ARKO (NASDAQ:ARKO) Releases Earnings Results, Beats Estimates By $0.03 EPS

ARKO (NASDAQ:ARKO) posted its quarterly earnings results on Wednesday. The company reported $0.02 EPS for the quarter, beating analysts’ consensus estimates of ($0.01) by $0.03, reports. ARKO had a return on equity of 8.60% and a net margin of 0.30%.The business 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 Trading Up 3.9%

Shares of NASDAQ:ARKO traded up $0.24 during midday trading on Friday, hitting $6.43. 751,361 shares of the stock were exchanged, compared to its average volume of 476,912. The business’s 50-day moving average price is $5.37 and its 200 day moving average price is $4.90. The stock has a market capitalization of $716.49 million, a price-to-earnings ratio of 45.93 and a beta of 0.87. ARKO has a 12 month low of $3.51 and a 12 month high of $6.70. The company has a debt-to-equity ratio of 3.93, a quick ratio of 1.18 and a current ratio of 1.62.

ARKO Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, March 20th. Shareholders of record on Tuesday, March 10th will be issued a $0.03 dividend. 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 dividend payout ratio is presently 109.09%.

Hedge Funds Weigh In On ARKO

Several large investors have recently modified their holdings of the business. Vanguard Group Inc. grew its stake in shares of ARKO by 0.6% in the third quarter. Vanguard Group Inc. now owns 3,795,048 shares of the company’s stock worth $17,343,000 after purchasing an additional 22,532 shares during the last quarter. Dimensional Fund Advisors LP grew its position in shares of ARKO by 0.6% in the 4th quarter. Dimensional Fund Advisors LP now owns 2,815,035 shares of the company’s stock valued at $12,781,000 after buying an additional 16,257 shares during the last quarter. Geode Capital Management LLC increased its stake in shares of ARKO by 0.4% in the fourth quarter. Geode Capital Management LLC now owns 1,903,496 shares of the company’s stock valued at $8,644,000 after buying an additional 7,735 shares during the period. Charles Schwab Investment Management Inc. raised its position in shares of ARKO by 18.5% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 1,448,758 shares of the company’s stock worth $6,577,000 after acquiring an additional 226,591 shares during the last quarter. Finally, Goldman Sachs Group Inc. raised its position in shares of ARKO by 37.0% during the first quarter. Goldman Sachs Group Inc. now owns 762,864 shares of the company’s stock worth $3,013,000 after acquiring an additional 206,061 shares during the last quarter. Institutional investors own 78.29% of the company’s stock.

Analyst Upgrades and Downgrades

Several equities analysts have commented on ARKO shares. Wall Street Zen raised shares of 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 note on Monday, December 29th. One equities research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus target price of $7.00.

ARKO News Summary

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

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.