Financial Data and Key Metrics Changes - Adjusted EBITDA for Q4 2025 grew 16% year-over-year to $66 million, reflecting the company's transformation efforts [5][20] - Net income for Q4 2025 was $1.9 million, reversing a net loss of $2.3 million from the prior year [20] - For the full year 2025, net income was $22.7 million, compared to $20.8 million in 2024 [24] Business Line Data and Key Metrics Changes - Retail segment merchandising margin increased to 34.4%, up 140 basis points year-over-year [20] - Same-store merchandise sales were down 3% for Q4 and down 4.1% for the full year 2025 [20] - Wholesale fuel contribution increased 8% to $24 million in Q4 2025, with total gallons increasing by 4% [22] - Fleet Fueling fuel contribution was $15.9 million for Q4, compared to $16.3 million last year [23] Market Data and Key Metrics Changes - Retail fuel same-store gallons were down 4.1% for Q4 and down 5.4% for the full year 2025 [21][24] - The company gained market share in every nicotine category in 2025, with OTP up 4% and energy drinks up 8% [15] Company Strategy and Development Direction - The company is focused on executing its transformation plan, optimizing its retail footprint, and improving cost structure [5][6] - The IPO of ARKO Petroleum Corp. was a major milestone, providing greater transparency and unlocking value for shareholders [6][7] - The company plans to further scale high-return remodels, expand NTI retail stores selectively, and invest in NTI cardlock locations [14][25] Management's Comments on Operating Environment and Future Outlook - Management noted that the consumer remains cautious and value-focused, with deliberate spending choices [5][15] - The company expects 2026 Adjusted EBITDA to range between $245 million and $265 million, with same-store retail sales expected to improve several hundred basis points versus 2025 [26][27] - Management expressed confidence in the growth potential of the APC business, which is expected to deliver approximately $156 million in Adjusted EBITDA in 2026 [26] Other Important Information - The company finished 2025 with $305 million in cash, enhancing its liquidity and financial flexibility [25] - A leadership update was provided, with Galagher Jeff joining as the new CFO, bringing extensive retail experience [16][18] Q&A Session Summary Question: Merchandise sales for retail and guidance for improvement - Management highlighted execution and marketing initiatives, including the Fueling America campaign, as key drivers for improved sales and loyalty transactions [32][33] Question: Cost of remodels and partial redesign opportunities - The cost of a typical major remodel is approximately $1 million, while a soft remodel could cost around $400,000 to $700,000 [38][39] Question: Pressure in the Midwest market - Management confirmed continued pressure in the Midwest but noted some easing in other regions, attributing increased customer visits to lower fuel prices [48][49] Question: Promotions and their impact on merchandise margins - Promotions are vendor-supported and do not lower margins; they drive customer traffic and increase sales in higher-margin categories [51][52]