ARKO 2025 Q3 Earnings Earnings Surge 39.1% Despite Revenue Decline

ARKO Corp. (ARKO) reported mixed third-quarter 2025 results, with strong earnings growth offset by a revenue decline. The company exceeded adjusted EBITDA guidance and raised full-year projections, signaling confidence in its transformation strategy. However, revenue fell short of expectations, reflecting ongoing macroeconomic challenges.

Revenue

ARKO’s total revenue decreased by 11.7% to $1.99 billion in Q3 2025, down from $2.25 billion in the prior-year period. Retail operations led with $1.15 billion in revenue, supported by a stable same-store sales performance. The Wholesale segment contributed $739.69 million, while Fleet Fueling generated $124.93 million. General Petroleum Marketing (GPMP) revenue stood at $194,000, and other segments accounted for $7.17 million.

Earnings/Net Income

ARKO’s profitability surged, with EPS rising 57.1% to $0.11 and net income growing 39.1% to $13.46 million. The earnings growth underscores improved operational efficiency and disciplined cost management, despite weaker top-line performance.

Post-Earnings Price Action Review

ARKO’s stock demonstrated resilience post-earnings, climbing 2.48% in a single trading day, 3.64% over the week, and 4.84% month-to-date. The upward momentum aligns with the company’s raised guidance and strategic progress in dealerization and cost optimization. Investors appeared encouraged by management’s confidence in long-term value creation and the loyalty program’s expansion.

CEO Commentary

Arie Kotler emphasized progress in dealerization, with 350 stores converted and 185 under contract, projecting $20 million+ in annualized savings. The Fueling America’s Future loyalty program added 35,000 members, totaling 2.4 million. Kotler reiterated focus on balance sheet strength and operational execution.

Guidance

Interim CFO Jordan Mann outlined Q4 adjusted EBITDA guidance of $50–60 million and full-year projections of $233–243 million. Retail segment assumptions include low-to-mid-single-digit sales growth and mid-single-digit gallon increases. Capital expenditures for Q3 totaled $24.9 million.

Additional News

1. C-Level Changes: Jordan Mann was appointed interim CFO, succeeding departing leadership.

2. Strategic Updates: ARKO filed its 10-Q report, highlighting dealerization progress and $24.9 million in Q3 capital expenditures.

3. EBITDA Guidance: Full-year adjusted EBITDA guidance was raised to $233–243 million, reflecting confidence in dealerization and cost reductions.