Spectral AI (MDAI) investor relations material

Business overview and growth strategy

• Operates 450 convenience stores across nine states, focusing on recession-resistant, essential retail with a strong emphasis on data-driven decision-making and technology adoption.

• Growth achieved through 27 acquisitions, including a major 305-store deal, and a deliberate focus on Midwest and Southwest geographies for favorable regulatory and margin environments.

• Maintains a value-oriented food service platform, highlighted by the Allsup's Burrito, and leverages a lean labor model to optimize store operations.

• Private label products account for about 9% of inside sales, with ongoing SKU rationalization and menu optimization to streamline offerings.

• Actively expanding through both new builds and acquisitions, with a target of 130 new stores over five years, primarily in Texas, New Mexico, Arizona, and Oklahoma.

Industry drivers and competitive positioning

• Essential retail status and proximity to customers provide resilience against macroeconomic volatility and e-commerce disruption.

• Food service, especially proprietary items like burritos, is a key differentiator, with 24 million burritos sold annually and a focus on value pricing.

• High diesel fuel mix (38% of total fuel, over 40% in new stores) delivers superior margins, aided by geographic positioning in truck-heavy regions.

• Loyalty programs, especially targeting professional drivers, drive higher inside sales and customer retention.

• Shifting tobacco sales mix toward higher-margin smoke-free products, offsetting declines in cigarette units.

Financial performance and outlook

• Reported strong Q2 results with positive same-store fuel volumes and robust EBITDA guidance.

• Fuel margin expansion and disciplined cost management have strengthened the balance sheet, enabling accelerated growth and M&A activity.

• Guidance reaffirmed for 130 new stores, with six to eight openings expected in the current year and the capability to ramp up to 20–40 annually.

• Focused on maintaining a leverage ratio under 3x, with flexibility to go higher for transformational deals.

• Medium-term EBITDA growth expected in the mid to high single digits, with recent operational performance exceeding historical averages.