ARKO (NASDAQ:ARKO) Posts Quarterly Earnings Results, Misses Estimates By $0.11 EPS

ARKO (NASDAQ:ARKO) released its quarterly earnings results on Friday. The company reported $0.04 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.15 by ($0.11), FiscalAI reports. ARKO had a return on equity of 9.10% and a net margin of 0.38%.The firm had revenue of $2.35 billion for the quarter, compared to analyst estimates of $1.99 billion.

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

• USPP acquisition to expand APC: APC agreed to acquire U.S. Petroleum Partners for $205 million in cash plus inventory, adding approximately 280 million gallons, more than 400 dealer locations, two terminals and transportation capabilities. Management expects the deal to be accretive at closing and add about $30 million in annual Adjusted EBITDA.
• ARKO’s first-half Adjusted EBITDA increased 14% year over year to $123 million, supported by disciplined fuel pricing, higher merchandise margins and growth in APC. The company reaffirmed full-year Adjusted EBITDA guidance of $245 million to $265 million and raised its expected retail fuel margin range to $0.455-$0.475 per gallon.
• Second-quarter Adjusted EBITDA fell to $72 million from $76.9 million as elevated fuel prices pressured gallons sold, in-store spending and credit-card fees; net income declined to $9.4 million from $20.1 million, partly reflecting a prior-year $21 million non-cash sale-leaseback gain. Management cited continued uncertainty around consumer demand and fuel-price volatility in the second half.
• Retail execution remained resilient: merchandise margins expanded 110 basis points to 34.7%, keeping same-store merchandise margin dollars nearly flat despite a 0.9% decline in sales excluding cigarettes. Loyalty membership grew by more than 100,000 during the quarter, and enrolled customers generated more than twice the monthly spending of non-enrolled customers.
• ARKO continues to shift toward a more capital-efficient model, converting 21 additional stores to dealer locations in the quarter and 471 since the program began. The company also reported approximately $1 billion of total liquidity, reduced long-term debt by $29 million sequentially and repurchased $38 million face value of senior notes for $35 million.

ARKO Stock Down 22.4%

Shares of NASDAQ:ARKO opened at $5.66 on Friday. The company has a quick ratio of 1.19, a current ratio of 1.62 and a debt-to-equity ratio of 1.93. The company has a market capitalization of $635.00 million, a P/E ratio of 80.86 and a beta of 1.00. ARKO has a 52-week low of $3.71 and a 52-week high of $8.76. The stock’s fifty day simple moving average is $7.80 and its 200-day simple moving average is $6.71.

ARKO Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, August 31st. Stockholders of record on Thursday, August 20th will be given a $0.03 dividend. This represents a $0.12 annualized dividend and a dividend yield of 2.1%. The ex-dividend date is Thursday, August 20th. ARKO’s dividend payout ratio is currently 63.16%.

Insider Buying and Selling

In other news, General Counsel Maury Bricks sold 10,000 shares of ARKO stock in a transaction dated Thursday, June 11th. The shares were sold at an average price of $8.50, for a total transaction of $85,000.00. Following the completion of the sale, the general counsel directly owned 162,841 shares in the company, valued at $1,384,148.50. The trade was a 5.79% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Corporate insiders own 21.90% of the company’s stock.

Institutional Trading of ARKO

Hedge funds have recently bought and sold shares of the company. Cerity Partners LLC grew its stake in ARKO by 7.3% in the 4th quarter. Cerity Partners LLC now owns 24,671 shares of the company’s stock worth $112,000 after acquiring an additional 1,685 shares during the period. Bridgeway Capital Management LLC raised its holdings in ARKO by 0.3% in the 4th quarter. Bridgeway Capital Management LLC now owns 721,977 shares of the company’s stock valued at $3,278,000 after acquiring an additional 1,992 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in ARKO by 4.4% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 47,838 shares of the company’s stock valued at $189,000 after acquiring an additional 2,028 shares during the last quarter. Russell Investments Group Ltd. lifted its stake in shares of ARKO by 6.7% during the 4th quarter. Russell Investments Group Ltd. now owns 51,087 shares of the company’s stock worth $232,000 after purchasing an additional 3,229 shares during the period. Finally, Deutsche Bank AG lifted its stake in shares of ARKO by 4.9% during the 4th quarter. Deutsche Bank AG now owns 69,430 shares of the company’s stock worth $315,000 after purchasing an additional 3,250 shares during the period. Institutional investors and hedge funds own 78.29% of the company’s stock.

Analyst Upgrades and Downgrades

ARKO has been the subject of several recent research reports. Zacks Research downgraded shares of ARKO from a “strong-buy” rating to a “hold” rating in a report on Monday, July 13th. Wall Street Zen downgraded shares of ARKO from a “buy” rating to a “hold” rating in a report on Saturday, May 30th. Mizuho set a $22.00 price target on shares of ARKO in a research report on Tuesday, July 28th. Finally, Weiss Ratings lowered shares of ARKO from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Thursday, May 21st. One equities research analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Reduce” and an average target price of $22.00.

Key Headlines Impacting ARKO

Here are the key news stories impacting ARKO this week:

• Positive Sentiment: ARKO reported quarterly revenue of approximately $2.35 billion, above the $1.99 billion analyst consensus estimate. Management also reaffirmed its full-year 2026 guidance, providing some support for the shares. ARKO Corp. Reports Second Quarter 2026 Results
• Neutral Sentiment: Management discussed the quarterly performance and outlook on the earnings call, with investors likely assessing whether the company can deliver its 2026 targets amid pressure on profitability. ARKO Corp. Q2 2026 Earnings Call Transcript
• Negative Sentiment: ARKO reported adjusted earnings of $0.04 per share, missing the $0.15 consensus estimate and declining from $0.16 a year earlier. The earnings shortfall, combined with the company’s very thin net margin of 0.38%, raised concerns about profitability and outweighed the revenue beat. ARKO Corp. Q2 Earnings Lag Estimates
• Negative Sentiment: The stock is trading below both its 50-day and 200-day moving averages, while elevated trading volume suggests the earnings miss prompted significant investor repositioning. ARKO’s debt-to-equity ratio of 1.93 also leaves results sensitive to operating and financing pressures.

ARKO Company Profile

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.