Quarterly report [Sections 13 or 15(d)]

Segment Reporting

v3.26.3
Segment Reporting
 9 Months Ended
Sep. 30, 2026
Segment Reporting [Abstract]  
Segment Reporting

12. Segment Reporting

The reportable segments were determined based on information reviewed by the Company’s chief operating decision maker (“CODM”) for operational decision-making purposes, and the segment information is prepared on the same basis that the CODM reviews such financial information. As of September 30, 2026, the Company’s reportable segments were retail, wholesale, fleet fueling and GPMP. Arie Kotler, the Company’s Chairman of the Board, President and Chief Executive Officer, is the CODM. The CODM utilizes operating income from each segment to assess its operating performance and to make decisions about allocating resources to each segment. In reviewing segment operating income each month, the CODM compares actual results to budgets and prior-year performance. Based on this analysis, the CODM allocates incremental capital spending and prioritizes strategic and business development initiatives across the segments. The CODM also uses this measure to make decisions on budgets, acquisitions, capital expenditures, and management compensation.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies except that rent expenses for each segment are recognized and measured on the basis of cash payments.

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. At its retail convenience stores, the Company owns the merchandise and fuel inventory and employs personnel to manage the store.

The wholesale segment supplies fuel to dealers, sub-wholesalers and bulk and spot purchasers, on either a cost plus or consignment basis. For consignment arrangements, the Company retains ownership of the fuel inventory at the site, is responsible for the pricing of the fuel to the end consumer and shares the gross profit generated from the sale of fuel with the consignment dealers. For cost plus arrangements, the Company sells fuel to dealers and bulk and spot purchasers on a fixed-fee basis. The sales price is determined according to the terms of the relevant agreement, which typically reflects the Company’s total fuel costs plus the cost of transportation, taxes and a fixed margin, with the Company generally retaining any prompt pay discounts and rebates.

The fleet fueling segment includes the operation of proprietary and third-party cardlock locations (unstaffed fueling locations), and commissions from the sales of fuel using proprietary fuel cards that provide customers access to a nationwide network of fueling sites.

The GPMP segment primarily includes the inter-segment wholesale distribution of fuel to substantially all of the Company’s sites that sell fuel in the retail and wholesale segments, and beginning February 1, 2026, to locations in the fleet fueling segment, at the GPMP segment’s cost of fuel (including taxes and transportation) plus a fixed margin (through December 31, 2025, 5.0 cents per gallon; 6.0 cents per gallon thereafter), and charges an inter-segment fixed fee (through December 31, 2025, 5.0 cents per gallon; 6.0 cents per gallon thereafter) primarily, prior to February 1, 2026, to sites in the fleet fueling segment that it did not supply.

The “All Other” segment includes the results of non-reportable segments that do not meet both quantitative and qualitative criteria as defined under ASC 280, Segment Reporting.

The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. Inter-segment expenses were included within the amounts shown; however, the fuel costs in the retail, wholesale and fleet fueling segments exclude the fixed margin or fixed fee paid to the GPMP segment for the cost of fuel.

The majority of general and administrative expenses, depreciation and amortization, net other expenses, net interest and other financial expenses, income taxes and minor other income items are not allocated to the segments. Other segment expenses include utilities, telephone, upkeep and taxes, insurance, supplies, advertising, and certain other expenses. Other segment expenses in the GPMP segment also include general and administrative expenses, and depreciation and amortization.

With the exception of goodwill, assets and liabilities relevant to the reportable segments are generally not assigned to any particular segment, but rather, managed and reviewed by the CODM at the consolidated level. All reportable segment revenues were generated from sites within the U.S. and substantially all of the Company’s assets were within the U.S.

Inter-segment transactions primarily included the sale of fuel to substantially all of the Company’s sites that sell fuel in all of its segments, and until February 1, 2026, fixed fee charges primarily to sites that sold fuel in the fleet fueling segment that were not supplied by the GPMP segment until then. The effect of these inter-segment transactions was eliminated in the interim financial statements.

 

 

 

Retail

 

 

Wholesale

 

 

Fleet Fueling

 

 

GPMP

 

 

All Other

 

 

Total

 

For the Three Months Ended September 30, 2026

(in thousands)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel revenue

 

$

860,412

 

 

$

957,611

 

 

$

183,553

 

 

$

—

 

 

$

5,702

 

 

$

2,007,278

 

Merchandise revenue

 

 

350,964

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

350,964

 

Other revenues, net

 

 

11,900

 

 

 

17,223

 

 

 

2,888

 

 

 

50

 

 

 

190

 

 

 

32,251

 

Total revenues from external
  customers

 

$

1,223,276

 

 

$

974,834

 

 

$

186,441

 

 

$

50

 

 

$

5,892

 

 

$

2,390,493

 

Inter-segment revenues

 

$

—

 

 

$

347

 

 

$

—

 

 

$

1,803,537

 

 

$

6,120

 

 

$

1,810,004

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel costs

 

$

760,234

 

 

$

930,891

 

 

$

165,940

 

 

$

1,774,295

 

 

 

 

 

 

 

Merchandise costs

 

 

228,994

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and wages

 

 

60,721

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit card fees

 

 

22,943

 

 

 

1,771

 

 

 

1,604

 

 

 

 

 

 

 

 

 

 

Rent

 

 

30,717

 

 

 

13,696

 

 

 

3,022

 

 

 

 

 

 

 

 

 

 

Repairs and maintenance

 

 

12,538

 

 

 

1,494

 

 

 

959

 

 

 

 

 

 

 

 

 

 

Other segment expenses

 

 

33,399

 

 

 

1,506

 

 

 

1,622

 

 

 

2,362

 

 

 

11,528

 

 

 

 

Operating income from segments

 

$

73,730

 

 

$

25,823

 

 

$

13,294

 

 

$

26,930

 

 

$

484

 

 

$

140,261

 

Interest and other financial expenses, net

 

 

 

 

 

 

 

 

$

(3,789

)

 

 

 

 

$

(3,789

)

Loss from equity investment

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(11

)

 

$

(11

)

 

 

 

Retail

 

 

Wholesale

 

 

Fleet Fueling

 

 

GPMP

 

 

All Other

 

 

Total

 

For the Three Months Ended September 30, 2025

(in thousands)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel revenue

 

$

744,405

 

 

$

725,990

 

 

$

122,692

 

 

$

—

 

 

$

6,903

 

 

$

1,599,990

 

Merchandise revenue

 

 

389,727

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

389,727

 

Other revenues, net

 

 

14,715

 

 

 

13,697

 

 

 

2,240

 

 

 

194

 

 

 

270

 

 

 

31,116

 

Total revenues from external
  customers

 

$

1,148,847

 

 

$

739,687

 

 

$

124,932

 

 

$

194

 

 

$

7,173

 

 

$

2,020,833

 

Inter-segment revenues

 

$

—

 

 

$

—

 

 

$

—

 

 

$

1,293,597

 

 

$

5,626

 

 

$

1,299,223

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel costs

 

$

640,278

 

 

$

700,922

 

 

$

105,952

 

 

$

1,266,828

 

 

 

 

 

 

 

Merchandise costs

 

 

258,248

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and wages

 

 

67,403

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit card fees

 

 

21,287

 

 

 

1,836

 

 

 

1,144

 

 

 

 

 

 

 

 

 

 

Rent

 

 

32,463

 

 

 

10,708

 

 

 

2,905

 

 

 

 

 

 

 

 

 

 

Repairs and maintenance

 

 

14,528

 

 

 

988

 

 

 

1,145

 

 

 

 

 

 

 

 

 

 

Other segment expenses

 

 

37,170

 

 

 

1,105

 

 

 

1,575

 

 

 

2,655

 

 

 

13,028

 

 

 

 

Operating income (loss) from
  segments

 

$

77,470

 

 

$

24,128

 

 

$

12,211

 

 

$

24,308

 

 

$

(229

)

 

$

137,888

 

Interest and other financial expenses, net

 

 

 

 

 

 

 

 

$

(7,973

)

 

 

 

 

$

(7,973

)

Income from equity investment

 

 

 

 

 

 

 

 

 

 

 

 

 

$

48

 

 

$

48

 

 

 

 

Retail

 

 

Wholesale

 

 

Fleet Fueling

 

 

GPMP

 

 

All Other

 

 

Total

 

For the Nine Months Ended September 30, 2026

(in thousands)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel revenue

 

$

2,354,471

 

 

$

2,549,162

 

 

$

486,195

 

 

$

—

 

 

$

18,026

 

 

$

5,407,854

 

Merchandise revenue

 

 

1,003,802

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,003,802

 

Other revenues, net

 

 

37,502

 

 

 

50,737

 

 

 

8,034

 

 

 

268

 

 

 

705

 

 

 

97,246

 

Total revenues from external
  customers

 

$

3,395,775

 

 

$

2,599,899

 

 

$

494,229

 

 

$

268

 

 

$

18,731

 

 

$

6,508,902

 

Inter-segment revenues

 

$

—

 

 

$

1,276

 

 

$

—

 

 

$

4,798,667

 

 

$

17,100

 

 

$

4,817,043

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel costs

 

$

2,061,558

 

 

$

2,473,230

 

 

$

434,752

 

 

$

4,712,777

 

 

 

 

 

 

 

Merchandise costs

 

 

657,816

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and wages

 

 

183,042

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit card fees

 

 

63,574

 

 

 

5,119

 

 

 

4,339

 

 

 

 

 

 

 

 

 

 

Rent

 

 

92,196

 

 

 

40,228

 

 

 

8,946

 

 

 

 

 

 

 

 

 

 

Repairs and maintenance

 

 

39,358

 

 

 

4,705

 

 

 

2,865

 

 

 

 

 

 

 

 

 

 

Other segment expenses

 

 

97,987

 

 

 

4,175

 

 

 

4,791

 

 

 

7,042

 

 

 

34,888

 

 

 

 

Operating income from segments

 

$

200,244

 

 

$

73,718

 

 

$

38,536

 

 

$

79,116

 

 

$

943

 

 

$

392,557

 

Interest and other financial expenses, net

 

 

 

 

 

 

 

 

$

(12,989

)

 

 

 

 

$

(12,989

)

Income from equity investment

 

 

 

 

 

 

 

 

 

 

 

 

 

$

10

 

 

$

10

 

 

 

 

Retail

 

 

Wholesale

 

 

Fleet Fueling

 

 

GPMP

 

 

All Other

 

 

Total

 

For the Nine Months Ended September 30, 2025

(in thousands)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel revenue

 

$

2,183,194

 

 

$

2,052,153

 

 

$

359,219

 

 

$

849

 

 

$

21,033

 

 

$

4,616,448

 

Merchandise revenue

 

 

1,144,338

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,144,338

 

Other revenues, net

 

 

43,884

 

 

 

36,550

 

 

 

6,603

 

 

 

540

 

 

 

894

 

 

 

88,471

 

Total revenues from external
  customers

 

$

3,371,416

 

 

$

2,088,703

 

 

$

365,822

 

 

$

1,389

 

 

$

21,927

 

 

$

5,849,257

 

Inter-segment revenues

 

$

—

 

 

$

—

 

 

$

—

 

 

$

3,720,945

 

 

$

16,100

 

 

$

3,737,045

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel costs

 

$

1,885,922

 

 

$

1,981,649

 

 

$

309,409

 

 

$

3,644,169

 

 

 

 

 

 

 

Merchandise costs

 

 

760,804

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and wages

 

 

209,740

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit card fees

 

 

62,087

 

 

 

5,328

 

 

 

3,325

 

 

 

 

 

 

 

 

 

 

Rent

 

 

99,684

 

 

 

28,815

 

 

 

8,604

 

 

 

 

 

 

 

 

 

 

Repairs and maintenance

 

 

45,041

 

 

 

3,256

 

 

 

3,318

 

 

 

 

 

 

 

 

 

 

Other segment expenses

 

 

110,147

 

 

 

3,655

 

 

 

4,884

 

 

 

7,983

 

 

 

38,238

 

 

 

 

Operating income (loss) from
  segments

 

$

197,991

 

 

$

66,000

 

 

$

36,282

 

 

$

70,182

 

 

$

(211

)

 

$

370,244

 

Interest and other financial expenses, net

 

 

 

 

 

 

 

 

$

(23,248

)

 

 

 

 

$

(23,248

)

Income from equity investment

 

 

 

 

 

 

 

 

 

 

 

 

 

$

95

 

 

$

95

 

 

A reconciliation of operating income from reportable segments to consolidated income before income taxes on the condensed consolidated statements of operations is as follows:

 

 

 

For the Three Months
Ended September 30,

 

 

For the Nine Months
Ended September 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

 

 

(in thousands)

 

Operating income from reportable segments

 

$

139,777

 

 

$

138,117

 

 

$

391,614

 

 

$

370,455

 

All other operating income (loss)

 

 

484

 

 

 

(229

)

 

 

943

 

 

 

(211

)

Intercompany charges by the GPMP segment 1

 

 

(29,242

)

 

 

(26,762

)

 

 

(85,890

)

 

 

(77,620

)

Interest and other financial expenses, net

 

 

(3,789

)

 

 

(7,973

)

 

 

(12,989

)

 

 

(23,248

)

Amounts not allocated to segments:

 

 

 

 

 

 

 

 

 

 

 

 

Site operating expenses

 

 

(2,266

)

 

 

(2,862

)

 

 

(6,976

)

 

 

(8,956

)

General and administrative expenses

 

 

(40,237

)

 

 

(39,232

)

 

 

(122,901

)

 

 

(119,939

)

Depreciation and amortization

 

 

(30,950

)

 

 

(31,105

)

 

 

(91,866

)

 

 

(95,914

)

Other (expenses) income, net

 

 

(2,337

)

 

 

(2,003

)

 

 

(9,278

)

 

 

13,035

 

Interest and other financial expenses, net

 

 

(7,325

)

 

 

(12,172

)

 

 

(30,281

)

 

 

(30,266

)

Income before income taxes

 

$

24,115

 

 

$

15,779

 

 

$

32,376

 

 

$

27,336

 

 

1 Represents the fixed margin or fixed fee (through December 31, 2025, 5.0 cents per gallon; 6.0 cents per gallon thereafter) paid to the GPMP segment for the cost of fuel and recorded by the GPMP segment as inter-segment revenues.