ARKO (NASDAQ:ARKO) Releases Quarterly Earnings Results, Beats Expectations By $0.09 EPS

Key Points

• ARKO beat Q1 expectations, reporting EPS of ($0.07) versus consensus ($0.16) and revenue of $1.77 billion, while adjusted EBITDA rose ~65% year‑over‑year to $51 million driven by strength across retail, wholesale and fleet fueling and disciplined cost control.
• The minority IPO of ARKO Petroleum Corp. materially boosted liquidity — ARKO holds 35 million APC shares (implied value ~$650 million), used proceeds to pay down $206.7 million of debt and finished Q1 with $272 million cash and roughly $1.1 billion total liquidity.
• Dealerization accelerated with 41 retail‑to‑dealer conversions in Q1 (450 since 2024 and ~75 more committed), which management says lowers site costs and improves cash flow, but management declined to update full‑year guidance due to market uncertainty.

ARKO (NASDAQ:ARKO - Get Free Report) posted its quarterly earnings data on Thursday. The company reported ($0.07) earnings per share for the quarter, topping the consensus estimate of ($0.16) by $0.09, FiscalAI reports. The company had revenue of $1.77 billion during the quarter, compared to analyst estimates of $1.65 billion. ARKO had a net margin of 0.30% and a return on equity of 8.58%. During the same quarter last year, the business posted ($0.12) earnings per share.

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

• Adjusted EBITDA increased ~65% year‑over‑year to $51 million in Q1, driven by broad-based strength across retail, wholesale and fleet fueling plus disciplined cost control.
• Dealerization accelerated with 41 retail-to-dealer conversions in Q1 (450 total since 2024 and ~75 more committed), which management says is lowering site operating costs, reducing maintenance CapEx and improving cash flow.
• Retail and fuel trends improved — same‑store merchandise sales excluding cigarettes returned to growth (+0.4%), merchandise margin rose 70 bps to 33.9%, retail cents per gallon reached $0.479, and same‑store fuel contribution was up ~20% with transactions and gallons strengthening in March.
• The minority IPO of ARKO Petroleum Corp. (APC) materially improved balance‑sheet visibility and liquidity — ARKO holds 35 million APC shares (implied value ~$650 million), used APC proceeds to pay down $206.7 million of debt, and ended Q1 with $272 million cash and ~$1.1 billion total liquidity.
• Despite the quarter’s momentum, management declined to update full‑year guidance, citing current market uncertainty, leaving near‑term outlook visibility limited.

ARKO Trading Up 2.9%

ARKO traded up $0.19 during trading on Thursday, reaching $6.71. 1,275,884 shares of the company's stock were exchanged, compared to its average volume of 942,365. The company's fifty day moving average price is $5.91 and its 200-day moving average price is $5.30. The company has a debt-to-equity ratio of 4.02, a quick ratio of 1.22 and a current ratio of 1.66. ARKO has a fifty-two week low of $3.71 and a fifty-two week high of $7.07. The firm has a market capitalization of $752.73 million, a PE ratio of 47.93 and a beta of 0.94.

ARKO Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, May 29th. Shareholders of record on Monday, May 18th will be issued a dividend of $0.03 per share. This represents a $0.12 dividend on an annualized basis and a yield of 1.8%. The ex-dividend date of this dividend is Monday, May 18th. ARKO's payout ratio is currently 85.71%.

Analyst Ratings Changes

Separately, Weiss Ratings reissued a "sell (d+)" rating on shares of ARKO in a report on Friday, April 10th. One research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Hold" and a consensus price target of $7.00.

Insider Buying and Selling

In other ARKO news, CFO Charles Galagher Jeff bought 40,000 shares of the stock in a transaction on Tuesday, March 17th. The stock was purchased at an average price of $5.07 per share, with a total value of $202,800.00. Following the acquisition, the chief financial officer owned 40,000 shares of the company's stock, valued at approximately $202,800. The trade was a ∞ increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Corporate insiders own 22.50% of the company's stock.

Institutional Trading of ARKO

A number of institutional investors have recently bought and sold shares of the business. Empowered Funds LLC grew its holdings in ARKO by 10.9% during the 4th quarter. Empowered Funds LLC now owns 465,877 shares of the company's stock worth $2,115,000 after acquiring an additional 45,892 shares during the period. XTX Topco Ltd grew its holdings in ARKO by 22.9% during the 4th quarter. XTX Topco Ltd now owns 23,703 shares of the company's stock worth $108,000 after acquiring an additional 4,415 shares during the period. Numerai GP LLC grew its holdings in ARKO by 667.0% during the 4th quarter. Numerai GP LLC now owns 126,258 shares of the company's stock worth $573,000 after acquiring an additional 109,796 shares during the period. Millennium Management LLC grew its holdings in ARKO by 148.1% during the 4th quarter. Millennium Management LLC now owns 221,542 shares of the company's stock worth $1,006,000 after acquiring an additional 132,250 shares during the period. Finally, Bridgeway Capital Management LLC grew its holdings in ARKO by 0.3% during the 4th quarter. Bridgeway Capital Management LLC now owns 721,977 shares of the company's stock worth $3,278,000 after acquiring an additional 1,992 shares during the period. Institutional investors and hedge funds own 78.29% of the company's stock.

About ARKO

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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