ARKO (ARKO) - 2025 Q3 - Quarterly Results

Financial Performance - Net income for Q3 2025 was $13.5 million, up from $9.7 million in Q3 2024[7] - Adjusted EBITDA for Q3 2025 was $75.2 million, compared to $78.8 million in the same quarter last year[7] - Net income attributable to common shareholders for the three months ended September 30, 2025, was $12,009, compared to $8,228 for the same period in 2024, representing a growth of 46%[37] - Net income for the three months ended September 30, 2025, was $13,459,000, up 39.1% from $9,674,000 in the same period of 2024[39] - Operating income for the Retail Segment in Q3 2025 was $77,470,000, compared to $85,094,000 in Q3 2024, a decrease of 9.5%[48] - Operating income for the Wholesale Segment in Q3 2025 was $24,128,000, up from $20,294,000 in Q3 2024, an increase of 19.1%[49] - Operating income for Q3 2025 was $12,211,000, slightly down from $12,640,000 in Q3 2024, indicating a decrease of 3.4%[51] - Operating income for the nine months ended September 30, 2025, was $36,282,000, slightly up from $36,100,000 in the same period of 2024[51] Revenue and Sales - For the three months ended September 30, 2025, total revenues were $2,020,833, a decrease of 11.3% from $2,279,236 in the same period of 2024[37] - Total revenues for the Retail Segment in Q3 2025 were $1,148,847,000, down from $1,415,481,000 in Q3 2024, a decrease of 18.8%[48] - Total revenues for the Wholesale Segment in Q3 2025 were $739,687,000, compared to $727,397,000 in Q3 2024, an increase of 1.8%[49] - Total revenues for Q3 2025 were $124,932,000, a decrease of 2.6% from $128,268,000 in Q3 2024[51] - Total revenues for the nine months ended September 30, 2025, were $365,822,000, a decline of 9.7% compared to $405,270,000 for the same period in 2024[51] Margins and Costs - Merchandise margin increased to 33.7% in Q3 2025 from 32.8% in Q3 2024[7] - Retail fuel margin for Q3 2025 was 43.6 cents per gallon, an increase from 41.3 cents per gallon in Q3 2024[7] - Fuel revenue in the Retail Segment for Q3 2025 was $744,405,000, compared to $929,783,000 in Q3 2024, a decline of 20%[48] - Fuel costs in the Retail Segment for Q3 2025 were $640,278,000, down from $812,693,000 in Q3 2024, a decrease of 21.1%[48] - Fuel costs for Q3 2025 were $105,952,000, down from $109,752,000 in Q3 2024, reflecting a decrease of 2.5%[51] Assets and Liabilities - Total liquidity as of September 30, 2025, was approximately $891 million, with outstanding debt of approximately $912 million[18] - Total current assets increased to $753,154,000 from $722,208,000, representing a growth of 4.6%[38] - Long-term debt, current portion, increased to $36,994,000 from $12,944,000, indicating a significant rise of 186.5%[38] - Total liabilities decreased slightly to $3,213,858,000 from $3,243,792,000, a reduction of 0.9%[38] - Cash and cash equivalents rose to $306,932,000 from $261,758,000, marking an increase of 17.3%[38] - Inventory decreased to $202,290,000 from $231,225,000, a decline of 12.5%[38] - Shareholders' equity decreased to $273,126,000 from $276,866,000, a decrease of 1.4%[38] Dividends and Shareholder Actions - The board declared a quarterly dividend of $0.03 per share, payable on December 1, 2025[19] - Common stock repurchased amounted to $4,182,000 during the three months ended September 30, 2025[39] Operational Changes - The company converted 65 retail stores to dealer sites in Q3 2025, totaling 194 conversions year-to-date[7] - The company closed or divested 32 sites in the wholesale segment during the three months ended September 30, 2025[22] - The number of wholesale segment sites increased to 2,053 at the end of September 2025, up from 1,832 at the end of September 2024, reflecting a growth of 12%[22] - The fleet fueling segment had 288 sites at the end of September 2025, an increase from 281 sites at the end of September 2024, marking a growth of 2.5%[22] Cash Flow - Net cash provided by operating activities for the nine months ended September 30, 2025, was $148,009,000, compared to $199,130,000 for the same period in 2024, reflecting a decrease of 25.7%[39] - Net cash used in investing activities for the nine months ended September 30, 2025, was $93,725,000, compared to $80,935,000 in 2024, an increase of 15.7%[39] - Net cash used in financing activities for the period was $16,893,000, compared to $12,907,000 in the previous period, indicating an increase in cash outflow[40]