First Quarter 2026 Key Highlights (vs. Year-Ago Period) 1,2
Net loss for the quarter was $5.6 million compared to a net loss of $12.7 million.
Adjusted EBITDA for the quarter increased 65.1% to $50.9 million compared to $30.9 million.
Same-store merchandise sales excluding cigarettes increased approximately 0.4%, representing the strongest ex-cigarette performance in two years.
Merchandise margin for the quarter increased to 33.9% compared to 33.2%.
Retail same store fuel margin for the quarter increased to 48.0 cents per gallon compared to 38.7 cents per gallon, while same store fuel contribution increased approximately 20.1%.
Other Key Highlights
The Company's subsidiary, ARKO Petroleum Corp. (NASDAQ:APC), completed an initial public offering (the "APC IPO") of shares of its Class A common stock for total net proceeds of approximately $206.8 million (including proceeds from the underwriters' exercise of their over-allotment option). The Company owns 35 million APC shares (73.6% of the economic interests in APC), representing an implied value of approximately $650 million, with an APC market capitalization of approximately $900 million as of May 5, 2026.
The Company applied $206.7 million of proceeds from the APC IPO to reduce debt during the quarter, reflecting the financial flexibility created by the APC IPO and ARKO's disciplined capital allocation framework.
As part of the Company's ongoing transformation plan, the Company converted 41 retail stores to dealer locations during the first quarter, bringing total conversions since program inception in 2024 to 450 sites. The Company has approximately 75 additional sites committed either under letter of intent, under contract or already converted since quarter end. The Company expects to complete these conversions, along with additional conversions, by the end of 2026. The Company continues to expect that, at scale, its channel optimization will deliver a cumulative annualized operating income benefit of more than $20 million, before general and administrative expense savings. In addition, the Company has identified more than $10 million in expected cumulative general and administrative expense savings with an opportunity for upside as the Company continues to execute the site conversion strategy in 2026.
The Company opened two new-to-industry ("NTI") retail stores and one NTI cardlock location during the first quarter, remains on track for three new Dunkin' stores and one NTI retail store in 2026, continues to target 20 NTI cardlock openings in 2026, and continues to plan for approximately 25 remodels.
The Company relaunched its loyalty app on a new technology platform during the quarter and continues to advance customer engagement initiatives, including Fueling America's Future, fas REWARDS, the $10 enrollment campaign, and 100 Days of Summer.
The Board of Directors declared a quarterly dividend of $0.03 per share of common stock to be paid on May 29, 2026 to stockholders of record as of May 18, 2026.
1 See Use of Non-GAAP Measures below.2 All figures for fuel costs, fuel contribution and fuel margin per gallon exclude the fixed margin or fixed fee paid to the GPMP segment for the cost of fuel.
"Our first quarter results reflect both strong execution and the structural progress we have been making across the business," said Arie Kotler, Chairman, President and Chief Executive Officer of ARKO. "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. While weather disruptions negatively affected January and early February results, trends improved as the quarter progressed, and March performance was particularly strong. 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."
Mr. Kotler continued: "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. 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."
First Quarter 2026 Segment Highlights
Retail
For the Three MonthsEnded March 31,
2026
2025
(in thousands)
Fuel gallons sold
194,737
225,063
Same store fuel gallons sold decrease (%)1
(3.2%)
(6.2%)
Fuel contribution2
$
93,266
$
85,273
Fuel margin, cents per gallon3
47.9
37.9
Same store fuel contribution1, 2
$
91,303
$
76,024
Same store merchandise sales decrease (%)1
(0.5%)
(6.9%)
Same store merchandise sales excludingcigarettes increase (decrease) (%)1
0.4%
(5.2%)
Merchandise revenue
$
305,410
$
354,485
Merchandise contribution4
$
103,510
$
117,570
Merchandise margin5
33.9%
33.2%
Same store merchandise contribution1, 4
$
101,228
$
101,782
Same store site operating expenses1
$
150,884
$
146,118
1Same store is a common metric used in the convenience store industry. The Company considers a store a same store beginning in the first quarter in which the store had a full quarter of activity in the prior year. Refer toUse of Non-GAAP Measuresbelow for discussion of this measure.
2Calculated as fuel revenue less fuel costs; excludes the fixed margin or fixed fee paid to the GPMP segment for the cost of fuel.
3Calculated as fuel contribution divided by fuel gallons sold.
4Calculated as merchandise revenue less merchandise costs.
5Calculated as merchandise contribution divided by merchandise revenue.
Merchandise contribution for the first quarter of 2026 decreased by $14.1 million, or 12.0%, compared to the first quarter of 2025, while merchandise margin increased by 70 basis points to 33.9% for the first quarter of 2025 compared to 33.2% for the prior year period. The decrease in merchandise contribution was due to a $13.7 million decrease related to retail stores that were closed or converted to dealer locations and a $0.6 million decrease in same store merchandise contribution.
Fuel contribution for the first quarter of 2026 increased by $8.0 million, or 9.4%, compared to the first quarter of 2025, primarily due to a same store fuel contribution increase of $15.3 million, partially offset by a $7.8 million decrease in retail fuel contribution related to retail stores that were closed or converted to dealer locations. Fuel margin of 47.9 cents per gallon increased 10.0 cents per gallon compared to the first quarter of 2025.
For the first quarter of 2026, site operating expenses decreased by $21.4 million, or 12.1%, compared to the first quarter of 2025 primarily due to $26.7 million of reduced expenses related to retail stores that were closed or converted to dealer locations, partially offset by an increase in same store operating expenses of $4.8 million, or 3.3%, primarily due to higher personnel costs, credit card fees and rent.
Wholesale
For the Three MonthsEnded March 31,
2026
2025
(in thousands)
Fuel gallons sold, fuel supply locations
198,400
191,077
Fuel gallons sold, consignment agent locations
35,540
36,515
Fuel contribution1– fuel supply locations
$
12,662
$
11,453
Fuel contribution1– consignment agent locations
$
10,229
$
8,594
Fuel margin, cents per gallon2– fuel supply locations
6.4
6.0
Fuel margin, cents per gallon2– consignment agent locations
28.8
23.5
1Calculated as fuel revenue less fuel costs; excludes the fixed margin or fixed fee paid to the GPMP segment for the cost of fuel.
2Calculated as fuel contribution divided by fuel gallons sold.
Note: Comparable wholesale sites exclude retail stores converted to dealer locations until the first quarter in which these dealer locations had a full quarter of wholesale activity in the prior year. Refer toUse of Non-GAAP Measuresbelow.
For the first quarter of 2026, wholesale operating income increased by $4.4 million compared to the first quarter of 2025 as a result of additional operating income from retail stores converted to dealer locations combined with increased operating income at comparable wholesale sites.
For the first quarter of 2026, fuel contribution increased by $2.8 million compared to the first quarter of 2025. Fuel contribution for the first quarter of 2026 at fuel supply locations increased by $1.2 million due to incremental contribution from retail stores converted to dealer locations, which was partially offset by lower fuel contribution at comparable wholesale sites. Fuel contribution for the first quarter of 2026 at consignment agent locations increased $1.6 million due to incremental contribution from retail stores converted to dealer locations and higher fuel contribution at comparable wholesale site. Fuel margin per gallon increased, compared to the first quarter of 2025, 0.4 cents per gallon at fuel supply locations and 5.3 cents per gallon at consignment agent locations, primarily as a result of significant volatility in the fuel market due to the geopolitical environment and increased prompt pay discounts related to higher fuel costs.
For the first quarter of 2026, other revenues, net increased by $6.2 million, and site operating expenses increased by $5.2 million, in each case as compared to the first quarter of 2025, resulting primarily from retail stores converted to dealer locations.
Fleet Fueling
For the Three MonthsEnded March 31,
2026
2025
(in thousands)
Fuel gallons sold, proprietary cardlock locations
30,517
31,918
Fuel gallons sold, third-party cardlock locations
3,446
3,175
Fuel contribution1– proprietary cardlock locations
$
15,942
$
14,706
Fuel contribution1– third-party cardlock locations
$
803
$
596
Fuel margin, cents per gallon2– proprietary cardlocklocations
52.2
46.1
Fuel margin, cents per gallon2– third-party cardlocklocations
23.4
18.7
1Calculated as fuel revenue less fuel costs; excludes the fixed margin or fixed fee paid to the GPMP segment for the cost of fuel.
2Calculated as fuel contribution divided by fuel gallons sold.
Fuel contribution for the first quarter of 2026 increased by $1.4 million compared to the first quarter of 2025. At proprietary cardlocks, fuel contribution increased by $1.2 million, and fuel margin per gallon also increased for the first quarter of 2026 compared to the first quarter of 2025. At third-party cardlock locations, fuel contribution increased $0.2 million, and fuel margin per gallon also increased for the first quarter of 2026 compared to the first quarter of 2025. These increases were primarily due to favorable diesel margins as a result of significant volatility in the fuel market due to the geopolitical environment.
Liquidity and Capital Expenditures
As of March 31, 2026, the Company's total liquidity was approximately $1.1 billion, consisting of approximately $272 million of cash and cash equivalents and approximately $794 million of availability under the Company's lines of credit. Outstanding debt was approximately $704 million, resulting in net debt of approximately $432 million. The APC IPO in February 2026 bolstered the Company's liquidity position, as the Company used the proceeds to repay $206.7 million of indebtedness. Capital expenditures were $30.9 million for the first quarter of 2026, including investments in NTI retail stores and fleet fueling locations, remodeling of new format stores, EV chargers, upgrades to fuel dispensers and other investments in stores.
Quarterly Dividend
The Company's ability to return cash to its stockholders through its cash dividend program is consistent with its capital allocation framework and reflects the Company's confidence in the strength of its cash generation ability and strong financial position.
The Board declared a quarterly dividend of $0.03 per share of common stock to be paid on May 29, 2026 to stockholders of record as of May 18, 2026.
Company-Operated Retail Store Count and Segment Update
The following tables present certain information regarding changes in the retail, wholesale and fleet fueling segments for the periods presented:
For the Three MonthsEnded March 31,
Retail Segment
2026
2025
Number of sites at beginning of period
1,118
1,389
Newly opened or reopened sites
2
2
Company-controlled sites converted to
consignment or fuel supply locations, net
(41
)
(59
)
Sites closed, divested or converted to rentals
—
(3
)
Number of sites at end of period
1,079
1,329
For the Three MonthsEnded March 31,
Wholesale Segment1
2026
2025
Number of sites at beginning of period
2,099
1,922
Newly opened or reopened sites2
11
6
Consignment or fuel supply locations converted
from Company-controlled sites, net
41
59
Closed or divested sites
(25
)
(26
)
Number of sites at end of period
2,126
1,961
1Excludes bulk and spot purchasers.
2Includes all signed fuel supply agreements irrespective of fuel distribution commencement date.
For the Three MonthsEnded March 31,
Fleet Fueling Segment
2026
2025
Number of sites at beginning of period
295
280
Newly opened or reopened sites
1
1
Closed or divested sites
(4
)
(1
)
Number of sites at end of period
292
280
Full Year 2026 Guidance
The Company is not updating its guidance disclosed in February 2026, which expected full year 2026 Adjusted EBITDA to range between $245 million and $265 million, with an assumed range of average retail fuel margin from 41.5 to 43.5 cents per gallon for the year.
The Company is not providing guidance on net income at this time due to the unavailability of certain required inputs that are not available without unreasonable efforts, including depreciation and amortization related to its capital allocation as part of its focus on strategic and organic growth.
Conference Call and Webcast Details
The Company will host a conference call today, May 7, 2026, to discuss these results at 9:00 a.m. Eastern Time. Investors and analysts interested in participating in the live call can dial 877-605-1792 or 201-689-8728.
A simultaneous, live webcast will also be available on the Investor Relations section of the Company's website at https://www.arkocorp.com/news-events/ir-calendar. The webcast will be archived for 30 days.
About ARKO Corp.
ARKO Corp. (NASDAQ:ARKO) is a Fortune 500 company that is one of the largest operators of convenience stores and wholesalers of fuel in the United States. Based in Richmond, VA, our retail segment operates retail convenience stores under more than 25 regional store brands in the District of Columbia and more than 30 states across the Mid-Atlantic, Midwestern, Northeastern, Southeastern and Southwestern U.S. Our highly recognizable Family of Community Brands offers delicious, prepared foods, beer, snacks, candy, hot and cold beverages, and multiple popular quick serve restaurant brands. Our wholesale segment supplies fuel to independent dealers and consignment agents; our fleet fueling segment includes the operation of proprietary and third-party cardlock locations (unstaffed fueling locations), and commissions from the sales of fuel using proprietary fuel cards that provide customers access to a nationwide network of fueling sites; and our GPMP segment primarily engages in inter-segment transactions related to the wholesale distribution of fuel to substantially all of our sites that sell fuel in the retail, wholesale and fleet fueling segments. In February 2026, we completed the initial public offering of our subsidiary ARKO Petroleum Corp. (NASDAQ:APC), which is the primary operating entity for the wholesale, fleet fueling, and GPMP segments. To learn more about GPM stores, visit: www.gpminvestments.com. To learn more about ARKO, visit: www.arkocorp.com. To learn more about APC, visit: www.arkopetroleum.com.
Forward-Looking Statements
This document includes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may address, among other things, the Company's expected financial and operational results and the related assumptions underlying its expected results. These forward-looking statements are distinguished by use of words such as "accretive," "anticipate," "aim," "believe," "continue," "could," "estimate," "expect," "guidance," "intends," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "will," "would" and the negative of these terms, and similar references to future periods. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to, among other things, changes in economic, business and market conditions; the Company's ability to maintain the listing of its common stock on the Nasdaq Stock Market; changes in its strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects and plans; expansion plans and opportunities; changes in the markets in which the Company competes; changes in applicable laws or regulations, including those relating to environmental matters; market conditions and global and economic factors beyond its control; the success of the Company's transformation plan, including the dealerization of retail stores; the impact of APC operating as a public company; and the outcome of any known or unknown litigation and regulatory proceedings. Detailed information about these factors and additional important factors can be found in the documents that the Company files with the Securities and Exchange Commission, such as Form 10-K, Form 10-Q and Form 8-K. Forward-looking statements speak only as of the ...
