ARKO 2025 Q3 Earnings Net Income Surges 39.1% Despite Revenue Decline

ARKO Corp. (ARKO) reported fiscal 2025 Q3 earnings on November 6, 2025, delivering a significant net income increase despite a revenue contraction. The company beat adjusted EBITDA expectations and raised full-year guidance, signaling strategic progress amid macroeconomic challenges.

Revenue

ARKO’s total revenue fell 11.7% to $1.99 billion in Q3 2025, driven by lower fuel prices and reduced gallon sales. The retail segment led with $1.15 billion, supported by 1,182 convenience stores. Wholesale revenue reached $739.69 million, reflecting 2,053 dealer locations, while fleet fueling contributed $124.93 million. General Merchandise & Petroleum (GPMP) reported $194,000, and other segments added $7.17 million.

Earnings/Net Income

Earnings per share (EPS) surged 57.1% to $0.11, outpacing the prior year’s $0.07, as net income rose 39.1% to $13.46 million. This marked a strong performance despite revenue headwinds, with operating income at $35.9 million, down from $41.6 million in Q3 2024.

Price Action

Following the earnings release, ARKO’s stock gained 2.48% in a single trading day, 3.64% weekly, and 4.84% month-to-date.

Post-Earnings Price Action Review

ARKO’s stock exhibited mixed post-earnings momentum, reflecting investor uncertainty about near-term sustainability. While the company exceeded EBITDA expectations and provided optimistic guidance, shares had declined 32.9% year-to-date, underperforming the S&P 500’s 15.1% gain. Analysts highlighted the Zacks Rank #3 (Hold) rating, suggesting the stock may align with market trends in the near term.

CEO Commentary

Chairman Arie Kotler emphasized dealerization as a key growth driver, with 350 stores converted and $20 million in annualized benefits projected. The fas REWARDS loyalty program saw 37% higher enrollment, with members spending 53% more than nonmembers. Strategic priorities include expanding the loyalty platform and accelerating store remodels.

Guidance

ARKO updated its full-year 2025 adjusted EBITDA guidance to $233–$243 million, up from previous estimates. The company also announced the appointment of Jordan Mann as interim CFO, reflecting ongoing leadership changes.

Additional News

1. C-Level Changes: Jordan Mann was named interim CFO, signaling organizational restructuring.

2. Dealerization Expansion: 347 stores converted since mid-2024, with 194 added in Q3 alone.

3. Loyalty Program Growth: fas REWARDS membership surged, driving higher customer spending.

ARKO’s Q3 results underscore resilience in earnings despite top-line challenges, with management confident in long-term value creation through dealerization, loyalty initiatives, and operational efficiency. Investors remain cautious, balancing near-term risks with strategic progress.