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Dec 31, 2025
Arko Q4 2025 Earnings Report
Key Takeaways
ARKO Corp. reported a return to profitability in Q4 2025 with net income of $1.9 million, driven by a significant transformation plan involving the conversion of retail sites to dealer locations. While total revenues declined due to these conversions and a challenging macroeconomic environment, the company saw improved merchandise and fuel margins and a 15.6% increase in Adjusted EBITDA.
Net income improved to $1.9 million in Q4 2025 compared to a net loss of $2.3 million in the prior year period.
Adjusted EBITDA grew 15.6% to $65.7 million, reflecting the impact of retail-to-dealer conversions and improved cost discipline.
Merchandise margin expanded by 140 basis points to 34.4%, and retail fuel margin increased to 44.5 cents per gallon.
Successfully completed the IPO of subsidiary ARKO Petroleum Corp. (APC) in February 2026, raising $184 million to reduce debt.
Revenue by Segment
Forward Guidance
For the full year 2026, ARKO expects Adjusted EBITDA to be between $245 million and $265 million, assuming retail fuel margins between 41.5 and 43.5 cents per gallon.
Positive Outlook
- Expected Adjusted EBITDA range of $245M to $265M.
- Anticipated completion of committed retail-to-dealer conversions by end of 2026.
- Cumulative annualized operating income benefit of more than $20M from channel optimization.
- Identified more than $10M in expected cumulative G&A savings.
- Planned expansion of 'fas craves' format with approximately 25 remodels.
Challenges Ahead
- Customers remain value-focused due to macroeconomic environment.
- Net income guidance unavailable due to depreciation/amortization uncertainty.
- Ongoing impact of store closures and conversions on total revenue volume.
- Challenging macroeconomic environment affecting comparable site performance.
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Avg. Return Before/After Earnings
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