Summary of ARKO Corp. FY Conference Call (March 02, 2026) Company Overview - **Company Name**: ARKO Corp. (NasdaqCM: ARKO) - **Industry**: Retail and Wholesale Fuel Distribution - **Market Position**: One of the largest retail operators and wholesale distributors in the U.S. with approximately 3,500 locations across more than 30 states [4][5][6] Key Financial Metrics - **Cumulative Adjusted EBITDA**: Approximately $1.5 billion since going public in 2020 [4] - **Fuel Distribution**: 2.1 billion gallons of fuel distributed in 2025 [4] - **Acquisitions**: Completed 26 acquisitions with an aggregate purchase price of $1.8 billion [5][13] - **Liquidity**: Over $1 billion in liquidity available for investments [5] Strategic Initiatives - **Public Offering of ARKO Petroleum**: Took subsidiary ARKO Petroleum public three weeks prior to the call, retaining 75% ownership [6][25] - **Focus on Return on Investment**: Emphasis on return on invested capital, with a minimum of 25% return over the past five years [6] - **Dealerization Strategy**: Transitioning retail locations to dealer-operated models to enhance profitability and reduce operational costs [15][23] Operational Highlights - **Retail Segment**: - Targeting a reduction in retail locations from 1,540 to 1,000 to focus on profitable areas [16] - Implemented a loyalty program with 2.4 million members, leading to a 48% increase in purchases from enrolled members [19] - Launched a food service brand, fas BRAND, to enhance store offerings and drive sales [20] - **Wholesale and Fleet Segment**: - Significant growth potential identified, with only 1% market share in a $195 billion industry [31] - Focus on cost-plus pricing model, generating stable cash flow [29] - Plans to build 20 new cardlock locations in 2026 [40] Market Dynamics - **Fragmented Industry**: 63% of the convenience store and gas station market is still controlled by mom-and-pop operations, presenting acquisition opportunities [12][13] - **Consumer Trends**: Noted decline in traditional cigarette sales, prompting a shift towards other tobacco products [19] Recent Performance - **Q4 2025 Results**: - Adjusted EBITDA of $249 million, with a 9.1% increase in net income [44] - Retail operating expenses down 13.3%, indicating improved efficiency [44] - Merchandise margin increased by 140 basis points [45] Future Outlook - **Growth Strategy**: Continued focus on M&A opportunities, particularly in the wholesale segment, with a target ROI of at least 20% [41] - **Liquidity for Growth**: $305 million in cash on hand and access to $760 million in liquidity to support growth initiatives [46] Conclusion - ARKO Corp. is positioned for significant growth through strategic acquisitions, operational efficiencies, and a focus on high-margin products. The company aims to leverage its liquidity and market position to capitalize on opportunities in a fragmented industry while enhancing shareholder value through disciplined capital allocation and investment in core business areas [39][40].

Core Viewpoint - Cannabis stocks have underperformed over the past five years, but recent positive regulatory changes in the U.S. may present long-term growth opportunities if the marijuana market expands significantly [1] Group 1: Canopy Growth - Canopy Growth is a leading player in the Canadian cannabis market with a diverse product portfolio, including dried cannabis flower, vapes, and edibles, and has a presence in multiple countries, including the U.S. [2] - Following President Trump's executive order to classify cannabis as a Schedule III substance, Canopy Growth may have expansion opportunities in the U.S. [3] - In Q3 2026, Canopy Growth reported net revenue of $54.62 million, a slight decrease of 0.3% year-over-year, but improved its net loss per share to $0.13 from $0.81 in the previous year [3] - If Canopy Growth can capitalize on U.S. opportunities and continue to reduce losses, it could yield strong returns [4] Group 2: Tilray Brands - Tilray Brands also has a comprehensive portfolio of cannabis products and operates in several countries, including the U.S., Germany, and Portugal, and has diversified into craft brewing and hemp-based products [5] - In Q2 of its 2026 fiscal year, Tilray reported net revenue of $217.5 million, a 3% year-over-year increase, while its net loss improved to $0.41 from $0.99 in the previous year [6] - Tilray is well-positioned to take advantage of emerging opportunities in the U.S. cannabis market, which could lead to significant share price increases if successful [6]

Core Viewpoint - A potential U.S. move to block imports of certain disposable vapes could significantly reduce the unregulated e-cigarette market by up to one-third, although any impact is not expected before 2027 [1] Group 1: Market Impact - British American Tobacco (BAT) estimates that unregulated devices account for approximately 70% of U.S. e-cigarette sales, affecting both its vaping and traditional tobacco businesses [2] - CEO Tadeu Marroco indicated that a block could lead to a decline in market sales to below 50%, equating to a reduction of roughly one-third [4] - The long supply chain and large inventories for these devices may delay the impact of any potential import block [4] Group 2: Legal and Regulatory Developments - BAT has two active cases at the U.S. International Trade Commission (ITC) aimed at blocking imports of unregulated devices [2] - An ITC judge previously ruled in favor of BAT in a patent dispute, recommending a general exclusion order to block disposable vapes that infringe its patents [3] - A full ITC determination is expected in March, followed by a 60-day presidential review [3] Group 3: Future Regulatory Changes - There is speculation that the U.S. Food and Drug Administration (FDA) may initiate a program to test new approaches to vapes, potentially including flavored options [5] - The FDA has been working to expedite or streamline its processes for new nicotine product applications after years of rejecting most [5]

Financial Data and Key Metrics Changes - In Q1, net revenue increased by 49% to CAD 65.3 million from CAD 42.7 million in the same prior year period, primarily due to growth in the Canadian business, integration of Motif, and higher international sales [17] - Adjusted gross profit for the quarter increased by 67% to CAD 23.9 million compared to CAD 14.3 million in Q1 last year, supported by higher revenue and efficiency gains [17][18] - Adjusted EBITDA in Q1 was CAD 5.3 million, up 273% from CAD 1.4 million in the prior year period, driven by increased scale and higher international sales [20][21] - Net income for the quarter was CAD 20 million compared to a net loss of CAD 23 million in the same prior year period, reflecting a CAD 43 million year-over-year improvement [21][22] Business Line Data and Key Metrics Changes - In Q1, international sales reached CAD 5 million, up 55% from Q1 fiscal 2025, despite a sequential decline due to a higher-than-expected proportion of flower that did not meet international specifications [12][17] - The company maintained the number one position in overall vapes with a 20.4% market share and moved to the number two position in overall pre-rolls at 7.7% [8][10] - In beverages, market share increased by 80 basis points year-over-year to 5.9%, while in concentrates, the company achieved a 15.5% category share [8][10] Market Data and Key Metrics Changes - The company holds the number one market share position in Canada with 11.3% total share in Q1 and 11.7% over the past 12 months [5][6] - In Quebec, the company moved up to the number three position with 9.9% market share for the quarter, driven by successful vape launches [7] - The company outperformed in most provinces, holding 33.1% market share in New Brunswick and 21.9% in Newfoundland [8] Company Strategy and Development Direction - The company is focused on operational execution, improving margins, and delivering to markets while balancing risk and growth opportunities in international markets [29][30] - The company aims to expand into international markets prudently while maintaining a strong focus on consumer needs and innovation [30][31] - The company is optimistic about long-term growth in the cannabis industry and its ability to compete and lead as the market matures [5] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of the BC General Employees' Union strike and increased competition in vapes and pre-rolls on market share [6][15] - The company remains confident in its ability to deliver against previously issued guidance, expecting revenue to exceed CAD 300 million for the full year [24] - Management expressed optimism about international sales growth in fiscal 2026, despite temporary issues with product specifications [12][13] Other Important Information - The company harvested over 28,000 kilograms of flower in Q1, representing a 43% year-over-year increase, driven by improved yields and ongoing refinements [10] - The company announced a proprietary breakthrough in powdery mildew resistance, allowing for quicker screening of seedlings [11] - Total cash and short-term investments at quarter end were CAD 63 million, including CAD 7.6 million of unrestricted cash [23] Q&A Session Summary Question: Near-term opportunities and prioritization of initiatives - Management emphasized operational execution and cost base improvement as short-term priorities, while focusing on international expansion for long-term growth [29][30] Question: Insight on international volumes and flower issues - Management noted stringent international flower requirements and identified core drivers of recent issues, expecting to resolve them soon [35] - The estimated impact on international revenue was about CAD 3.5 million due to out-of-spec flower [36] Question: Recovery in the Canadian market - Management confirmed recovery in BC distribution levels and acknowledged increased competition in vapes and pre-rolls, with plans for new innovations to regain market share [42][43] Question: EU GMP certification timeline - Management is working closely with regulators to address feedback and is unable to provide a specific timeline for certification [47][48] Question: Route to market in Europe - Management indicated a mixed approach for market entry, utilizing both direct sales and partnerships depending on regulations [51][53] Question: U.S. market investment strategy - Management stated that the U.S. market is currently a minor part of the business, and they are being cautious with investments due to regulatory uncertainties [55][56]

Investor Presentation December 31, 2025 CAUTIONARY STATEMENT This document is current as of December 31, 2025, except where otherwise stated. The information contained in this presentation is provided by Organigram Global Inc. ("Organigram" or the "Company") for informational purposes only and does not constitute an offer to issue or arrange to issue, or the solicitation of an offer to issue, securities of Organigram or other financial products. No part of this presentation shall form the basis or be relied ...

Industry Overview - The U.S. cannabis sector is evolving in early 2026, presenting both risks and opportunities for investors [1] - Regulatory uncertainty has shifted focus towards efficiency, balance sheet repair, and selective growth among operators [1][2] - Potential federal reforms could significantly reshape industry valuations, prompting investors to be more selective [1][2] Investment Focus - Traders are prioritizing companies with established market positions, improving cash flow, and scalable infrastructure [2] - Multi-state operators are expected to benefit from future regulatory changes, including federal tax treatment and banking access [2] Market Volatility - The cannabis market remains volatile, necessitating disciplined risk management [3] - Many stocks are trading below previous highs, creating opportunities for patient investors [3] - Weaker operators may face challenges if capital markets remain tight, emphasizing the importance of company selection [3] February 2026 Outlook - February 2026 is anticipated to be significant for the sector, influenced by earnings updates, regulatory news, and market sentiment [4] - Investors are looking for stocks that combine scale, brand strength, and improved financial discipline [4] Featured Companies AYR Wellness Inc. (AYRWF) - AYR Wellness is a vertically integrated operator with a growing national footprint, primarily in Florida and other states [6][8] - The company focuses on operational control across the supply chain, allowing adjustments based on market demand [9] - Recent restructuring efforts aim to strengthen liquidity and reduce financial strain, with a focus on cost control and cash flow trends [10][11] Cresco Labs Inc. (CRLBF) - Cresco Labs is a well-established multi-state operator with a strong presence in both medical and adult-use markets [12][14] - The company emphasizes brand consistency and consumer trust, with a dual approach of retail and wholesale operations [15] - Financially, Cresco generates high revenue totals, focusing on improving adjusted EBITDA and operating cash flow [16][17] Glass House Brands Inc. (GLASF) - Glass House Brands operates with a strong focus on California, utilizing large greenhouse facilities for cost-efficient production [18][20] - The company emphasizes operational efficiency and quality control through vertical integration [21] - Financial performance has been uneven due to market challenges, but increased production volumes and potential regulatory improvements could support future growth [22][23]

Core Insights - Gold prices remain steady above $5,000 per ounce amid geopolitical and economic risks, with predictions of potential increases to $6,000 due to a weaker dollar [1] - Consumer staples are highlighted as a defensive sector that can protect capital during market volatility, offering steady dividend income and reliable revenue [1] Consumer Staples Sector - Consumer staples are considered a 'safe' sector as they sell essential goods, leading to predictable revenue streams [1] - These companies typically have steady dividend income, reliable earnings, and the ability to pass on rising costs to consumers [1] - Low beta characteristics of consumer staples stocks make them less volatile compared to the broader market, appealing to institutional investors during turbulent times [1] Featured Consumer Staples Stocks 1. Waste Management - Waste Management Inc. has a near-monopoly in many locations due to its extensive landfill network, making it a strong dividend payer with a 52% dividend payout rate and a 22-year history of annual increases [1] - The stock is experiencing a bullish trend, having surpassed the 200-day simple moving average for the first time since last September [1] 2. British American Tobacco - British American Tobacco plc has shifted towards smokeless products, maintaining a dividend yield of over 5% with a 63% dividend payout ratio [1] - The stock has returned nearly 60% in the last 12 months and shows potential for further gains following a period of consolidation [1] 3. Service Corporation International - Service Corporation International Inc. is the largest provider of funeral and cemetery services in North America, benefiting from an aging population [1] - The company has a dividend yield of 1.68% with a 36.7% payout ratio, and it has raised its dividend for 15 consecutive years [1] - The company raised its 2025 cash flow guidance to between $915 million and $950 million, supporting future payout increases [2]

Core Insights - Canopy Growth's stock is trading at less than $2, raising questions about its attractiveness as an investment given the current market conditions [1] Group 1: Market Performance - Canopy Growth is one of the largest cannabis producers in Canada, with a diverse product portfolio including dried cannabis, vapes, and cannabis-infused drinks [3] - The Canadian cannabis market has been disappointing, with limited growth opportunities, significant competition, and ongoing legal and regulatory challenges affecting all Canadian cannabis companies [4] - The overall cannabis industry in Canada has experienced slow revenue growth and consistent net losses, indicating systemic issues rather than company-specific problems [5] Group 2: U.S. Market Dynamics - Recent developments in the U.S. cannabis market, such as the reclassification of cannabis by President Trump, may improve conditions for U.S. cannabis companies but are unlikely to benefit Canopy Growth significantly [5][6] - Cannabis remains illegal at the federal level in the U.S., creating challenges for companies, including high operational costs and difficulties in profitability [7] - Canopy Growth's U.S. subsidiary will face intense competition, similar to what it experiences in Canada, limiting its potential for recovery [7]

Financial Data and Key Metrics Changes - In Q4, net revenue increased 79% to CAD 80.1 million from CAD 44.7 million in the same prior year period [16] - Full-year fiscal 2025 net revenue increased 62% to CAD 259.2 million from CAD 159.8 million in the prior year [16] - Adjusted gross profit for Q4 increased 85% to CAD 30.6 million versus CAD 16.5 million in Q4 last year [18] - Adjusted EBITDA set a company record in fiscal 2025, with Q4 adjusted EBITDA of CAD 9.8 million, an increase of 72% sequentially and 69% year-over-year [23] - The net loss for Q4 was CAD 38 million, compared to a net loss of CAD 5.4 million in the same prior year period [25] Business Line Data and Key Metrics Changes - The acquisition of Motif Labs contributed significantly to growth without market share dilution [4] - International sales reached a record CAD 26.3 million, a 171% increase versus the prior year [10][17] - The company achieved a 35% adjusted gross margin for the full year, a 100 basis point increase from last year [18] Market Data and Key Metrics Changes - The company holds the number one market position in Canada with an 11.9% market share in fiscal 2025 [7] - Market share in New Brunswick reached 34.2%, 23.7% in Newfoundland, 14.9% in Saskatchewan, and 12.2% in Nova Scotia [8] - The company experienced a temporary market share impact in Q1 due to a strike affecting large LPs in British Columbia [10] Company Strategy and Development Direction - The company aims to increase the margin profile of its domestic product mix while optimizing operational footprint for capacity and throughput [9] - Plans to launch new products, including coated infused pre-rolls and beverages, are in place to meet evolving consumer needs [9] - The company is focused on disciplined execution and sustainable growth, with an emphasis on margin expansion and international growth [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth supported by a stronger platform and expanding international opportunities [29] - The company is monitoring regulatory changes in the U.S. that could impact its business but does not expect a material adverse economic impact [12] - Management anticipates strong net revenue growth exceeding CAD 300 million in fiscal 2026, along with further improvements in adjusted gross margin and adjusted EBITDA [27] Other Important Information - The company received a CAD 2 million grant from Opportunities New Brunswick to support facility enhancements [6] - The Jupiter Fund currently has CAD 59 million available for deployment to leverage opportunities in markets outside of Canada [13] - The company is awaiting a determination on its EU-GMP application, which could positively impact its international business [12] Q&A Session Summary Question: International growth expectations and supply-demand dynamics - Management indicated that they are starting to realize increased capacity and are well-positioned for fiscal 2026, particularly in Germany [34] Question: Gross margin expectations for fiscal 2026 - Management expects gross margins to improve, driven by operational improvements and synergies from the Motif acquisition [38] Question: Margin improvement sources - The majority of margin improvement is expected to come from operational improvements in cultivation rather than solely from Motif synergies [48] Question: CapEx plans for the next year - The company plans to keep capital expenditures modest for fiscal 2026, with expectations to spend less than CAD 10 million [49]

Sales of vapes, cigarettes and other tobacco products slumped more than any other grocery category in the UK, a survey showed, a sign that tighter regulations and health concerns are curbing smoking habits https://t.co/xgfED1x6c8 ...