Second Quarter 2026
Filed Aug 7, 2026ARKO Corp. Reports Second Quarter 2026 Results
Second-quarter net income and Adjusted EBITDA declined from the prior-year period amid softer consumer demand and higher same-store operating expenses, while first-half Adjusted EBITDA increased 14.0%, merchandise margin expanded, Wholesale and Fleet Fueling performed well, and full-year financial 2026 guidance was reaffirmed.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net incomeGAAP | $9.4 million | – | – |
| Net income, six months ended June 30GAAP | $3.8 million | – | – |
| Adjusted EBITDAnon-GAAP | $72.0 million | – | – |
| Adjusted EBITDA, six months ended June 30non-GAAP | $122.9 million | – | 14.0% year-over-year |
| Retail fuel gallons soldother | 204,756 | – | – |
| Retail fuel gallons sold, six months ended June 30other | 399,493 | – | – |
| Retail same store fuel gallons sold decreaseother | (5.7 %) | – | – |
| Retail same store fuel gallons sold decrease, six months ended June 30other | (4.5 %) | – | – |
| Retail fuel contributionother | $99,469 | – | decreased by $8.4 million, or 7.8% |
| Retail fuel contribution, six months ended June 30other | $192,735 | – | – |
| Retail fuel margin, cents per gallonother | 48.6 | – | – |
| Retail fuel margin, cents per gallon, six months ended June 30other | 48.2 | – | – |
| Retail same store fuel contributionother | $97,800 | – | increase of $0.5 million |
| Retail same store fuel contribution, six months ended June 30other | $189,103 | – | – |
| Retail same store fuel margin per gallonother | 48.7 cents per gallon | – | increased 3.0 cents per gallon |
| Retail merchandise revenueother | $347,428 | – | – |
| Retail merchandise revenue, six months ended June 30other | $652,838 | – | – |
| Retail merchandise contributionother | $120,506 | – | decreased by $14.0 million, or 10.4% |
| Retail merchandise contribution, six months ended June 30other | $224,016 | – | – |
| Retail merchandise marginother | 34.7 % | – | increased 110 basis points |
| Retail merchandise margin, six months ended June 30other | 34.3 % | – | – |
| Retail same store merchandise sales decreaseother | (1.7 %) | – | – |
| Retail same store merchandise sales decrease, excluding cigarettesother | (0.9 %) | – | – |
| Retail same store merchandise contributionother | $118,744 | – | decreased by $0.6 million |
| Retail same store site operating expensesother | $156,480 | – | increase of $8.3 million, or 5.6% |
| Wholesale fuel gallons sold, fuel supply locationsother | 203,578 | – | – |
| Wholesale fuel gallons sold, consignment agent locationsother | 37,183 | – | – |
| Wholesale fuel contribution, fuel supply locationsother | $15,511 | – | – |
| Wholesale fuel contribution, consignment agent locationsother | $10,810 | – | – |
| Wholesale fuel margin, cents per gallon, fuel supply locationsother | 7.6 | – | – |
| Wholesale fuel margin, cents per gallon, consignment agent locationsother | 29.1 | – | – |
| Wholesale operating incomeGAAP | increased by $1.6 million | – | increased by $1.6 million |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| RetailMerchandise contribution decreased primarily due to a $14.0 million decrease related to retail stores that were closed or converted to dealer locations. Same store merchandise contribution decreased reflecting the challenging macroeconomic environment and soft consumer environment. | Merchandise revenue $347,428 (in thousands) | – | – |
| WholesaleWholesale operating income increased by $1.6 million as a result of additional operating income from retail sites converted to dealer locations, partially offset by reduced operating income at comparable wholesale sites. | Not reported | – | – |
Full-year financial 2026 outlook
- NoteReaffirms full-year financial 2026 guidance.
- NoteReaffirmed full year 2026 Adjusted EBITDA outlook.
Capital returns
- Repurchased approximately $37.9 million principal amount of the Company's outstanding 5.125% senior notes during the quarter, at a discount.
- The Board of Directors declared a quarterly dividend of $0.03 per share of common stock to be paid on August 31, 2026, to stockholders of record as of August 20, 2026.
What drove it
- Merchandise margin increased 110 basis points to 34.7%, reflecting disciplined pricing, favorable product mix and vendor-supported promotions.
- Higher retail same store operating expenses, mostly a $3.3 million increase in credit card fees driven by higher fuel prices, more than offset incremental benefits from the dealerization program.
- The Company converted 21 retail stores to dealer locations during the quarter, bringing total conversions to 471 since the dealerization program began in 2024.
- The USPP acquisition is expected to increase APC annual fuel volumes by approximately 280 million gallons, or approximately 14% on a trailing twelve-months basis, and add more than 400 dealer locations.
- The USPP acquisition is expected to add approximately $30 million of annualized Adjusted EBITDA and enhance Discretionary Cash Flow.
Concerns
- Consumer demand softened during the second quarter as sustained higher fuel prices continued to pressure household budgets.
- Same store merchandise sales decreased (1.7 %) and same store merchandise contribution decreased by $0.6 million.
- Same store site operating expenses increased by $8.3 million, or 5.6%, driven primarily by higher credit card fees, insurance, personnel costs and rent.
- Retail fuel gallons sold were 204,756 compared to 240,302 in the prior-year period.
- Second-quarter Adjusted EBITDA was $72.0 million compared to $76.9 million in the prior-year period.
What to watch
- Execution and closing of the proposed USPP acquisition, including the $205 million in cash plus inventory consideration and the $30 million APC Class A common stock escrow arrangement.
- Whether acquired-business EBITDA-based financial targets are achieved in the first four full quarters after closing.
- Progress toward approximately 25 remodels, including the 12 projects in construction or active development.
- Progress toward 20 additional new fleet fueling locations in 2026, with one opened in March, two opened in July and 17 in progress.
- Delivery against reaffirmed full-year 2026 Adjusted EBITDA outlook.
Balance sheet and cash flow
- Prior year periods net income included a non-cash gain of $20.8 million related to a sale-leaseback transaction.
- The consideration at closing for the USPP acquisition will consist of $205 million in cash plus the cost of inventory.
- At closing APC will issue $30 million in APC Class A common stock that will be held in escrow and released to the seller subject to certain EBITDA-based financial targets.
Analysis
ARKO reported weaker second-quarter profitability, with net income of $9.4 million versus $20.1 million and Adjusted EBITDA of $72.0 million versus $76.9 million in the prior-year period. The net-income comparison is affected by a $20.8 million non-cash gain related to a sale-leaseback transaction in the prior-year periods. First-half Adjusted EBITDA improved to $122.9 million from $107.8 million, an increase of 14.0% year-over-year, and management reaffirmed its full-year 2026 Adjusted EBITDA outlook.
Retail results showed the trade-off from dealerization and a softer consumer environment. Merchandise revenue was $347,428 compared with $400,126, while merchandise contribution declined by $14.0 million, or 10.4%, primarily due to stores closed or converted to dealer locations. Fuel contribution declined by $8.4 million, or 7.8%, primarily due to a $9.3 million reduction associated with closed or converted stores. Same store merchandise sales decreased (1.7 %) and same store fuel gallons sold decreased (5.7 %).
Margins improved despite lower retail volume. Merchandise margin rose 110 basis points to 34.7%, supported by disciplined pricing, favorable product mix and vendor-supported promotions. Same store fuel margin per gallon increased 3.0 cents per gallon to 48.7 cents per gallon amid significant fuel-market volatility. These gains were offset by operating-cost pressure, as same store site operating expenses increased by $8.3 million, or 5.6%, with higher credit card fees associated with elevated fuel prices, insurance, personnel costs and rent identified as contributors.
Wholesale operating income increased by $1.6 million because of additional income from retail sites converted to dealer locations, partially offset by lower comparable-site operating income. The proposed USPP acquisition is central to the forward strategy: it is expected to add approximately 280 million gallons of annual fuel volumes, more than 400 dealer locations and approximately $30 million of annualized Adjusted EBITDA. The planned consideration includes $205 million in cash plus inventory and a $30 million APC Class A common stock escrow component tied to EBITDA-based targets.
Capital allocation included repurchases of approximately $37.9 million principal amount of 5.125% senior notes at a discount and a declared quarterly dividend of $0.03 per share. The principal operating variables to monitor are same-store demand, fuel-price-linked credit card fees, the pace and earnings effect of dealerization, and execution of the USPP transaction while the Company pursues its reaffirmed full-year 2026 outlook.
Management, verbatim
We delivered a strong first half of 2026, generating $123 million of Adjusted EBITDA, compared to $108 million last year, up 14.0%, despite weather disruption early in the year and a more challenging consumer environment as the second quarter progressed.
Arie Kotler, Chairman, President and Chief Executive Officer of ARKO
Consumer demand softened during the second quarter as sustained higher fuel prices continued to pressure household budgets. Even so, our teams remained focused on the areas within our control, maintaining disciplined fuel and merchandise margins while continuing to deliver value for our customers.
Arie Kotler, Chairman, President and Chief Executive Officer of ARKO
Not in the filing
stated, not guessed- Consolidated total revenue was not provided in the supplied filing text.
- Consolidated gross profit or gross margin was not provided in the supplied filing text.
- Consolidated operating income was not provided in the supplied filing text.
- GAAP and non-GAAP diluted EPS were not provided in the supplied filing text.
- Operating cash flow and free cash flow were not provided in the supplied filing text.
- Cash balance and total debt balance were not provided in the supplied filing text.
- Numerical full-year 2026 guidance ranges were not provided in the supplied filing text.
- Prior-quarter comparisons were not provided for the reported metrics.
- A previous outlook section was not provided.
- Wholesale revenue was not provided in the supplied filing text.
- The supplied filing text ends during the Wholesale discussion, so any subsequent financial statements, segment disclosures, reconciliations and guidance details are unavailable.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.