Quarterly report [Sections 13 or 15(d)]

Segment Reporting

v3.26.1
Segment Reporting
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Reporting

11. 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. The Company’s reportable segments are 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 sale and supply 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 were not supplied by the GPMP segment.

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 June 30, 2026

(in thousands)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel revenue

 

$

866,999

 

 

$

917,696

 

 

$

175,343

 

 

$

—

 

 

$

5,880

 

 

$

1,965,918

 

Merchandise revenue

 

 

347,428

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

347,428

 

Other revenues, net

 

 

12,906

 

 

 

16,984

 

 

 

2,905

 

 

 

47

 

 

 

355

 

 

 

33,197

 

Total revenues from external
  customers

 

$

1,227,333

 

 

$

934,680

 

 

$

178,248

 

 

$

47

 

 

$

6,235

 

 

$

2,346,543

 

Inter-segment revenues

 

$

—

 

 

$

405

 

 

$

—

 

 

$

1,756,681

 

 

$

5,895

 

 

$

1,762,981

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel costs

 

$

767,530

 

 

$

891,375

 

 

$

158,258

 

 

$

1,727,800

 

 

 

 

 

 

 

Merchandise costs

 

 

226,922

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and wages

 

 

61,106

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit card fees

 

 

22,677

 

 

 

1,826

 

 

 

1,325

 

 

 

 

 

 

 

 

 

 

Rent

 

 

30,331

 

 

 

13,580

 

 

 

2,952

 

 

 

 

 

 

 

 

 

 

Repairs and maintenance

 

 

13,405

 

 

 

1,944

 

 

 

916

 

 

 

 

 

 

 

 

 

 

Other segment expenses

 

 

32,447

 

 

 

1,477

 

 

 

1,510

 

 

 

2,358

 

 

 

11,815

 

 

 

 

Operating income from segments

 

$

72,915

 

 

$

24,883

 

 

$

13,287

 

 

$

26,570

 

 

$

315

 

 

$

137,970

 

Interest and other financial expenses, net

 

 

 

 

 

 

 

 

$

(3,679

)

 

 

 

 

$

(3,679

)

Income from equity investment

 

 

 

 

 

 

 

 

 

 

 

 

 

$

2

 

 

$

2

 

 

 

 

Retail

 

 

Wholesale

 

 

Fleet Fueling

 

 

GPMP

 

 

All Other

 

 

Total

 

For the Three Months Ended June 30, 2025

(in thousands)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel revenue

 

$

748,103

 

 

$

696,103

 

 

$

118,121

 

 

$

353

 

 

$

6,294

 

 

$

1,568,974

 

Merchandise revenue

 

 

400,126

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

400,126

 

Other revenues, net

 

 

14,622

 

 

 

12,501

 

 

 

2,245

 

 

 

191

 

 

 

292

 

 

 

29,851

 

Total revenues from external
  customers

 

$

1,162,851

 

 

$

708,604

 

 

$

120,366

 

 

$

544

 

 

$

6,586

 

 

$

1,998,951

 

Inter-segment revenues

 

$

—

 

 

$

—

 

 

$

—

 

 

$

1,258,130

 

 

$

5,389

 

 

$

1,263,519

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel costs

 

$

640,231

 

 

$

670,714

 

 

$

100,353

 

 

$

1,232,066

 

 

 

 

 

 

 

Merchandise costs

 

 

265,641

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and wages

 

 

70,669

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit card fees

 

 

21,384

 

 

 

1,823

 

 

 

1,136

 

 

 

 

 

 

 

 

 

 

Rent

 

 

33,383

 

 

 

9,451

 

 

 

2,845

 

 

 

 

 

 

 

 

 

 

Repairs and maintenance

 

 

14,854

 

 

 

1,277

 

 

 

1,255

 

 

 

 

 

 

 

 

 

 

Other segment expenses

 

 

36,319

 

 

 

2,097

 

 

 

1,698

 

 

 

2,660

 

 

 

12,125

 

 

 

 

Operating income (loss) from
  segments

 

$

80,370

 

 

$

23,242

 

 

$

13,079

 

 

$

23,948

 

 

$

(150

)

 

$

140,489

 

Interest and other financial expenses, net

 

 

 

 

 

 

 

 

$

(7,797

)

 

 

 

 

$

(7,797

)

Income from equity investment

 

 

 

 

 

 

 

 

 

 

 

 

 

$

26

 

 

$

26

 

 

 

 

Retail

 

 

Wholesale

 

 

Fleet Fueling

 

 

GPMP

 

 

All Other

 

 

Total

 

For the Six Months Ended June 30, 2026

(in thousands)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel revenue

 

$

1,494,059

 

 

$

1,591,551

 

 

$

302,642

 

 

$

—

 

 

$

12,324

 

 

$

3,400,576

 

Merchandise revenue

 

 

652,838

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

652,838

 

Other revenues, net

 

 

25,602

 

 

 

33,514

 

 

 

5,146

 

 

 

218

 

 

 

515

 

 

 

64,995

 

Total revenues from external
  customers

 

$

2,172,499

 

 

$

1,625,065

 

 

$

307,788

 

 

$

218

 

 

$

12,839

 

 

$

4,118,409

 

Inter-segment revenues

 

$

—

 

 

$

929

 

 

$

—

 

 

$

2,995,130

 

 

$

10,980

 

 

$

3,007,039

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel costs

 

$

1,301,324

 

 

$

1,542,339

 

 

$

268,812

 

 

$

2,938,482

 

 

 

 

 

 

 

Merchandise costs

 

 

428,822

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and wages

 

 

122,321

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit card fees

 

 

40,631

 

 

 

3,348

 

 

 

2,735

 

 

 

 

 

 

 

 

 

 

Rent

 

 

61,479

 

 

 

26,532

 

 

 

5,924

 

 

 

 

 

 

 

 

 

 

Repairs and maintenance

 

 

26,820

 

 

 

3,211

 

 

 

1,906

 

 

 

 

 

 

 

 

 

 

Other segment expenses

 

 

64,588

 

 

 

2,669

 

 

 

3,169

 

 

 

4,680

 

 

 

23,360

 

 

 

 

Operating income from segments

 

$

126,514

 

 

$

47,895

 

 

$

25,242

 

 

$

52,186

 

 

$

459

 

 

$

252,296

 

Interest and other financial expenses, net

 

 

 

 

 

 

 

 

$

(9,200

)

 

 

 

 

$

(9,200

)

Income from equity investment

 

 

 

 

 

 

 

 

 

 

 

 

 

$

21

 

 

$

21

 

 

 

 

Retail

 

 

Wholesale

 

 

Fleet Fueling

 

 

GPMP

 

 

All Other

 

 

Total

 

For the Six Months Ended June 30, 2025

(in thousands)

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel revenue

 

$

1,438,789

 

 

$

1,326,163

 

 

$

236,527

 

 

$

849

 

 

$

14,130

 

 

$

3,016,458

 

Merchandise revenue

 

 

754,611

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

754,611

 

Other revenues, net

 

 

29,169

 

 

 

22,853

 

 

 

4,363

 

 

 

346

 

 

 

624

 

 

 

57,355

 

Total revenues from external
  customers

 

$

2,222,569

 

 

$

1,349,016

 

 

$

240,890

 

 

$

1,195

 

 

$

14,754

 

 

$

3,828,424

 

Inter-segment revenues

 

$

—

 

 

$

—

 

 

$

—

 

 

$

2,427,346

 

 

$

10,474

 

 

$

2,437,820

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fuel costs

 

$

1,245,644

 

 

$

1,280,727

 

 

$

203,457

 

 

$

2,377,339

 

 

 

 

 

 

 

Merchandise costs

 

 

502,556

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and wages

 

 

142,337

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit card fees

 

 

40,800

 

 

 

3,492

 

 

 

2,181

 

 

 

 

 

 

 

 

 

 

Rent

 

 

67,221

 

 

 

18,107

 

 

 

5,699

 

 

 

 

 

 

 

 

 

 

Repairs and maintenance

 

 

30,513

 

 

 

2,268

 

 

 

2,173

 

 

 

 

 

 

 

 

 

 

Other segment expenses

 

 

72,977

 

 

 

2,550

 

 

 

3,309

 

 

 

5,328

 

 

 

25,210

 

 

 

 

Operating income from segments

 

$

120,521

 

 

$

41,872

 

 

$

24,071

 

 

$

45,874

 

 

$

18

 

 

$

232,356

 

Interest and other financial expenses, net

 

 

 

 

 

 

 

 

$

(15,275

)

 

 

 

 

$

(15,275

)

Income from equity investment

 

 

 

 

 

 

 

 

 

 

 

 

 

$

47

 

 

$

47

 

 

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 June 30,

 

 

For the Six Months
Ended June 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

 

 

(in thousands)

 

Operating income from reportable segments

 

$

137,655

 

 

$

140,639

 

 

$

251,837

 

 

$

232,338

 

All other operating income (loss)

 

 

315

 

 

 

(150

)

 

 

459

 

 

 

18

 

Intercompany charges by the GPMP segment 1

 

 

(28,881

)

 

 

(26,421

)

 

 

(56,648

)

 

 

(50,858

)

Interest and other financial expenses, net

 

 

(3,679

)

 

 

(7,797

)

 

 

(9,200

)

 

 

(15,275

)

Amounts not allocated to segments:

 

 

 

 

 

 

 

 

 

 

 

 

Site operating expenses

 

 

(2,278

)

 

 

(2,949

)

 

 

(4,710

)

 

 

(6,094

)

General and administrative expenses

 

 

(43,176

)

 

 

(39,922

)

 

 

(82,664

)

 

 

(80,707

)

Depreciation and amortization

 

 

(30,357

)

 

 

(31,762

)

 

 

(60,916

)

 

 

(64,809

)

Other expenses, net

 

 

(2,898

)

 

 

17,255

 

 

 

(6,941

)

 

 

15,038

 

Interest and other financial expenses, net

 

 

(10,332

)

 

 

(11,721

)

 

 

(22,956

)

 

 

(18,094

)

Income before income taxes

 

$

16,369

 

 

$

37,172

 

 

$

8,261

 

 

$

11,557

 

 

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.