RICHMOND, Va., Nov. 05, 2025 (GLOBE NEWSWIRE) -- ARKO Corp. (Nasdaq: ARKO) ("ARKO" or the "Company"), a Fortune 500 company and one of the largest convenience store operators in the United States, today announced financial results for the third quarter ended September 30, 2025.

Third Quarter 2025 Key Highlights (vs. Year-Ago Quarter) (1,2)

   -- Net income for the quarter was $13.5 million compared to $9.7 million. 
 
   -- Adjusted EBITDA for the quarter was $75.2 million compared to $78.8 
      million. 
 
   -- Merchandise margin for the quarter increased to 33.7% compared to 32.8%. 
 
   -- Retail fuel margin for the quarter was 43.6 cents per gallon compared to 
      41.3 cents per gallon. 

Other Key Highlights

   -- As part of the Company's ongoing transformation plan, the Company 
      converted 65 retail stores to dealer sites during the three months ended 
      September 30, 2025, for a total of 194 stores converted in the nine 
      months ended September 30, 2025. The Company continues to expect that, at 
      scale, its channel optimization will deliver a cumulative annualized 
      operating income benefit of more than $20 million, before G&A savings. In 
      addition, the Company has identified more than $10 million in expected 
      annual structural G&A savings with an opportunity for upside as the 
      Company continues to execute the dealerization program in 2026. 
 
   -- The Company advanced its retail store remodeling pilot program, which is 
      designed to elevate the customer experience through improved layouts and 
      a stronger food-forward focus that emphasizes hot grab-and-go breakfast, 
      lunch and snacking, bakery, pizza, and an expanded dispensed hot, cold 
      and frozen beverage assortment. Two remodeled stores reopened in the 
      summer of 2025, and the Company plans to reopen a third location during 
      the fourth quarter of 2025 and the remaining four stores in the first 
      half of 2026. 
 
   -- The Company continued to expand its network through new-to-industry (NTI) 
      locations, opening a Dunkin' and two new stores in 2025, including one in 
      Kinston, North Carolina in July 2025. The Company has begun working on 
      three more NTI stores, of which two are targeted to open in the fourth 
      quarter of 2025. Additionally, the Company is advancing a number of NTI 
      cardlock locations with target openings during 2026, reflecting the 
      attractive, recurring cash flow profile of this business. 
 
   -- The Board declared a quarterly dividend of $0.03 per share of common 
      stock to be paid on December 1, 2025 to stockholders of record as of 
      November 17, 2025. 

"Our third quarter results demonstrate continued and steady progress as we execute our transformation plan," said Arie Kotler, Chairman, President and Chief Executive Officer of ARKO. "While the consumer environment remains difficult, we are staying disciplined, advancing our dealerization program, focusing on efficiency, and improving how our stores operate. We're encouraged by the early performance of our new format stores, the solid execution within our wholesale and fleet fueling operations, and the strength of our loyalty and OTP programs."

Mr. Kotler continued: "We continue to focus on what we can control--operating efficiently, managing costs, and improving cash generation. We believe that these actions, together with the ongoing benefits from dealerization, are strengthening our platform and positioning ARKO to navigate the current environment and build lasting value. We are seeing the structural advantages of our model take hold. At the same time, we remain disciplined in how we deploy capital and return cash to stockholders, while continuing to strengthen our foundation for long-term value creation."

(1 See Use of Non-GAAP Measures below.) 2 All figures for fuel costs, fuel contribution and fuel margin per gallon exclude the estimated fixed margin or fixed fee paid to the Company's wholesale fuel distribution subsidiary, GPM Petroleum LP ("GPMP"), for the cost of fuel (intercompany charges by GPMP).

 
 
Third Quarter 2025 Segment Highlights 
 Retail 
 
                For the Three Months          For the Nine Months 
                 Ended September 30,           Ended September 30, 
               ----------------------      -------------------------- 
                 2025          2024           2025            2024 
               --------      --------      ----------      ---------- 
                                   (in thousands) 
Fuel gallons 
 sold           238,622       283,189         703,987         822,134 
Same store 
 fuel gallons 
 sold 
 decrease (%) 
 (1)               (4.7%)        (6.6%)          (5.8%)          (6.6%) 
Fuel 
 contribution 
 (2)           $104,127      $117,090      $  297,272      $  328,004 
Fuel margin, 
 cents per 
 gallon (3)        43.6          41.3            42.2            39.9 
Same store 
 fuel 
 contribution 
 (1, 2)        $102,336      $103,589      $  289,577      $  294,918 
Same store 
 merchandise 
 sales 
 decrease (%) 
 (1)               (2.2%)        (7.7%)          (4.4%)          (5.7%) 
Same store 
 merchandise 
 sales 
 excluding 
 cigarettes 
 decrease (%) 
 (1)               (0.9%)        (5.7%)          (3.0%)          (4.3%) 
Merchandise 
 revenue       $389,727      $469,616      $1,144,338      $1,358,519 
Merchandise 
 contribution 
 (4)           $131,479      $154,019      $  383,534      $  444,696 
Merchandise 
 margin (5)        33.7%         32.8%           33.5%           32.7% 
Same store 
 merchandise 
 contribution 
 (1, 4)        $128,833      $129,504      $  372,296      $  383,267 
Same store 
 site 
 operating 
 expenses 
 (1)           $167,022      $164,084      $  504,123      $  504,866 
 
(1) Same store is a common metric used in the convenience 
 store industry. The Company considers a store a same 
 store beginning in the first quarter in which the 
 store had a full quarter of activity in the prior 
 year. Refer to Use of Non-GAAP Measures below for 
 discussion of this measure. 
(2) Calculated as fuel revenue less fuel costs; excludes 
 the estimated fixed margin or fixed fee paid to GPMP 
 for the cost of fuel. 
(3) Calculated as fuel contribution divided by fuel 
 gallons sold. 
(4) Calculated as merchandise revenue less merchandise 
 costs. 
(5) Calculated as merchandise contribution divided 
 by merchandise revenue. 
 
 

Merchandise contribution for the third quarter of 2025 decreased $22.5 million, or 14.6%, compared to the third quarter of 2024, while merchandise margin increased to 33.7% for the third quarter of 2025 compared to 32.8% for the prior year period. The decrease in merchandise contribution was due to a $22.2 million decrease related to retail stores that were closed or converted to dealers since the middle of 2024 and a $0.7 million decrease in same store merchandise contribution, primarily caused by a decline in customer transactions reflecting the challenging macroeconomic environment.

Fuel contribution for the third quarter of 2025 decreased $13.0 million, or 11.1%, compared to the third quarter of 2024, primarily due to a $11.9 million decrease in retail fuel contribution related to retail stores that were closed or converted to dealers since the middle of 2024 and a same store fuel contribution decrease of $1.3 million attributable to gallon demand declines, reflecting the challenging macroeconomic environment. Fuel margin of 43.6 cents per gallon increased 2.3 cents per gallon compared to the third quarter of 2024.

 
 
Wholesale 
 
               For the Three Months    For the Nine Months 
                Ended September 30,     Ended September 30, 
               ---------------------  ---------------------- 
                  2025        2024       2025        2024 
               -----------  --------  -----------  --------- 
                              (in thousands) 
Fuel gallons 
 sold -- fuel 
 supply 
 locations         220,220   203,187      624,826    593,479 
Fuel gallons 
 sold -- 
 consignment 
 agent 
 locations          40,191    39,155      115,635    115,997 
Fuel 
 contribution 
 (1) -- fuel 
 supply 
 locations      $   13,917  $ 12,077   $   38,854  $  35,926 
Fuel 
 contribution 
 (1) -- 
 consignment 
 agent 
 locations      $   11,151  $ 11,283   $   31,650  $  32,150 
Fuel margin, 
 cents per 
 gallon (2) 
 -- fuel 
 supply 
 locations             6.3       5.9          6.2        6.1 
Fuel margin, 
 cents per 
 gallon (2) 
 -- 
 consignment 
 agent 
 locations            27.7      28.8         27.4       27.7 
 
(1) Calculated as fuel revenue less fuel costs; excludes 
 the estimated fixed margin or fixed fee paid to GPMP 
 for the cost of fuel. 
(2) Calculated as fuel contribution divided by fuel 
 gallons sold. 
Note: Comparable wholesale sites exclude retail stores 
 converted to dealers, until the first quarter in which 
 these dealer sites had a full quarter of wholesale 
 activity in the prior year. Refer to Use of Non-GAAP 
 Measures below. 
 
 

For the third quarter of 2025, wholesale operating income increased $3.8 million compared to the third quarter of 2024. Additional operating income from retail sites converted to dealers more than offset reduced operating income at comparable wholesale sites, which reflected the challenging macroeconomic environment.

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November 05, 2025 16:05 ET (21:05 GMT)