ARKO Corp. Reports Second 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 second quarter ended June 30, 2025.

Second Quarter 2025 Key Highlights (vs. Year-Ago Quarter) 1,2

Other Key Highlights

“In the second quarter, we delivered solid results while navigating continued macroeconomic headwinds and shifting consumer spending,” said Arie Kotler, Chairman, President and Chief Executive Officer of ARKO. “Adjusted EBITDA exceeded the midpoint of our guidance, and we expanded merchandise margin year-over-year—demonstrating our ability to execute with discipline even as inflation and elevated household debt weighed on discretionary spending. We made important progress across several key initiatives, including continued growth in higher-margin categories like OTP, increased engagement from loyalty-driven promotions, and opening our first new format store where early results are exceeding expectations. We believe that these wins demonstrate that our strategy is working and building traction where it matters most—at the store level and with our customers.”

Mr. Kotler continued: “We repurchased 2.2 million shares of our common stock during the quarter, reflecting our belief in the long-term value of the business and our commitment to disciplined capital allocation. As we look ahead, we’re focused on operating with greater discipline, elevating the customer experience, and advancing the key elements of our transformation strategy to deliver sustainable value creation for our shareholders.”

Second Quarter 2025 Segment Highlights

Retail

Merchandise contribution for the second quarter of 2025 decreased $21.3 million, or 13.7%, compared to the second quarter of 2024, while merchandise margin increased to 33.6% for the second quarter of 2025 compared to 32.8% for the prior year period. The decrease in merchandise contribution was due to a $18.0 million decrease related to retail stores that were closed or converted to dealers in the trailing 12 month period and a $3.7 million decrease in same store merchandise contribution, primarily caused by a decline in customer transactions reflecting the challenging macroeconomic environment.

Fuel contribution for the second quarter of 2025 decreased $10.1 million, or 8.6%, compared to the second quarter of 2024, primarily due to a $9.4 million decrease in retail fuel contribution related to retail stores that were closed or converted to dealers in the trailing 12 month period and a same store fuel contribution decrease of $0.8 million attributable to gallon demand declines, reflecting the challenging macroeconomic environment. Fuel margin of 44.9 cents per gallon increased 3.3 cents per gallon compared to the second quarter of 2024.

Wholesale

For the second quarter of 2025, wholesale operating income increased $2.0 million compared to the second quarter of 2024. Additional operating income from retail sites converted to dealers in the trailing 12 month period more than offset reduced operating income at comparable wholesale sites.

Fuel contribution was $25.4 million for the second quarter of 2025 compared to $24.0 million for the second quarter of 2024. Fuel contribution for the second quarter of 2025 at fuel supply locations increased by $1.2 million, and fuel contribution at consignment agent locations increased by $0.2 million, as compared to the prior year period, with fuel margin increases of 0.3 cents per gallon and 0.9 cents per gallon, respectively, due principally to incremental contribution from retail stores converted to dealers. For the second quarter of 2025, other revenues, net increased by approximately $5.7 million, and site operating expenses increased by $5.1 million in each case as compared to the second quarter of 2024, resulting primarily from retail stores that the Company converted to dealers in the trailing 12 month period.

Fleet Fueling

Fuel contribution for the second quarter of 2025 decreased by $0.1 million compared to the second quarter of 2024. At proprietary cardlocks, fuel contribution decreased by $0.5 million, while fuel margin per gallon increased for the second quarter of 2025 compared to the second quarter of 2024 primarily due to favorable diesel margins. At third-party cardlock locations, fuel contribution increased by $0.4 million, and fuel margin per gallon also increased for the second

quarter of 2025 compared to the second quarter of 2024, primarily due to the closure of underperforming third-party locations.

Site Operating Expenses

For the three months ended June 30, 2025, convenience store operating expenses decreased $25.9 million, or 12.8%, compared to the prior year period primarily due to a decrease of $25.4 million from retail stores that were closed or converted to dealers and a decrease in same store operating expenses of $1.4 million, or 0.8%, related to lower personnel costs and credit card fees, partially offset by incremental expenses related to the SpeedyQ acquisition that closed in April 2024.

Liquidity and Capital Expenditures

As of June 30, 2025, the Company’s total liquidity was approximately $875 million, consisting of approximately $294 million of cash and cash equivalents and approximately $582 million of availability under the Company's lines of credit. Outstanding debt was $916 million, resulting in net debt, excluding lease related financing liabilities, of approximately $623 million. Capital expenditures were approximately $45.3 million for the quarter ended June 30, 2025, including the purchase of 22 fee properties, investments in NTI stores and remodeling of the new format stores, EV chargers, upgrades to fuel dispensers and other investments in stores.

Quarterly Dividend and Share Repurchase Program

The Company’s ability to return cash to its stockholders through its cash dividend program and share repurchase program is consistent with its capital allocation framework and reflects the Company’s confidence in the strength of its cash generation ability and strong financial position.

The Board declared a quarterly dividend of $0.03 per share of common stock to be paid on August 29, 2025 to stockholders of record as of August 18, 2025.

During the quarter, the Company repurchased approximately 2.2 million shares of common stock under its previously announced repurchase program for approximately $9.2 million, or an average price of $4.11 per share. There was approximately $11.3 million remaining under the share repurchase program as of June 30, 2025.

Company-Operated Retail Store Count and Segment Update

The following tables present certain information regarding changes in the retail, wholesale and fleet fueling segments for the periods presented:

Full Year and Third Quarter 2025 Guidance Range

The Company currently expects third quarter 2025 Adjusted EBITDA to range between $70 million and $80 million, with an assumed range of average total retail fuel margin from 42.5 to 44.5 cents per gallon. The Company is maintaining its full year 2025 Adjusted EBITDA range of $233 million to $253 million.

The Company is not providing guidance on net income at this time due to the volatility of certain required inputs that are not available without unreasonable efforts, including future fair value adjustments associated with its stock price, as well as depreciation and amortization related to its capital allocation as part of its focus on accelerating organic growth.

Conference Call and Webcast Details

The Company will host a conference call today, August 6, 2025, to discuss these results at 5:00 p.m. Eastern Time. Investors and analysts interested in participating in the live call can dial 877-605-1792 or 201-689-8728.

A simultaneous, live webcast will also be available on the Investor Relations section of the Company’s website at https://www.arkocorp.com/news-events/ir-calendar. The webcast will be archived for 30 days.

About ARKO Corp.

ARKO Corp. (Nasdaq: ARKO) is a Fortune 500 company that owns 100% of GPM Investments, LLC and is one of the largest operators of convenience stores and wholesalers of fuel in the United States. Based in Richmond, VA, our highly recognizable Family of Community Brands offers delicious, prepared foods, beer, snacks, candy, hot and cold beverages, and multiple popular quick serve restaurant brands. We operate in four reportable segments: retail, which includes convenience stores selling merchandise and fuel products to retail customers; wholesale, which supplies fuel to independent dealers and consignment agents; fleet fueling, which 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; and GPM Petroleum, which sells and supplies fuel to our retail and wholesale sites and charges a fixed fee, primarily to our fleet fueling sites. To learn more about GPM stores, visit: www.gpminvestments.com. To learn more about ARKO, visit: www.arkocorp.com.

Forward-Looking Statements

This document includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may address, among other things, the Company’s expected financial and operational results and the related assumptions underlying its expected results. These forward-looking statements are distinguished by use of words such as “accretive,” “anticipate,” “aim,” “believe,” “continue,” “could,” “estimate,” “expect,” “guidance,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “will,” “would” and the negative of these terms, and similar references to future periods. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to, among other things, changes in economic, business and market conditions; the Company’s ability to maintain the listing of its common stock and warrants on the Nasdaq Stock Market; changes in its strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects and plans; expansion plans and opportunities; changes in the markets in which it competes; changes in applicable laws or regulations, including those relating to environmental matters; market conditions and global and economic factors beyond its control; the success of the Company's transformation plan, including the dealerization of retail stores; and the outcome of any known or unknown litigation and regulatory proceedings. Detailed information about these factors and additional important factors can be found in the documents that the Company files with the Securities and Exchange Commission, such as Form 10-K, Form 10-Q and Form 8-K. Forward-looking statements speak only as of the date the statements were made. The Company does not undertake an obligation to update forward-looking information, except to the extent required by applicable law.

Use of Non-GAAP Measure

The Company discloses certain measures on a “same store basis,” which is a non-GAAP measure. Information disclosed on a “same store basis” excludes the results of any store that is not a “same store” for the applicable period. A store is considered a same store beginning in the first quarter in which the store had a full quarter of activity in the prior year. The Company believes that this information provides greater comparability regarding its ongoing operating performance. Neither this measure nor those described below should be considered an alternative to measurements presented in accordance with generally accepted accounting principles in the United States (“GAAP”).

The Company defines EBITDA as net income (loss) before net interest expense, income taxes, depreciation and amortization. Adjusted EBITDA further adjusts EBITDA by excluding the gain or loss on disposal of assets, impairment charges, acquisition and divestiture costs, share-based compensation expense, other non-cash items, and other unusual or non-recurring charges. Both EBITDA and Adjusted EBITDA are non-GAAP financial measures.

The Company uses EBITDA and Adjusted EBITDA for operational and financial decision-making and believe these measures are useful in evaluating its performance because they eliminate certain items that it does not consider indicators of its operating performance. EBITDA and Adjusted EBITDA are also used by many of its investors, securities analysts, and other interested parties in evaluating its operational and financial performance across reporting periods. The Company believes that the presentation of EBITDA and Adjusted EBITDA provides useful information to investors by allowing an understanding of key measures that it uses internally for operational decision-making, budgeting, evaluating acquisition targets, and assessing its operating performance.

EBITDA and Adjusted EBITDA are not recognized terms under GAAP and should not be considered as a substitute for net income (loss) or any other financial measure presented in accordance with GAAP. These measures have limitations as analytical tools and should not be considered in isolation or as substitutes for analysis of its results as reported under GAAP. The Company strongly encourages investors to review its financial statements and publicly filed reports in their entirety and not to rely on any single financial measure.

Because non-GAAP financial measures are not standardized, same store measures, EBITDA and Adjusted EBITDA, as defined by the Company, may not be comparable to similarly titled measures reported by other companies. It therefore may not be possible to compare the Company’s use of these non-GAAP financial measures with those used by other companies.

Company Contact

Jordan Mann

ARKO Corp.

investors@gpminvestments.com

Investor Contact

Sean Mansouri, CFA

Elevate IR

(720) 330-2829