RICHMOND, Va., May 11, 2026 (GLOBE NEWSWIRE) -- ARKO Petroleum Corp. (Nasdaq: APC) ("APC" or the "Company"), one of the largest wholesale fuel distributors in the United States, today announced financial results for the first quarter ended March 31, 2026.
First Quarter 2026 Key Highlights (vs. Year-Ago Period) (1,2)
-- Net income for the quarter increased to $8.1 million compared to $4.5
million.
-- Adjusted EBITDA for the quarter increased to $36.4 million compared to
$30.9 million.
-- Net cash provided by operating activities for the quarter was $6.6
million compared to $14.9 million.
-- Discretionary Cash Flow for the quarter was $25.0 million compared to
$17.1 million.
-- Total debt, net was $184.5 million and Net Debt was $313.5 million, in
each case, as of March 31, 2026.
Other Key Highlights
-- The Company completed its initial public offering of 12,570,223 shares of
its Class A common stock at a price to the public of $18.00 per share
(the "IPO") including the exercise by the underwriters of their
overallotment option, representing an aggregate of 26.4% of the economic
interests in the Company.
-- The Company applied $206.7 million of proceeds from the IPO to reduce
debt during the quarter and strengthened an already conservative balance
sheet, creating further financial flexibility for the Company.
-- As part of the ongoing transformation plan of the Company's controlling
stockholder, ARKO Corp. (Nasdaq: ARKO) ("ARKO"), 41 ARKO retail
convenience stores that sell fuel ("ARKO Retail Sites") were converted to
dealer locations in the Company's wholesale segment during the first
quarter of 2026, bringing total conversions since program inception in
2024 to 450 sites. ARKO has approximately 75 additional sites committed
either under letter of intent, under contract or already converted since
quarter end. The Company expects to complete these conversions, along
with additional conversions, by the end of 2026.
-- The Company continues to target 20 new-to-industry fleet fueling
locations with openings in 2026, with one opened in March 2026, and 17 of
which are in process, reflecting the attractive, durable cash flow
profile of its fleet fueling business.
"We are excited to share that APC delivered strong year-over-year growth, in its first quarter as a public company, continuing on the momentum we built through the end of 2025," said Arie Kotler, Chairman, President and Chief Executive Officer of APC. "We saw growth in operating income across all three of our segments, which underscores the resilience of our platform, enabling us to perform even during volatile market conditions. With our low leverage, and liquidity of approximately $731 million, we are well-positioned to grow share in a highly fragmented industry through new to industry builds in our fleet fueling segment and through disciplined, accretive M&A in our wholesale segment and to drive long-term shareholder value."
First Quarter 2026 Segment Highlights
Wholesale Segment
For the Three Months
Ended March 31,
------------------------
2026 2025
------------- ---------
(in thousands)
Fuel gallons sold -- fuel supply locations 198,400 191,077
Fuel gallons sold -- consignment agent
locations 35,540 36,515
Fuel contribution (1) -- fuel supply
locations $ 12,662 $ 11,453
Fuel contribution (1) -- consignment agent
locations $ 10,229 $ 8,594
Fuel margin, cents per gallon (2) -- fuel
supply locations 6.4 6.0
Fuel margin, cents per gallon (2) --
consignment agent locations 28.8 23.5
(1) Calculated as fuel revenue less fuel costs; excludes
the fixed margin or fixed fee paid to the GPMP segment
for the cost of fuel.
(2) Calculated as fuel contribution divided by fuel
gallons sold.
Note: Comparable wholesale sites exclude wholesale
sites added through ARKO Retail Sites converted to
dealer locations until the first quarter in which
these sites had a full quarter of wholesale activity
in the prior year. Refer to Use of Non-GAAP Measures
below.
For the first quarter of 2026, wholesale operating income increased by $4.4 million compared to the first quarter of 2025 as a result of additional operating income from ARKO Retail Sites converted to dealer locations combined with increased operating income at comparable wholesale sites.
For the first quarter of 2026, fuel contribution increased by $2.8 million compared to the first quarter of 2025. Fuel contribution for the first quarter of 2026 at fuel supply locations increased by $1.2 million due to incremental contribution from ARKO Retail Sites converted to dealer locations, which was partially offset by lower fuel contribution at comparable wholesale sites. Fuel contribution for the first quarter of 2026 at consignment agent locations increased $1.6 million due to incremental contribution from ARKO Retail Sites converted to dealer locations and higher fuel contribution at comparable wholesale sites. As compared to the first quarter of 2025, fuel margin per gallon increased 0.4 cents per gallon at fuel supply locations and 5.3 cents per gallon at consignment agent locations, primarily as a result of significant volatility in the fuel market due to the geopolitical environment and increased prompt pay discounts related to higher fuel costs.
For the first quarter of 2026, other revenues, net increased by $6.2 million, and site operating expenses increased by $5.2 million, in each case as compared to the first quarter of 2025, resulting primarily from ARKO Retail Sites converted to dealer locations.
Fleet Fueling Segment
For the Three Months
Ended March 31,
------------------------
2026 2025
------------- ---------
(in thousands)
Fuel gallons sold -- proprietary cardlock
locations 30,517 31,918
Fuel gallons sold -- third-party cardlock
locations 3,446 3,175
Fuel contribution (1) -- proprietary
cardlock locations $ 15,942 $ 14,706
Fuel contribution (1) -- third-party
cardlock locations $ 803 $ 596
Fuel margin, cents per gallon (2) --
proprietary cardlock locations 52.2 46.1
Fuel margin, cents per gallon (2) --
third-party cardlock locations 23.4 18.7
(1) Calculated as fuel revenue less fuel costs; excludes
the fixed margin or fixed fee paid to the GPMP segment
for the cost of fuel.
(2) Calculated as fuel contribution divided by fuel
gallons sold.
Fuel contribution for the first quarter of 2026 increased by $1.4 million compared to the first quarter of 2025. At proprietary cardlocks, fuel contribution increased by $1.2 million, and fuel margin per gallon also increased for the first quarter of 2026 compared to the first quarter of 2025. At third-party cardlock locations, fuel contribution increased $0.2 million, and fuel margin per gallon also increased for the first quarter of 2026 compared to the first quarter of 2025. These increases were primarily due to favorable diesel margins as a result of significant volatility in the fuel market due to the geopolitical environment.
GPMP Segment
For the Three Months
Ended March 31,
------------------------
2026 2025
------------- ---------
(in thousands)
Fuel gallons sold -- inter-segment 255,342 222,858
Fuel gallons sold -- related party locations 182,732 211,660
Fuel contribution (1) -- related party
locations $ 10,965 $ 10,583
Fuel margin, cents per gallon (2) -- fuel
supply locations 6.0 5.0
(1) Calculated as fuel revenue less fuel costs(.)
(2) Calculated as fuel contribution divided by fuel
gallons sold.
For the first quarter of 2026, fuel revenue -- related party decreased by $59.9 million, or 10.4%, compared to the first quarter of 2025, primarily driven by a $28.9 million, or 13.7%, decrease in gallons sold, reflecting the challenging macroeconomic environment as well as severe weather conditions in the quarter in several markets in which the Company operates, as well as the impact from ARKO Retail Sites converted to dealer locations, which was partially offset by an increase in the average price of fuel in the first quarter of 2026 compared to the first quarter of 2025.
Fuel contribution -- related party increased by $0.4 million for the first quarter of 2026, compared to the first quarter of 2025, primarily due to an increase in the fixed margin from 5.0 cents per gallon sold for the first quarter of 2025 to 6.0 cents per gallon sold for the first quarter of 2026, partially offset by fewer gallons sold to ARKO Retail Sites.
Liquidity and Capital Expenditures
As of March 31, 2026, the Company's total liquidity was approximately $731 million, consisting of approximately $22 million of cash and cash equivalents and approximately $709 million of availability under the Company's lines of credit. Total debt, net was approximately $184.5 million, resulting in Net Debt (as defined below) of approximately $313.5 million. The IPO bolstered the Company's liquidity position, as the Company used the net proceeds to repay $206.7 million of indebtedness during the quarter. For the quarter ended March 31, 2026, maintenance capital expenditures were $2.5 million and growth capital expenditures were $3.5 million, including the investments in NTI fleet fueling locations, purchase of fuel dispensers and other investments in the Company's sites.
Quarterly Dividend
The Board declared a quarterly dividend of $0.26 per share of common stock which was paid on April 21, 2026 to stockholders of record as of April 10, 2026. This dividend was in respect of the pro-rata portion of the first quarter of 2026 during which the Company was public, and is consistent with an expected annual dividend rate of $2.00 per share. For illustrative purposes, this anticipated annual dividend represents an 11% to 10% dividend yield at a share price of $18.50 to $19.50 per share. The Company's dividend for the second quarter of 2026 is expected to be $0.50 per share of common stock to be paid after the Company releases its second quarter results.
Segment Update
The following tables present certain information regarding changes in the wholesale, fleet fueling and GPMP segments for the periods presented:
For the Three Months
Ended March 31,
-----------------------
Wholesale Segment (1) 2026 2025
----------- ---------
Number of sites at beginning of period 2,099 1,922
Newly opened or reopened sites (2) 11 6
ARKO Retail Sites converted to consignment
or fuel supply locations 41 59
Closed or divested sites (25) (26)
---------- ---------
Number of sites at end of period 2,126 1,961
========== =========
(1) Excludes bulk and spot purchasers.
(2) Includes all signed fuel supply agreements irrespective
of fuel distribution commencement date.
For the Three Months
Ended March 31,
-------------------------
Fleet Fueling Segment 2026 2025
------------ -------
Number of sites at beginning of period 295 280
Newly opened or reopened sites 1 1
Closed or divested sites (4) (1)
----------- -------
Number of sites at end of period 292 280
=========== =======
For the Three Months
Ended March 31,
-----------------------
GPMP Segment -- related party sites (ARKO
Retail Sites) 2026 2025
----------- ---------
Number of sites at beginning of period 1,095 1,356
Newly opened or reopened sites 2 1
ARKO Retail Sites converted to consignment
or fuel supply locations (41) (59)
Sites closed, divested or converted to
rental -- (2)
---------- ---------
Number of sites at end of period 1,056 1,296
========== =========
Full Year 2026 Guidance
The Company is not revising its guidance disclosed in March 2026, and currently expects full year 2026 Adjusted EBITDA and Discretionary Cash Flow to be approximately $156 million and approximately $110 million, respectively.
The Company is not currently providing reconciliations of Adjusted EBITDA to net income or Discretionary Cash Flow to net cash provided by operating activities for the year ending December 31, 2026 due to the unavailability of certain required inputs for providing forecasts of such GAAP measures, and the related reconciliations, that are not available without unreasonable efforts, including depreciation and amortization related to the Company's capital allocation as part of the Company's focus on strategic and organic growth, as well as inputs related to working capital adjustments.
Conference Call and Webcast Details
The Company will host a conference call today, May 11, 2026, to discuss these results at 9:00 a.m. Eastern Time. Investors and analysts interested in participating in the live call can dial 877-407-8306 or 201-689-8481.
A simultaneous, live webcast will also be available on the Investor Relations section of the Company's website at https://www.arkopetroleum.com/news-events/ir-calendar. The webcast will be archived for 30 days.
About ARKO Petroleum Corp.
ARKO Petroleum Corp. (Nasdaq: APC) is a growth-oriented, fuel distribution company and one of the largest wholesale fuel distributors by gallons in North America, supplying approximately 2 billion gallons of fuel annually to customers in approximately 3,500 locations in the District of Columbia and more than 30 states across the Mid-Atlantic, Midwestern, Northeastern, Southeastern, and Southwestern United States. We are engaged in (i) wholesale activity, which includes the supply of fuel to gas stations operated by third-party dealers, (ii) fleet fueling, which includes the operation of proprietary and third-party cardlock locations (unstaffed fueling locations) and the issuance of proprietary fuel cards that provide customers access to a nationwide network of fueling sites, and (iii) the wholesale distribution of fuel to substantially all of the retail convenience stores that sell fuel operated by ARKO Corp., our parent company (Nasdaq: ARKO), one of the largest operators of convenience stores in the United States. To learn more about APC, visit: www.arkopetroleum.com.
Forward-Looking Statements
This document includes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may address, among other things, the Company's expected financial and operational results and the related assumptions underlying its expected results. These forward-looking statements are distinguished by use of words such as "accretive," "anticipate," "aim," "believe," "continue," "could," "estimate," "expect, " "guidance," "intends," "may," "might," "plan," "possible," "potential, " "predict," "project," "should," "will," "would" and the negative of these terms, and similar references to future periods. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to, among other things, changes in economic, business and market conditions; the Company's ability to maintain the listing of its Class A common stock on the Nasdaq Stock Market; changes in its strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects and plans; expansion plans and opportunities; changes in the markets in which it competes; changes in applicable laws or regulations, including those relating to environmental matters; market conditions and global and economic factors beyond its control; the success of ARKO's transformation plan and its effect on the Company, including the dealerization of retail stores; and the outcome of any known or unknown litigation and regulatory proceedings. Detailed information about these factors and additional important factors can be found in the documents that the Company files with the Securities and Exchange Commission, such as Form 10-K, Form 10-Q and Form 8-K. Forward-looking statements speak only as of the date the statements were made. The Company does not undertake an obligation to update forward-looking information, except to the extent required by applicable law.
Use of Non-GAAP Measures
The Company discloses certain measures on a "comparable wholesale sites" basis, which is a non-GAAP measure. Information disclosed on a "comparable wholesale sites" basis excludes wholesale sites added through ARKO Retail Sites converted to dealer locations until the first quarter in which these sites had a full quarter of wholesale activity in the prior year. The Company believes that this information is useful for its investors, securities analysts, and other interested parties by providing greater comparability regarding its ongoing operating performance. Neither this measure nor those described below should be considered an alternative to measurements presented in accordance with generally accepted accounting principles in the United States ("GAAP").
The Company defines EBITDA as net income before net interest expense, income taxes, depreciation and amortization. Adjusted EBITDA further adjusts EBITDA by excluding the gain or loss on disposal of assets, impairment charges, acquisition costs, share-based compensation expense, other non-cash items, and other unusual or non-recurring charges. Both EBITDA and Adjusted EBITDA are non-GAAP financial measures.
The Company uses EBITDA and Adjusted EBITDA for operational and financial decision-making and believe these measures are useful in evaluating its performance because they eliminate certain items that it does not consider indicators of its operating performance. EBITDA and Adjusted EBITDA are also used by many of its investors, securities analysts, and other interested parties in evaluating its operational and financial performance across reporting periods. The Company believes that the presentation of EBITDA and Adjusted EBITDA provides useful information to investors by allowing an understanding of key measures that it uses internally for operational decision-making, budgeting, evaluating acquisition targets, and assessing its operating performance.
The Company defines Net Debt as the sum of total debt, net, financing leases and financial liabilities, less cash and cash equivalents. Net Debt is used by management to measure the effective level of our indebtedness.
The Company defines the Ratio of Net Debt to Adjusted EBITDA as the ratio derived by dividing Net Debt by Adjusted EBITDA. The Ratio of Net Debt to Adjusted EBITDA is an important measure used by management to evaluate the Company's access to liquidity, and the Company believes it provides useful information for investors as a representation of its financial strength by presenting the sustainability of its debt levels and its ability to take on additional debt against Adjusted EBITDA, which is used as an operating performance measure. The Ratio of Net Debt to Adjusted EBITDA is also frequently used by investors and credit rating agencies to analyze the Company's operating performance.
The Company defines Discretionary Cash Flow as net cash provided by operating activities, (i) less changes in operating assets and liabilities, maintenance capital expenditures, charges to allowance for credit losses, and non-cash rent expense, and (ii) plus acquisition costs, amortization of deferred income net of prepaid to related party, and certain other expenses (income). Discretionary Cash Flow will not reflect changes in working capital balances. Discretionary Cash Flow is a liquidity measure the Company and third parties, such as industry analysts, investors, lenders, rating agencies and others, use to assess its ability to internally fund its acquisitions, pay dividends, and service or incur additional debt. The Company believes that the presentation of Discretionary Cash Flow provides useful information to investors, securities analysts, and other interested parties for evaluating its liquidity.
EBITDA, Adjusted EBITDA, Net Debt, the Ratio of Net Debt to Adjusted EBITDA and Discretionary Cash Flow should not be considered as alternatives to any financial measure presented in accordance with GAAP, including net income and net cash provided by operating activities. These non-GAAP measures have limitations as analytical tools and should not be considered in isolation, or as substitutes for the analysis of its results as reported under GAAP. The Company strongly encourages investors to review its financial statements and publicly filed reports in their entirety and not to rely on any single financial measure.
Because non-GAAP financial measures are not standardized, comparable wholesale sites, EBITDA, Adjusted EBITDA, Net Debt, the Ratio of Net Debt to Adjusted EBITDA and Discretionary Cash Flow, as defined by the Company, may not be comparable to similarly titled measures reported by other companies. It therefore may not be possible to compare the Company's use of these non-GAAP financial measures with those used by other companies.
Condensed Consolidated Statements of Operations
For the Three Months
Ended March 31,
----------------------------------------------------
2026 2025
----------------------- -----------------------
(in thousands)
Revenues:
Fuel revenue $ 807,598 $ 756,798
Fuel revenue --
related party 514,484 574,416
Other revenues,
net 19,102 12,957
Other revenues,
net -- related
party 3,181 3,155
--- ------------------ -------------------
Total revenues 1,344,365 1,347,326
Operating expenses:
Fuel costs 767,142 720,211
Fuel costs --
related party 503,519 563,833
Site operating
expenses,
including
allocated
expenses 26,928 22,017
General and
administrative
expenses,
including
allocated
expenses 10,814 10,748
Depreciation and
amortization,
including
allocated
expenses 14,787 13,503
--- ------------------ -------------------
Total operating
expenses 1,323,190 1,330,312
--- ------------------ -------------------
Other expenses,
net 1,063 1,195
--- ------------------ -------------------
Operating income 20,112 15,819
Interest and
other financial
income,
including
allocated
income 209 138
Interest and
other financial
expenses,
including
allocated
expenses (9,236) (9,750)
--- ------------------ -------------------
Income before
income taxes 11,085 6,207
Income tax
expense (3,003) (1,674)
--- ------------------ -------------------
Net income $ 8,082 $ 4,533
=== ================== ===================
Net income per
share -- basic and
diluted $ 0.20 $ 0.13
Weighted average
shares
outstanding:
Basic and diluted 41,104 35,000
Condensed Consolidated Balance Sheets
March 31, 2026 December 31, 2025
------------------------- -------------------
(in thousands)
Assets
Current assets:
Cash and cash
equivalents $ 21,669 $ 15,556
Restricted cash 736 --
Trade receivables, net 151,493 80,832
Inventory 30,090 23,093
Other current assets 47,122 43,054
---- ------------------- ---------------
Total current assets 251,110 162,535
Non-current assets:
Property and
equipment, net 265,882 262,743
Right-of-use assets
under operating
leases 423,694 415,179
Right-of-use assets
under financing
leases, net 61,809 62,739
Goodwill 76,687 76,687
Intangible assets, net 149,107 154,326
Deferred tax asset 73,270 70,934
Other non-current
assets 70,779 68,331
---- ------------------- ---------------
Total assets $ 1,372,338 $ 1,273,474
---- ------------------- ---------------
Liabilities
Current liabilities:
Long-term debt,
current portion $ 1,461 $ 6,783
Accounts payable 121,904 75,224
Other current
liabilities 84,320 53,586
Operating leases,
current portion 29,570 27,820
Financing leases,
current portion 2,183 2,095
---- ------------------- ---------------
Total current
liabilities 239,438 165,508
Non-current liabilities:
Long-term debt, net 183,080 385,247
Asset retirement
obligation 49,429 47,571
Operating leases 444,156 431,364
Financing leases 94,101 94,638
Other non-current
liabilities 117,639 113,031
---- ------------------- ---------------
Total liabilities 1,127,843 1,237,359
---- ------------------- ---------------
Total net investment -- 36,115
Total stockholders'
equity 244,495 --
---- ------------------- ---------------
Total liabilities and
stockholders' equity /
total net investment $ 1,372,338 $ 1,273,474
---- ------------------- ---------------
Condensed Consolidated Statements of Cash Flows
For the Three Months
Ended March 31,
----------------------------------------------------
2026 2025
----------------------- ----------------------
(in thousands)
Cash flows from
operating
activities:
Net income $ 8,082 $ 4,533
Adjustments to
reconcile net
income to net cash
provided by
operating
activities:
Depreciation and
amortization 14,787 13,503
Deferred income
taxes 395 (1,869)
Loss on disposal
of assets and
impairment
charges, net 455 1,170
Amortization of
deferred
financing
costs 512 372
Amortization of
deferred
income (2,407) (2,144)
Amortization of
prepaid to
related party 764 1,084
Accretion of
asset
retirement
obligation 330 249
Non-cash rent 176 726
Charges to
allowance for
credit losses 279 206
Share-based
compensation 348 262
Fair value
adjustment of
financial
assets and
liabilities -- 31
Other operating
activities,
net -- 20
Changes in
assets and
liabilities:
Increase in
trade
receivables (70,940) (14,320)
(Increase)
decrease in
inventory (6,997) 743
Increase in
other assets (4,943) (145)
Increase in
related party
assets (3,323) (2,996)
Increase in
accounts
payable 46,680 5,010
Increase in
other current
liabilities 19,567 1,723
Decrease in
asset
retirement
obligation (172) (292)
Increase in
non-current
liabilities 2,965 7,056
--- ------------------ ------------------
Net cash provided
by operating
activities 6,558 14,922
--- ------------------ ------------------
Cash flows from
investing
activities:
Purchase of
property and
equipment (5,845) (6,728)
Proceeds from sale
of property and
equipment 31 7
--- ------------------ ------------------
Net cash used in
investing
activities (5,814) (6,721)
--- ------------------ ------------------
Cash flows from
financing
activities:
Repayment of
long-term debt (209,440) (614)
Principal payments
on financing
leases (494) (255)
Proceeds from
issuance of Class A
shares in IPO, net
of underwriting
discounts and
commissions 210,426 --
Payment of IPO
costs (1,617) --
Pre-IPO net
transfers from
(to) ARKO Parent 7,230 (7,541)
--- ------------------ ------------------
Net cash used in
(provided by)
financing
activities 6,105 (8,410)
--- ------------------ ------------------
Net increase
(decrease) in cash
and cash
equivalents and
restricted cash 6,849 (209)
Cash and cash
equivalents and
restricted cash,
beginning of
period 15,556 25,341
--- ------------------ ------------------
Cash and cash
equivalents and
restricted cash,
end of period $ 22,405 $ 25,132
=== ================== ==================
Supplemental Disclosure of Non-GAAP Financial Information
Reconciliation of Net income to EBITDA and
Adjusted EBITDA, Net cash provided by operating
activities to Discretionary cash flow, and
Adjusted EBITDA to Discretionary cash flow
--------------------------------------------------
For the
For the Three Months Ended Twelve-Months
March 31, Ended
---------------------------- -------------------
2026 2025 March 31, 2026
----------- ---------- -------------------
(in thousands)
Net income $ 8,082 $ 4,533 $ 36,276
Interest and
other
financing
expenses, net 9,027 9,612 41,507
Income tax
expense 3,003 1,674 10,441
Depreciation
and
amortization 14,787 13,503 56,012
--- ------ ------ --- --------------
EBITDA 34,899 29,322 144,236
Acquisition
costs (a) 656 107 1,041
Loss on
disposal of
assets and
impairment
charges (b) 455 1,170 3,843
Share-based
compensation
expense (c) 348 262 1,083
Adjustment to
contingent
consideration
(d) -- (66) (2,141)
Taxes paid in
arrears (e) -- -- 178
IPO Costs (f) -- -- 565
Other (g) 4 91 184
--- ------ ------ --- --------------
Adjusted EBITDA $ 36,362 $ 30,886 $ 148,989
=== ====== ====== === ==============
Net cash
provided by
operating
activities $ 6,558 $ 14,922
Changes in
operating
assets and
liabilities
(h) 19,149 3,196
Maintenance
capital
expenditures
(i) (2,525) (1,318)
Acquisition
costs (a) 656 107
Amortization of
deferred
income, net of
prepaid to
related party 1,643 1,060
Charges to
allowance for
credit losses (279) (206)
Non-cash rent
expense (j) (176) (726)
Other (k) (6) 87
--- ------ ------
Discretionary
Cash Flow $ 25,020 $ 17,122
=== ====== ======
Adjusted EBITDA $ 36,362 $ 30,886
Cash received
for interest 209 138
Cash paid for
interest and
allocated
interest (8,386) (9,040)
Cash paid for
taxes (640) (3,544)
Maintenance
capital
expenditures
(i) (2,525) (1,318)
--- ------ ------
Discretionary
Cash Flow $ 25,020 $ 17,122
=== ====== ======
(a) Eliminates costs incurred that are directly attributable
to business acquisitions and salaries of employees
whose primary job function is to execute the Company's
acquisition strategy and facilitate integration of
acquired operations.
(b) Eliminates the non-cash loss from the sale or
disposal of property and equipment, the loss recognized
upon the sale of related leased assets and impairment
charges on property and equipment and right-of-use
assets related to closed and non-performing sites.
(c) Eliminates non-cash share-based compensation expense
related to the Company's and ARKO Parent's equity
incentive program to incentivize, retain, and motivate
the Company's employees and certain of ARKO Parent's
employees.
(d) Eliminates fair value adjustments primarily related
to the contingent consideration owed to the seller
for the Empire acquisition, which closed in 2020.
(e) Eliminates the payment of historical fuel and
other tax amounts for multiple prior periods.
(f) Eliminates one-time costs incurred related to
the Company's IPO, which closed on February 13, 2026.
(g) Eliminates other unusual or non-recurring items
that the Company does not consider to be meaningful
in assessing operating performance.
(h) Excludes the change in current tax liabilities
and accrued interest of $2.0 million and $0 for the
three months ended March 31, 2026 and 2025, respectively.
(i) Maintenance capital expenditures are capital expenditures
made to maintain the Company's long-term operating
income or operating capacity, while growth and acquisition
capital expenditures are capital expenditures that
the Company expects will increase its operating income
or operating capacity over the long-term.
(j) Non-cash rent expense reflects the extent to which
GAAP rent expense recognized exceeded (or was less
than) cash rent payments. GAAP rent expense varies
depending on the terms of the Company's lease portfolio.
For newer leases, rent expense recognized typically
exceeds cash rent payments, whereas, for more mature
leases, rent expense recognized is typically less
than cash rent payments.
(k) Includes other unusual or non-recurring items.
Reconciliation of Total debt, net to Net Debt
---------------------------------------------------
As of December 31,
As of March 31,2026 2025
------------------------ ---------------------
(in thousands, except ratios)
Total debt, net $ 184,541 $ 392,030
Financing leases 96,284 96,733
Financial
liabilities 54,349 53,365
Cash and cash
equivalents (21,669) (15,556)
----- ----------------- -----------------
Net Debt $ 313,505 $ 526,572
===== ================= =================
Ratio of total
debt, net to net
income 5.1x 12.0x
===== ================= =================
Ratio of Net Debt
to Adjusted
EBITDA 2.1x 3.7x
===== ================= =================
Supplemental Disclosures of Segment Information
Wholesale Segment
For the Three Months
Ended March 31,
------------------------
2026 2025
------------- ---------
(in thousands)
Revenues:
Fuel revenue $ 673,855 $ 630,060
Other revenues, net 16,530 10,352
Other revenues, net -- related party 524 --
--------- --------
Total revenues 690,909 640,412
Operating expenses:
Fuel costs (1) 650,964 610,013
Site operating expenses, including
allocated expenses 16,933 11,769
--------- --------
Total operating expenses 667,897 621,782
--------- --------
Operating income $ 23,012 $ 18,630
--------- --------
(1) Excludes the fixed margin or fixed fee paid to
the GPMP segment for the cost of fuel.
Fleet Fueling Segment
For the Three Months
Ended March 31,
------------------------
2026 2025
------------- ---------
(in thousands)
Revenues:
Fuel revenue $ 127,299 $ 118,406
Other revenues, net 2,241 2,118
--- -------- --------
Total revenues 129,540 120,524
Operating expenses:
Fuel costs (1) 110,554 103,104
Site operating expenses 7,031 6,428
--- -------- --------
Total operating expenses 117,585 109,532
--- -------- --------
Operating income $ 11,955 $ 10,992
--- -------- --------
(1) Excludes the fixed margin or fixed fee paid to
the GPMP segment for the cost of fuel.
GPMP Segment
For the Three Months
Ended March 31,
----------------------
2026 2025
---------- ----------
(in thousands)
Revenues:
Fuel revenue -- inter-segment (1) $ 722,484 $ 592,088
Fuel revenue -- related party (1) 514,484 574,416
Fuel revenue -- third party customers -- 496
Other revenues, net 171 155
Other revenues, net -- inter-segment (1) 767 2,060
Other revenues, net -- related party (1) 714 652
--------- ---------
Total revenues 1,238,620 1,169,867
Operating expenses:
Fuel costs -- inter-segment 707,163 580,944
Fuel costs -- related party 503,519 563,833
Fuel costs -- third party customers -- 496
General and administrative expenses 510 828
Depreciation and amortization 1,812 1,840
--------- ---------
Total operating expenses 1,213,004 1,147,941
--------- ---------
Operating income $ 25,616 $ 21,926
--------- ---------
(1) Includes the fixed margin or fixed fee paid to
the GPMP segment for the cost of fuel.
Company and Investor Contact
Jordan Mann
ARKO Petroleum Corp.
investors@arkopetroleum.com
(END) Dow Jones Newswires
May 11, 2026 07:00 ET (11:00 GMT)
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