ARKO (NASDAQ:ARKO) Issues Quarterly Earnings Results, Misses Estimates By $0.04 EPS

Key Points

• ARKO reported quarterly EPS of $0.08, missing the $0.12 consensus estimate by $0.04, despite revenue of $2.39 billion exceeding the $2.02 billion estimate.
• Third-quarter Adjusted EBITDA increased to $75.7 million from $75.2 million a year earlier, and ARKO raised the low end of its 2026 EBITDA guidance to $250 million, for a new range of $250 million–$265 million.
• Higher fuel prices pressured same-store fuel volumes and added $3.1 million in credit-card fees, while merchandise margins improved by 50 basis points to 34.8%. ARKO shares fell 4.5% on Thursday.

ARKO (NASDAQ:ARKO - Get Free Report) issued its quarterly earnings results on Thursday. The company reported $0.08 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.12 by ($0.04), FiscalAI reports. The business had revenue of $2.39 billion during the quarter, compared to analyst estimates of $2.02 billion. ARKO had a return on equity of 4.02% and a net margin of 0.19%.

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

• Third-quarter Adjusted EBITDA rose to $75.7 million from $75.2 million a year earlier, bringing year-to-date EBITDA to about $199 million, up 8.5%. ARKO raised the low end of its 2026 Adjusted EBITDA guidance to $250 million, for a new range of $250 million–$265 million.
• The retained-store portfolio posted 0.8% merchandise sales growth excluding cigarettes, while same-store merchandise margin expanded 50 basis points to 34.8%—its 12th consecutive year-over-year increase. The company attributed progress to category mix, promotions, loyalty, and investments in food service.
• ARKO said its expected USPP acquisition would add about 280 million gallons of annual volume across roughly 400 dealer locations and contribute approximately $30 million in annualized Adjusted EBITDA. The deal was expected to close in the fourth quarter of 2026.
• ARKO has converted about 500 stores to dealer locations since mid-2024 and expects the program to be largely complete by the end of 2027. Management said retained stores generate nearly all of retail operating profit and outperform stores slated for conversion on merchandise sales and fuel gallons.
• Elevated fuel prices weighed on industry fuel volumes and added $3.1 million in same-store credit-card fees during the quarter. Retail same-store fuel gallons declined, though higher fuel margins helped offset the pressure.

ARKO Trading Down 4.5%

NASDAQ:ARKO traded down $0.18 on Thursday, hitting $3.86. 1,146,895 shares of the stock were exchanged, compared to its average volume of 653,063. The stock has a market cap of $433.05 million, a PE ratio of 55.14 and a beta of 0.99. The company has a current ratio of 1.60, a quick ratio of 1.15 and a debt-to-equity ratio of 1.82. The stock has a fifty day moving average of $4.21 and a 200-day moving average of $5.95. ARKO has a fifty-two week low of $3.61 and a fifty-two week high of $8.76.

ARKO Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, December 3rd. Shareholders of record on Friday, November 20th will be given a dividend of $0.03 per share. This represents a $0.12 dividend on an annualized basis and a yield of 3.1%. The ex-dividend date of this dividend is Friday, November 20th. ARKO's payout ratio is 171.43%.

Key ARKO News

Here are the key news stories impacting ARKO this week:

• Positive Sentiment: ARKO raised the lower end of its full-year 2026 adjusted EBITDA guidance, a favorable sign for its operating outlook. Company results and guidance
• Positive Sentiment: Quarterly revenue was $2.39 billion, above the $2.02 billion consensus estimate. ARKO also declared a quarterly dividend of $0.03 per share.
• Negative Sentiment: Adjusted earnings were $0.08 per share, missing the $0.12 consensus estimate and down from $0.10 a year earlier. Reports also characterized quarterly profit as lower, while the company’s net margin was just 0.19%—a weak earnings picture that may overshadow the revenue beat and guidance increase. Q3 earnings estimate miss

Analysts Set New Price Targets

A number of research analysts have recently commented on ARKO shares. Raymond James Financial downgraded shares of ARKO from a "strong-buy" rating to an "outperform" rating and dropped their price objective for the company from $8.00 to $7.00 in a research note on Monday, August 10th. Mizuho set a $22.00 target price on shares of ARKO in a research report on Tuesday, July 28th. Zacks Research upgraded shares of ARKO from a "strong sell" rating to a "hold" rating in a report on Friday, October 9th. Finally, Weiss Ratings lowered shares of ARKO from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Friday, September 25th. One research analyst has rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Hold" and a consensus price target of $14.50.

About ARKO

ARKO Corp. NASDAQ: ARKO is a convenience store and fuel retail operator in the United States. Through its subsidiary GPM Investments, the company operates convenience stores that sell gasoline, diesel fuel, food, beverages, tobacco products, and other everyday consumer goods. Many locations also offer prepared food, loyalty programs, and additional retail services.

ARKO operates stores under a variety of regional and national banners, including fas mart, E-Z Mart, Scotchman, Young's, Li'l Cricket, BreadBox, and others.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.