ARKO (NASDAQ:ARKO) Announces Earnings Results

by · The Markets Daily

ARKO (NASDAQ:ARKO – Get Free Report) issued its quarterly earnings data on Wednesday. The company reported $0.02 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.01) by $0.03, reports. ARKO had a net margin of 0.30% and a return on equity of 8.60%. The company had revenue of $1.79 billion during the quarter, compared to the consensus estimate of $1.81 billion.

Here are the key takeaways from ARKO’s conference call:

  • APC IPO: ARKO completed the IPO of ARKO Petroleum Corp., issued ~11.1M Class A shares at $18, retains ~75.9% economic interest and received roughly $184M net proceeds used to reduce debt, strengthening the balance sheet and aiming to unlock value.
  • Q4 operational improvement: Adjusted EBITDA rose 16% y/y to $65.7M in Q4, merchandising margin expanded 140 bps to 34.4%, and site operating expenses fell ~16%, indicating execution-driven margin and cost improvement despite cautious consumers.
  • Dealerization progress: ARKO completed 409 dealer conversions with ~120 additional sites committed, reducing fixed costs and maintenance CapEx and delivering a >$5M pre‑G&A operating income benefit in Q4.
  • Loyalty, remodels and NTI traction: Loyalty members spend ~48% more and visit 51% more; food‑forward remodels and NTI stores are delivering double‑digit returns and early sales/gallon gains, with ~25 remodels and further NTI/cardlock expansion planned.
  • 2026 outlook and liquidity: ARKO guides 2026 Adjusted EBITDA of $245M–$265M (retail same‑store sales roughly flat, margins 35.5%–36.5%), expects APC ~ $156M EBITDA, exited 2025 with ~$305M cash and lower debt, and notes sensitivity of ~$8M–$9M Adjusted EBITDA per 1¢ change in retail CPG.

ARKO Stock Performance

Shares of NASDAQ ARKO traded up $0.24 during mid-day trading on Friday, reaching $6.43. 751,361 shares of the company were exchanged, compared to its average volume of 476,912. The stock has a market capitalization of $716.49 million, a P/E ratio of 45.93 and a beta of 0.87. The company has a quick ratio of 1.18, a current ratio of 1.62 and a debt-to-equity ratio of 3.93. The company’s 50-day simple moving average is $5.37 and its 200-day simple moving average is $4.90. ARKO has a twelve month low of $3.51 and a twelve month high of $6.70.

ARKO Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, March 20th. Shareholders of record on Tuesday, March 10th will be given a dividend of $0.03 per share. This represents a $0.12 dividend on an annualized basis and a yield of 1.9%. The ex-dividend date of this dividend is Tuesday, March 10th. ARKO’s payout ratio is 109.09%.

Analysts Set New Price Targets

A number of research firms have issued reports on ARKO. Wall Street Zen upgraded ARKO from a “sell” rating to a “hold” rating in a report on Sunday, November 16th. Weiss Ratings reissued a “sell (d)” rating on shares of ARKO in a research report on Monday, December 29th. One equities research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $7.00.

Get Our Latest Research Report on ARKO

ARKO News Roundup

Here are the key news stories impacting ARKO this week:

  • Positive Sentiment: Q4 EPS beat consensus — ARKO reported $0.02 EPS vs. a consensus loss of $0.01, improving from a year‑ago loss; the result likely supported the rally. Earnings Press Release
  • Positive Sentiment: Expanded consumer promotion — ARKO raised its “Fueling America’s Future” fuel savings to $2.50 off per gallon in a year‑long program, which could boost traffic and same‑store demand. Press Release
  • Positive Sentiment: Dividend declared — ARKO declared a $0.03 quarterly dividend (ex‑dividend Mar 10, payable Mar 20), enhancing yield and returning cash to shareholders, which can attract income‑oriented investors. Earnings Press Release (contains dividend disclosure)
  • Neutral Sentiment: Earnings call / transcripts available — Management commentary from the Q4 call and transcripts provide detail on outlook, cost trends and the ARKO Petroleum IPO plan; investors will watch guidance and capital‑allocation commentary. Earnings Call Summary
  • Neutral Sentiment: Short interest reported as zero — recent short‑interest reporting shows 0 shares (likely a data glitch), so short‑interest signals are not informative at present.
  • Negative Sentiment: Slight revenue miss and thin margins — revenue of $1.79B trailed the $1.81B consensus and net margin remains very slim (0.3%); combined with a relatively high debt‑to‑equity ratio, these factors could limit upside if commodity or fuel margins compress. Zacks: Q4 Results

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in ARKO. Tower Research Capital LLC TRC boosted its stake in shares of ARKO by 193.1% in the second quarter. Tower Research Capital LLC TRC now owns 12,317 shares of the company’s stock valued at $52,000 after buying an additional 8,115 shares during the period. Banco BTG Pactual S.A. acquired a new position in ARKO in the 4th quarter valued at $57,000. Kemnay Advisory Services Inc. bought a new stake in shares of ARKO during the 4th quarter valued at $58,000. Mariner LLC acquired a new stake in shares of ARKO during the 4th quarter worth $60,000. Finally, BNP Paribas Financial Markets increased its position in shares of ARKO by 104.3% in the third quarter. BNP Paribas Financial Markets now owns 14,945 shares of the company’s stock worth $68,000 after purchasing an additional 7,631 shares during the period. 78.29% of the stock is owned by institutional investors and hedge funds.

About ARKO

(Get Free Report)

ARKO Corp (NASDAQ: ARKO) is a downstream energy and convenience retail company based in Matthews, North Carolina. The company’s core operations encompass fuel supply, distribution and retailing through a network of terminals, independent dealer locations and company-operated convenience stores. ARKO’s fuel offerings include branded and unbranded gasoline and diesel, as well as lubricants and other petroleum products marketed under various regional and private labels.

In its retail segment, ARKO operates a portfolio of convenience stores under the Kangaroo Express banner, serving on-site customers with fuel, grab-and-go food items, beverages and everyday household essentials.

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