Financial Data and Key Metrics Changes - Adjusted EBITDA for Q1 2025 was $30.9 million, down from $33.2 million in Q1 2024, primarily due to lower retail fuel and merchandise contributions [21] - The net loss for the quarter was $12.7 million compared to a net loss of $0.6 million in the year-ago period [24] - Total capital expenditures for the quarter were $27.4 million [25] Business Line Data and Key Metrics Changes - Retail segment operating income was approximately $40.2 million, down from $46.5 million in the year-ago period [21] - Same store merchandise sales excluding cigarettes decreased by 5.2%, while total same store merchandise sales were down 6.9% [22] - Wholesale segment operating income was $18.6 million, slightly up from $18.3 million in the year-ago period [23] - Fleet segment operating income increased to $11 million from $9.8 million in the year-ago period [24] Market Data and Key Metrics Changes - Same store fuel contribution decreased by approximately $3.2 million due to a 6.2% decline in gallons sold [22] - Fuel margin for the wholesale segment was $0.88 per gallon, down from $0.92 per gallon in the year-ago period [23] - Total gallons from channel optimization were up, contributing close to 14 million gallons for the quarter [23] Company Strategy and Development Direction - The company is focused on a transformation strategy that includes dealerization, expansion of high-margin categories, and targeted promotional initiatives [9][10] - The Fueling America Future campaign aims to provide discounts on fuel and enhance customer engagement [10][12] - The company is committed to organic growth and store-level reinvestment, with plans to remodel stores and introduce new food offerings [15][16] Management's Comments on Operating Environment and Future Outlook - Management noted challenges from lower traffic, consumer spending, and severe weather impacting store visits [6][7] - Despite these challenges, management expressed optimism for Q2, citing improvements in sales as weather conditions normalize [34] - The company expects total adjusted EBITDA for Q2 2025 to be in the range of $70 million to $80 million [25] Other Important Information - The company repurchased approximately 1.3 million shares at an average price of $4.1 per share during the quarter [19] - The loyalty program saw an increase in enrolled members, with approximately 27,000 new members added in Q1 2025 [17] Q&A Session Summary Question: Performance post-winter weather - Management indicated that sales improved slightly in April following severe weather in February, which had a significant negative impact on sales [34] Question: Dealerization savings impact - The $20 million annualized savings from dealerization will be realized at scale, with $2.4 million delivered this quarter from transitioned sites [38] Question: Remodel initiative timeline - The company plans to complete seven pilot remodels by Q3 2025, with potential for accelerated rollout based on results [40] Question: Fuel margins and price dynamics - Management noted that fuel margins are currently strong due to market volatility and competitive pricing strategies [45][49] Question: Capital allocation and buybacks - Management is analyzing the cadence of stock repurchases but did not provide specific guidance on future buybacks [50] Question: Dealerization pace and visibility - The company is on track with its dealerization plan, having closed 77 locations and having 130 under contract [56][58] Question: Loyalty program continuity post-dealerization - Loyalty members will continue to access benefits at other locations, as the program is tied to company-operated stores [76] Question: G&A expenses and dealerization impact - Management is focused on reducing G&A expenses as more retail sites transition to the wholesale channel [82]

PART I. FINANCIAL INFORMATION [Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for the quarter ended March 31, 2025, prepared in accordance with U.S. GAAP - The company operates across retail, wholesale, fleet fueling, and GPMP segments, with **1,329 retail stores**, **1,961 dealer gas stations**, and **280 cardlock locations** as of March 31, 2025[33](index=33&type=chunk)[34](index=34&type=chunk) [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $265,420 | $261,758 | | Total current assets | $719,230 | $722,208 | | Total assets | $3,602,555 | $3,620,658 | | **Liabilities & Equity** | | | | Total current liabilities | $462,931 | $445,490 | | Long-term debt, net | $866,097 | $868,055 | | Total liabilities | $3,247,329 | $3,243,792 | | Total shareholders' equity | $255,226 | $276,866 | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2025 vs Q1 2024 Statement of Operations (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total revenues | $1,828,905 | $2,072,454 | | Total operating expenses | $1,838,452 | $2,074,844 | | Operating loss | $(11,764) | $(4,866) | | Net loss attributable to ARKO Corp. | $(12,672) | $(594) | | Net loss per share (basic and diluted) | $(0.12) | $(0.02) | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2025 vs Q1 2024 Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $43,402 | $12,755 | | Net cash used in investing activities | $(26,904) | $(28,175) | | Net cash used in financing activities | $(19,365) | $(20,268) | | **Net decrease in cash** | **$(2,867)** | **$(35,688)** | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) - The company declared and paid a dividend of **$0.03 per share** on March 21, 2025, totaling approximately **$3.5 million**[56](index=56&type=chunk) - During Q1 2025, the company repurchased approximately **1.3 million shares** for about **$5.2 million**, with **$20.5 million** remaining under the repurchase program as of March 31, 2025[58](index=58&type=chunk) - The company accrued approximately **$2.0 million** for a potential wage and hour collective action settlement, with a possible additional loss of up to **$1.2 million**[96](index=96&type=chunk)[97](index=97&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes Q1 2025 performance to macroeconomic challenges and the Transformation Plan, with total revenues decreasing to **$1.83 billion** and a net loss of **$12.7 million**, while maintaining **$847 million** in liquidity - The company is implementing a multi-year Transformation Plan to convert retail stores to dealer sites, invest in remaining stores, and improve pricing and procurement[111](index=111&type=chunk)[112](index=112&type=chunk) - During Q1 2025, **59 retail stores** were converted to dealer sites as part of the Transformation Plan[112](index=112&type=chunk)[113](index=113&type=chunk) Consolidated Key Metrics Q1 2025 vs Q1 2024 | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Fuel gallons sold (thousands) | 490,340 | 519,313 | | Fuel margin (cents per gallon) | 24.9 | 24.8 | | Merchandise contribution (in thousands) | $117,570 | $134,918 | | Merchandise margin | 33.2% | 32.5% | | Adjusted EBITDA (in thousands) | $30,855 | $33,165 | [Segment Results](index=24&type=section&id=Segment%20Results) Retail Segment Performance Q1 2025 vs Q1 2024 | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Operating income (in thousands) | $40,151 | $46,513 | | Same store fuel gallons sold decrease | (6.2%) | (6.7%) | | Fuel margin (cents per gallon) | 37.9 | 36.4 | | Same store merchandise sales decrease | (6.9%) | (4.1%) | | Merchandise margin | 33.2% | 32.5% | - The Wholesale segment's operating income slightly increased to **$18.6 million**, with gallon volume growing **1.5%** due to new dealer site conversions[157](index=157&type=chunk)[158](index=158&type=chunk) - The Fleet Fueling segment's operating income increased to **$11.0 million** from **$9.8 million** year-over-year, driven by favorable diesel margins despite a **4.2%** decrease in gallons sold[165](index=165&type=chunk)[166](index=166&type=chunk) [Use of Non-GAAP Measures](index=31&type=section&id=Use%20of%20Non-GAAP%20Measures) Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Net loss** | **$(12,672)** | **$(594)** | | Interest and other financing expenses, net | 13,851 | 2,457 | | Income tax benefit | (12,922) | (6,707) | | Depreciation and amortization | 34,887 | 31,716 | | **EBITDA** | **23,144** | **26,872** | | Adjustments (Acquisition costs, impairment, etc.) | 7,711 | 6,293 | | **Adjusted EBITDA** | **$30,855** | **$33,165** | [Liquidity and Capital Resources](index=33&type=section&id=Liquidity%20and%20Capital%20Resources) - As of March 31, 2025, the company maintained a strong liquidity position of approximately **$847 million**, including **$265 million** in cash and **$582 million** in credit availability[184](index=184&type=chunk) - Net cash from operating activities increased to **$43.4 million** in Q1 2025 from **$12.8 million** in Q1 2024, driven by dealer deposits, vendor incentives, and favorable working capital[191](index=191&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=35&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section outlines the company's primary market risks, including commodity price volatility and interest rate fluctuations, where a **1%** increase in variable rates would raise annual debt service by approximately **$4.3 million** - The company faces commodity price risk, as rising fuel prices can reduce consumer demand and increase credit card processing fees[206](index=206&type=chunk) - Approximately **49%** of the company's debt carries variable interest rates, with a **1%** rate increase leading to an approximate **$4.3 million** rise in annual debt service[207](index=207&type=chunk) [Controls and Procedures](index=35&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - Management, including the CEO and CFO, concluded the company's disclosure controls and procedures were effective as of **March 31, 2025**[208](index=208&type=chunk) - No material changes to the company's internal control over financial reporting occurred during the quarter ended **March 31, 2025**[209](index=209&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=36&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 11, detailing a term sheet to settle a wage and hour collective action, with **$2.0 million** accrued and a potential additional loss of up to **$1.2 million** - The company entered a term sheet to settle Fair Labor Standards Act allegations, accruing approximately **$2.0 million** with a potential additional loss of up to **$1.2 million**[96](index=96&type=chunk)[97](index=97&type=chunk) [Risk Factors](index=36&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's risk factors have occurred since the Annual Report on Form 10-K for the fiscal year ended **December 31, 2024** - No material changes to the company's risk factors were reported from the Annual Report on Form 10-K for the year ended **December 31, 2024**[211](index=211&type=chunk) [Unregistered Sales of Equity Securities, and Use of Proceeds](index=36&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20and%20Use%20of%20Proceeds) This section details Q1 2025 share repurchase activity, with **1,775,587 shares** bought at an average of **$4.14 per share**, leaving approximately **$20.5 million** available Share Repurchase Activity for Q1 2025 | Period | Total Shares Purchased | Average Price Paid per Share | Maximum Value Remaining for Purchase (end of period) | | :--- | :--- | :--- | :--- | | Jan 2025 | — | — | $25,655,000 | | Feb 2025 | 252,344 | $4.51 | $25,605,000 | | Mar 2025 | 1,523,243 | $4.08 | $20,484,000 | | **Total Q1** | **1,775,587** | **$4.14** | **$20,484,000** | [Other Information](index=36&type=section&id=Item%205.%20Other%20Information) During Q1 2025, no officers or directors adopted or terminated any Rule 10b5-1(c) trading plans for company securities - No officers or directors adopted or terminated any Rule 10b5-1(c) trading plans during the three months ended **March 31, 2025**[215](index=215&type=chunk)

Core Insights - ARKO Corp. reported a net loss of $12.7 million for Q1 2025, a significant increase from a net loss of $0.6 million in the same quarter last year, indicating challenges in the current consumer environment [6][5] - The company achieved an adjusted EBITDA of $30.9 million, down from $33.2 million year-over-year, reflecting ongoing macroeconomic pressures [6][5] - Merchandise margin improved to 33.2% from 32.5%, despite a decline in merchandise contribution to $117.6 million from $134.9 million, primarily due to the dealerization program [6][10] - Retail fuel margin increased to 37.9 cents per gallon, up from 36.4 cents per gallon, although retail fuel contribution decreased to $85.3 million from $92.9 million [6][11] Financial Performance - Total revenues for Q1 2025 were $1.83 billion, down from $2.07 billion in Q1 2024, driven by a decrease in fuel revenue to $1.45 billion from $1.63 billion [38] - Fuel gallons sold decreased to 225,063 thousand gallons from 255,464 thousand gallons, with same-store fuel gallons sold down 6.2% [8][11] - Merchandise revenue also declined to $354.5 million from $414.7 million, with same-store merchandise sales decreasing by 6.9% [8][10] Strategic Initiatives - The company converted 59 retail stores to dealer sites in Q1 2025, with plans for further conversions throughout the year, expecting a cumulative annualized operating income benefit exceeding $20 million [6][5] - ARKO initiated a store remodeling initiative aimed at enhancing customer experience, with the first pilot remodel expected to begin construction in May 2025 [6][5] - The company launched the "Fueling America's Future" campaign, offering loyalty customers value promotions and discounts at the pump [6][5] Shareholder Returns - The Board declared a quarterly dividend of $0.03 per share, to be paid on May 30, 2025, reflecting confidence in cash generation capabilities [21][22] - During Q1 2025, the company repurchased approximately 1.3 million shares for about $5.2 million, indicating a commitment to shareholder returns [7][22] Liquidity and Capital Expenditures - As of March 31, 2025, ARKO's total liquidity was approximately $847 million, with $265 million in cash and cash equivalents and $582 million available under lines of credit [20] - Capital expenditures for the quarter were approximately $27.4 million, including investments in new stores and upgrades [20]

Exhibit 99.1 ARKO Corp. Reports First Quarter 2025 Results ARKO Corp. (Nasdaq: ARKO) ("ARKO" or the "Company"), a Fortune 500 company and one of the largest convenience store operators in the United States, today announced financial results for the first quarter ended March 31, 2025. First Quarter 2025 Key Highlights (vs. Year-Ago Quarter) 1,2 Other Key Highlights "Despite a pressured consumer environment, we effectively navigated ongoing macroeconomic headwinds in the first quarter," said Arie Kotler, Chai ...

RICHMOND, Va., April 24, 2025 (GLOBE NEWSWIRE) -- ARKO Corp. (Nasdaq: ARKO) (the “Company”), a Fortune 500 company and one of the largest convenience store operators in the United States, today announced that the Company will host a conference call on Thursday, May 8, 2025 at 5:00 p.m. Eastern Time to discuss its financial results for the first quarter ended March 31, 2025. ARKO Corp.’s management team will host the conference call, followed by a question-and-answer period. The Company will provide its fina ...

Group 1 - ARKO Corp. closed at $4.25, with a daily increase of +0.71%, underperforming the S&P 500, which gained 2.51% [1] - Over the past month, ARKO shares increased by 1.2%, while the Consumer Staples sector rose by 2.1% and the S&P 500 decreased by 8.86% [1] Group 2 - ARKO Corp. is expected to report an EPS of -$0.17, reflecting a 750% decline from the same quarter last year, with anticipated revenue of $1.84 billion, down 11.21% year-over-year [2] - Full-year estimates predict earnings of $0.10 per share and revenue of $8.01 billion, indicating year-over-year changes of -23.08% and -8.29%, respectively [3] Group 3 - Recent changes to analyst estimates for ARKO Corp. are important as they reflect short-term business trends, with positive revisions indicating optimism about the company's outlook [4] - The Zacks Rank system, which evaluates estimate changes, has ARKO Corp. currently rated at 4 (Sell), with no changes in the EPS estimate over the last 30 days [6] Group 4 - ARKO Corp. has a Forward P/E ratio of 44.42, significantly higher than the industry average of 19.64, suggesting it is trading at a premium [7] - The Consumer Products - Staples industry, to which ARKO belongs, has a Zacks Industry Rank of 143, placing it in the bottom 43% of over 250 industries [7]

Core Viewpoint - ARKO Corp. is facing significant challenges with expected earnings and revenue declines, while its stock performance has been relatively stable compared to broader market indices [1][2][3]. Group 1: Stock Performance - ARKO Corp. closed at $3.80, showing no change from the previous day, and outperformed the S&P 500, which fell by 5.98% [1]. - Over the last month, ARKO's shares decreased by 5.71%, underperforming the Consumer Staples sector's gain of 6.06% and exceeding the S&P 500's loss of 7.66% [1]. Group 2: Earnings and Revenue Estimates - Analysts expect ARKO Corp. to report an EPS of -$0.17, a decline of 750% from the same quarter last year [2]. - The consensus estimate for revenue is $1.84 billion, reflecting an 11.21% decrease compared to the previous year [2]. - For the annual period, earnings are anticipated to be $0.10 per share and revenue at $8.01 billion, indicating declines of 23.08% and 8.29%, respectively [3]. Group 3: Analyst Estimates and Rankings - Recent changes in analyst estimates for ARKO Corp. may indicate shifting business dynamics, with positive revisions seen as a favorable sign for the company's outlook [3]. - The Zacks Rank system currently rates ARKO Corp. at 4 (Sell), with a stagnant EPS projection over the past 30 days [5]. Group 4: Valuation Metrics - ARKO Corp. has a Forward P/E ratio of 40, which is a premium compared to the industry average of 20.78 [6]. - The Consumer Products - Staples industry, to which ARKO belongs, ranks in the bottom 40% of all industries according to the Zacks Industry Rank [6].

Group 1: Company Performance - ARKO Corp. shares closed at $4.07, down 0.49% from the previous trading day, underperforming the S&P 500's loss of 0.22% [1] - Over the past month, ARKO Corp. has experienced a significant decline of 47.7%, while the Consumer Staples sector gained 2.67% [1] - The upcoming earnings release is projected to show an EPS of -$0.17, indicating a 750% decrease year-over-year, with revenue expected at $1.84 billion, down 11.21% from the same quarter last year [2] Group 2: Annual Estimates - For the annual period, earnings are anticipated to be $0.10 per share and revenue at $8.01 billion, reflecting declines of 23.08% and 8.29% respectively from the previous year [3] - Recent analyst estimate revisions indicate a changing outlook for ARKO Corp., with positive revisions suggesting optimism about the company's business and profitability [3][4] Group 3: Zacks Rank and Valuation - ARKO Corp. currently holds a Zacks Rank of 4 (Sell), with a notable 75% decrease in the Zacks Consensus EPS estimate over the past month [5] - The company is trading at a Forward P/E ratio of 43.05, which is significantly higher than the industry average of 20.9 [6] - The Consumer Products - Staples industry, to which ARKO belongs, has a Zacks Industry Rank of 150, placing it in the bottom 41% of over 250 industries [6][7]

Financial Data and Key Metrics Changes - Total company adjusted EBITDA for Q4 2024 was $56.8 million, down from $61.8 million in the same period last year, primarily due to lower retail fuel and merchandise contributions [22] - Full year 2024 total company adjusted EBITDA was $248.9 million compared to $276.3 million in the previous year [27] - Net loss for Q4 2024 was $2.3 million, compared to a net income of $1.1 million in the prior year [26] Business Line Data and Key Metrics Changes - Retail segment operating income decreased to approximately $62.9 million from $72.3 million year-over-year, with same store merchandise sales down 2.1% [23] - Wholesale segment operating income increased to $20 million from $18.1 million, driven by channel optimization [25] - Fleet segment operating income rose to $12.4 million from $9.7 million, despite total gallons down 1% [25] Market Data and Key Metrics Changes - Same store retail fuel gallons were down mid-single digits for both the quarter and year, with same store fuel margin down $0.011 per gallon [17] - Same store fuel contribution decreased by 7.1% for the quarter due to a decline in gallons and lower fuel margin [24] - Same store operating expenses decreased by approximately 1.2% for the quarter [24] Company Strategy and Development Direction - The company is focused on a transformation plan, including a dealerization program to optimize its retail portfolio and enhance profitability [19][20] - The "Fueling America's Future" campaign aims to drive customer traffic and sales by offering significant discounts on fuel for loyalty program members [11][49] - The company is enhancing its food service offerings and optimizing its tobacco product category to align with evolving consumer preferences [10][15] Management's Comments on Operating Environment and Future Outlook - Management noted that 2024 was a challenging year due to persistent inflation and constrained consumer spending, but they remain focused on long-term growth strategies [9] - The company expects to see improvements in same store performance as the year progresses, despite current negative trends [40][42] - Management is optimistic about the impact of promotional activities and the dealerization program on future performance [35][84] Other Important Information - The company has substantial liquidity of approximately $841 million, including $262 million in cash at quarter end [27] - Total capital expenditures for Q4 2024 were $36.1 million, with full year 2024 capital expenditures at $113.9 million [29] Q&A Session Summary Question: Can you help connect the dots on the 2025 guidance? - Management indicated that the guidance reflects a shifting same store base, with current negative trends expected to improve as the year progresses [40][42] Question: Is there a building effect from dealerization savings? - Management confirmed that dealerization savings will accrue over time, with more significant impacts expected in 2026 [44][45] Question: What initiatives are in place for remaining retail stores? - The company is focusing on promotions for fuel and tobacco to drive traffic and sales in remaining stores [47][50] Question: How is the weather impacting business? - Management acknowledged that adverse weather conditions have negatively affected customer mobility and sales, particularly in January and February [33][86] Question: What is the strategy regarding fuel margins versus gallons? - Management clarified that the focus remains on maximizing fuel contribution dollars while using promotions to drive traffic and sales [96][97]

Core Viewpoint - ARKO Corp. reported a quarterly loss of $0.03 per share, missing the Zacks Consensus Estimate of $0.04, which reflects a significant earnings surprise of -175% compared to break-even earnings per share a year ago [1] Financial Performance - The company posted revenues of $1.99 billion for the quarter ended December 2024, missing the Zacks Consensus Estimate by 7.43% and down from $2.23 billion year-over-year [2] - Over the last four quarters, ARKO has surpassed consensus EPS estimates only once and has not beaten consensus revenue estimates during this period [2] Stock Performance - ARKO shares have increased approximately 8.5% since the beginning of the year, outperforming the S&P 500, which gained 1.3% [3] Future Outlook - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is -$0.05 on revenues of $2.03 billion, and for the current fiscal year, it is $0.38 on revenues of $8.66 billion [7] Industry Context - The Consumer Products - Staples industry, to which ARKO belongs, is currently ranked in the bottom 49% of over 250 Zacks industries, indicating potential challenges for stock performance [8]