ARKO (NASDAQ:ARKO) Releases Quarterly Earnings Results, Misses Expectations By $0.04 EPS

ARKO (NASDAQ:ARKO) announced its quarterly earnings results on Thursday. The company reported $0.08 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.12 by ($0.04), FiscalAI reports. The firm had revenue of $2.39 billion during the quarter, compared to the consensus estimate of $2.02 billion. ARKO had a return on equity of 4.02% and a net margin of 0.19%.

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

• Third-quarter Adjusted EBITDA rose to $75.7 million from $75.2 million a year earlier, bringing year-to-date EBITDA to about $199 million, up 8.5%. ARKO raised the low end of its 2026 Adjusted EBITDA guidance to $250 million, for a new range of $250 million–$265 million.
• The retained-store portfolio posted 0.8% merchandise sales growth excluding cigarettes, while same-store merchandise margin expanded 50 basis points to 34.8%—its 12th consecutive year-over-year increase. The company attributed progress to category mix, promotions, loyalty, and investments in food service.
• ARKO said its expected USPP acquisition would add about 280 million gallons of annual volume across roughly 400 dealer locations and contribute approximately $30 million in annualized Adjusted EBITDA. The deal was expected to close in the fourth quarter of 2026.
• ARKO has converted about 500 stores to dealer locations since mid-2024 and expects the program to be largely complete by the end of 2027. Management said retained stores generate nearly all of retail operating profit and outperform stores slated for conversion on merchandise sales and fuel gallons.
• Elevated fuel prices weighed on industry fuel volumes and added $3.1 million in same-store credit-card fees during the quarter. Retail same-store fuel gallons declined, though higher fuel margins helped offset the pressure.

ARKO Price Performance

Shares of NASDAQ:ARKO opened at $3.97 on Friday. The company has a current ratio of 1.60, a quick ratio of 1.15 and a debt-to-equity ratio of 1.82. The business has a fifty day simple moving average of $4.20 and a 200 day simple moving average of $5.95. ARKO has a 1 year low of $3.61 and a 1 year high of $8.76. The firm has a market cap of $445.39 million, a price-to-earnings ratio of 79.42 and a beta of 0.99.

ARKO Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 3rd. Investors of record on Friday, November 20th will be given a $0.03 dividend. The ex-dividend date is Friday, November 20th. This represents a $0.12 annualized dividend and a yield of 3.0%. ARKO’s dividend payout ratio (DPR) is currently 171.43%.

Key Stories Impacting ARKO

Here are the key news stories impacting ARKO this week:

• Positive Sentiment: ARKO raised the lower end of its 2026 adjusted EBITDA outlook, signaling improved confidence in its operating performance. The company also reported that remodels drove double-digit sales growth at remodeled stores. ARKO third-quarter results and guidance
• Positive Sentiment: Quarterly revenue of $2.39 billion topped analyst expectations of $2.02 billion. ARKO also declared a $0.03-per-share quarterly dividend, payable December 3 to shareholders of record November 20. Dividend announcement
• Neutral Sentiment: ARKO is increasing promotional spending to attract in-store customers. That could help sales, but the added expense may also pressure margins. Promotional spending plans
• Negative Sentiment: Quarterly EPS was $0.08, below the $0.12 consensus and down from $0.10 a year earlier. The earnings shortfall and lower year-over-year profit could temper the positive read-through from higher revenue and guidance. Q3 earnings estimate miss

Wall Street Analyst Weigh In

A number of analysts recently weighed in on the stock. Mizuho set a $22.00 target price on shares of ARKO in a research note on Tuesday, July 28th. Zacks Research raised ARKO from a “strong sell” rating to a “hold” rating in a report on Friday, October 9th. Raymond James Financial downgraded ARKO from a “strong-buy” rating to an “outperform” rating and cut their price target for the company from $8.00 to $7.00 in a report on Monday, August 10th. Finally, Weiss Ratings lowered ARKO from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Friday, September 25th. One analyst has rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Hold” and an average price target of $14.50.

About ARKO

ARKO Corp. (NASDAQ: ARKO) is a convenience store and fuel retail operator in the United States. Through its subsidiary GPM Investments, the company operates convenience stores that sell gasoline, diesel fuel, food, beverages, tobacco products, and other everyday consumer goods. Many locations also offer prepared food, loyalty programs, and additional retail services.

ARKO operates stores under a variety of regional and national banners, including fas mart, E-Z Mart, Scotchman, Young’s, Li’l Cricket, BreadBox, and others.