ARKO posts stronger Q1 as transformation strategy gains traction

RICHMOND, Va. — ARKO Corp. reported improved first-quarter results as higher fuel margins, dealerization efforts and stronger same-store merchandise trends helped boost profitability.

The convenience store operator and fuel wholesaler posted a net loss of $5.6 million for the quarter ended March 31, compared with a net loss of $12.7 million in the year-ago period. Adjusted EBITDA increased 65.1% to $50.9 million from $30.9 million a year earlier.

Same-store merchandise sales excluding cigarettes rose 0.4%, the company said, marking its strongest ex-cigarette performance in two years. Merchandise margin improved to 33.9% from 33.2%.

Retail same-store fuel margin increased to 48 cents per gallon from 38.7 cents per gallon in the prior-year quarter, while same-store fuel contribution rose about 20.1%.

“Our first quarter results reflect both strong execution and the structural progress we have been making across the business,” said Arie Kotler. “Adjusted EBITDA increased approximately 65% year-over-year, same-store merchandise sales excluding cigarettes returned to growth, and same-store fuel gallon performance was the strongest we have seen in two years.”

Kotler said weather disruptions affected January and early February results, but performance strengthened as the quarter progressed.

“While weather disruptions negatively affected January and early February results, trends improved as the quarter progressed, and March performance was particularly strong,” he said. “We believe these results reflect the work we have been doing across dealerization, loyalty, fuel pricing, merchandising and cost discipline, while also demonstrating our ability to deliver value in a consumer environment that remains economically pressured and value-focused.”

During the quarter, ARKO subsidiary ARKO Petroleum Corp. completed its initial public offering, generating approximately $206.8 million in net proceeds. ARKO applied nearly all of the proceeds toward debt reduction.

The company also continued its dealerization strategy, converting 41 retail stores to dealer locations during the quarter. Since launching the program in 2024, ARKO has converted 450 sites and has approximately 75 additional sites committed, under contract or already converted since quarter-end.

ARKO said it expects the channel optimization initiative to generate cumulative annualized operating income benefits of more than $20 million, before general and administrative expense savings. The company also identified more than $10 million in cumulative G&A savings expected from the conversion strategy.

The company opened two new-to-industry retail stores and one NTI cardlock location during the quarter. ARKO said it remains on track to open three new Dunkin’ locations, one additional NTI retail store and about 20 NTI cardlock sites in 2026, while completing roughly 25 remodels.

ARKO also relaunched its loyalty app on a new technology platform during the quarter as part of broader customer engagement initiatives, including Fueling America’s Future, fas REWARDS, the $10 enrollment campaign, and 100 Days of Summer.

“With APC now public, investors have greater transparency into our wholesale, fleet fueling and GPMP businesses, and we believe the APC structure enhances financial flexibility and highlights the value embedded across our portfolio,” Kotler said. “As we move through 2026, we remain focused on disciplined capital allocation, continued dealerization, high-return growth opportunities such as cardlocks and retail NTIs, and building long-term value through consistent execution across all segments.”