ARKO (NASDAQ:ARKO) Posts Earnings Results, Beats Estimates By $0.09 EPS

ARKO (NASDAQ:ARKO) issued its quarterly earnings results on Thursday. The company reported ($0.07) EPS for the quarter, topping analysts’ consensus estimates of ($0.16) by $0.09, FiscalAI reports. The firm had revenue of $1.77 billion for the quarter, compared to analyst estimates of $1.65 billion. ARKO had a net margin of 0.30% and a return on equity of 8.58%. During the same quarter in the prior year, the firm earned ($0.12) EPS.

Here are the key takeaways from ARKO’s conference call:

• Adjusted EBITDA increased ~65% year‑over‑year to $51 million in Q1, driven by broad-based strength across retail, wholesale and fleet fueling plus disciplined cost control.
• Dealerization accelerated with 41 retail-to-dealer conversions in Q1 (450 total since 2024 and ~75 more committed), which management says is lowering site operating costs, reducing maintenance CapEx and improving cash flow.
• Retail and fuel trends improved — same‑store merchandise sales excluding cigarettes returned to growth (+0.4%), merchandise margin rose 70 bps to 33.9%, retail cents per gallon reached $0.479, and same‑store fuel contribution was up ~20% with transactions and gallons strengthening in March.
• The minority IPO of ARKO Petroleum Corp. (APC) materially improved balance‑sheet visibility and liquidity — ARKO holds 35 million APC shares (implied value ~$650 million), used APC proceeds to pay down $206.7 million of debt, and ended Q1 with $272 million cash and ~$1.1 billion total liquidity.
• Despite the quarter’s momentum, management declined to update full‑year guidance, citing current market uncertainty, leaving near‑term outlook visibility limited.

ARKO Trading Up 2.4%

Shares of ARKO stock traded up $0.16 on Friday, hitting $6.87. 1,538,293 shares of the company’s stock traded hands, compared to its average volume of 757,691. The company has a debt-to-equity ratio of 4.02, a quick ratio of 1.22 and a current ratio of 1.66. ARKO has a one year low of $3.71 and a one year high of $7.07. The company’s fifty day simple moving average is $5.91 and its 200 day simple moving average is $5.30. The stock has a market capitalization of $770.68 million, a price-to-earnings ratio of 49.07 and a beta of 0.94.

ARKO Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, May 29th. Investors of record on Monday, May 18th will be issued a dividend of $0.03 per share. The ex-dividend date of this dividend is Monday, May 18th. This represents a $0.12 annualized dividend and a dividend yield of 1.7%. ARKO’s dividend payout ratio (DPR) is currently 85.71%.

Insider Activity at ARKO

In other ARKO news, CFO Charles Galagher Jeff bought 40,000 shares of ARKO stock in a transaction that occurred on Tuesday, March 17th. The shares were bought at an average price of $5.07 per share, with a total value of $202,800.00. Following the acquisition, the chief financial officer owned 40,000 shares in the company, valued at approximately $202,800. This trade represents a ∞ increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Corporate insiders own 22.50% of the company’s stock.

Hedge Funds Weigh In On ARKO

Institutional investors and hedge funds have recently made changes to their positions in the business. Cetera Investment Advisers grew its holdings in shares of ARKO by 48.4% during the 2nd quarter. Cetera Investment Advisers now owns 31,389 shares of the company’s stock valued at $133,000 after purchasing an additional 10,233 shares during the last quarter. Quantbot Technologies LP bought a new position in shares of ARKO during the 2nd quarter valued at $127,000. Cerity Partners LLC grew its holdings in shares of ARKO by 7.3% during the 4th quarter. Cerity Partners LLC now owns 24,671 shares of the company’s stock valued at $112,000 after purchasing an additional 1,685 shares during the last quarter. XTX Topco Ltd grew its holdings in shares of ARKO by 22.9% during the 4th quarter. XTX Topco Ltd now owns 23,703 shares of the company’s stock valued at $108,000 after purchasing an additional 4,415 shares during the last quarter. Finally, CANADA LIFE ASSURANCE Co bought a new position in shares of ARKO during the 2nd quarter valued at $88,000. Institutional investors own 78.29% of the company’s stock.

Trending Headlines about ARKO

Here are the key news stories impacting ARKO this week:

• Positive Sentiment: ARKO’s Q1 loss narrowed versus last year and came in much better than analyst expectations, while revenue also topped estimates, supporting the stock. ARKO Corp. (ARKO) Reports Q1 Loss, Beats Revenue Estimates
• Positive Sentiment: The company said it will hold full-year guidance unchanged and plans 20 NTI cardlocks plus 25 remodels in 2026, suggesting management remains confident in its operating outlook. Arko plans 20 NTI cardlocks and 25 remodels in 2026 as it holds full-year guidance unchanged
• Neutral Sentiment: Market commentary ahead of the report focused on what to watch in Q1 earnings, but it did not add a major new catalyst on its own. ARKO Corp (ARKO) Q1 2026 Earnings Report Preview: What To Look For
• Neutral Sentiment: Zacks published a value-investing note on ARKO, but it was mainly a screening-style article and not a fresh operating update. Should Value Investors Buy ARKO (ARKO) Stock?
• Negative Sentiment: The company still posted a quarterly loss, and its leverage remains relatively high, so investors may be watching for more sustained profitability improvement. ARKO Corp. Reports First Quarter 2026 Results

Analysts Set New Price Targets

Separately, Weiss Ratings reissued a “sell (d+)” rating on shares of ARKO in a report on Friday, April 10th. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $6.50.

ARKO Company Profile

ARKO Corp (NASDAQ: ARKO) is a downstream energy and convenience retail company based in Matthews, North Carolina. The company’s core operations encompass fuel supply, distribution and retailing through a network of terminals, independent dealer locations and company-operated convenience stores. ARKO’s fuel offerings include branded and unbranded gasoline and diesel, as well as lubricants and other petroleum products marketed under various regional and private labels.

In its retail segment, ARKO operates a portfolio of convenience stores under the Kangaroo Express banner, serving on-site customers with fuel, grab-and-go food items, beverages and everyday household essentials.