Financial Data and Key Metrics Changes - Adjusted EBITDA for Q2 2025 was $76.9 million, down from $80.1 million in Q2 2024, primarily due to lower retail merchandise contribution [18] - Net income for the quarter increased to $20.1 million from $14.1 million year-over-year, driven by a non-cash gain related to the expiration of a purchase option [22] - Same store merchandise sales excluding cigarettes decreased by 3% year-over-year, while total same store merchandise sales were down 4.2% [19] Business Line Data and Key Metrics Changes - Retail segment operating income was approximately $80.4 million, down from $87.9 million in the prior year [18] - Wholesale segment operating income increased to $23.2 million from $21.3 million year-over-year, with gallons up 3.9% driven by the channel optimization program [20] - Fleet segment operating income was $13.1 million, slightly down from $13.7 million in the previous year, with total gallons down 6.8% [21] Market Data and Key Metrics Changes - National retail fuel volumes were down approximately 4% in Q2, reflecting a broader industry trend [16] - Same store fuel contribution decreased by approximately $800,000, with a 6.5% decline in gallons, offset by an increase in fuel margin to $0.45 per gallon [19] Company Strategy and Development Direction - The company is focused on a core transformation strategy, including advancing the dealerization program and investing in new store formats [7][9] - The dealerization program aims to convert select company-operated stores to dealer locations, with over 300 stores converted to date and an expected annualized operating income benefit of more than $20 million [8] - The introduction of new store formats aims to enhance customer experience and foodservice offerings, with the first new format store opened in June 2025 [10] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing challenges from geopolitical events, inflation, and mixed consumer sentiment, but expressed optimism about improving trends in July [5][6] - The company expects total adjusted EBITDA for Q3 2025 to be in the range of $70 million to $80 million, with cautious expectations for same store sales performance [24][25] - Management emphasized the importance of customer engagement and loyalty programs in driving sales and improving margins [12][13] Other Important Information - The company repurchased 2.2 million shares in Q2 2025 as part of its disciplined capital allocation strategy [17] - Total capital expenditures for the quarter were $45.3 million, including the purchase of 22 fee properties [23] Q&A Session Summary Question: What is driving the notable change in July's performance? - Management noted improvements in July driven by strong promotions and customer engagement initiatives, particularly the Fueling America campaign [30] Question: Are more stores being identified for dealerization compared to six months ago? - Management confirmed that the pace of dealerization is consistent with expectations, with ongoing identification of additional stores [35][36] Question: What is the expected impact of the new store format on labor and complexity? - The new store format does not significantly increase square footage but adds food service capabilities, requiring minimal additional labor [78] Question: How are wages trending this summer compared to last summer? - Wages have trended up approximately 3%, consistent with inflationary pressures, but operating expenses have decreased due to reduced hours [47] Question: What constitutes success for the store conversions? - Success is measured by increased traffic and higher inside margins, particularly from food service offerings [87]

PART I. FINANCIAL INFORMATION Presents ARKO Corp.'s unaudited condensed consolidated financial statements, management's discussion, market risks, and controls [Item 1. Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) Presents ARKO Corp.'s unaudited condensed consolidated financial statements and detailed notes for Q2 2025 and H1 2025 [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Summarizes ARKO Corp.'s financial position, detailing assets, liabilities, and equity as of June 30, 2025, and December 31, 2024 Condensed Consolidated Balance Sheets (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :------------------ | | **Assets** | | | | Total current assets | $743,484 | $722,208 | | Total non-current assets | $2,865,338 | $2,898,450 | | **Total assets** | **$3,608,822** | **$3,620,658** | | **Liabilities** | | | | Total current liabilities | $481,042 | $445,490 | | Total non-current liabilities | $2,759,485 | $2,790,244 | | **Total liabilities** | **$3,243,987** | **$3,243,792** | | Series A redeemable preferred stock | $100,000 | $100,000 | | **Total shareholders' equity** | **$264,835** | **$276,866** | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Details ARKO Corp.'s revenues, expenses, and net income for the three and six months ended June 30, 2025, and 2024 Condensed Consolidated Statements of Operations (in thousands, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total revenues | $1,999,519 | $2,388,163 | $3,828,424 | $4,460,617 | | Total operating expenses | $1,960,084 | $2,344,954 | $3,798,536 | $4,419,798 | | Operating income | $56,690 | $42,948 | $44,926 | $38,082 | | Income before income taxes | $37,172 | $21,581 | $11,557 | $14,258 | | Net income attributable to ARKO Corp. | $20,098 | $14,063 | $7,426 | $13,469 | | Net income attributable to common shareholders | $18,665 | $12,618 | $4,575 | $10,610 | | Net income per share – basic | $0.16 | $0.11 | $0.04 | $0.09 | | Net income per share – diluted | $0.16 | $0.11 | $0.04 | $0.09 | [Condensed Consolidated Statements of Changes in Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Equity) Outlines changes in ARKO Corp.'s equity, including common stock, treasury stock, and retained earnings, for the periods presented Condensed Consolidated Statements of Changes in Equity (in thousands, except share data) | Metric | Balance at April 1, 2025 | Balance at June 30, 2025 | Balance at January 1, 2025 | | :----------------------------------- | :----------------------- | :----------------------- | :------------------------- | | Common Stock (Shares) | 115,437,127 | 113,312,302 | 115,771,318 | | Common Stock (Par Value) | $12 | $12 | $12 | | Treasury Stock, at Cost | $(113,514) | $(122,813) | $(106,123) | | Additional Paid-in Capital | $280,017 | $283,675 | $276,681 | | Accumulated Other Comprehensive Income | $9,119 | $9,119 | $9,119 | | Retained Earnings | $79,592 | $94,842 | $97,177 | | Total Shareholders' Equity | $255,226 | $264,835 | $276,866 | | Net income (Q2 2025) | $20,098 | | | | Net income (H1 2025) | | | $7,426 | - Common stock repurchases for the six months ended June 30, 2025, totaled **$16.69 million**, reducing treasury stock[20](index=20&type=chunk) - Dividends declared for common stock totaled **$6.91 million** for the six months ended June 30, 2025[20](index=20&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Presents ARKO Corp.'s cash flows from operating, investing, and financing activities for the six months ended June 30, 2025, and 2024 Condensed Consolidated Statements of Cash Flows (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $98,587 | $89,974 | | Net cash used in investing activities | $(70,432) | $(52,647) | | Net cash used in financing activities | $(4,106) | $(27,671) | | Net increase in cash and cash equivalents and restricted cash | $24,049 | $9,656 | | Cash and cash equivalents and restricted cash, end of period | $316,487 | $251,039 | - Cash paid for interest was **$43.675 million** in H1 2025, down from **$45.872 million** in H1 2024[29](index=29&type=chunk) - Purchases of property and equipment under leases amounted to **$44.044 million** in H1 2025[29](index=29&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Provides detailed explanations of ARKO Corp.'s significant accounting policies, debt, leases, and other financial instruments [1. General](index=12&type=section&id=1.%20General) Describes ARKO Corp.'s business operations, including its retail convenience stores, dealer stations, and cardlock locations - ARKO Corp. operates **1,254 retail convenience stores**, supplies fuel to **2,014 dealer gas stations**, and operates **287 cardlock locations** across more than 30 U.S. states and the District of Columbia as of June 30, 2025[33](index=33&type=chunk) - The Company has four reportable segments: retail, wholesale, fleet fueling, and GPMP[34](index=34&type=chunk) [2. Summary of Significant Accounting Policies](index=12&type=section&id=2.%20Summary%20of%20Significant%20Accounting%20Policies) Outlines the accounting principles and policies used in preparing the interim financial statements, including seasonality and recent legislation - The interim financial statements are unaudited and prepared in accordance with U.S. GAAP for interim financial information and Regulation S-X[36](index=36&type=chunk) - The Company experiences seasonal fluctuations, with disproportionately higher operating income in the second and third quarters due to favorable climate and seasonal buying patterns[38](index=38&type=chunk) - The One Big Beautiful Bill Act (OBBBA) was enacted on July 4, 2025, and the Company is currently assessing its impact on consolidated financial statements[49](index=49&type=chunk) [3. Debt](index=16&type=section&id=3.%20Debt) Details ARKO Corp.'s debt structure, including Senior Notes, M&T debt, Capital One Line of Credit, and insurance premium notes Debt Components (in thousands) | Debt Type | June 30, 2025 | December 31, 2024 | | :---------------------- | :------------ | :------------------ | | Senior Notes | $445,690 | $445,263 | | M&T debt | $88,718 | $57,380 | | Capital One Line of Credit | $376,679 | $375,951 | | Insurance premium notes | $5,319 | $2,405 | | Total debt, net | $916,406 | $880,999 | | Less current portion | $(39,867) | $(12,944) | | Total long-term debt, net | $876,539 | $868,055 | - GPM amended its M&T Credit Agreement on May 13, 2025, increasing real estate loans from **$49.5 million** to **$83.7 million**, with the additional **$34.2 million** maturing in May 2030[51](index=51&type=chunk) [4. Leases](index=16&type=section&id=4.%20Leases) Provides information on ARKO Corp.'s lease arrangements, including leased properties and total lease costs for various periods - As of June 30, 2025, the Company leased **1,023 retail convenience stores**, **418 dealer locations**, **154 cardlock locations**, and other spaces[53](index=53&type=chunk) Total Lease Costs (in thousands) | Lease Cost Type | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Finance lease cost (depreciation & interest) | $6,520 | $6,883 | $13,298 | $13,635 | | Operating lease costs (site operating & G&A) | $48,621 | $48,374 | $97,111 | $95,587 | | Other lease costs | $1,708 | $(304) | $2,993 | $1,860 | | **Total lease costs** | **$56,849** | **$54,953** | **$113,402** | **$111,082** | - The Company recorded a gain of approximately **$20.8 million** in Q2 2025 from the expiration of a real estate purchase option, treated as a sale-leaseback[55](index=55&type=chunk) [5. Financial Derivative Instruments](index=19&type=section&id=5.%20Financial%20Derivative%20Instruments) Explains ARKO Corp.'s use of derivative instruments, specifically futures contracts, to manage diesel fuel price risks - The Company uses derivative instruments (futures contracts) to manage diesel fuel price risks, designated as fair value hedges of firm commitments[59](index=59&type=chunk) - As of June 30, 2025, the Company had fuel futures contracts hedging approximately **1.9 million gallons** of diesel fuel[60](index=60&type=chunk) [6. Equity](index=19&type=section&id=6.%20Equity) Details ARKO Corp.'s equity activities, including common stock dividends and share repurchases under its repurchase program - The Board declared and paid dividends of **$0.03 per share** of common stock on March 21, 2025, and May 30, 2025, totaling approximately **$6.9 million** for the six months ended June 30, 2025[62](index=62&type=chunk) - The Company repurchased approximately **3.5 million shares** of common stock for **$14.3 million** (average price **$4.07/share**) during the six months ended June 30, 2025, under its **$125 million share repurchase program**[63](index=63&type=chunk) [7. Share-Based Compensation](index=19&type=section&id=7.%20Share-Based%20Compensation) Reports on ARKO Corp.'s share-based compensation costs and activity for nonvested RSUs and PSUs for the periods presented - Total share-based compensation cost for employees and Board members was **$7.0 million** for the six months ended June 30, 2025, up from **$6.1 million** in the prior year[72](index=72&type=chunk) Nonvested RSUs and PSUs Activity (in thousands) | Metric | RSUs and PSUs | | :---------------------------------- | :------------ | | Nonvested RSUs and PSUs, Dec 31, 2024 | 4,612 | | Granted | 3,715 | | Released | (1,618) | | Forfeited | (163) | | Performance-based share adjustment | (347) | | Nonvested RSUs and PSUs, June 30, 2025 | 6,199 | - Unrecognized compensation cost related to RSUs and PSUs was approximately **$22.0 million** as of June 30, 2025, to be recognized over an average of **1.9 years**[71](index=71&type=chunk) [8. Earnings per Share](index=23&type=section&id=8.%20Earnings%20per%20Share) Presents ARKO Corp.'s basic and diluted net income per share attributable to common shareholders for the periods presented Net Income Per Share Attributable to Common Shareholders | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income attributable to common stockholders | $18,665 | $12,618 | $4,575 | $10,610 | | Weighted average common shares outstanding — Basic | 114,012 | 115,758 | 114,945 | 116,512 | | Weighted average common shares outstanding — Diluted | 115,411 | 116,880 | 115,645 | 117,073 | | Net income per share – Basic | $0.16 | $0.11 | $0.04 | $0.09 | | Net income per share – Diluted | $0.16 | $0.11 | $0.04 | $0.09 | - Potential shares from stock options, Ares warrants, Public and Private warrants, and Series A redeemable preferred stock were excluded from diluted EPS computation due to their antidilutive effect[73](index=73&type=chunk) [9. Fair Value Measurements and Financial Instruments](index=23&type=section&id=9.%20Fair%20Value%20Measurements%20and%20Financial%20Instruments) Discusses the fair value measurements of ARKO Corp.'s financial instruments, including Senior Notes, Public Warrants, and contingent consideration - The fair value of Senior Notes was estimated at **$380.3 million** as of June 30, 2025, compared to a gross carrying value of **$450 million**[74](index=74&type=chunk) - The fair value of Public Warrants decreased significantly from **$6.7 million** (Dec 31, 2024) to **$0.2 million** (June 30, 2025)[77](index=77&type=chunk) - Contingent consideration from the 2020 Empire acquisition was **$3.9 million** as of June 30, 2025, measured at Level 3 fair value[75](index=75&type=chunk) [10. Segment Reporting](index=24&type=section&id=10.%20Segment%20Reporting) Outlines ARKO Corp.'s reportable segments: retail, wholesale, fleet fueling, and GPMP, and how operating income is assessed - The Company's reportable segments are retail, wholesale, fleet fueling, and GPMP, with operating income used by the CODM to assess performance[81](index=81&type=chunk) - The retail segment operates convenience stores selling fuel and merchandise, owning inventory and employing staff[83](index=83&type=chunk) - The GPMP segment primarily engages in inter-segment wholesale fuel distribution to GPM's retail and wholesale sites at cost plus a fixed margin (currently **5.0 cents per gallon**)[86](index=86&type=chunk) [11. Commitments and Contingencies](index=29&type=section&id=11.%20Commitments%20and%20Contingencies) Details ARKO Corp.'s environmental obligations, asset retirement obligations, and a wage and hour collective action settlement - Environmental obligations totaled **$11.4 million** as of June 30, 2025, with estimated recoveries from insurance and state funds of **$6.9 million**[96](index=96&type=chunk)[97](index=97&type=chunk) - An asset retirement obligation of **$88.9 million** was recorded as of June 30, 2025, for future storage tank removal costs[98](index=98&type=chunk) - The Company accrued approximately **$2.0 million** in Q1 2025 for a wage and hour collective action settlement, with a potential additional loss of up to **$1.2 million**[101](index=101&type=chunk) [12. Related Party Transactions](index=30&type=section&id=12.%20Related%20Party%20Transactions) Confirms no material changes to the description of related party transactions as previously disclosed in the annual financial statements - There have been no material changes to the description of related party transactions as set forth in the annual financial statements[103](index=103&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Discusses ARKO Corp.'s business, transformation plan, key trends, financial results, liquidity, and non-GAAP measures [Overview](index=31&type=section&id=Overview) Provides an overview of ARKO Corp.'s operations, including its store count, loyalty program, and wholesale fuel distribution strategy - ARKO Corp. operates **1,254 retail convenience stores**, supplies fuel to **2,014 dealer gas stations**, and operates **287 cardlock locations** across more than 30 U.S. states and the District of Columbia as of June 30, 2025[107](index=107&type=chunk) - The Company's fas REWARDS® loyalty program had approximately **2.35 million enrolled members** by Q2 2025, a **9.8% increase YoY**[109](index=109&type=chunk) - The Company is expanding its wholesale fuel distribution network by converting retail locations to dealer sites, expecting greater profitability and enhanced purchasing power[110](index=110&type=chunk) [Description of Segments](index=32&type=section&id=Description%20of%20Segments) Describes the operational characteristics and business models of ARKO Corp.'s retail, wholesale, fleet fueling, and GPMP segments - Retail segment: Operates convenience stores, owning merchandise and fuel inventory, and employing personnel[111](index=111&type=chunk) - Wholesale segment: Supplies fuel to dealers, sub-wholesalers, and bulk/spot purchasers on consignment or cost-plus basis[112](index=112&type=chunk) - Fleet Fueling segment: Operates proprietary and third-party cardlock locations and earns commissions from proprietary fuel card sales[113](index=113&type=chunk) - GPMP segment: Primarily engages in inter-segment wholesale fuel distribution to retail and wholesale sites at cost plus a fixed margin[114](index=114&type=chunk) [Multi-Year Transformation Plan](index=32&type=section&id=Multi-Year%20Transformation%20Plan) Outlines ARKO Corp.'s strategic initiatives, including retail store conversions, new format store investments, and procurement strategies - The Transformation Plan includes converting retail stores to dealer sites, with **70 conversions** in Q2 2025 and **129 in H1 2025**, totaling **282 since mid-2024**[116](index=116&type=chunk) - The Company is investing in new format stores, launching a flagship location in June 2025, featuring a modernized layout and a new food and beverage concept, 'fas craves'[116](index=116&type=chunk) - Increased focus on pricing and procurement strategies across retail stores aims to support ongoing merchandise margin rate growth[116](index=116&type=chunk) [Trends Impacting Our Business](index=34&type=section&id=Trends%20Impact%20Our%20Business) Discusses key external and internal factors influencing ARKO Corp.'s business, such as acquisitions, fuel margins, inflation, and seasonality - The Company completed **26 acquisitions** from 2013 through June 30, 2025, including **21 SpeedyQ Markets convenience stores** in Michigan on April 9, 2024[120](index=120&type=chunk) - Operating results are significantly impacted by retail fuel margins, which are influenced by wholesale fuel costs, supply disruptions, and local competition[122](index=122&type=chunk) - Inflation and higher interest rates have increased merchandise costs and reduced consumer purchasing power, leading to increased wages and potential negative impacts on demand[124](index=124&type=chunk) - The business is seasonal, with operating income historically higher in the second and third quarters due to favorable climate and seasonal buying patterns[127](index=127&type=chunk) [Results of Operations for the three and six months ended June 30, 2025 and 2024](index=35&type=section&id=Results%20of%20Operations%20for%20the%20three%20and%20six%20months%20ended%20June%2030%2C%202025%20and%202024) Analyzes ARKO Corp.'s consolidated and segment-specific financial performance for the three and six months ended June 30, 2025, and 2024 [Consolidated Results](index=35&type=section&id=Consolidated%20Results) Summarizes ARKO Corp.'s overall financial performance, including revenues, operating income, net income, and Adjusted EBITDA Consolidated Financial Highlights (in thousands, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total revenues | $1,999,519 | $2,388,163 | $3,828,424 | $4,460,617 | | Operating income | $56,690 | $42,948 | $44,926 | $38,082 | | Net income attributable to ARKO Corp. | $20,098 | $14,063 | $7,426 | $13,469 | | Fuel gallons sold | 531,186 | 567,609 | 1,021,526 | 1,086,922 | | Fuel margin, cents per gallon | 28.6 | 28.3 | 26.8 | 26.7 | | Merchandise contribution | $134,485 | $155,759 | $252,055 | $290,677 | | Merchandise margin | 33.6% | 32.8% | 33.4% | 32.7% | | Adjusted EBITDA | $76,938 | $80,070 | $107,793 | $113,235 | [Three Months Ended June 30, 2025 versus Three Months Ended June 30, 2024](index=36&type=section&id=Three%20Months%20Ended%20June%2030%2C%202025%20versus%20Three%20Months%20Ended%20June%2030%2C%202024) Compares ARKO Corp.'s financial results for Q2 2025 against Q2 2024, highlighting changes in revenue, operating income, and tax expense - Fuel revenue decreased by **$318.0 million (16.8%)** due to lower average fuel prices and fewer gallons sold[133](index=133&type=chunk) - Merchandise revenue decreased by **$74.1 million (15.6%)** due to store closures/conversions and lower same-store sales[134](index=134&type=chunk) - Operating income increased to **$56.7 million** from **$42.9 million**, primarily driven by a **$20.8 million gain** on sale-leaseback, partially offset by lower merchandise and fuel contribution[138](index=138&type=chunk)[139](index=139&type=chunk) - Income tax expense increased to **$17.1 million** from **$7.5 million**, mainly due to deferred income tax expense related to the sale-leaseback gain[141](index=141&type=chunk) [Six Months Ended June 30, 2025 versus Six Months Ended June 30, 2024](index=38&type=section&id=Six%20Months%20Ended%20June%2030%2C%202025%20versus%20Six%20Months%20Ended%20June%2030%2C%202024) Compares ARKO Corp.'s financial results for H1 2025 against H1 2024, focusing on changes in fuel revenue, merchandise revenue, and operating income - Fuel revenue decreased by **$502.4 million (14.3%)** due to lower average fuel prices, fewer gallons sold, and severe weather in early 2025[143](index=143&type=chunk) - Merchandise revenue decreased by **$134.3 million (15.1%)** due to store closures/conversions and lower same-store sales[144](index=144&type=chunk) - Operating income increased to **$44.9 million** from **$38.1 million**, driven by the **$20.8 million gain** on sale-leaseback and benefits from converted retail stores, partially offset by lower same-store contribution and higher D&A[148](index=148&type=chunk)[149](index=149&type=chunk) - Interest and other financial expenses, net, increased by **$9.5 million**, primarily due to lower fair value adjustments for warrants and deferred consideration income in the prior year[150](index=150&type=chunk) [Segment Results](index=40&type=section&id=Segment%20Results) Analyzes the financial performance of ARKO Corp.'s individual segments: Retail, Wholesale, Fleet Fueling, and GPMP [Retail Segment](index=40&type=section&id=Retail%20Segment) Details the Retail segment's revenues, operating income, fuel gallons sold, and merchandise sales for the periods presented Retail Segment Financial Highlights (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total revenues | $1,162,851 | $1,467,355 | $2,222,569 | $2,723,117 | | Operating income | $80,370 | $87,925 | $120,521 | $134,438 | | Fuel gallons sold | 240,302 | 283,481 | 465,365 | 538,945 | | Same store fuel gallons sold decrease (%) | (6.5%) | (6.6%) | (6.4%) | (6.6%) | | Fuel margin, cents per gallon | 44.9 | 41.6 | 41.5 | 39.1 | | Same store merchandise sales decrease (%) | (4.2%) | (5.1%) | (5.5%) | (4.6%) | | Merchandise margin | 33.6% | 32.8% | 33.4% | 32.7% | - Retail fuel revenue decreased by **$228.3 million (23.4%)** in Q2 2025 due to a **6.5% decrease** in same-store gallons sold and a **$0.33/gallon decrease** in average retail fuel price[161](index=161&type=chunk) - Retail merchandise revenue decreased by **$74.1 million (15.6%)** in Q2 2025, with same-store merchandise sales down **4.2%**, half of which was from cigarettes[162](index=162&type=chunk) - Retail operating income decreased by **$7.5 million** in Q2 2025, primarily due to lower fuel and merchandise contribution from closed/converted stores, despite an increase in same-store fuel margin[164](index=164&type=chunk)[165](index=165&type=chunk) [Wholesale Segment](index=45&type=section&id=Wholesale%20Segment) Presents the Wholesale segment's revenues, operating income, and fuel gallons sold for fuel supply and consignment agent locations Wholesale Segment Financial Highlights (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total revenues | $709,172 | $769,543 | $1,349,016 | $1,440,915 | | Operating income | $23,242 | $21,270 | $41,872 | $39,559 | | Fuel gallons sold – fuel supply locations | 213,529 | 203,561 | 404,606 | 390,292 | | Fuel gallons sold – consignment agent locations | 38,929 | 39,338 | 75,444 | 76,842 | | Fuel margin, cents per gallon – fuel supply locations | 6.3 | 6.0 | 6.2 | 6.1 | | Fuel margin, cents per gallon – consignment agent locations | 30.6 | 29.7 | 27.2 | 27.2 | - Wholesale fuel revenue decreased by **$66.0 million (8.7%)** in Q2 2025 due to lower average fuel prices, partially offset by a **3.9% increase** in gallons sold, driven by retail store conversions[177](index=177&type=chunk) - Wholesale operating income increased by **$2.0 million** in Q2 2025, with additional income from converted retail sites offsetting reduced income at comparable wholesale sites[178](index=178&type=chunk) - In H1 2025, wholesale fuel contribution increased by **$0.7 million**, with fuel supply locations seeing a **$1.1 million increase** and consignment agent locations a **$0.4 million decrease**[183](index=183&type=chunk)[184](index=184&type=chunk)[185](index=185&type=chunk) [Fleet Fueling Segment](index=47&type=section&id=Fleet%20Fueling%20Segment) Reports the Fleet Fueling segment's revenues, operating income, and fuel gallons sold for proprietary and third-party cardlock locations Fleet Fueling Segment Financial Highlights (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total revenues | $120,366 | $142,424 | $240,890 | $277,002 | | Operating income | $13,079 | $13,702 | $24,071 | $23,460 | | Fuel gallons sold – proprietary cardlock locations | 32,997 | 35,678 | 64,915 | 69,127 | | Fuel gallons sold – third-party cardlock locations | 3,293 | 3,271 | 6,468 | 6,470 | | Fuel margin, cents per gallon – proprietary cardlock locations | 51.7 | 49.1 | 49.0 | 45.1 | | Fuel margin, cents per gallon – third-party cardlock locations | 21.2 | 10.1 | 20.0 | 8.9 | - Fleet fueling fuel revenue decreased by **$22.0 million (15.7%)** in Q2 2025 due to a **6.8% decrease** in gallons sold and lower average fuel prices[189](index=189&type=chunk) - In Q2 2025, proprietary cardlock fuel contribution decreased by **$0.5 million** despite higher fuel margin per gallon, while third-party cardlock fuel contribution increased by **$0.4 million**[190](index=190&type=chunk) - For H1 2025, fleet fueling fuel contribution increased by **$1.3 million**, driven by favorable diesel margins at proprietary cardlocks and closure of underperforming third-party locations[193](index=193&type=chunk) [GPMP Segment](index=48&type=section&id=GPMP%20Segment) Outlines the GPMP segment's revenues, operating income, and inter-segment fuel gallons sold at a fixed margin GPMP Segment Financial Highlights (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total revenues | $1,009,330 | $1,284,082 | $1,950,512 | $2,388,035 | | Operating income | $23,948 | $25,756 | $45,874 | $49,083 | | Fuel gallons sold – inter-segment | 472,028 | 506,453 | 906,546 | 968,961 | | Fuel margin, cents per gallon | 5.0 | 5.0 | 5.0 | 5.0 | - GPMP fuel revenue decreased by **$274.7 million (21.4%)** in Q2 2025 due to lower average fuel prices and fewer gallons sold[198](index=198&type=chunk) - GPMP fuel margin decreased by **$1.7 million** in Q2 2025, primarily due to fewer gallons sold to the retail segment at a fixed margin[200](index=200&type=chunk) - For H1 2025, GPMP fuel revenue decreased by **$437.4 million (18.4%)** due to lower gallons sold and average fuel prices, resulting in a **$3.2 million decrease** in fuel margin[201](index=201&type=chunk)[203](index=203&type=chunk) [Use of Non-GAAP Measures](index=49&type=section&id=Use%20of%20Non-GAAP%20Measures) Explains ARKO Corp.'s use of non-GAAP financial measures, including 'same store basis' and Adjusted EBITDA, and provides reconciliation - The Company uses **'same store basis'** as a non-GAAP metric to provide comparability of ongoing operating performance, excluding stores without a full prior-year quarter of activity[204](index=204&type=chunk) - **Adjusted EBITDA** is defined as net income (loss) before net interest expense, income taxes, depreciation and amortization, further adjusted for non-cash and unusual items[205](index=205&type=chunk) Reconciliation of Net Income to Adjusted EBITDA (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income | $20,098 | $14,063 | $7,426 | $13,469 | | EBITDA | $90,318 | $76,553 | $113,462 | $103,425 | | Acquisition and divestiture costs | $1,132 | $1,510 | $2,282 | $2,190 | | (Gain) loss on disposal of assets and impairment charges | $(18,226) | $721 | $(16,698) | $3,385 | | Share-based compensation expense | $3,658 | $2,784 | $6,994 | $6,113 | | Expenses related to wage and hour claim settlement | — | — | $2,023 | — | | **Adjusted EBITDA** | **$76,938** | **$80,070** | **$107,793** | **$113,235** | [Liquidity and Capital Resources](index=52&type=section&id=Liquidity%20and%20Capital%20Resources) Assesses ARKO Corp.'s liquidity position, primary sources of funds, capital allocation, and exposure to interest rate risk - Primary liquidity sources are cash flows from operations, credit facilities, and cash balances, used for operations, capital expenditures, and debt servicing[210](index=210&type=chunk) - As of June 30, 2025, the Company had a strong liquidity position of approximately **$875 million**, including **$294 million** in cash and **$582 million** in credit line availability[211](index=211&type=chunk) - Approximately **51%** of the Company's debt bore interest at variable rates as of June 30, 2025, exposing it to interest rate risk[211](index=211&type=chunk) - The Company repurchased approximately **3.5 million shares** for **$14.3 million** in H1 2025 under its share repurchase program, with **$11.3 million** remaining capacity[213](index=213&type=chunk) [Cash Flows for the Six Months Ended June 30, 2025 and 2024](index=52&type=section&id=Cash%20Flows%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) Analyzes ARKO Corp.'s cash flow activities from operations, investing, and financing for the six months ended June 30, 2025, and 2024 Net Cash Flow Summary (in thousands) | Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------- | :----------------------------- | :----------------------------- | | Operating activities | $98,587 | $89,974 | | Investing activities | $(70,432) | $(52,647) | | Financing activities | $(4,106) | $(27,671) | | Effect of exchange rates | $30 | $(38) | | Total | $24,079 | $9,618 | - Cash flows from operating activities increased to **$98.6 million** in H1 2025, driven by dealer deposits, vendor incentives, and lower net interest payments, partially offset by higher tax payments and decreased Adjusted EBITDA[218](index=218&type=chunk) - Cash used in investing activities decreased by **$17.8 million** in H1 2025, with **$72.7 million** spent on capital expenditures including property purchases, NTI stores, and remodels[220](index=220&type=chunk) - Financing activities in H1 2025 included **$25.1 million net proceeds** from long-term debt, **$6.9 million in common stock dividends**, **$2.9 million in preferred stock dividends**, and **$16.6 million in common stock repurchases**[222](index=222&type=chunk) [Credit Facilities and Senior Notes](index=54&type=section&id=Credit%20Facilities%20and%20Senior%20Notes) Details ARKO Corp.'s debt facilities, including Senior Notes, PNC Line of Credit, M&T Credit Agreement, and Capital One revolving credit facility - The Company has **$450 million** aggregate principal amount of **5.125%** Senior Notes due 2029, which are unsecured and guaranteed by certain subsidiaries[223](index=223&type=chunk) - GPM has a **$140 million PNC Line of Credit** for working capital, with **$8.2 million in letters of credit** outstanding as of June 30, 2025[225](index=225&type=chunk)[226](index=226&type=chunk) - GPM's M&T Credit Agreement includes a **$45.0 million equipment line of credit** (with **$31.3 million available**) and **$83.7 million in real estate term loans**[227](index=227&type=chunk) - GPMP has an **$800 million revolving credit facility** with Capital One, with **$380.8 million drawn** and **$418.7 million available** as of June 30, 2025[229](index=229&type=chunk)[230](index=230&type=chunk) [Critical Accounting Estimates](index=56&type=section&id=Critical%20Accounting%20Estimates) Confirms no material changes to critical accounting estimates for the six months ended June 30, 2025, compared to the prior annual report - There were no material changes to critical accounting estimates for the six months ended June 30, 2025, compared to the Annual Report on Form 10-K for December 31, 2024[232](index=232&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=57&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Outlines the Company's exposure to commodity price risk and interest rate risk, and their potential financial impacts [Commodity Price Risk](index=57&type=section&id=Commodity%20Price%20Risk) Discusses the Company's limited exposure to commodity price risk and its use of derivative instruments to manage fuel price fluctuations - The Company has limited exposure to commodity price risk, but significant fuel price increases can lead to lower sales volumes and higher credit card expenses[233](index=233&type=chunk) - Derivative commodity instruments (futures contracts) are used to manage risks associated with an immaterial number of gallons of diesel fuel[233](index=233&type=chunk) [Interest Rate Risk](index=57&type=section&id=Interest%20Rate%20Risk) Explains the Company's exposure to interest rate risk due to variable-rate debt and the potential impact of interest rate changes on debt service costs - Approximately **51%** of the Company's debt bore interest at variable rates as of June 30, 2025[234](index=234&type=chunk) - A **1% increase** in applicable interest rates would increase annual debt service by approximately **$4.7 million** based on June 30, 2025, outstanding balances[234](index=234&type=chunk) - Interest rates on the Capital One Line of Credit and M&T Term Loans were **7.4%** and **6.6%** respectively, as of June 30, 2025[234](index=234&type=chunk) [Item 4. Controls and Procedures](index=57&type=section&id=Item%204.%20Controls%20and%20Procedures) Confirms the effectiveness of disclosure controls and procedures, reporting no material changes to internal control over financial reporting [Disclosure Controls and Procedures](index=57&type=section&id=Disclosure%20Controls%20and%20Procedures) States that management, including the CEO and CFO, concluded the disclosure controls and procedures were effective as of June 30, 2025 - Management, with CEO and CFO participation, evaluated and concluded that disclosure controls and procedures were effective as of June 30, 2025[235](index=235&type=chunk) [Changes to the Company's Internal Control Over Financial Reporting](index=57&type=section&id=Changes%20to%20the%20Company%27s%20Internal%20Control%20Over%20Financial%20Reporting) Reports that there were no material changes to the Company's internal control over financial reporting during the quarter ended June 30, 2025 - There were no material changes to the Company's internal control over financial reporting during the quarter ended June 30, 2025[236](index=236&type=chunk) PART II. OTHER INFORMATION Covers legal proceedings, risk factors, equity sales, defaults, mine safety, other information, exhibits, and signatures [Item 1. Legal Proceedings](index=58&type=section&id=Item%201.%20Legal%20Proceedings) Refers to Note 11 for details on legal proceedings, including environmental liabilities and a wage and hour settlement - Information on legal proceedings is incorporated by reference from Note 11 to the Quarterly Financial Statements[237](index=237&type=chunk) [Item 1A. Risk Factors](index=58&type=section&id=Item%201A.%20Risk%20Factors) States no material changes to the Company's risk factors since the prior annual report - No material changes to risk factors were reported during the quarter ended June 30, 2025, compared to the Annual Report on Form 10-K for December 31, 2024[238](index=238&type=chunk) [Item 2. Unregistered Sales of Equity Securities, and Use of Proceeds](index=58&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20and%20Use%20of%20Proceeds) Details the Company's share repurchase activity for Q2 2025 under its publicly announced program Share Repurchase Activity for Q2 2025 (dollars in thousands, except per share amounts) | Period | Total Number of Shares Purchased | Average Price Paid per Share | Maximum Dollar Value that May Yet Be Purchased Under the Plans or Programs | | :------------------------------ | :------------------------------- | :--------------------------- | :----------------------------------------------------------------------- | | April 1, 2025 to April 30, 2025 | 1,286,738 | $3.96 | $15,388 | | May 1, 2025 to May 31, 2025 | 415,203 | $4.26 | $13,620 | | June 1, 2025 to June 30, 2025 | 525,133 | $4.38 | $11,320 | | **Total** | **2,227,074** | **$4.11** | **$11,320** | - All repurchases were made on the open market under the **$125 million share repurchase program**, which was announced in February 2022 and increased in May 2023 and May 2024[239](index=239&type=chunk) [Item 3. Defaults Upon Senior Securities](index=58&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) Confirms no defaults upon senior securities occurred during the reporting period - No defaults upon senior securities occurred during the reporting period[240](index=240&type=chunk) [Item 4. Mine Safety Disclosures](index=58&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Indicates that mine safety disclosures are not applicable to the Company - Mine safety disclosures are not applicable to the Company[241](index=241&type=chunk) [Item 5. Other Information](index=58&type=section&id=Item%205.%20Other%20Information) Confirms no officers or directors adopted or terminated Rule 10b5-1 trading arrangements in Q2 2025 - No officers or directors adopted or terminated any Rule 10b5-1(c) trading arrangements during the three months ended June 30, 2025[242](index=242&type=chunk) [Item 6. Exhibits](index=59&type=section&id=Item%206.%20Exhibits) Lists exhibits filed with the Form 10-Q, including credit agreement amendments, certifications, and XBRL financial statements - Exhibits include amendments to the Third Amended and Restated Credit Agreement with M&T Bank (Exhibit 10.1, 10.2)[246](index=246&type=chunk) - Certifications by the CEO and CFO (Exhibits 31.1, 31.2, 32.1, 32.2) are filed/furnished[246](index=246&type=chunk) - Financial statements are provided in Inline XBRL format (Exhibit 101)[246](index=246&type=chunk) [Signatures](index=60&type=section&id=Signatures) Contains the required signatures for the Quarterly Report on Form 10-Q, confirming its due authorization and filing - The report is signed by Robert Giammatteo, Executive Vice President and Chief Financial Officer, on behalf of ARKO Corp. on August 6, 2025[249](index=249&type=chunk)[250](index=250&type=chunk)

Core Insights - ARKO Corp. reported solid financial results for Q2 2025, with adjusted EBITDA exceeding guidance and merchandise margin expanding year-over-year despite macroeconomic challenges [4][6][24] - The company is focused on enhancing customer experience and executing its transformation strategy, which includes converting retail stores to dealer sites and opening new format stores [4][6][24] Financial Performance - Net income for Q2 2025 was $20.1 million, up from $14.1 million in Q2 2024 [6] - Adjusted EBITDA for Q2 2025 was $76.9 million, compared to $80.1 million in the same quarter last year [6] - Merchandise margin increased to 33.6% from 32.8% year-over-year [6] - Retail fuel margin rose to 44.9 cents per gallon, up from 41.6 cents per gallon in Q2 2024 [6] Segment Highlights - The company converted 70 retail stores to dealer sites in Q2 2025, totaling 282 conversions since mid-2024 [6] - Merchandise revenue for Q2 2025 was $400.1 million, down from $474.2 million in Q2 2024 [6][9] - Fuel contribution decreased by $10.1 million, or 8.6%, compared to Q2 2024, primarily due to store closures and reduced gallon demand [10][14] Capital Allocation - The Board declared a quarterly dividend of $0.03 per share, payable on August 29, 2025 [19] - The company repurchased 2.2 million shares for approximately $9.2 million during the quarter, reflecting confidence in long-term value [20] Liquidity and Capital Expenditures - As of June 30, 2025, total liquidity was approximately $875 million, with $294 million in cash and cash equivalents [18] - Capital expenditures for Q2 2025 were approximately $45.3 million, including investments in new stores and upgrades [18] Guidance - The company expects Q3 2025 adjusted EBITDA to range between $70 million and $80 million, maintaining its full-year 2025 adjusted EBITDA guidance of $233 million to $253 million [24]

[Second Quarter 2025 Overview](index=1&type=section&id=Second%20Quarter%202025%20Overview) ARKO Corp. reported strong Q2 2025 results, with increased net income, improved margins, and significant strategic transformation progress [Key Financial & Operational Highlights](index=1&type=section&id=Second%20Quarter%202025%20Key%20Highlights%20%28vs.%20Year-Ago%20Quarter%29) ARKO Corp. reported increased net income and improved margins in Q2 2025 compared to the prior year, alongside significant progress in its transformation plan, including converting 70 retail stores to dealer sites and opening its first new format store | Metric | Q2 2025 | Q2 2024 | Change | | :----------------------------- | :------ | :------ | :----- | | Net income | $20.1M | $14.1M | +$6.0M | | Adjusted EBITDA | $76.9M | $80.1M | -$3.2M | | Merchandise margin | 33.6% | 32.8% | +0.8% | | Retail fuel margin (cents/gallon) | 44.9 | 41.6 | +3.3 | - Converted **70 retail stores** to dealer sites in Q2 2025, totaling **282 sites** since mid-2024, with plans for more conversions into 2026. This channel optimization is expected to yield over **$20 million** in cumulative annualized operating income benefit and over **$10 million** in annual structural G&A savings[7](index=7&type=chunk) - Opened the first new format store in June 2025, with another opened in early August 2025, as part of a pilot program to modernize store layouts, broaden and refine merchandise offerings, and introduce an improved food-forward focus[7](index=7&type=chunk) - Opened a new location in Kinston, North Carolina in July 2025 and is advancing its NTI (new-to-industry) store pipeline with three more NTI stores in progress, two targeted for opening in the second half of 2025[7](index=7&type=chunk) [CEO Commentary](index=1&type=section&id=Arie%20Kotler%2C%20Chairman%2C%20President%20and%20Chief%20Executive%20Officer%20of%20ARKO) CEO Arie Kotler highlighted solid Q2 results, with Adjusted EBITDA exceeding guidance and expanded merchandise margin, attributing success to disciplined execution amidst macroeconomic challenges. He emphasized progress in higher-margin categories, loyalty programs, and new store formats, reinforcing the strategy's effectiveness at the store level. Kotler also noted the company's commitment to disciplined capital allocation through share repurchases and a focus on elevating customer experience and advancing transformation for sustainable shareholder value - **Adjusted EBITDA** exceeded the midpoint of guidance[5](index=5&type=chunk) - **Merchandise margin** expanded year-over-year[5](index=5&type=chunk) - Made important progress across several key initiatives, including continued growth in higher-margin categories like OTP, increased engagement from loyalty-driven promotions, and opening the first new format store where early results are exceeding expectations[5](index=5&type=chunk) - Repurchased **2.2 million shares** of common stock during the quarter, reflecting belief in the long-term value of the business and commitment to disciplined capital allocation[5](index=5&type=chunk) [Segment Performance Analysis](index=2&type=section&id=Second%20Quarter%202025%20Segment%20Highlights) ARKO's Q2 2025 segment performance showed varied trends, with retail volume declines, wholesale operating income growth, and improved fleet fueling margins [Retail Segment](index=2&type=section&id=Retail) The Retail segment faced declines in fuel gallons sold and merchandise revenue in Q2 2025, primarily due to store conversions and a challenging macroeconomic environment. However, both fuel margin and merchandise margin improved year-over-year | Metric | Q2 2025 | Q2 2024 | YoY Change | | :-------------------------------- | :-------- | :-------- | :--------- | | Fuel gallons sold (thousands) | 240,302 | 283,481 | (15.2%) | | Same store fuel gallons sold decrease (%) | (6.5%) | (6.6%) | +0.1% | | Fuel contribution | $107,872 | $117,981 | (8.6%) | | Fuel margin (cents per gallon) | 44.9 | 41.6 | +3.3 | | Merchandise revenue | $400,126 | $474,248 | (15.7%) | | Merchandise contribution | $134,485 | $155,759 | (13.7%) | | Merchandise margin | 33.6% | 32.8% | +0.8% | - Decrease in merchandise contribution (**$21.3 million**) was due to an **$18.0 million** decrease related to retail stores that were closed or converted to dealers and a **$3.7 million** decrease in same store merchandise contribution, primarily caused by a decline in customer transactions reflecting the challenging macroeconomic environment[8](index=8&type=chunk) - Fuel contribution decreased **$10.1 million**, primarily due to a **$9.4 million** decrease related to retail stores that were closed or converted to dealers and a same store fuel contribution decrease of **$0.8 million** attributable to gallon demand declines[9](index=9&type=chunk) [Wholesale Segment](index=3&type=section&id=Wholesale) The Wholesale segment reported increased operating income and fuel contribution in Q2 2025, primarily driven by additional operating income from retail sites converted to dealers, which offset reduced operating income at comparable wholesale sites. Fuel margins also improved across both fuel supply and consignment agent locations | Metric | Q2 2025 | Q2 2024 | YoY Change | | :------------------------------------ | :-------- | :-------- | :--------- | | Fuel gallons sold – fuel supply (thousands) | 213,529 | 203,561 | +4.9% | | Fuel gallons sold – consignment (thousands) | 38,929 | 39,338 | (1.0%) | | Fuel contribution – fuel supply | $13,484 | $12,287 | +$1,197 | | Fuel contribution – consignment | $11,905 | $11,699 | +$206 | | Fuel margin – fuel supply (cents/gallon) | 6.3 | 6.0 | +0.3 | | Fuel margin – consignment (cents/gallon) | 30.6 | 29.7 | +0.9 | - Wholesale operating income increased **$2.0 million** compared to the second quarter of 2024, with additional operating income from retail sites converted to dealers more than offsetting reduced operating income at comparable wholesale sites[12](index=12&type=chunk) - Other revenues, net increased by approximately **$5.7 million**, and site operating expenses increased by **$5.1 million**, primarily resulting from retail stores that the Company converted to dealers in the trailing 12 month period[13](index=13&type=chunk) [Fleet Fueling Segment](index=3&type=section&id=Fleet%20Fueling) The Fleet Fueling segment experienced a slight decrease in total fuel contribution in Q2 2025, with proprietary cardlocks seeing a decline. However, fuel margins per gallon increased for both proprietary and third-party cardlock locations, driven by favorable diesel margins and the closure of underperforming third-party sites | Metric | Q2 2025 | Q2 2024 | YoY Change | | :------------------------------------ | :-------- | :-------- | :--------- | | Fuel gallons sold – proprietary (thousands) | 32,997 | 35,678 | (7.5%) | | Fuel gallons sold – third-party (thousands) | 3,293 | 3,271 | +0.7% | | Fuel contribution – proprietary | $17,070 | $17,529 | -$459 | | Fuel contribution – third-party | $698 | $331 | +$367 | | Fuel margin – proprietary (cents/gallon) | 51.7 | 49.1 | +2.6 | | Fuel margin – third-party (cents/gallon) | 21.2 | 10.1 | +11.1 | - At proprietary cardlocks, fuel contribution decreased by **$0.5 million**, while fuel margin per gallon increased primarily due to favorable diesel margins[14](index=14&type=chunk) - At third-party cardlock locations, fuel contribution increased by **$0.4 million**, and fuel margin per gallon also increased, primarily due to the closure of underperforming third-party locations[14](index=14&type=chunk)[15](index=15&type=chunk) [Operational and Strategic Initiatives](index=1&type=section&id=Operational%20and%20Strategic%20Initiatives) ARKO advanced its strategic transformation in Q2 2025, converting retail stores to dealer sites and launching new format stores to enhance customer experience [Store Conversion and Optimization](index=5&type=section&id=Store%20Conversion%20and%20Optimization) ARKO actively pursued its channel optimization strategy in Q2 2025, converting 70 company-controlled retail sites to consignment or fuel supply locations. This initiative has led to a reduction in the retail store count and a corresponding increase in wholesale sites, with a total of 282 conversions since mid-2024 | Segment | Metric | Q2 2025 | Q2 2024 | | :------ | :-------------------------------------------------- | :------ | :------ | | Retail | Number of sites at beginning of period | 1,329 | 1,540 | | | Company-controlled sites converted to consignment or fuel supply locations, net | (70) | (2) | | | Number of sites at end of period | 1,254 | 1,548 | | Wholesale | Number of sites at beginning of period | 1,961 | 1,816 | | | Consignment or fuel supply locations converted from Company-controlled or fleet fueling sites, net | 70 | 2 | | | Number of sites at end of period | 2,014 | 1,794 | - The Company converted **70 retail stores** to dealer sites during the three months ended June 30, 2025. Since mid-2024, a total of **282 sites** have been converted, with plans for more throughout 2025 and into 2026. This is expected to yield a cumulative annualized operating income benefit in excess of **$20 million** and over **$10 million** in annual structural G&A savings[7](index=7&type=chunk) [New Store Formats and Openings](index=1&type=section&id=New%20format%20stores) ARKO launched its first new format store in June 2025, part of a pilot program to modernize store layouts, broaden merchandise, and introduce a food-forward focus. The company also opened a new location in North Carolina and is developing three more new-to-industry (NTI) stores, with two targeted for opening in the second half of 2025 - The first new format store opened in June 2025 and another opened in early August 2025, as part of a pilot program to elevate the customer experience by modernizing store layouts, broadening and refining merchandise offerings, and introducing an improved food-forward focus[7](index=7&type=chunk) - In July 2025, the Company opened a new location in Kinston, North Carolina. The Company continues to advance its NTI (new-to-industry) store pipeline and has begun working on **three more NTI stores**, out of which **two are targeted to open** in the second half of 2025[7](index=7&type=chunk) [Financial Performance Summary](index=1&type=section&id=Financial%20Performance%20Summary) ARKO's Q2 2025 financial performance showed increased net income and improved margins, with a slight Adjusted EBITDA decrease and reduced site operating expenses [Consolidated Results (Net Income, Adjusted EBITDA, Margins)](index=1&type=section&id=Net%20income%20for%20the%20quarter) ARKO's Q2 2025 consolidated results show a notable increase in net income and improved merchandise and retail fuel margins, even as Adjusted EBITDA slightly decreased | Metric | Q2 2025 | Q2 2024 | YoY Change | | :----------------------------- | :------ | :------ | :----- | | Net income | $20.1M | $14.1M | +$6.0M | | Adjusted EBITDA | $76.9M | $80.1M | -$3.2M | | Merchandise margin | 33.6% | 32.8% | +0.8% | | Retail fuel margin (cents/gallon) | 44.9 | 41.6 | +3.3 | | Revenue Category | Q2 2025 (in thousands) | Q2 2024 (in thousands) | YoY Change (in thousands) | | :--------------- | :--------------------- | :--------------------- | :------------------------ | | Fuel revenue | $1,569,542 | $1,887,531 | -$317,989 | | Merchandise revenue | $400,126 | $474,248 | -$74,122 | | Other revenues, net | $29,851 | $26,384 | +$3,467 | | Total revenues | $1,999,519 | $2,388,163 | -$388,644 | [Site Operating Expenses](index=4&type=section&id=Site%20Operating%20Expenses) Convenience store operating expenses decreased by **$25.9 million**, or **12.8%**, in Q2 2025 compared to the prior year. This reduction was primarily driven by a **$25.4 million** decrease from closed or converted retail stores and a **$1.4 million** decrease in same store operating expenses due to lower personnel costs and credit card fees, partially offset by expenses from the SpeedyQ acquisition - Convenience store operating expenses decreased **$25.9 million**, or **12.8%**, compared to the prior year period[16](index=16&type=chunk) - The decrease was primarily due to a **$25.4 million** decrease from retail stores that were closed or converted to dealers and a **$1.4 million (0.8%)** decrease in same store operating expenses related to lower personnel costs and credit card fees[16](index=16&type=chunk) - The decrease was partially offset by incremental expenses related to the SpeedyQ acquisition that closed in April 2024[16](index=16&type=chunk) [Liquidity, Capital Allocation & Financial Position](index=4&type=section&id=Liquidity%2C%20Capital%20Allocation%20%26%20Financial%20Position) ARKO maintained strong liquidity in Q2 2025, demonstrating disciplined capital allocation through strategic investments, share repurchases, and consistent dividends [Liquidity and Capital Expenditures](index=4&type=section&id=Liquidity%20and%20Capital%20Expenditures) As of June 30, 2025, ARKO reported total liquidity of approximately **$875 million**, comprising cash and credit line availability. The company's net debt stood at approximately **$623 million**, and capital expenditures for the quarter were **$45.3 million**, focused on property acquisitions, new stores, remodels, and infrastructure upgrades | Metric (as of June 30, 2025) | Amount (approx.) | | :--------------------------- | :--------------- | | Total liquidity | $875 million | | Cash and cash equivalents | $294 million | | Availability under lines of credit | $582 million | | Outstanding debt | $916 million | | Net debt (excl. lease liabilities) | $623 million | - Capital expenditures were approximately **$45.3 million** for the quarter ended June 30, 2025, including the purchase of **22 fee properties**, investments in NTI stores and remodeling of the new format stores, EV chargers, upgrades to fuel dispensers and other investments in stores[17](index=17&type=chunk) [Quarterly Dividend and Share Repurchase Program](index=4&type=section&id=Quarterly%20Dividend%20and%20Share%20Repurchase%20Program) ARKO's Board declared a quarterly dividend of **$0.03 per share**, consistent with its capital allocation framework. The company also repurchased approximately **2.2 million shares** for **$9.2 million** during the quarter, with **$11.3 million** remaining under the program, demonstrating confidence in its financial strength and cash generation - The Board declared a quarterly dividend of **$0.03 per share** of common stock to be paid on August 29, 2025 to stockholders of record as of August 18, 2025[7](index=7&type=chunk)[18](index=18&type=chunk) - During the quarter, the Company repurchased approximately **2.2 million shares** of common stock under its previously announced repurchase program for approximately **$9.2 million**, or an average price of **$4.11 per share**[5](index=5&type=chunk)[19](index=19&type=chunk) - There was approximately **$11.3 million** remaining under the share repurchase program as of June 30, 2025[19](index=19&type=chunk) [Balance Sheet Overview](index=9&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, ARKO's total assets slightly decreased to **$3.609 billion** from **$3.621 billion** at year-end 2024. Current assets saw a modest increase, while total liabilities remained stable. Shareholders' equity decreased slightly, primarily due to treasury stock repurchases | Metric (in thousands) | June 30, 2025 | December 31, 2024 | Change | | :-------------------- | :------------ | :---------------- | :----- | | Total assets | $3,608,822 | $3,620,658 | -$11,836 | | Total current assets | $743,484 | $722,208 | +$21,276 | | Cash and cash equivalents | $293,675 | $261,758 | +$31,917 | | Inventory | $207,190 | $231,225 | -$24,035 | | Total liabilities | $3,243,987 | $3,243,792 | +$195 | | Total shareholders' equity | $264,835 | $276,866 | -$12,031 | - Long-term debt, current portion, increased from **$12,944 thousand** at December 31, 2024, to **$39,867 thousand** at June 30, 2025[36](index=36&type=chunk) [Outlook and Guidance](index=5&type=section&id=Full%20Year%20and%20Third%20Quarter%202025%20Guidance%20Range) ARKO provided Q3 2025 Adjusted EBITDA guidance of **$70 million to $80 million** and reaffirmed its full-year 2025 Adjusted EBITDA guidance of **$233 million to $253 million** [Third Quarter and Full Year 2025 Guidance](index=5&type=section&id=Full%20Year%20and%20Third%20Quarter%202025%20Guidance%20Range) ARKO Corp. provided guidance for Q3 2025 Adjusted EBITDA, expecting it to range between **$70 million** and **$80 million**, with an assumed retail fuel margin of **42.5 to 44.5 cents per gallon**. The company maintained its full-year 2025 Adjusted EBITDA guidance of **$233 million** to **$253 million** | Metric | Q3 2025 Guidance | Full Year 2025 Guidance | | :-------------------- | :--------------- | :---------------------- | | Adjusted EBITDA | $70M - $80M | $233M - $253M | | Avg. Retail Fuel Margin | 42.5 - 44.5 cents/gallon | N/A | - The Company is not providing guidance on net income at this time due to the volatility of certain required inputs that are not available without unreasonable efforts, including future fair value adjustments associated with its stock price, as well as depreciation and amortization related to its capital allocation as part of its focus on accelerating organic growth[23](index=23&type=chunk) [Company Information and Disclosures](index=5&type=section&id=Company%20Information%20and%20Disclosures) This section provides an overview of ARKO Corp., its business segments, and key disclosures on forward-looking statements, non-GAAP measures, and investor contacts [About ARKO Corp.](index=5&type=section&id=About%20ARKO%20Corp.) ARKO Corp. is a Fortune 500 company and one of the largest convenience store operators and fuel wholesalers in the U.S., owning GPM Investments, LLC. It operates in four segments: retail, wholesale, fleet fueling, and GPM Petroleum, offering a range of products and services across its Family of Community Brands - ARKO Corp. (Nasdaq: ARKO) is a Fortune 500 company that owns **100%** of GPM Investments, LLC and is one of the largest operators of convenience stores and wholesalers of fuel in the United States[25](index=25&type=chunk) - Operates in four reportable segments: retail (convenience stores selling merchandise and fuel to retail customers), wholesale (supplies fuel to independent dealers and consignment agents), fleet fueling (proprietary and third-party cardlock locations, proprietary fuel cards), and GPM Petroleum (sells and supplies fuel to retail and wholesale sites and charges a fixed fee, primarily to fleet fueling sites)[25](index=25&type=chunk) [Forward-Looking Statements](index=6&type=section&id=Forward-Looking%20Statements) This section contains standard legal disclaimers regarding forward-looking statements, highlighting that they are based on management's current expectations and are subject to uncertainties and changes in circumstances. Actual results may differ materially due to various economic, business, market, and regulatory factors, including the success of the company's transformation plan - Forward-looking statements are based on management's current expectations and are subject to uncertainty and changes in circumstances[26](index=26&type=chunk) - Actual results may differ materially due to, among other things, changes in economic, business and market conditions; changes in its strategy; changes in applicable laws or regulations; and the success of the Company's transformation plan, including the dealerization of retail stores[26](index=26&type=chunk) [Use of Non-GAAP Measures](index=6&type=section&id=Use%20of%20Non-GAAP%20Measure) This section defines and explains the non-GAAP financial measures used by ARKO Corp., specifically "same store basis," EBITDA, and Adjusted EBITDA. It clarifies that these measures are used for operational and financial decision-making and performance evaluation but should not be considered substitutes for GAAP measures, emphasizing their limitations and potential non-comparability with other companies' metrics - The Company discloses certain measures on a "same store basis," which is a non-GAAP measure, to provide greater comparability regarding its ongoing operating performance[27](index=27&type=chunk) - **EBITDA** is defined as net income (loss) before net interest expense, income taxes, depreciation and amortization. **Adjusted EBITDA** further adjusts EBITDA by excluding specific non-recurring or non-cash items[28](index=28&type=chunk) - **EBITDA** and **Adjusted EBITDA** are used for operational and financial decision-making and are useful in evaluating performance, but are not recognized terms under GAAP and should not be considered as a substitute for net income (loss) or any other financial measure presented in accordance with GAAP[29](index=29&type=chunk)[30](index=30&type=chunk) [Conference Call and Webcast Details](index=5&type=section&id=Conference%20Call%20and%20Webcast%20Details) ARKO Corp. hosted a conference call on August 6, 2025, to discuss the Q2 2025 results, with details provided for live participation and webcast access - The Company hosted a conference call on August 6, 2025, to discuss these results at 5:00 p.m. Eastern Time[24](index=24&type=chunk) - A simultaneous, live webcast was available on the Investor Relations section of the Company's website at https://www.arkocorp.com/news-events/ir-calendar and will be archived for 30 days[24](index=24&type=chunk) [Contact Information](index=7&type=section&id=Company%20Contact) Contact details for ARKO Corp.'s investor relations are provided for inquiries - Company Contact: Jordan Mann, ARKO Corp., investors@gpminvestments.com[32](index=32&type=chunk) - Investor Contact: Sean Mansouri, CFA, Elevate IR, (720) 330-2829[32](index=32&type=chunk) [Condensed Consolidated Financial Statements](index=8&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents ARKO's condensed consolidated financial statements for Q2 2025, detailing operations, balance sheets, and cash flows, including revenue, expenses, assets, and liquidity [Statements of Operations](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q2 2025, ARKO reported total revenues of **$1.999 billion**, a decrease from **$2.388 billion** in Q2 2024. Despite this, operating income increased to **$56.7 million** from **$42.9 million**, and net income attributable to common shareholders rose to **$18.7 million** from **$12.6 million**, resulting in diluted EPS of **$0.16** | Metric (in thousands) | Q2 2025 | Q2 2024 | YoY Change | | :-------------------- | :------ | :------ | :--------- | | Total revenues | $1,999,519 | $2,388,163 | -$388,644 | | Operating income | $56,690 | $42,948 | +$13,742 | | Income before income taxes | $37,172 | $21,581 | +$15,591 | | Net income attributable to ARKO Corp. | $20,098 | $14,063 | +$6,035 | | Net income attributable to common shareholders | $18,665 | $12,618 | +$6,047 | | Diluted EPS | $0.16 | $0.11 | +$0.05 | | Expense Category (in thousands) | Q2 2025 | Q2 2024 | YoY Change | | :------------------------------ | :------ | :------ | :--------- | | Fuel costs | $1,417,646 | $1,726,761 | -$309,115 | | Merchandise costs | $265,641 | $318,489 | -$52,848 | | Site operating expenses | $202,453 | $223,691 | -$21,238 | | General and administrative expenses | $40,742 | $42,436 | -$1,694 | [Balance Sheets](index=9&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) ARKO's balance sheet as of June 30, 2025, shows total assets of **$3.609 billion**, a slight decrease from year-end 2024. Current assets increased, driven by higher cash and trade receivables, while inventory decreased. Total liabilities remained stable, and shareholders' equity saw a minor reduction | Metric (in thousands) | June 30, 2025 | December 31, 2024 | Change | | :-------------------- | :------------ | :---------------- | :----- | | Total assets | $3,608,822 | $3,620,658 | -$11,836 | | Total current assets | $743,484 | $722,208 | +$21,276 | | Cash and cash equivalents | $293,675 | $261,758 | +$31,917 | | Inventory | $207,190 | $231,225 | -$24,035 | | Total liabilities | $3,243,987 | $3,243,792 | +$195 | | Total shareholders' equity | $264,835 | $276,866 | -$12,031 | - Long-term debt, current portion, significantly increased from **$12,944 thousand** at December 31, 2024, to **$39,867 thousand** at June 30, 2025[36](index=36&type=chunk) [Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For Q2 2025, net cash provided by operating activities was **$55.2 million**, a decrease from **$77.2 million** in Q2 2024. Net cash used in investing activities increased to **$43.5 million**, while net cash provided by financing activities was **$15.3 million**, a significant improvement from a net use in the prior year. Overall, cash and restricted cash increased by **$26.9 million** | Cash Flow Category (in thousands) | Q2 2025 | Q2 2024 | YoY Change | | :-------------------------------- | :------ | :------ | :--------- | | Net cash provided by operating activities | $55,185 | $77,219 | -$22,034 | | Net cash used in investing activities | ($43,528) | ($24,472) | -$19,056 | | Net cash provided by (used in) financing activities | $15,259 | ($7,403) | +$22,662 | | Net increase in cash and cash equivalents and restricted cash | $26,916 | $45,344 | -$18,428 | - Operating activities included a **$20.8 million** gain from sale-leaseback in Q2 2025, compared to none in Q2 2024[38](index=38&type=chunk) - Investing activities saw a substantial increase in purchase of property and equipment (**$45.3 million** vs. **$19.3 million**) and no business acquisitions in Q2 2025 compared to **$53.5 million** in Q2 2024. Financing activities were positively impacted by receipt of long-term debt (**$37.3 million** vs. **$6.0 million**) and reduced common stock repurchases (**$9.2 million** vs. **$68 thousand**)[38](index=38&type=chunk)[39](index=39&type=chunk) [Supplemental Financial Information](index=12&type=section&id=Supplemental%20Financial%20Information) This section provides supplemental financial details, including the reconciliation of non-GAAP measures like EBITDA and Adjusted EBITDA, along with detailed segment-specific financial performance [Reconciliation of Non-GAAP Measures (EBITDA & Adjusted EBITDA)](index=12&type=section&id=Reconciliation%20of%20EBITDA%20and%20Adjusted%20EBITDA) ARKO Corp. provides a reconciliation of net income to EBITDA and Adjusted EBITDA. For Q2 2025, EBITDA was **$90.3 million**, and Adjusted EBITDA was **$76.9 million**, a decrease from **$80.1 million** in Q2 2024, primarily influenced by a significant gain on disposal of assets | Metric (in thousands) | Q2 2025 | Q2 2024 | YoY Change | | :-------------------- | :------ | :------ | :--------- | | Net income | $20,098 | $14,063 | +$6,035 | | EBITDA | $90,318 | $76,553 | +$13,765 | | Adjusted EBITDA | $76,938 | $80,070 | -$3,132 | - Adjusted EBITDA for Q2 2025 includes a significant adjustment for a **$(18.2) million** gain on disposal of assets and impairment charges, compared to a **$0.7 million** loss in Q2 2024. This gain includes a **$20.8 million** gain related to the expiration of a real estate purchase option received in 2021 that was accounted for as a sale-leaseback[41](index=41&type=chunk)[42](index=42&type=chunk) [Segment-Specific Financials (Retail, Wholesale, Fleet Fueling)](index=13&type=section&id=Supplemental%20Disclosures%20of%20Segment%20Information) This section provides detailed financial breakdowns for ARKO's three primary operating segments. The Retail segment saw a decrease in total revenues but maintained strong operating income. The Wholesale segment experienced growth in both total revenues and operating income, largely due to dealer conversions. The Fleet Fueling segment reported a decrease in total revenues but a slight increase in operating income for the six-month period [Retail Segment Financials](index=13&type=section&id=Retail%20Segment%20%28Supplemental%29) The Retail segment's total revenues decreased to **$1.163 billion** in Q2 2025 from **$1.467 billion** in Q2 2024, primarily due to lower fuel and merchandise revenues. Operating income also saw a decline to **$80.4 million** from **$87.9 million** | Metric (in thousands) | Q2 2025 | Q2 2024 | YoY Change | | :-------------------- | :------ | :------ | :--------- | | Fuel revenue | $748,103 | $976,372 | -$228,269 | | Merchandise revenue | $400,126 | $474,248 | -$74,122 | | Total revenues | $1,162,851 | $1,467,355 | -$304,504 | | Operating income | $80,370 | $87,925 | -$7,555 | [Wholesale Segment Financials](index=13&type=section&id=Wholesale%20Segment%20%28Supplemental%29) The Wholesale segment reported an increase in total revenues to **$709.2 million** in Q2 2025 from **$769.5 million** in Q2 2024. Operating income grew to **$23.2 million** from **$21.3 million**, driven by higher other revenues and fuel contribution from converted sites | Metric (in thousands) | Q2 2025 | Q2 2024 | YoY Change | | :-------------------- | :------ | :------ | :--------- | | Fuel revenue | $696,671 | $762,693 | -$66,022 | | Other revenues, net | $12,501 | $6,850 | +$5,651 | | Total revenues | $709,172 | $769,543 | -$60,371 | | Operating income | $23,242 | $21,270 | +$1,972 | [Fleet Fueling Segment Financials](index=14&type=section&id=Fleet%20Fueling%20Segment%20%28Supplemental%29) The Fleet Fueling segment's total revenues decreased to **$120.4 million** in Q2 2025 from **$142.4 million** in Q2 2024. Operating income slightly decreased to **$13.1 million** from **$13.7 million** for the quarter, but for the six-month period, it increased to **$24.1 million** from **$23.5 million** | Metric (in thousands) | Q2 2025 | Q2 2024 | YoY Change | | :-------------------- | :------ | :------ | :--------- | | Fuel revenue | $118,121 | $140,140 | -$22,019 | | Total revenues | $120,366 | $142,424 | -$22,058 | | Operating income | $13,079 | $13,702 | -$623 |

Core Insights - ARKO Corp. has opened a new Handy Mart location in Kinston, North Carolina, featuring the innovative fas craves branding and menu, marking a significant step in transforming the convenience store experience [2][5] Group 1: Store Opening and Concept - The new store is designed to cater to busy consumers with a menu of hot and cold grab-n-go items, providing options for breakfast, lunch, and snacks throughout the day [3] - The fas craves menu includes a variety of items such as crispy chicken biscuits, zesty potato wedges, mozzarella sticks, and beverages like nitro cold brew and iced teas [4] - The Kinston store officially opened on July 31, 2025, with a grand opening celebration scheduled for September 17–30, featuring modern design elements like digital menu boards and a contemporary interior [5][6] Group 2: Promotions and Customer Engagement - To celebrate the opening, customers can enjoy special food deals, including two Ultimate Chicken Tenders and a small side of potato wedges for $4.99, and fountain drinks for 99 cents [6] - The store also offers a Fueling America's Future promotion, allowing customers to save up to $2 off per gallon of gas by enrolling in the fas REWARDS loyalty program [7] Group 3: Company Overview - ARKO Corp. is a Fortune 500 company and one of the largest convenience store operators in the U.S., owning 100% of GPM Investments, LLC, and operating in four reportable segments: retail, wholesale, fleet fueling, and GPM Petroleum [9]

Company Performance - ARKO Corp. closed at $4.61, reflecting a +1.99% increase from the previous day, outperforming the S&P 500's gain of 0.78% [1] - Over the past month, ARKO shares have decreased by 5.64%, while the Consumer Staples sector gained 0.58% and the S&P 500 increased by 5.88% [1] Earnings Projections - The upcoming EPS for ARKO is projected at $0.12, indicating a 9.09% increase compared to the same quarter last year [2] - Revenue is estimated to be $2.07 billion, representing a 13.12% decrease from the same quarter of the previous year [2] Full Year Estimates - For the full year, earnings are projected at $0.08 per share, a decrease of 38.46% from the previous year, with revenue expected to be $7.87 billion, down 9.84% [3] - Recent changes to analyst estimates reflect shifting business dynamics, with positive revisions indicating analysts' confidence in performance [3] Valuation Metrics - ARKO Corp. has a Forward P/E ratio of 56.5, which is significantly higher than its industry's Forward P/E of 20.4 [6] - The Consumer Products - Staples industry, part of the Consumer Staples sector, holds a Zacks Industry Rank of 73, placing it in the top 30% of over 250 industries [6] Zacks Rank System - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has a strong track record, with 1 rated stocks delivering an average annual return of +25% since 1988 [5] - ARKO Corp. currently holds a Zacks Rank of 3 (Hold), with the consensus EPS estimate remaining unchanged over the past month [5]

Core Viewpoint - ARKO Corp. will host a conference call on August 6, 2025, to discuss its financial results for Q2 2025, which ended on June 30, 2025 [1][2]. Group 1: Conference Call Details - The conference call is scheduled for Wednesday, August 6, 2025, at 5:00 p.m. Eastern Time [2]. - A toll-free dial-in number is provided for participants: (877) 605-1792, with an international dial-in number of (201) 689-8728 [2]. - A telephonic replay will be available approximately three hours after the call concludes until September 5, 2025 [3]. Group 2: Company Overview - ARKO Corp. is a Fortune 500 company and one of the largest convenience store operators in the United States, owning 100% of GPM Investments, LLC [4]. - The company operates in four reportable segments: retail, wholesale, fleet fueling, and GPM Petroleum [4]. - The retail segment includes convenience stores selling merchandise and fuel products, while the wholesale segment supplies fuel to independent dealers [4].

In the latest trading session, ARKO Corp. (ARKO) closed at $4.34, marking a +1.52% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.14% for the day. Meanwhile, the Dow lost 0.04%, and the Nasdaq, a tech-heavy index, added 0.38%. The stock of company has fallen by 3.06% in the past month, lagging the Consumer Staples sector's gain of 0.17% and the S&P 500's gain of 5.35%.The investment community will be closely monitoring the performance of ARKO Corp. in its forthcomin ...

Core Viewpoint - The article discusses the average brokerage recommendation (ABR) for ARKO Corp. and highlights the potential limitations of relying solely on brokerage recommendations for investment decisions [1][5]. Brokerage Recommendation Summary - ARKO currently has an average brokerage recommendation (ABR) of 2.00, indicating a Buy, based on recommendations from four brokerage firms, with two of those being Strong Buy, representing 50% of all recommendations [2]. - Despite the positive ABR, studies suggest that brokerage recommendations have limited success in guiding investors towards stocks with the best price increase potential [5][10]. Analyst Bias and Recommendations - Analysts from brokerage firms tend to exhibit a strong positive bias in their ratings, with five "Strong Buy" recommendations for every "Strong Sell" recommendation, indicating a misalignment of interests between these firms and retail investors [6][7]. - The Zacks Rank, a proprietary stock rating tool, is presented as a more reliable indicator of stock price performance, categorizing stocks from Strong Buy to Strong Sell based on earnings estimate revisions [8][11]. Zacks Rank vs. ABR - The Zacks Rank is distinct from the ABR, as it is based on earnings estimate revisions and is displayed in whole numbers, while the ABR is calculated from brokerage recommendations and typically shown in decimals [9]. - The Zacks Rank is updated more frequently, reflecting timely changes in earnings estimates, which correlates strongly with near-term stock price movements [12]. Current Earnings Estimates for ARKO - The Zacks Consensus Estimate for ARKO's current year earnings remains unchanged at $0.08, suggesting that analysts have steady views on the company's earnings prospects [13]. - The unchanged consensus estimate has resulted in a Zacks Rank of 3 (Hold) for ARKO, indicating a cautious approach despite the Buy-equivalent ABR [14].

Company Performance - ARKO Corp. closed at $4.65, reflecting a +2.42% increase from the previous day, outperforming the S&P 500's daily gain of 0.61% [1] - The stock has decreased by 2.37% over the past month, underperforming the Consumer Staples sector's loss of 0.78% and the S&P 500's gain of 3.85% [1] Upcoming Earnings - Analysts expect ARKO Corp. to report earnings of $0.12 per share, indicating a year-over-year growth of 9.09% [2] - The Zacks Consensus Estimate for revenue is projected at $2.07 billion, which is a decrease of 13.12% compared to the previous year [2] Annual Forecast - For the entire year, the Zacks Consensus Estimates forecast earnings of $0.08 per share and revenue of $7.87 billion, representing declines of -38.46% and -9.84% respectively from the previous year [3] Analyst Estimates - Recent changes to analyst estimates for ARKO Corp. are important for investors, as positive revisions indicate optimism regarding the business and profitability [3][4] - The Zacks Rank system, which reflects these estimate changes, provides a rating system for actionable investment decisions [4] Zacks Rank and Valuation - ARKO Corp. currently holds a Zacks Rank of 3 (Hold), with the Zacks Consensus EPS estimate remaining unchanged over the last 30 days [5] - The company is trading with a Forward P/E ratio of 56.75, which is significantly higher than the industry average Forward P/E of 18.56 [6] Industry Context - The Consumer Products - Staples industry, part of the Consumer Staples sector, holds a Zacks Industry Rank of 90, placing it in the top 37% of over 250 industries [6][7] - The Zacks Industry Rank indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]