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

ARKO (NASDAQ:ARKO) posted its earnings results 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 net margin of 0.30% and a return on equity of 8.60%. The company had revenue of $1.79 billion for the quarter, compared to analyst estimates 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 Stock Up 3.9%

Shares of ARKO stock traded up $0.24 on Friday, reaching $6.43. 751,361 shares of the company were exchanged, compared to its average volume of 476,912. The stock’s 50 day moving average price is $5.37 and its 200-day moving average price is $4.90. The company has a market cap of $716.49 million, a P/E ratio of 45.93 and a beta of 0.87. ARKO has a 1-year low of $3.51 and a 1-year high of $6.70. The company has a debt-to-equity ratio of 3.93, a current ratio of 1.62 and a quick ratio of 1.18.

ARKO Dividend Announcement

The business also recently declared 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. The ex-dividend date is Tuesday, March 10th. This represents a $0.12 annualized dividend and a yield of 1.9%. ARKO’s dividend payout ratio is 109.09%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the business. Vanguard Group Inc. boosted its stake in shares of ARKO by 0.6% during the third quarter. Vanguard Group Inc. now owns 3,795,048 shares of the company’s stock worth $17,343,000 after buying an additional 22,532 shares during the period. Dimensional Fund Advisors LP increased its position in 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 acquiring an additional 16,257 shares during the period. Geode Capital Management LLC increased its position in ARKO by 0.4% in the 4th quarter. Geode Capital Management LLC now owns 1,903,496 shares of the company’s stock valued at $8,644,000 after acquiring an additional 7,735 shares during the period. Charles Schwab Investment Management Inc. raised its stake in ARKO by 18.5% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 1,448,758 shares of the company’s stock valued at $6,577,000 after acquiring an additional 226,591 shares during the last quarter. Finally, Goldman Sachs Group Inc. lifted its position in ARKO by 37.0% during the 1st 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 period. 78.29% of the stock is owned by institutional investors and hedge funds.

ARKO News Roundup

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

Analyst Ratings Changes

A number of research analysts have commented on the stock. Weiss Ratings reaffirmed a “sell (d)” rating on shares of ARKO in a research report on Monday, December 29th. Wall Street Zen raised shares of ARKO from a “sell” rating to a “hold” rating in a research report on Sunday, November 16th. One research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and an average target price of $7.00.

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.