ARKO Corp (ARKO)
NASDAQ:ARKO
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ARKO Corp
(NASDAQ:ARKO)
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Rating:51Neutral
Price Target:
$7.00
▲(50.86% Upside)
Action:Reiterated
Date:05/09/26
Overall score is held back primarily by weak financial performance (shrinking revenue, thin margins, and sharply weaker free cash flow), despite improved leverage. Technicals are supportive with a clear uptrend and positive momentum. The earnings call added moderate support on EBITDA improvement and liquidity/debt reduction, but uncertainty remains due to withheld guidance and ongoing net losses; valuation support is limited due to a negative P/E and only modest yield.
Positive Factors
Improved liquidity and debt reduction
The APC IPO proceeds and $206.7M paydown materially strengthened liquidity and reduced leverage, lowering refinancing and covenant risk. Better cash and a ~ $1.1B liquidity buffer improve capital flexibility to invest in dealerization, remodels and strategic growth without immediate reliance on volatile cash flow.
Negative Factors
Shrinking revenue and weakening top-line momentum
A sustained decline in revenue undermines scale economics and limits the company's ability to leverage fixed costs. Persistent top-line contraction reduces long-term margin upside, constrains funding for remodels and growth initiatives, and heightens sensitivity to competitive pressure in a fragmented retail fuel market.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved liquidity and debt reduction
The APC IPO proceeds and $206.7M paydown materially strengthened liquidity and reduced leverage, lowering refinancing and covenant risk. Better cash and a ~ $1.1B liquidity buffer improve capital flexibility to invest in dealerization, remodels and strategic growth without immediate reliance on volatile cash flow.
Read all positive factors
ARKO Corp (ARKO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$842.51M
Dividend Yield2.59%
Average Volume (3M)512.38K
Price to Earnings (P/E)―
Beta (1Y)1.50
Revenue Growth-10.63%
EPS Growth672.41%
CountryUS
Employees11,772
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.20
Shares Outstanding112,185,720
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 Cap3.47
Enterprise Value/Revenue0.38
Enterprise Value/Gross Profit3.27
Enterprise Value/Ebitda10.74
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.26
Revenue Forecast (FY)$7.27B
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:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 10, 2026
Earnings Call Sentiment Positive
The call conveyed broad-based operational progress and notable financial improvements — most prominently a ~65% increase in adjusted EBITDA, margin expansion, meaningful dealerization progress, strong loyalty enrollment and improved liquidity following the APC IPO and debt paydown. These positives offset near-term headwinds including same-store sales and fuel gallon declines (partly weather-related), an ongoing net loss and withheld guidance due to market uncertainty. Overall, the tone was constructive and focused on structural improvements and capital allocation discipline.Positive Updates
Large Adjusted EBITDA Improvement
Adjusted EBITDA increased approximately 65% year-over-year to $51 million, driven by retail, wholesale and fleet fueling execution, disciplined cost control and strong fuel contribution.
Negative Updates
Same-Store Sales and Fuel Gallon Pressure
Overall same-store merchandising sales declined 0.5% for the quarter; same-store retail fuel gallons were down 3.2% year-over-year, driven in part by early-quarter weather disruptions.
Read all updates
Q1-2026 Updates
Positive
Negative
Large Adjusted EBITDA Improvement
Adjusted EBITDA increased approximately 65% year-over-year to $51 million, driven by retail, wholesale and fleet fueling execution, disciplined cost control and strong fuel contribution.
Read all positive updates
Company Guidance
Management said it would not update full‑year guidance given current market uncertainty, but provided Q1 results and near‑term targets as context: adjusted EBITDA was about $51 million (+65% YoY) with a net loss of $5.6 million (vs. $12.7M LY); cash was $272M and total liquidity ≈$1.1B after using APC IPO proceeds to pay down $206.7M of debt (long‑term debt now ~$704M); Q1 CapEx was ≈$31M with 17 cardlocks and 25 remodels underway and plans for 3 new Dunkin’ stores, 1 NTI retail, 20 NTI cardlocks and 25 remodels in 2026; dealerization converted 41 stores in Q1 (450 total to date) with ~75 additional committed to be completed by year‑end; retail same‑store merchandising sales were −0.5% (ex‑cigarettes +0.4%), merchandise margin 33.9% (+70 bps YoY), same‑store fuel gallons −3.2% (fuel contribution +20%, retail cents per gallon ~$0.479, up ≈$0.10) and fuel transactions +7% in March; wholesale gallons ≈234M with fuel margin $0.098/gal and operating income ≈$23M; fleet operating income ≈$12M with margin $0.493/gal and gallons −3.2%; G&A down 4%, total retail site operating expenses down 12% to $155.9M (same‑store op ex +3.3%); loyalty enrollment rose 98% with ~53,000 new members (about half since early March); and management estimated weather shaved ~80 bps from merchandising volumes and ~160 bps from total fuel gallons.ARKO Corp Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
45
Neutral
Cash Flow
34
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.59B | 7.64B | 8.73B | 9.41B | 9.14B | 7.42B |
| Gross Profit | 892.82M | 395.50M | 397.22M | 423.63M | 418.55M | 367.48M |
| EBITDA | 272.00M | 256.28M | 257.03M | 265.88M | 271.94M | 242.28M |
| Net Income | 28.77M | 22.74M | 20.84M | 34.37M | 71.75M | 59.20M |
Balance Sheet | ||||||
| Total Assets | 3.58B | 3.53B | 3.62B | 3.65B | 3.26B | 2.94B |
| Cash, Cash Equivalents and Short-Term Investments | 296.36M | 311.47M | 267.09M | 222.01M | 300.93M | 310.95M |
| Total Debt | 2.35B | 3.95B | 2.58B | 2.53B | 2.26B | 2.08B |
| Total Liabilities | 3.02B | 3.17B | 3.24B | 3.27B | 2.87B | 2.59B |
| Stockholders Equity | 495.41M | 367.24M | 376.87M | 376.10M | 380.83M | 353.45M |
Cash Flow | ||||||
| Free Cash Flow | 37.68M | 65.22M | 107.94M | 24.89M | 110.48M | -67.26M |
| Operating Cash Flow | 167.85M | 192.59M | 221.86M | 136.09M | 209.26M | 159.19M |
| Investing Cash Flow | -122.24M | -119.79M | -114.86M | -296.82M | -175.49M | -171.78M |
| Financing Cash Flow | -46.05M | -41.51M | -56.00M | 85.36M | 10.55M | -26.38M |
ARKO Corp Technical Analysis
Positive
4.64
Price Trends
6.16
Positive
5.85
Positive
5.22
Positive
Market Momentum
0.33
Negative
73.22
Negative
96.93
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARKO, the sentiment is Positive. The current price of 4.64 is below the 20-day moving average (MA) of 6.84, below the 50-day MA of 6.16, and below the 200-day MA of 5.22, indicating a bullish trend. The MACD of 0.33 indicates Negative momentum. The RSI at 73.22 is Negative, neither overbought nor oversold. The STOCH value of 96.93 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 | $31.51B | 43.17 | 17.55% | 0.39% | 9.22% | 21.39% | |
64 Neutral | $3.29B | 6.80 | 18.07% | 1.04% | 2.02% | -3.69% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | $3.09B | ― | 2.00% | 2.53% | -8.26% | ― | |
54 Neutral | $10.12B | 20.89 | 8.00% | ― | -5.05% | 251.00% | |
51 Neutral | $842.51M | -23.30 | 7.19% | 2.59% | -10.63% | 672.41% | |
50 Neutral | $13.07B | 19.30 | 1.31% | 3.33% | 4.79% | -92.77% |
* Consumer Cyclical Sector Average
ARKO
ARKO Corp
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3.23
73.45%
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ARKO Corp Corporate Events
Business Operations and StrategyDividendsFinancial DisclosuresPrivate Placements and Financing
ARKO Corp Narrows Loss and Boosts Profitability in Q1
Positive
May 7, 2026
ARKO Corp. reported first-quarter 2026 results showing a narrowed net loss of $5.6 million versus $12.7 million a year earlier and a 65.1% jump in adjusted EBITDA to $50.9 million, supported by higher merchandise and fuel margins and improved same...
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...
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.