ARKO Reports Strong Q4 2025 Earnings

Transformation initiatives drive higher profitability and improved margins

Published on Feb. 28, 2026

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ARKO (NASDAQ:ARKO) executives reported a stronger finish to 2025, with higher profitability in the fourth quarter, improved margin performance, and a sharp reduction in retail operating expenses tied to store closures and dealer conversions. The company also highlighted the initial public offering of its ARKO Petroleum Corp. (APC) subsidiary, which houses the wholesale, fleet fueling, and GPMP segments.

Why it matters

ARKO's performance in Q4 2025 demonstrates the success of its transformation initiatives, including dealerization, loyalty programs, and store refreshes. The IPO of APC also provides more transparency and allows the retail and wholesale/fleet businesses to be valued independently, which could unlock additional growth opportunities.

The details

In the retail segment, ARKO posted a merchandising margin of 34.4%, up 140 basis points from the prior year. Same-store merchandise sales declined 3%, but same-store merchandise sales excluding cigarettes fell only 1.8%. Retail fuel same-store gallons were down 4.1%, but retail fuel margin improved to approximately $0.445 per gallon. A key driver of earnings growth was lower retail site operating expenses, which declined $29.5 million or 15.7% due to store closures and dealer conversions.

  • ARKO completed the IPO of its ARKO Petroleum Corp. (APC) subsidiary earlier this month.
  • As of year-end 2025, ARKO had completed 409 dealerization conversions and had about 120 additional sites committed.
  • ARKO is planning approximately 25 remodels featuring Fast Grade food and beverage elements in 2026.

The players

ARKO

A downstream energy and convenience retail company based in Matthews, North Carolina, with core operations encompassing fuel supply, distribution, and retailing through a network of terminals, independent dealer locations, and company-operated convenience stores.

ARKO Petroleum Corp. (APC)

A subsidiary of ARKO that houses the company's wholesale, fleet fueling, and GPMP segments, which recently completed an initial public offering.

Arie Kotler

Chairman, President, and CEO of ARKO.

Galagher Jeff

CFO of ARKO.

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What they’re saying

“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”

— Gordon Edgar, grocery employee (Instagram)

What’s next

ARKO is planning approximately 25 remodels featuring Fast Grade food and beverage elements and is also expanding food and beverage in non-remodeled stores where space allows.

The takeaway

ARKO's strong Q4 2025 performance, driven by its transformation initiatives, demonstrates the company's ability to adapt to changing market conditions and maintain its position as a leading player in the downstream energy and convenience retail industry.