Arko (ARKO) Q1 2026 earnings summary

Executive summary

• Q1 2026 marked a significant inflection point, with broad-based operational and financial improvements across retail, wholesale, and fleet fueling segments, driven by disciplined cost control, dealerization, and strong promotional execution.

• Net loss narrowed to $5.6 million from $12.7 million year-over-year, with Adjusted EBITDA up 65.1% to $51 million, reflecting structural progress rather than one-time events.

• Retail same-store merchandise sales excluding cigarettes returned to growth for the first time in two years, and fuel transaction trends outperformed national averages.

• Completed the IPO of subsidiary ARKO Petroleum Corp. (APC) in February 2026, raising $206.8 million, enhancing transparency and financial flexibility.

• Dealerization strategy continued, with 41 stores converted in Q1 and 450 total since 2024, reducing costs and focusing the portfolio on high-performing locations.

Financial highlights

• Q1 2026 revenue: $1.77 billion, down 3.1% year-over-year; net loss attributable to common shareholders: $8.1 million, improved from $14.1 million loss in Q1 2025.

• Adjusted EBITDA reached $51 million, up 65% year-over-year.

• Merchandise margin improved to 33.9%, up 70 basis points year-over-year.

• Retail fuel same-store gallons declined 3.2% year-over-year but improved sequentially; fuel transactions up 7% in March.

• Total retail site-level operating expenses down 12% to $155.9 million, driven by dealerization.

Outlook and guidance

• April trends continued the positive momentum seen in Q1.

• Full-year 2026 Adjusted EBITDA guidance remains $245–$265 million, with retail fuel margin expected between 41.5–43.5 cents per gallon.

• No update to full-year guidance due to market uncertainty, but management remains focused on executing transformation initiatives and capital allocation for growth.