 6.3 million RINs in the second quarter of the prior year, which generated $4,923 (see Note 3, above, for a further description of RINs and how they are generated).

Current wording

Fuel revenue less related cost of goods sold (exclusive of depreciation and amortization) was 15.1% of fuel revenue during the third quarter of fiscal 2026, compared to 12.8% for the comparable period in the prior year. Revenue less cost of goods sold (exclusive of depreciation and amortization) per gallon increased to 41.0 cents in the third quarter of fiscal 2026, compared to 36.4 cents for the comparable period in the prior year. The Company sold 5.8 million RINs (renewable identification numbers) for $6,251 during the quarter, compared to the sale of 4.0 million RINs for $2,557 in the third quarter of the prior year (see Note 3, above, for a further description of RINs and how they are generated).

Previous wording

The effective tax rate increased to 24.7% in the second quarter of fiscal 2026 compared to 24.5% in the same period of fiscal 2025. The increase in the effective tax rate was primarily due to a decrease in favorable permanent differences.

Current wording

The effective tax rate increased to 24.1% in the third quarter of fiscal 2026 compared to 19.2% in the same period of fiscal 2025. The increase in the effective tax rate was primarily due to a one-time benefit in the prior year to update the state deferred tax rate following the Fikes transaction.

Previous wording

Net income increased $25,418 (14.0%) to $206,336 compared to $180,918 in the comparable period. The increase in net income was primarily attributable to higher profitability both inside the store and in fuel, partially offset by increases in operating expenses, depreciation and amortization, and interest expense. See discussion in the paragraphs above for the primary drivers for each of these changes.

Current wording

Net income increased $42,976 (49.3%) to $130,073 compared to $87,097 in the comparable period. The increase in net income was primarily attributable to higher profitability both inside the store and in fuel, partially offset by increases in operating expenses, depreciation and amortization, and interest expense. See discussion in the paragraphs above for the primary drivers for each of these changes.

Previous wording

Total revenue for the first six months of fiscal 2026 increased by $1,028,682 (12.8%) over the comparable period in fiscal 2025 primarily driven by $1,034,139 of additional revenue from the Fikes acquisition. Prepared food and dispensed beverage revenue increased by $103,277 (12.5%) due to an increase in same-store sales of 5.0% driven by improved sales of hot sandwiches, bakery, and whole pizzas, as well as an increase of approximately 7.5% related to store growth. Grocery and general merchandise revenue increased by $297,348 (14.0%) due to an increase of approximately 10.8% related to store growth, as well as an increase in same-store sales of 3.2% driven by strong sales of non-alcoholic beverages. Retail fuel revenue increased by $450,674 (9.1%) due to an increase in the number of gallons sold of 269,982 (17.4%), partially offset by the average retail price per gallon decreasing 7.1%.

Current wording

Total revenue for the first nine months of fiscal 2026 increased by $1,041,181 (8.7%) over the comparable period in fiscal 2025 primarily driven by $1,034,139 of additional revenue from the Fikes acquisition, during the first six months of fiscal 2026. Prepared food and dispensed beverage revenue increased by $129,101 (10.6%) due to an increase in same-store sales of 4.8% driven by improved sales of hot sandwiches, bakery, and whole pizzas, as well as an increase of approximately 5.8% related to store growth. Grocery and general merchandise revenue increased by $351,302 (11.3%) due to an increase in same-store sales of 3.4% driven by strong sales of non-alcoholic beverages, as well as an increase of approximately 7.9% related to store growth. Retail fuel revenue increased by $393,559 (5.4%) due to an increase in the number of gallons sold of 288,655 (12.1%), partially offset by the average retail price per gallon decreasing 6.0%.

Previous wording

The other category primarily consists of activity related to wholesale fuel and car wash revenue, which are both presented gross of applicable costs, as well as lottery, which is presented net of applicable costs. Other revenue increased $95,741 (148.2%) for the second quarter of fiscal 2026 compared to the prior year, driven primarily by an increase in wholesale fuel revenue, as a result of the Fikes acquisition. The increased activity related to the wholesale fuel network carries a lower revenue less cost of good sold as a percentage of total revenue. Additionally, other revenue and other revenue less cost of goods sold (exclusive of depreciation and amortization) was favorably impacted by a one-time adjustment of $8,000 due to a change in estimate related to breakage assumptions on the outstanding gift card liability balance.

Current wording

The other category primarily consists of activity related to wholesale fuel and car wash revenue, which are both presented gross of applicable costs, as well as lottery, which is presented net of applicable costs. Other revenue increased $167,219 (62.2%) for the first nine months of fiscal 2026 compared to the prior year, driven primarily by an increase in wholesale fuel revenue, as a result of the Fikes acquisition. The increased activity related to the wholesale fuel network carries a lower revenue less cost of good sold as a percentage of total revenue. Additionally, other revenue and other revenue less cost of goods sold (exclusive of depreciation and amortization) was favorably impacted by a one-time adjustment of $8,000 due to a change in estimate related to breakage assumptions on the outstanding gift card liability balance in the second fiscal quarter.

Previous wording

Revenue less cost of goods sold (exclusive of depreciation and amortization) was 24.6% of revenue for the first six months of fiscal 2026, compared to 23.8% for the comparable period in the prior year. Prepared food and dispensed beverage revenue less related cost of goods sold (exclusive of depreciation and amortization) decreased to 58.3% of prepared food and dispensed beverage revenue, compared to 58.5% for the comparable period in the prior year driven primarily by the acquisition of Fikes, as the CEFCO stores contribute a lower percentage than a typical Casey's store. Grocery and general merchandise revenue less related cost of goods sold (exclusive of depreciation and amortization) increased to 36.0% of grocery and general merchandise revenue, compared to 35.5% in the prior year driven primarily by product mix.

Current wording

Revenue less cost of goods sold (exclusive of depreciation and amortization) was 24.9% of revenue for the first nine months of fiscal 2026, compared to 23.7% for the comparable period in the prior year. Prepared food and dispensed beverage revenue less related cost of goods sold (exclusive of depreciation and amortization) remained flat at 58.3% of prepared food and dispensed beverage revenue, compared to the comparable period in the prior year. Grocery and general merchandise revenue less related cost of goods sold (exclusive of depreciation and amortization) increased to 35.9% of grocery and general merchandise revenue, compared to 35.1% in the prior year, primarily due to a favorable product mix shift.

Previous wording

Fuel revenue less related cost of goods sold (exclusive of depreciation and amortization) was 13.9% of fuel revenue for the first six months of fiscal 2026, compared to 12.6% for the first six months of the prior year. Revenue less cost of goods sold (exclusive of depreciation and amortization) per gallon was 41.3 cents for the first six months of fiscal 2026 compared to 40.5 cents in the prior year. The Company sold 13.1 million RINs (renewable identification numbers) for $13,964 during the six months of fiscal 2026, compared to the sale of 14.9 million RINs in the prior year, which generated $9,758 (see Note 3, above, for a further description of RINs and how they are generated).

Current wording

Fuel revenue less related cost of goods sold (exclusive of depreciation and amortization) was 14.2% of fuel revenue for the first nine months of fiscal 2026, compared to 12.7% for the first nine months of the prior year. Revenue less cost of goods sold (exclusive of depreciation and amortization) per gallon was 41.2 cents for the first nine months of fiscal 2026 compared to 39.1 cents in the prior year. The Company sold 18.9 million RINs (renewable identification numbers) for $20,215 during the nine months of fiscal 2026, compared to the sale of 18.8 million RINs for $12,315 in the prior year (see Note 3, above, for a further description of RINs and how they are generated).

Previous wording

Operating expenses increased by $190,610 (15.6%) in the first six months of fiscal 2026 from the comparable period in the prior year. Operating 236 more stores than the prior year accounted for approximately 10% of the increase. Same-store employee expense contributed to approximately 2% of the increase, due to an increases in labor rates, offset by same-store labor hours down nearly 1%. Approximately 1% of the change is related to an increase in accrued costs for variable incentive compensation due to strong financial performance.

Current wording

Operating expenses increased by $218,050 (11.5%) in the first nine months of fiscal 2026 from the comparable period in the prior year. Operating more stores than the prior year accounted for approximately 6% of the increase. Same-store employee expense contributed to approximately 1.5% of the increase, due to an increases in labor rates, offset by a reduction in same-store labor hours. Approximately 1% of the change is related to an increase in accrued costs for variable incentive compensation due to strong financial performance.

Previous wording

Interest, net increased by $24,920 (93.6%) to $51,540 for the first six months of fiscal 2026 primarily due to issuing incremental debt of $1,100,000 in the prior year to partially fund the acquisition of Fikes.

Current wording

Interest, net increased by $18,886 (33.7%) to $74,921 for the first nine months of fiscal 2026 primarily due to issuing incremental debt of $1,100,000 in the prior year to partially fund the acquisition of Fikes.

Previous wording

The effective tax rate decreased to 23.7% in the first six months of the fiscal year compared to 24.3% in the same period of the prior fiscal year. The decrease in the effective tax rate was primarily due to an increase in excess tax benefits recognized on share-based awards.

Current wording

The effective tax rate increased to 23.8% in the first nine months of the fiscal year compared to 23.4% in the same period of the prior fiscal year. The increase in the effective tax rate was primarily due to a one-time benefit in the prior year to update the state deferred tax rate following the Fikes transaction (0.9%), offset by an increase in excess tax benefits recognized on share-based awards in the current year (0.5%).

Previous wording

Net income increased by $60,575 (16.8%) to $421,691 from $361,116 in the prior year. The increase in net income was primarily attributable to higher profitability both inside the store and in fuel, partially offset by increases in operating expenses, depreciation and amortization and interest expense. See discussion in the paragraphs above for the primary drivers for each of these changes.

Current wording

Net income increased by $103,551 (23.1%) to $551,764 from $448,213 in the prior year. The increase in net income was primarily attributable to higher profitability both inside the store and in fuel, partially offset by increases in operating expenses, depreciation and amortization and interest expense. See discussion in the paragraphs above for the primary drivers for each of these changes.

Previous wording

The following table contains a reconciliation of net income to EBITDA for the three and six months ended October 31, 2025 and 2024:

Current wording

The following table contains a reconciliation of net income to EBITDA for the three and nine months ended January 31, 2026 and 2025:

Previous wording

For the three and six months ended October 31, 2025, EBITDA increased by 17.5% and 18.7%, respectively, when compared to the same period a year ago. The increase was primarily attributable to higher profitability both inside the store and in fuel, partially offset by higher operating expenses. See discussion in the preceding sections for the primary drivers for each of these individual changes.

Current wording

For the three and nine months ended January 31, 2026, EBITDA increased by 27.5% and 20.9%, respectively, when compared to the same period a year ago. The increase was primarily attributable to higher profitability both inside the store and in fuel, partially offset by higher operating expenses. See discussion in the preceding sections for the primary drivers for each of these individual changes.

Previous wording

Critical accounting policies are those accounting policies that management believes are important to the portrayal of the Company’s financial condition and results of operations. The Company's critical accounting policies are described in the Form 10-K for the year ended April 30, 2025, and such discussion is incorporated herein by reference. There have been no changes to these policies in the six months ended October 31, 2025.

Current wording

Critical accounting policies are those accounting policies that management believes are important to the portrayal of the Company’s financial condition and results of operations. The Company's critical accounting policies are described in the Form 10-K for the year ended April 30, 2025, and such discussion is incorporated herein by reference. There have been no changes to these policies in the nine months ended January 31, 2026.

Previous wording

Due to the nature of the Company’s business, cash provided by operations is the Company’s primary source of liquidity. The Company finances its inventory purchases primarily from normal trade credit aided by the relatively rapid turnover of inventory. This turnover allows the Company to conduct its operations without large amounts of cash and working capital. As of October 31, 2025, the Company’s ratio of current assets to current liabilities was 1.05 to 1. The ratio at October 31, 2024 and April 30, 2025 was 0.88 to 1 and 0.92 to 1, respectively. The increase in the ratio is primarily attributable to an increase in cash and cash equivalents. For further information, refer to discussions on the changes in the sections of the statement of cash flow below.

Current wording

Due to the nature of the Company’s business, cash provided by operations is the Company’s primary source of liquidity. The Company finances its inventory purchases primarily from normal trade credit aided by the relatively rapid turnover of inventory. This turnover allows the Company to conduct its operations without large amounts of cash and working capital. As of January 31, 2026, the Company’s ratio of current assets to current liabilities was 1.04 to 1. The ratio at January 31, 2025 and April 30, 2025 was 0.92 to 1 for both periods. The increase in the ratio is primarily attributable to an increase in cash and cash equivalents. For further information, refer to discussions on the changes in the sections of the statement of cash flow below.

Previous wording

Management believes that the net availability under the Bank Line of approximately $49,726 and the Revolving Facility of $850,000, combined with the current cash and cash equivalents and the future cash flow from operations will be sufficient to satisfy the working capital needs of our business.

Current wording

Management believes that the net availability under the Bank Line of approximately $50,000 and the Revolving Facility of $850,000, combined with the current cash and cash equivalents and the future cash flow from operations will be sufficient to satisfy the working capital needs of our business.

Previous wording

Net cash provided by operating activities was $719,486 for the six months ended October 31, 2025, compared to $552,057 for the comparable period in the prior year, an increase of $167,429. Our primary source of operating cash flows is from sales to guests at our stores. The primary uses of operating cash flows are payments to our team members and suppliers, as well as payments for taxes and interest. Cash flow from operations was favorably impacted by improved revenue less cost of goods sold (exclusive of depreciation and amortization) of $320,317, as well as a decrease in cash paid for taxes of $17,553 compared to the prior year, primarily due to increased accelerated tax depreciation following the reinstatement of 100% bonus depreciation under the One Big Beautiful Bill Act. This was offset by an increase in operating expenses of $190,610 and an increase in cash paid for interest of $31,847. Refer to "Six Months Ended October 31, 2025 Compared to Six Months Ended October 31, 2024" starting on page 16 for further details on the primary drivers for the changes in revenue, cost of goods sold, operating expenses, and interest. Cash flows from operations can also be impacted by variability in the timing of payments and receipts for certain assets and liabilities, such as wage related accruals, accounts payable, and receivables from credit card companies or our vendors. Operating cash flows were also favorably impacted by an increase of $24,144 due to the timing of inventory purchases, as well as an increase of $30,288 related to accounts payable and accrued expenses, due to the timing of payments.

Current wording

Net cash provided by operating activities was $979,030 for the nine months ended January 31, 2026, compared to $756,996 for the comparable period in the prior year, an increase of $222,034. Our primary source of operating cash flows is from sales to guests at our stores. The primary uses of operating cash flows are payments to our team members and suppliers, as well as payments for taxes and interest. Cash flow from operations was favorably impacted by improved revenue less cost of goods sold (exclusive of depreciation and amortization) of $414,301. This was offset by an increase in operating expenses of $218,050 and an increase in cash paid for interest of $29,621. Refer to "Nine Months Ended January 31, 2026 Compared to Nine Months Ended January 31, 2025" starting on page 17 for further details on the primary drivers for the changes in revenue, cost of goods sold (exclusive of depreciation and amortization), operating expenses, and interest. Cash flows from operations can also be impacted by variability in the timing of payments and receipts for certain assets and liabilities, such as wage related accruals, accounts payable, and receivables from credit card companies or our vendors. Operating cash flows were also favorably impacted by an increase of $33,065 due to the timing of inventory purchases, as well as an increase of $29,495 related to accounts payable, due to the timing of payments.

Previous wording

Net cash used in investing activities increased by $98,395. During the first six months of fiscal 2026, the Company expended $368,554 for purchases of property and equipment and payments for acquisitions compared to $257,567 for the comparable period in the prior year. Purchases of property and equipment and payments for acquisitions of businesses typically represent the single largest use of excess Company funds. Management believes that by acquiring, building, and reinvesting in stores, the Company will be better able to drive long-term shareholder value.

Current wording

Net cash used in investing activities decreased by $1,009,596. During the first nine months of fiscal 2026, the Company expended $552,730 for purchases of property and equipment and payments for acquisitions compared to $1,537,066 for the comparable period in the prior year. The decrease in cash used in investing activities was attributable to the Fikes acquisition, which closed during the prior year and had a purchase price of $1,165,752. Purchases of property and equipment and payments for acquisitions of businesses typically represent the single largest use of excess Company funds. Management believes that by acquiring, building, and reinvesting in stores, the Company will be better able to drive long-term shareholder value.

Previous wording

Net cash used in financing activities was $209,890 for the six months ended October 31, 2025, compared to net cash provided by financing activities of $999,149 in the comparable period. The change from the prior year was primarily due to the proceeds from long-term debt of $1,100,000 received to partially fund the Fikes acquisition in the prior year. Additionally, the repurchase and retirement of common stock under our share repurchase program resulted in an increase in the net cash used of approximately $61,768 during the period.

Current wording

Net cash used in financing activities was $327,732 for the nine months ended January 31, 2026, compared to net cash provided by financing activities of $953,874 in the comparable period in the prior year. The change from the prior year was primarily due to the proceeds from long-term debt of $1,100,000 received to partially fund the Fikes acquisition in the prior year. Additionally, the repurchase and retirement of common stock under our share repurchase program resulted in an increase in the net cash used of approximately $136,524 during the period.