Arko Stock Earnings Reports

Arko reported a strong start to 2026 with broad-based operational improvement across retail, wholesale and fleet fueling. Adjusted EBITDA rose ~65% year-over-year to $51 million, driven by fuel margin strength, dealerization, merchandising execution, loyalty growth and disciplined cost control (G&A down ~4%). Retail same-store merchandise sales excluding cigarettes returned to growth and merchandise margin improved 70 basis points to 33.9%. Retail fuel cents per gallon were $0.479 and same-store fuel contribution increased ~20% despite weather-related volume pressure early in the quarter; transactions strengthened in March. Dealerization remains a key transformation lever (41 conversions in Q1; ~450 total since 2024; ~75 more committed) lowering site-level operating costs and freeing capital to invest in ~25 remodels, NTIs and cardlocks in 2026. Loyalty enrollment nearly doubled year-over-year, with strong uptake after the new app and $10 enrollment program. The minority IPO of Arko Petroleum Corp (APC) provides transparency and embedded value (Arko holds ~35M APC shares, implying ~ $650M value). Balance sheet liquidity improved: cash of $272M, total liquidity ~$1.1B, and $206.7M of debt repaid using APC proceeds (long-term debt ~$704M). Management will continue dealerization, targeted capital allocation (remodels, NTIs, high-return cardlocks), and maintain balance-sheet discipline; however, they are not updating full-year guidance due to market uncertainty.