ARKO Corp. Reports Third Quarter 2025 Results

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 HighlightsRetail For the Three MonthsEnded September 30, For the Nine MonthsEnded 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 MonthsEnded September 30, For the Nine MonthsEnded 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. Fuel contribution was $25.1 million for the third quarter of 2025 compared to $23.4 million for the third quarter of 2024. Fuel contribution for the third quarter of 2025 at fuel supply locations increased $1.8 million, and fuel margin per gallon increased 0.4 cents per gallon compared to the third quarter of 2024, due principally to incremental contribution from retail stores converted to dealers, which was partially offset by lower volumes at comparable fuel supply wholesale sites and decreased prompt pay discounts related to lower fuel costs. Fuel contribution at consignment agent locations decreased $0.1 million, and fuel margin per gallon also decreased 1.1 cents per gallon. For the third quarter of 2025, other revenues, net increased by approximately $6.9 million, and site operating expenses increased by $4.8 million in each case as compared to the third quarter of 2024, resulting primarily from retail stores that the Company converted to dealers. Fleet Fueling For the Three MonthsEnded September 30, For the Nine MonthsEnded September 30, 2025 2024 2025 2024 (in thousands) Fuel gallons sold – proprietary cardlock locations 33,124 34,089 98,039 103,216 Fuel gallons sold – third-party cardlock locations 3,458 3,105 9,926 9,575 Fuel contribution 1 – proprietary cardlock locations$16,209 $15,699 $47,985 $46,789 Fuel contribution 1 – third-party cardlock locations$531 $482 $1,825 $1,168 Fuel margin, cents per gallon 2 – proprietary cardlock locations 48.9 46.1 48.9 45.3 Fuel margin, cents per gallon 2 – third-party cardlock locations 15.3 15.5 18.4 12.2 1 Calculated as fuel revenue less fuel costs; excludes the estimated fixed fee paid to GPMP for the cost of fuel. 2 Calculated as fuel contribution divided by fuel gallons sold. Fuel contribution for the third quarter of 2025 increased by $0.6 million compared to the third quarter of 2024. At proprietary cardlocks, fuel contribution increased by $0.5 million, and fuel margin per gallon also increased for the third quarter of 2025 compared to the third quarter of 2024, primarily due to favorable diesel margins. At third-party cardlock locations, fuel contribution increased by $0.1 million, while fuel margin per gallon decreased slightly for the third quarter of 2025 compared to the third quarter of 2024. Site Operating Expenses For the three months ended September 30, 2025, convenience store operating expenses decreased $29.2 million, or 14.5%, compared to the prior year period primarily due to $33.0 million of reduced expenses related to retail stores that were closed or converted to dealers, partially offset by an increase in same store operating expenses of $2.9 million, or 1.8%, primarily due to higher repair and maintenance expenses, which were slightly offset by lower personnel costs and credit card fees. Liquidity and Capital Expenditures As of September 30, 2025, the Company’s total liquidity was approximately $891 million, consisting of approximately $307 million of cash and cash equivalents and approximately $584 million of availability under the Company's lines of credit. Outstanding debt was approximately $912 million, resulting in net debt, excluding lease related financing liabilities, of approximately $605 million. Capital expenditures were approximately $24.9 million for the quarter ended September 30, 2025, including investments in NTI stores and remodeling of the new format stores, EV chargers, upgrades to fuel dispensers and other investments in stores. Quarterly Dividend and Share Repurchase Program The Company’s ability to return cash to its stockholders through its cash dividend program and share repurchase program is consistent with its capital allocation framework and reflects the Company’s confidence in the strength of its cash generation ability and strong financial position. 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. During the quarter, the Company repurchased approximately 0.9 million shares of common stock under its previously announced repurchase program for approximately $4.2 million, or an average price of $4.45 per share. There was approximately $7.2 million remaining under the share repurchase program as of September 30, 2025. Company-Operated Retail Store Count and Segment Update The following tables present certain information regarding changes in the retail, wholesale and fleet fueling segments for the periods presented: For the Three MonthsEnded September 30, For the Nine MonthsEnded September 30, Retail Segment2025 2024 2025 2024 Number of sites at beginning of period 1,254 1,548 1,389 1,543 Acquired sites — — — 21 Newly opened or reopened sites 1 1 3 2 Company-controlled sites converted to consignment or fuel supply locations, net (65) (49) (194) (51)Sites closed, divested or converted to rentals (8) (9) (16) (24)Number of sites at end of period 1,182 1,491 1,182 1,491 For the Three MonthsEnded September 30, For the Nine MonthsEnded September 30, Wholesale Segment 12025 2024 2025 2024 Number of sites at beginning of period 2,014 1,794 1,922 1,825 Newly opened or reopened sites 2 6 10 16 30 Consignment or fuel supply locations converted from Company-controlled sites, net 65 49 194 51 Closed or divested sites (32) (21) (79) (74)Number of sites at end of period 2,053 1,832 2,053 1,832 1 Excludes bulk and spot purchasers. 2 Includes all signed fuel supply agreements irrespective of fuel distribution commencement date. For the Three MonthsEnded September 30, For the Nine MonthsEnded September 30, Fleet Fueling Segment2025 2024 2025 2024 Number of sites at beginning of period 287 294 280 298 Newly opened or reopened sites 2 1 11 1 Closed or divested sites (1) (14) (3) (18)Number of sites at end of period 288 281 288 281 Fourth Quarter and Full Year 2025 Guidance Range The Company currently expects fourth quarter 2025 Adjusted EBITDA to range between $50 million and $60 million, with an assumed range of average retail fuel margin from 42.5 to 44.5 cents per gallon. The Company is updating its full-year 2025 Adjusted EBITDA guidance and currently expects full year 2025 Adjusted EBITDA to range between $233 million and $243 million. The Company is not providing guidance on net income at this time due to the volatility of certain required inputs that are not available without unreasonable efforts, including future fair value adjustments associated with its stock price, as well as depreciation and amortization related to its capital allocation as part of its focus on accelerating organic growth. Conference Call and Webcast Details The Company will host a conference call today, November 5, 2025, to discuss these results at 5:00 p.m. Eastern Time. Investors and analysts interested in participating in the live call can dial 877-605-1792 or 201-689-8728. A simultaneous, live webcast will also be available on the Investor Relations section of the Company’s website at https://www.arkocorp.com/news-events/ir-calendar. The webcast will be archived for 30 days. About ARKO Corp. ARKO Corp. (Nasdaq: ARKO) is a Fortune 500 company that owns 100% of GPM Investments, LLC and is one of the largest operators of convenience stores and wholesalers of fuel in the United States. Based in Richmond, VA, our highly recognizable Family of Community Brands offers delicious, prepared foods, beer, snacks, candy, hot and cold beverages, and multiple popular quick serve restaurant brands. We operate in four reportable segments: retail, which includes convenience stores selling merchandise and fuel products to retail customers; wholesale, which supplies fuel to independent dealers and consignment agents; fleet fueling, which includes the operation of proprietary and third-party cardlock locations, and issuance of proprietary fuel cards that provide customers access to a nationwide network of fueling sites; and GPM Petroleum, which sells and supplies fuel to our retail and wholesale sites and charges a fixed fee, primarily to our fleet fueling sites. To learn more about GPM stores, visit: www.gpminvestments.com. To learn more about ARKO, visit: www.arkocorp.com. Forward-Looking Statements This document includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may address, among other things, the Company’s expected financial and operational results and the related assumptions underlying its expected results. These forward-looking statements are distinguished by use of words such as “accretive,” “anticipate,” “aim,” “believe,” “continue,” “could,” “estimate,” “expect,” “guidance,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “will,” “would” and the negative of these terms, and similar references to future periods. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to, among other things, changes in economic, business and market conditions; the Company’s ability to maintain the listing of its common stock and warrants on the Nasdaq Stock Market; changes in its strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects and plans; expansion plans and opportunities; changes in the markets in which it competes; changes in applicable laws or regulations, including those relating to environmental matters; market conditions and global and economic factors beyond its control; the success of the Company's transformation plan, including the dealerization of retail stores; and the outcome of any known or unknown litigation and regulatory proceedings. Detailed information about these factors and additional important factors can be found in the documents that the Company files with the Securities and Exchange Commission, such as Form 10-K, Form 10-Q and Form 8-K. Forward-looking statements speak only as of the date the statements were made. The Company does not undertake an obligation to update forward-looking information, except to the extent required by applicable law. Use of Non-GAAP Measures The Company discloses certain measures on a “same store basis,” which is a non-GAAP measure. Information disclosed on a “same store basis” excludes the results of any store that is not a “same store” for the applicable period. A store is considered a same store beginning in the first quarter in which the store had a full quarter of activity in the prior year. The Company believes that this information is useful for its investors, securities analysts, and other interested parties by providing greater comparability regarding its ongoing operating performance. Neither this measure nor those described below should be considered an alternative to measurements presented in accordance with generally accepted accounting principles in the United States (“GAAP”). The Company discloses certain measures on a “comparable wholesale sites” basis, which is a non-GAAP measure. Information disclosed on a “comparable wholesale sites” basis excludes wholesale sites added through retail sites converted to dealers until the first quarter in which these sites had a full quarter of wholesale activity in the prior year. The Company believes that this information is useful for its investors, securities analysts, and other interested parties by providing greater comparability regarding its ongoing operating performance. The Company defines EBITDA as net income before net interest expense, income taxes, depreciation and amortization. Adjusted EBITDA further adjusts EBITDA by excluding the gain or loss on disposal of assets, impairment charges, acquisition and divestiture costs, share-based compensation expense, other non-cash items, and other unusual or non-recurring charges. Both EBITDA and Adjusted EBITDA are non-GAAP financial measures. The Company uses EBITDA and Adjusted EBITDA for operational and financial decision-making and believe these measures are useful in evaluating its performance because they eliminate certain items that it does not consider indicators of its operating performance. EBITDA and Adjusted EBITDA are also used by many of its investors, securities analysts, and other interested parties in evaluating its operational and financial performance across reporting periods. The Company believes that the presentation of EBITDA and Adjusted EBITDA provides useful information to investors by allowing an understanding of key measures that it uses internally for operational decision-making, budgeting, evaluating acquisition targets, and assessing its operating performance. EBITDA and Adjusted EBITDA should not be considered as alternatives to any financial measure derived in accordance with GAAP, including net income. The presentations of these non-GAAP measures have limitations as analytical tools and should not be considered in isolation, or as substitutes for the analysis of, its results as reported under GAAP. The Company strongly encourages investors to review its financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, same store measures, comparable wholesale sites, EBITDA and Adjusted EBITDA, as defined by the Company, may not be comparable to similarly titled measures reported by other companies. It therefore may not be possible to compare the Company’s use of these non-GAAP financial measures with those used by other companies. Company ContactJordan MannARKO Corp.investors@gpminvestments.com Investor ContactSean Mansouri, CFA Elevate IR(720) 330-2829ARKO@elevate-ir.com Condensed Consolidated Statements of Operations (Unaudited) For the Three MonthsEnded September 30, For the Nine MonthsEnded September 30, 2025 2024 2025 2024 (in thousands, except per share amounts) Revenues: Fuel revenue$1,599,990 $1,783,871 $4,616,448 $5,302,734 Merchandise revenue 389,727 469,616 1,144,338 1,358,519 Other revenues, net 31,116 25,749 88,471 78,600 Total revenues 2,020,833 2,279,236 5,849,257 6,739,853 Operating expenses: Fuel costs 1,453,175 1,626,399 4,195,877 4,855,462 Merchandise costs 258,248 315,597 760,804 913,823 Site operating expenses 198,491 222,744 600,925 665,366 General and administrative expenses 40,048 38,636 122,403 123,230 Depreciation and amortization 32,944 33,132 101,433 98,425 Total operating expenses 1,982,906 2,236,508 5,781,442 6,656,306 Other expenses (income), net 2,003 1,159 (13,035) 3,896 Operating income 35,924 41,569 80,850 79,651 Interest and other financial income 3,340 3,135 16,397 26,462 Interest and other financial expenses (23,485) (26,759) (69,911) (73,910)Income before income taxes 15,779 17,945 27,336 32,203 Income tax expense (2,368) (8,300) (6,546) (9,139)Income from equity investment 48 29 95 79 Net income attributable to ARKO Corp.$13,459 $9,674 $20,885 $23,143 Series A redeemable preferred stock dividends (1,450) (1,446) (4,301) (4,305)Net income attributable to common shareholders$12,009 $8,228 $16,584 $18,838 Net income per share attributable to common shareholders – basic$0.11 $0.07 $0.15 $0.16 Net income per share attributable to common shareholders – diluted$0.10 $0.07 $0.14 $0.16 Weighted average shares outstanding: Basic 112,723 115,771 114,196 116,262 Diluted 115,202 117,888 115,489 117,342 Condensed Consolidated Balance Sheets (Unaudited) September 30, 2025 December 31, 2024 (in thousands) Assets Current assets: Cash and cash equivalents$306,932 $261,758 Restricted cash 18,797 30,650 Short-term investments 6,295 5,330 Trade receivables, net 112,343 95,832 Inventory 202,290 231,225 Other current assets 106,497 97,413 Total current assets 753,154 722,208 Non-current assets: Property and equipment, net 733,372 747,548 Right-of-use assets under operating leases 1,360,130 1,386,244 Right-of-use assets under financing leases, net 145,744 157,999 Goodwill 299,973 299,973 Intangible assets, net 165,581 182,355 Equity investment 3,103 3,009 Deferred tax asset 62,066 67,689 Other non-current assets 63,861 53,633 Total assets$3,586,984 $3,620,658 Liabilities Current liabilities: Long-term debt, current portion$36,994 $12,944 Accounts payable 180,403 190,212 Other current liabilities 158,795 159,239 Operating leases, current portion 76,604 71,580 Financing leases, current portion 12,846 11,515 Total current liabilities 465,642 445,490 Non-current liabilities: Long-term debt, net 874,581 868,055 Asset retirement obligation 88,501 87,375 Operating leases 1,390,194 1,408,293 Financing leases 200,151 211,051 Other non-current liabilities 194,789 223,528 Total liabilities 3,213,858 3,243,792 Series A redeemable preferred stock 100,000 100,000 Shareholders' equity: Common stock 12 12 Treasury stock (127,037) (106,123)Additional paid-in capital 287,559 276,681 Accumulated other comprehensive income 9,119 9,119 Retained earnings 103,473 97,177 Total shareholders' equity 273,126 276,866 Total liabilities, redeemable preferred stock and equity$3,586,984 $3,620,658 Condensed Consolidated Statements of Cash Flows (Unaudited) For the Three MonthsEnded September 30, For the Nine MonthsEnded September 30, 2025 2024 2025 2024 (in thousands) Cash flows from operating activities: Net income$13,459 $9,674 $20,885 $23,143 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 32,944 33,132 101,433 98,425 Deferred income taxes 6,064 2,269 5,623 (3,660)Loss on disposal of assets and impairment charges 1,407 1,752 5,486 5,137 Gain from sale-leaseback — — (20,777) — Foreign currency (gain) loss (15) (16) (76) 41 Gain from issuance of shares as payment of deferred consideration related to business acquisition — — — (2,681)Gain from settlement related to business acquisition — — — (6,356)Amortization of deferred financing costs and debt discount 749 668 2,107 2,000 Amortization of deferred income (6,579) (3,757) (15,344) (10,126)Accretion of asset retirement obligation 643 628 1,877 1,871 Non-cash rent 2,995 3,634 9,405 10,805 Charges to allowance for credit losses 277 92 819 733 Income from equity investment (48) (29) (95) (79)Share-based compensation 3,884 2,149 10,878 8,262 Fair value adjustment of financial assets and liabilities (1,498) 1,443 (9,109) (10,763)Other operating activities, net 21 66 (191) 752 Changes in assets and liabilities: (Increase) decrease in trade receivables (275) 37,596 (17,330) 16,112 Decrease in inventory 4,183 14,655 28,218 17,427 (Increase) decrease in other assets (5,944) 8,066 (9,540) 13,909 Decrease in accounts payable (9,429) (32,614) (9,506) (6,137)Increase in other current liabilities 386 23,768 16,542 17,844 Decrease in asset retirement obligation (261) (163) (604) (283)Increase in non-current liabilities 6,459 6,143 27,308 22,754 Net cash provided by operating activities 49,422 109,156 148,009 199,130 Cash flows from investing activities: Purchase of property and equipment (24,902) (29,269) (97,641) (77,781)Proceeds from sale of property and equipment 1,592 1,058 3,868 51,353 Business acquisitions, net of cash — (91) — (54,549)Loans to equity investment, net 17 14 48 42 Net cash used in investing activities (23,293) (28,288) (93,725) (80,935)Cash flows from financing activities: Receipt of long-term debt, net — — 37,302 47,556 Repayment of debt (6,379) (6,714) (18,624) (20,563)Principal payments on financing leases (1,504) (1,274) (4,315) (3,580)Early settlement of deferred consideration related to business acquisition — — — (17,155)Common stock repurchased (4,182) — (20,773) (31,989)Dividends paid on common stock (3,378) (3,473) (10,288) (10,542)Dividends paid on redeemable preferred stock (1,450) (1,446) (4,301) (4,305)Net cash used in financing activities (16,893) (12,907) (20,999) (40,578)Net increase in cash and cash equivalents and restricted cash 9,236 67,961 33,285 77,617 Effect of exchange rate on cash and cash equivalents and restricted cash 6 11 36 (27)Cash and cash equivalents and restricted cash, beginning of period 316,487 251,039 292,408 241,421 Cash and cash equivalents and restricted cash, end of period$325,729 $319,011 $325,729 $319,011 Supplemental Disclosure of Non-GAAP Financial Information Reconciliation of Net Income to EBITDA and Adjusted EBITDA For the Three MonthsEnded September 30, For the Nine MonthsEnded September 30, 2025 2024 2025 2024 (in thousands) Net income $13,459 $9,674 $20,885 $23,143 Interest and other financing expenses, net 20,145 23,624 53,514 47,448 Income tax expense 2,368 8,300 6,546 9,139 Depreciation and amortization 32,944 33,132 101,433 98,425 EBITDA 68,916 74,730 182,378 178,155 Acquisition and divestiture costs (a) 2,815 1,729 5,097 3,919 Loss (gain) on disposal of assets and impairment charges (b) 1,407 1,752 (15,291) 5,137 Share-based compensation expense (c) 3,884 2,149 10,878 8,262 Income from equity investment (d) (48) (29) (95) (79)Fuel and franchise taxes received in arrears (e) — (862) — (1,427)Adjustment to contingent consideration (f) (1,541) (706) (1,816) (998)Expenses related to wage and hour claim settlement (g) 28 — 2,051 — Other (h) (300) 14 (248) (957)Adjusted EBITDA $75,161 $78,777 $182,954 $192,012 Additional information Non-cash rent expense (i) $2,995 $3,634 $9,405 $10,805 (a) Eliminates costs incurred that are directly attributable to business acquisitions and divestitures (including conversion of retail stores to dealer sites) and salaries of employees whose primary job function is to execute the Company's acquisition and divestiture strategy and facilitate integration of acquired operations. (b) Eliminates the non-cash loss from the sale or disposal of property and equipment, the loss recognized upon the sale of related leased assets, and impairment charges on property and equipment and right-of-use assets related to closed and non-performing sites, including a $20.8 million gain related to the expiration in the second quarter of 2025 of a real estate purchase option received in 2021 that was accounted for as a sale-leaseback. (c) Eliminates non-cash share-based compensation expense related to the equity incentive program in place to incentivize, retain, and motivate the Company's employees and members of the Board. (d) Eliminates the Company's share of income attributable to its unconsolidated equity investment. (e) Eliminates the receipt of historical fuel and franchise tax amounts for multiple prior periods. (f) Eliminates fair value adjustments primarily related to the contingent consideration owed to the seller for the 2020 Empire acquisition. (g) Eliminates non-recurring expenses accrued in net income related to a wage and hour collective action settlement. (h) Eliminates other unusual or non-recurring items that the Company does not consider to be meaningful in assessing operating performance. (i) Non-cash rent expense reflects the extent to which GAAP rent expense recognized exceeded (or was less than) cash rent payments. GAAP rent expense varies depending on the terms of the Company's lease portfolio. For newer leases, rent expense recognized typically exceeds cash rent payments, whereas, for more mature leases, rent expense recognized is typically less than cash rent payments. Supplemental Disclosures of Segment Information Retail Segment For the Three MonthsEnded September 30, For the Nine MonthsEnded September 30, 2025 2024 2025 2024 (in thousands) Revenues: Fuel revenue$744,405 $929,783 $2,183,194 $2,730,583 Merchandise revenue 389,727 469,616 1,144,338 1,358,519 Other revenues, net 14,715 16,082 43,884 49,496 Total revenues 1,148,847 1,415,481 3,371,416 4,138,598 Operating expenses: Fuel costs 1 640,278 812,693 1,885,922 2,402,579 Merchandise costs 258,248 315,597 760,804 913,823 Site operating expenses 172,851 202,097 526,699 602,664 Total operating expenses 1,071,377 1,330,387 3,173,425 3,919,066 Operating income$77,470 $85,094 $197,991 $219,532 1 Excludes the estimated fixed margin or fixed fee paid to GPMP for the cost of fuel. Wholesale Segment For the Three MonthsEnded September 30, For the Nine MonthsEnded September 30, 2025 2024 2025 2024 (in thousands) Revenues: Fuel revenue$725,990 $720,646 $2,052,153 $2,147,853 Other revenues, net 13,697 6,751 36,550 20,459 Total revenues 739,687 727,397 2,088,703 2,168,312 Operating expenses: Fuel costs 1 700,922 697,286 1,981,649 2,079,777 Site operating expenses 14,637 9,817 41,054 28,682 Total operating expenses 715,559 707,103 2,022,703 2,108,459 Operating income$24,128 $20,294 $66,000 $59,853 1 Excludes the estimated fixed margin or fixed fee paid to GPMP for the cost of fuel. Fleet Fueling Segment For the Three MonthsEnded September 30, For the Nine MonthsEnded September 30, 2025 2024 2025 2024 (in thousands) Revenues: Fuel revenue$122,692 $125,933 $359,219 $398,266 Other revenues, net 2,240 2,335 6,603 7,004 Total revenues 124,932 128,268 365,822 405,270 Operating expenses: Fuel costs 1 105,952 109,752 309,409 350,309 Site operating expenses 6,769 5,876 20,131 18,861 Total operating expenses 112,721 115,628 329,540 369,170 Operating income$12,211 $12,640 $36,282 $36,100 1 Excludes the estimated fixed fee paid to GPMP for the cost of fuel.

ARKO Corp. Reports Third Quarter 2025 Results

FAQ

Why Bullish?

How important is it?

Why Short Term?

Related Companies

Related News