ARKO Corp (ARKO)
NASDAQ:ARKO
Top Page
ARKO Corp
(NASDAQ:ARKO)
Select Model
Select Model
Rating:49Neutral
Price Target:
$5.50
▲(18.53% Upside)
Action:ReiteratedDate:02/26/26
The score is held back primarily by weak financial performance—recent revenue declines, very thin/volatile profitability, and a return to slightly negative operating/free cash flow. Offsetting this are a constructive (but mixed) technical setup and a more positive earnings outlook focused on margin improvement and cost actions, while valuation remains a headwind due to the high P/E despite a modest dividend yield.
Positive Factors
Dealerization cost benefits
Converting sites to dealer-operated model materially reduces fixed site costs and maintenance CapEx, lowering site operating leverage. Over 400 conversions completed with further commitments implies durable margin tailwinds and lower capital intensity per location, enhancing long-term margin sustainability.
Negative Factors
Same-store sales and fuel volume declines
Persistent declines in same-store merchandise sales and retail fuel gallons indicate structural top-line pressure. Even with margin and cost programs, shrinking volumes reduce absolute contribution per site and lengthen payback on remodels and NTI investments, constraining durable revenue growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Dealerization cost benefits
Converting sites to dealer-operated model materially reduces fixed site costs and maintenance CapEx, lowering site operating leverage. Over 400 conversions completed with further commitments implies durable margin tailwinds and lower capital intensity per location, enhancing long-term margin sustainability.
Read all positive factors
ARKO Corp (ARKO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$603.25M
Dividend Yield2.59%
Average Volume (3M)512.38K
Price to Earnings (P/E)22.6
Beta (1Y)1.43
Revenue Growth-12.61%
EPS Growth-27.22%
CountryUS
Employees11,772
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.00
Shares Outstanding110,891,330
10 Day Avg. Volume526,378
30 Day Avg. Volume512,377
Financial Highlights & Ratios
PEG Ratio1.47
Price to Book (P/B)1.40
Price to Sales (P/S)0.07
P/FCF Ratio7.89
Enterprise Value/Market Cap7.05
Enterprise Value/Revenue0.56
Enterprise Value/Gross Profit4.70
Enterprise Value/Ebitda16.60
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.22
Revenue Forecast (FY)$7.25B
ARKO Corp Business Overview & Revenue Model
Company Description
Arko Corp. operates convenience stores in the United States. It operates through three segments: Retail, Wholesale, and GPM Petroleum. The Retail segment engages in the sale of fuel and merchandise to retail consumers. The Wholesale segment suppli...
How the Company Makes Money
ARKO primarily makes money from (1) retail fuel sales at its convenience store locations and (2) inside-store merchandise sales. Retail fuel revenue is generated by selling gasoline and other motor fuels to consumers; earnings from this stream dep...
ARKO Corp Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call conveyed clear operational progress—margin expansion, meaningful cost reductions from dealerization, loyalty acceleration, positive early remodel/NTI results, and a strategically significant APC IPO that strengthened the balance sheet and unlocked value. However, top-line pressures persist: same-store merchandise sales and retail fuel volumes declined year-over-year, fleet volumes softened, and full-year adjusted EBITDA was essentially flat. Management provided actionable 2026 guidance and capital allocation priorities to drive improvement. Overall, the positives around structural transformation, stronger liquidity and margin gains outweigh the remaining volume and top-line challenges.Positive Updates
Improved Profitability and Margin Expansion
Management highlighted improved profitability: full-year adjusted EBITDA of $248.7M (flat vs. $248.9M in 2024) with merchandising margin expanding to 34.4% in Q4 (up 140 bps YoY) and full-year merchandising margin up 90 bps to 33.7%. Retail fuel margin improved in Q4 to approximately $0.445 per gallon.
Negative Updates
Same-Store Merchandise Sales Decline
Merchandise same-store sales were down 3% in Q4 and down 4.1% for fiscal year 2025 (excluding cigarettes: down 1.8% Q4 and down 2.7% full year), indicating ongoing top-line pressure despite margin improvements.
Read all updates
Q4-2025 Updates
Positive
Negative
Improved Profitability and Margin Expansion
Management highlighted improved profitability: full-year adjusted EBITDA of $248.7M (flat vs. $248.9M in 2024) with merchandising margin expanding to 34.4% in Q4 (up 140 bps YoY) and full-year merchandising margin up 90 bps to 33.7%. Retail fuel margin improved in Q4 to approximately $0.445 per gallon.
Read all positive updates
Company Guidance
ARKO guided 2026 adjusted EBITDA of $245 million to $265 million, assuming an average retail fuel margin of $0.415–$0.435 per gallon, and said every $0.01 change in retail same‑store CPG is expected to impact adjusted EBITDA by roughly $8–$9 million; management expects same‑store retail sales to be relatively flat but to improve by several hundred basis points versus 2025 with planned same‑store merchandising margins of 35.5%–36.5% (up from ~33.7% in 2025), and reiterated APC is expected to deliver about $156 million of adjusted EBITDA in 2026 (with an assumed incremental ~50 million gallons from acquisitions), while ARKO plans ~20 NTI cardlock builds in 2026 (10 already identified) at ~$1–$2M each targeting mid‑ to high‑teens returns, plans roughly 25 remodels (full remodels ~ $0.9–$1.1M, soft remodels ~$0.4–$0.7M) targeting double‑digit returns, and enters 2026 with a strong balance sheet including ~$305M cash and ~ $184M net IPO proceeds used to reduce debt.ARKO Corp Financial Statement Overview
Summary
Income Statement
43
Neutral
Balance Sheet
51
Neutral
Cash Flow
28
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 7.64B | 8.73B | 9.41B | 9.14B | 7.42B |
| Gross Profit | 261.05M | 397.22M | 423.63M | 418.55M | 367.48M |
| EBITDA | 255.98M | 257.03M | 265.88M | 271.94M | 242.28M |
| Net Income | 22.74M | 20.84M | 34.37M | 71.75M | 59.20M |
Balance Sheet | |||||
| Total Assets | 3.53B | 3.62B | 3.65B | 3.26B | 2.94B |
| Cash, Cash Equivalents and Short-Term Investments | 311.47M | 267.09M | 222.01M | 300.93M | 310.95M |
| Total Debt | 3.95B | 2.58B | 2.53B | 2.26B | 2.08B |
| Total Liabilities | 3.17B | 3.24B | 3.27B | 2.87B | 2.59B |
| Stockholders Equity | 367.24M | 376.87M | 376.10M | 380.83M | 353.45M |
Cash Flow | |||||
| Free Cash Flow | 65.22M | 107.94M | 24.89M | 110.48M | -67.26M |
| Operating Cash Flow | 192.59M | 221.86M | 136.09M | 209.26M | 159.19M |
| Investing Cash Flow | -119.79M | -114.86M | -296.82M | -175.49M | -171.78M |
| Financing Cash Flow | -41.51M | -56.00M | 85.36M | 10.55M | -26.38M |
ARKO Corp Technical Analysis
Neutral
4.64
Price Trends
5.80
Negative
5.28
Positive
4.89
Positive
Market Momentum
-0.03
Negative
45.69
Neutral
27.35
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARKO, the sentiment is Neutral. The current price of 4.64 is below the 20-day moving average (MA) of 5.40, below the 50-day MA of 5.80, and below the 200-day MA of 4.89, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 45.69 is Neutral, neither overbought nor oversold. The STOCH value of 27.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ARKO.
ARKO Corp Risk Analysis
ARKO Corp disclosed 37 risk factors in its most recent earnings report. ARKO Corp reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
ARKO Corp Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $27.28B | 43.17 | 17.55% | 0.39% | 13.33% | 13.33% | |
67 Neutral | $3.63B | 9.73 | 18.07% | 1.04% | -0.65% | -10.35% | |
63 Neutral | $14.96B | 259.07 | 1.44% | 3.33% | 3.26% | -25.41% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
54 Neutral | $10.41B | 25.55 | 8.00% | ― | -12.13% | 426.82% | |
50 Neutral | $3.28B | 52.94 | 2.00% | 2.53% | -19.41% | -957.94% | |
49 Neutral | $603.25M | 22.62 | 6.23% | 2.59% | -12.61% | -27.22% |
* Consumer Cyclical Sector Average
ARKO
ARKO Corp
5.44
1.42
35.26%
AAP
Advance Auto Parts
54.59
22.35
69.31%
CASY
Casey's General
738.17
279.33
60.88%
GME
GameStop
23.22
-3.76
-13.94%
GPC
Genuine Parts Company
107.51
-4.99
-4.44%
ASO
Academy Sports and Outdoors
56.37
19.52
52.98%
ARKO Corp Corporate Events
Business Operations and StrategyDividendsFinancial DisclosuresPrivate Placements and Financing
ARKO Corp Unlocks Capital Through ARKO Petroleum IPO
Positive
Feb 25, 2026
For the fourth quarter and full year ended Dec. 31, 2025, ARKO Corp. swung to quarterly net income of $1.9 million from a $2.3 million loss and grew full-year net income 9.1% to $22.7 million, while quarterly adjusted EBITDA rose 15.6% to $65.7 mi...
Business Operations and StrategyPrivate Placements and Financing
ARKO Corp Solidifies Control with APC IPO, Agreements
Positive
Feb 18, 2026
On February 13, 2026, ARKO Petroleum Corp., an indirect subsidiary of ARKO Corp., completed an initial public offering of 11,111,111 Class A shares, leaving ARKO Corp. with a controlling 75.9% economic interest and 94.0% voting power, and simultan...
Business Operations and StrategyFinancial Disclosures
ARKO Corp Announces Preliminary 2025 Results, APC IPO Roadshow
Neutral
Feb 3, 2026
ARKO Corp. reported preliminary, unaudited financial results for the fourth quarter and full year ended December 31, 2025, indicating that quarterly net income is expected to range from a loss of $1.8 million to income of $0.4 million, with Adjust...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.