ARKO Corp. Reports Third Quarter 2026 Results and Raises Lower End of the Full Year 2026 Adjusted EBITDA Guidance
ARKO Corp. (ARKO) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 ARKO Corp. Reports Third Quarter 2026 Results and Raises Lower End of the Full Year 2026 Adjusted EBITDA Guidance ARKO Corp. (Nasdaq: ARKO) (“ARKO” or the “Company”), one of the largest operators of convenience stores in the United States, ranked by store count and o
How this was made
The 30-second read
Why it matters
The raised lower‑end EBITDA guidance and the APC acquisition provide fresh, material information for traders.
Market read
Both entities have immediate relevance to investors focused on retail fuel margins and earnings growth.
What to watch
Potential headwinds from volatile fuel prices could offset margin gains.
ARKO Corp. Reports Third Quarter 2026 Results and Raises Lower End of the Full Year 2026 Adjusted EBITDA Guidance
Third-quarter net income and Adjusted EBITDA increased versus the year-ago period, merchandise margin expanded, and full-year Adjusted EBITDA guidance was raised at the low end. Total retail merchandise contribution, fuel contribution, operating income, net income attributable to ARKO Corp., and operating cash flow declined versus the comparable period, while same-store fuel gallons and merchandise sales declined.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues, three months ended September 30, 2026GAAP | $2.39B | – | – |
| Fuel revenue, three months ended September 30, 2026GAAP | $2.01B | – | – |
| Merchandise revenue, three months ended September 30, 2026GAAP | $351.0M | – | – |
| Other revenues, net, three months ended September 30, 2026GAAP | $32.25M | – | – |
| Operating income, three months ended September 30, 2026GAAP | $35.23M | – | – |
| Net income, three months ended September 30, 2026GAAP | $14.30M | – | – |
| Net income attributable to ARKO Corp., three months ended September 30, 2026GAAP | $10.70M | – | – |
| Net income attributable to common stockholders, three months ended September 30, 2026GAAP | $9.25M | – | – |
| Net income per share attributable to common stockholders - basic, three months ended September 30, 2026GAAP | $0.08 | – | – |
| Net income per share attributable to common stockholders - diluted, three months ended September 30, 2026GAAP | $0.08 | – | – |
| EBITDA, three months ended September 30, 2026non-GAAP | $67.98M | – | – |
| Adjusted EBITDA, three months ended September 30, 2026non-GAAP | $75.66M | – | – |
| Net cash provided by operating activities, three months ended September 30, 2026GAAP | $33.18M | – | – |
| Purchase of property and equipment, three months ended September 30, 2026GAAP | −$41.36M | – | – |
| Merchandise margin, three months ended September 30, 2026other | 34.8% | – | increased 110 basis points |
| Same store fuel gallons sold decrease, three months ended September 30, 2026non-GAAP | (7.0 %) | – | – |
| Same store merchandise sales decrease, three months ended September 30, 2026non-GAAP | (1.4 %) | – | – |
| Same store merchandise sales excluding cigarettes increase (decrease), three months ended September 30, 2026non-GAAP | 0.0 % | – | – |
| Total revenues, nine months ended September 30, 2026GAAP | $6.51B | – | – |
| Operating income, nine months ended September 30, 2026GAAP | $75.65M | – | – |
| Net income, nine months ended September 30, 2026GAAP | $18.14M | – | – |
| Net income attributable to ARKO Corp., nine months ended September 30, 2026GAAP | $10.17M | – | – |
| Net income per share attributable to common stockholders - diluted, nine months ended September 30, 2026GAAP | $0.05 | – | – |
| Adjusted EBITDA, nine months ended September 30, 2026non-GAAP | $198.6M | – | increased 8.5% to $198.6 million |
| Net cash provided by operating activities, nine months ended September 30, 2026GAAP | $90.76M | – | – |
| Cash and cash equivalents, September 30, 2026GAAP | $183.8M | – | – |
| Long-term debt, current portion, September 30, 2026GAAP | $16.16M | – | – |
| Long-term debt, net, September 30, 2026GAAP | $608.6M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Retail segment total revenues, three months ended September 30, 2026Retail merchandise contribution decreased by $9.5 million, or 7.2%, primarily due to a $10.3 million decrease related to retail stores closed or converted to dealer locations. Same store fuel contribution increased $2.6 million, or 2.7%. | $1.22B | – | – |
| Wholesale segment total revenues, three months ended September 30, 2026Wholesale operating income increased by $1.7 million, primarily from additional operating income from retail sites converted to dealer locations, partially offset by reduced operating income at comparable wholesale sites. | $975.2M | – | – |
| Fleet Fueling segment total revenues, three months ended September 30, 2026Fuel contribution increased by $0.9 million, with increases at proprietary and third-party cardlock locations primarily resulting from significant volatility in the fuel market due to the geopolitical environment. | $186.4M | – | – |
| Retail segment total revenues, nine months ended September 30, 2026Retail operating income was $200,244 (in thousands), compared to $197,991 (in thousands) for the nine months ended September 30, 2025. | $3.40B | – | – |
| Wholesale segment total revenues, nine months ended September 30, 2026Wholesale operating income was $73,718 (in thousands), compared to $66,000 (in thousands) for the nine months ended September 30, 2025. | $2.60B | – | – |
| Fleet Fueling segment total revenues, nine months ended September 30, 2026Fleet Fueling operating income was $38,536 (in thousands), compared to $36,282 (in thousands) for the nine months ended September 30, 2025. | $494.2M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
full year 2026 outlook
- NoteAdjusted EBITDA: $250 million to $265 million
- NoteAverage annual retail fuel margin: 47.0 cents per gallon to 49.0 cents per gallon
- NoteThe Company is not providing guidance on net income at this time.
Capital returns
- Repurchased $62.1 million principal amount of outstanding 5.125% senior notes for $56.8 million during the third quarter of 2026.
- The Board declared a quarterly dividend of $0.03 per share of common stock, to be paid on December 3, 2026 to stockholders of record as of November 20, 2026.
- Common stock repurchased was $(51) (in thousands) for the three months ended September 30, 2026.
- Dividends paid on common stock were $(3,365) (in thousands) for the three months ended September 30, 2026.
What drove it
- Merchandise margin increased 110 basis points to 34.8% from 33.7%, marking the 12th consecutive quarter of year-over-year merchandise margin improvement.
- Same store fuel contribution increased 2.7%, while same store fuel margin per gallon increased 4.6 cents per gallon to 48.8 cents per gallon from 44.2 cents per gallon.
- ARKO converted 17 retail stores to dealer locations during the quarter, bringing total conversions to 488 since the dealerization program began in 2024.
- The Company opened five new fleet fueling locations in the first nine months of 2026, and two locations were added in October 2026.
- APC's expected acquisition of USPP is expected to add approximately 280 million gallons of annual fuel volume and contribute approximately $30 million of annualized Adjusted EBITDA.
Concerns
- Same store fuel gallons sold decreased (7.0 %) in the third quarter of 2026.
- Same store merchandise sales decreased (1.4 %) in the third quarter of 2026.
- Total fuel contribution decreased by $3.9 million, or 3.8%, primarily due to a $7.3 million decrease related to retail stores closed or converted to dealer locations.
- Same store operating expenses increased by $6.0 million, or 4.0%, primarily due to higher credit card fees, personnel costs, utilities and rent.
- The USPP acquisition remains expected to close during the fourth quarter of fiscal year 2026 and is subject to transaction execution and integration risks described by the Company.
What to watch
- Closing of the USPP acquisition, expected during the fourth quarter of fiscal year 2026.
- Delivery of full-year 2026 Adjusted EBITDA within the guided range of $250 million to $265 million.
- Average annual retail fuel margin relative to the guided range of 47.0 cents per gallon to 49.0 cents per gallon.
- Further dealerization activity, including approximately 55 additional sites committed under letter of intent, under contract or already converted since quarter end.
- Retail transformation execution, including more than 25 expected store remodels in 2026, four planned NTI Dunkin' stores between now and early 2027, and fleet fueling development.
Balance sheet and cash flow
- Total liquidity was approximately $1.0 billion as of September 30, 2026, consisting of approximately $184 million of cash and cash equivalents and approximately $845 million of availability under lines of credit.
- Outstanding debt was approximately $625 million and net debt was approximately $441 million as of September 30, 2026.
- Capital expenditures were $41.4 million for the third quarter of 2026.
- Net cash used in investing activities was $(37,344) (in thousands) for the third quarter of 2026 and $(91,708) (in thousands) for the nine months ended September 30, 2026.
- Net cash used in financing activities was $(59,507) (in thousands) for the third quarter of 2026 and $(125,828) (in thousands) for the nine months ended September 30, 2026.
Analysis
ARKO reported third-quarter total revenues of $2,390,493 (in thousands), compared with $2,020,833 (in thousands) in the prior-year quarter. Fuel revenue was $2,007,278 (in thousands), while merchandise revenue was $350,964 (in thousands), compared with $389,727 (in thousands) a year earlier. Operating income was $35,229 (in thousands), compared with $35,924 (in thousands). Net income increased to $14,305 (in thousands) from $13,459 (in thousands), but net income attributable to ARKO Corp. declined to $10,696 (in thousands) from $13,459 (in thousands), and diluted EPS attributable to common stockholders was $0.08 versus $0.10.
Retail results reflected the effect of the dealerization program. Merchandise contribution decreased by $9.5 million, or 7.2%, primarily because of a $10.3 million decrease related to stores closed or converted to dealer locations. Total fuel contribution decreased by $3.9 million, or 3.8%, primarily because converted or closed stores reduced fuel contribution by $7.3 million. At the same time, same store fuel contribution increased $2.6 million, or 2.7%, and merchandise margin increased 110 basis points to 34.8%. Same store fuel gallons sold decreased (7.0 %) and same store merchandise sales decreased (1.4 %).
Wholesale and Fleet Fueling supplied offsetting growth. Wholesale operating income increased by $1.7 million, primarily from incremental operating income at dealerized retail sites. Fleet Fueling fuel contribution increased by $0.9 million, led by higher contribution at proprietary and third-party cardlock locations. Across the first nine months, Adjusted EBITDA increased 8.5% to $198.6 million, while operating cash flow was $90,758 (in thousands), compared with $148,009 (in thousands) in the prior-year period. Third-quarter capital expenditures were $41.4 million.
The company strengthened its stated capital structure through repurchase of $62.1 million principal amount of 5.125% senior notes for $56.8 million. As of September 30, 2026, it reported approximately $1.0 billion of total liquidity, approximately $625 million of outstanding debt and approximately $441 million of net debt. The Board also declared a $0.03 per share quarterly dividend payable December 3, 2026. ARKO raised the lower end of full-year Adjusted EBITDA guidance to $250 million from $245 million while retaining the $265 million upper end, and raised its average annual retail fuel margin outlook to 47.0 cents per gallon to 49.0 cents per gallon.
The guide incorporates current business trends and the expected closing of APC's USPP acquisition in the fourth quarter of fiscal year 2026. The proposed transaction is expected to add approximately 280 million gallons of annual fuel volume, contribute approximately $30 million of annualized Adjusted EBITDA, and require $205 million in cash plus the value of inventory at closing, alongside $30 million in APC Class A common stock held in escrow subject to EBITDA-based targets. Execution of the acquisition, continued dealer conversions, retail volume trends, fuel-margin conditions and the pace of operating cash generation are the principal reported items to monitor.
Management, verbatim
We delivered solid third quarter results and continued to make meaningful progress transforming ARKO into a more focused, resilient and cash generative business.
Arie Kotler, Chairman, President and Chief Executive Officer of ARKO
Based on our year-to-date performance, current business trends and the expected closing of the USPP acquisition, we are raising the low end of our full year Adjusted EBITDA guidance and now expect full year 2026 Adjusted EBITDA to be in the range of $250 million to $265 million.
Arie Kotler, Chairman, President and Chief Executive Officer of ARKO
Not in the filing
stated, not guessed- Previous outlook section was not provided; therefore, no actual-versus-prior-guidance comparison is included.
- Free cash flow was not reported.
- Consolidated gross margin was not reported.
- Non-GAAP EPS was not reported.
- Revenue, gross margin, operating-expense and tax-rate guidance were not provided.
- A forward net income guidance figure was not provided.
- CFO commentary was not separately provided or identified in the filing text.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
ARKO is a large U.S. convenience‑store operator and fuel wholesaler that filed its Q3 2026 results via an SEC 8‑K.
Ticker impact
ARKO reported Q3 2026 results and raised the lower end of its FY 2026 Adjusted EBITDA guidance to $250M-$265M.
likely upward pressure as investors price in higher EBITDA expectations
The guidance increase is a fresh disclosure from the 8‑K filing and materially improves the company's earnings outlook.
APC, ARKO's subsidiary, entered an asset purchase agreement to acquire USPP, expanding its fuel wholesale scale.
potential upside as the deal is expected to boost fuel wholesale earnings
The acquisition is newly announced and adds growth potential to the subsidiary's business.
Market effects
Improves outlook for the convenience‑store and fuel‑wholesale sector.
Positive for U.S. retail fuel and convenience‑store markets.
Limited to North American fuel distribution and retail sectors.
Counterpoint
If the acquisition integration faces delays, the guidance boost may be overstated.
Key entities
- CompanyARKO Corp.
Convenience‑store and fuel wholesale operator.
- SubsidiaryAPC (ARKO Petroleum Corp.)
Fuel wholesale subsidiary executing the USPP acquisition.
