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

ARKO (NASDAQ:ARKO) issued its quarterly earnings data on Wednesday. The company reported $0.02 earnings per share for the quarter, beating the consensus estimate 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 for the quarter, compared to analysts’ expectations 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 Price Performance

Shares of ARKO stock traded up $0.24 during trading hours on Friday, hitting $6.43. The stock had a trading volume of 751,361 shares, compared to its average volume of 476,912. The company has a debt-to-equity ratio of 3.93, a current ratio of 1.62 and a quick ratio of 1.18. 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 one year low of $3.51 and a one year high of $6.70. The stock’s 50-day moving average price is $5.37 and its two-hundred day moving average price is $4.90.

ARKO Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, March 20th. Shareholders of record on Tuesday, March 10th will be issued a dividend of $0.03 per share. This represents a $0.12 dividend on an annualized basis and a yield of 1.9%. The ex-dividend date of this dividend is Tuesday, March 10th. ARKO’s dividend payout ratio (DPR) is 109.09%.

Institutional Trading of ARKO

Institutional investors have recently bought and sold shares of the stock. Tower Research Capital LLC TRC boosted its stake in shares of ARKO by 193.1% during the second quarter. Tower Research Capital LLC TRC now owns 12,317 shares of the company’s stock valued at $52,000 after purchasing an additional 8,115 shares during the period. Banco BTG Pactual S.A. bought a new stake in ARKO during the 4th quarter valued at about $57,000. Kemnay Advisory Services Inc. purchased a new stake in ARKO in the 4th quarter valued at about $58,000. Mariner LLC purchased a new stake in ARKO in the 4th quarter valued at about $60,000. Finally, Creative Planning grew its stake in ARKO by 37.9% in the 2nd quarter. Creative Planning now owns 15,156 shares of the company’s stock worth $64,000 after acquiring an additional 4,163 shares in the last quarter. 78.29% of the stock is currently owned by institutional investors.

Key Headlines Impacting ARKO

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

Analysts Set New Price Targets

Several equities research analysts have weighed in on the company. Wall Street Zen upgraded ARKO from a “sell” rating to a “hold” rating in a report on Sunday, November 16th. Weiss Ratings reaffirmed 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 given a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Hold” and an average target price of $7.00.

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.