Arko (ARKO) Q4 2025 earnings summary

Executive summary

• Achieved a pivotal year with transformation initiatives, including Dealerization, remodels, and loyalty program enhancements, driving improved operational and financial performance.

• Completed IPO of ARKO Petroleum Corp. (APC), consolidating wholesale, fleet fueling, and GPMP segments, unlocking value and transparency, and raising $184 million used to reduce debt and enhance liquidity.

• Strengthened balance sheet by reducing debt with IPO proceeds, enhancing financial flexibility.

• Leadership transition with new CFO bringing deep retail and fuel sector experience.

• Continued transformation plan with 256 retail store conversions in 2025, targeting over $20 million in annualized operating income benefit at scale.

Financial highlights

• Adjusted EBITDA grew 16% year-over-year to $65.7 million in Q4 2025; full-year Adjusted EBITDA was $248.7 million, flat to 2024 and above the midpoint of original guidance.

• Net income for Q4 was $1.9 million, reversing a $2.3 million loss in prior year; full-year net income was $22.7 million, up from $20.8 million.

• Retail merchandising margin expanded 140 basis points to 34.4% in Q4; full-year margin was 33.7%, up 90 basis points.

• Retail site operating expenses down 16% year-over-year in Q4, driven by Dealerization and store conversions.

• Q4 revenues were $1.79 billion, down from $1.99 billion YoY; full-year revenues were $7.64 billion, down from $8.73 billion YoY.

Outlook and guidance

• 2026 Adjusted EBITDA expected between $245 million and $265 million.

• Retail fuel margin guidance: $0.415–$0.435 per gallon; every 1 cent change in CPG impacts Adjusted EBITDA by $8–$9 million.

• Same-store retail sales expected to be relatively flat but improve several hundred basis points over 2025.

• APC business projected to deliver ~$156 million in Adjusted EBITDA in 2026.

• Plans to complete additional store conversions and expand new store formats and fleet fueling locations in 2026.