Arko (ARKO) Q1 2026 earnings summary

Executive summary

• Q1 2026 marked a significant inflection point, with Adjusted EBITDA up 65% year-over-year to $50.9 million, reflecting broad-based operational improvements, cost control, dealerization, and transformation initiatives across retail, wholesale, and fleet fueling segments.

• Completed the IPO of ARKO Petroleum Corp. (APC) in February 2026, raising $206.8 million, enhancing transparency, and using proceeds to reduce debt while retaining 73.6% economic interest.

• Dealerization strategy continued, with 41 stores converted in Q1 and 450 total since 2024, reducing costs and focusing the portfolio on high-performing locations.

• Retail same-store merchandise sales excluding cigarettes returned to growth for the first time in two years, and fuel transaction trends outperformed national averages.

• Transformation Plan includes remodeling stores, expanding foodservice, launching new formats, and advancing loyalty and digital engagement.

Financial highlights

• Adjusted EBITDA reached $50.9 million, up 65% year-over-year; net loss narrowed to $5.6 million from $12.7 million in Q1 2025.

• Q1 2026 revenue was $1.45 billion, down from $1.77 billion year-over-year; net loss attributable to common shareholders was $8.1 million, or $(0.07) per share.

• Merchandise margin improved to 33.9%, up 70 basis points year-over-year; retail fuel margin rose to $0.479 per gallon.

• Retail same-store merchandise sales excluding cigarettes increased 0.4%; overall same-store merchandise sales down 0.5%.

• Total retail site-level operating expenses down 12% to $155.9 million, driven by dealerization.

Outlook and guidance

• April trends continued the positive momentum seen in Q1; full-year 2026 Adjusted EBITDA guidance remains $245–$265 million, with retail fuel margin expected between 41.5–43.5 cents per gallon.

• No update to full-year guidance due to market uncertainty; management remains focused on executing transformation initiatives and capital allocation for growth.

• Targeting mid-single digit annual growth in total gallons distributed and ongoing investment in loyalty and digital engagement.