Arko Corp Reports Q1 Earnings Highlights

Written by Emily J. Thompson, Senior Investment Analyst

Source: seekingalpha

Updated: 3 days ago

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ARKO+2.38%

Should l Buy ARKO?

Source: seekingalpha

Earnings Performance: Arko Corp reported a Q1 GAAP EPS of -$0.07, with revenues reaching $1.77 million, demonstrating the company's resilience despite the loss.
Adjusted EBITDA Surge: The adjusted EBITDA for the quarter increased by 65.1% to $50.9 million compared to $30.9 million, indicating significant improvements in cost control and operational efficiency.
Same-Store Sales Growth: Excluding cigarettes, same-store merchandise sales rose approximately 0.4%, marking the strongest ex-cigarette performance in two years, suggesting a recovery in consumer demand for other products.
Margin Improvement: The merchandise margin for the quarter increased to 33.9% from 33.2%, reflecting the company's success in pricing strategy and product mix optimization.

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About ARKO

Arko Corp. is operators of convenience stores and wholesalers of fuel in the United States. The Company operates through four segments: Retail Segment, Wholesale Segment, Fleet Fueling Segment, and GPMP Segment. The Retail segment includes the operation of a chain of retail stores, which includes convenience stores selling fuel products and other merchandise to retail customers. The Wholesale segment supplies fuel to dealers, on either a consignment or cost-plus basis. The Fleet Fueling segment includes the operation of proprietary and third-party cardlock locations, and issuance of proprietary fuel cards that provide customers access to a nationwide network of fueling sites. The GPMP segment includes the operations of GPM Petroleum LP (GPMP), which primarily sells and supplies fuel to GPM Investments, LLC (GPM). It operates its stores under more than 25 regional store brands, including 1-Stop, Admiral, Apple Market, BreadBox, Corner Mart, Handy Mart, Jetz, Jiffi Stop, and others.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.

Arko Corp. Declares Quarterly Dividend of $0.03 per Share

2 days agoseekingalpha

Quarterly Dividend Declaration: Arko Corp. has declared a quarterly dividend of $0.03 per share, consistent with previous distributions, indicating the company's ongoing ability to maintain stable cash flows, which is likely to attract income-seeking investors.
Dividend Yield: The forward yield of 1.79% reflects the company's competitiveness in the current market environment, potentially enhancing investor interest in its stock.
Shareholder Record Dates: The dividend is payable on May 29, with a record date of May 18 and an ex-dividend date also on May 18, providing investors with a clear timeline for their investment decisions.
Future Outlook: Arko Corp. plans to add 20 NTI cardlocks and remodel 25 locations in 2026, and despite mixed Q4 results, the company has maintained its full-year guidance, demonstrating confidence in future growth prospects.

Arko Corp. Q1 2026 Earnings Call Highlights

3 days agoseekingalpha

Significant Performance Boost: Arko Corp. reported an adjusted EBITDA of $51 million in Q1, reflecting a 65% year-over-year increase, indicating a clear inflection point in performance driven by broad-based structural growth across multiple areas.
Retail Transformation Progress: The company converted 41 retail stores to dealer locations in the first quarter, bringing the total to 450, with expectations to complete approximately 75 additional conversions by the end of 2026, enhancing competitive positioning in the market.
Strong Membership Growth: Enrollment surged by 98% in Q1, with approximately 53,000 new members joining primarily due to the launch of a new app and a $10 enrollment program, which is expected to boost customer loyalty and market penetration.
Improved Financial Health: Despite a net loss of $5.6 million, Arko maintains a cash reserve of $272 million and total liquidity of approximately $1.1 billion, reflecting solid financial health and potential for future growth.