ARKO
ARKO's revenue fell 12.5% to $7.6 billion in fiscal 2025. Its operating margin was 1.3%, up from 1.1% a year earlier. Free cash flow was $65 million, down 39.5%. It paid out $42 million in dividends and buybacks, 64% of free cash flow. The diluted share count fell 1.7%.
Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on capital is after-tax operating income as a share of the money invested in the business: debt plus equity, minus cash. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.
Charts show fiscal years, from the 10-K filings.
What ARKO does
ARKO runs convenience stores and sells motor fuel wholesale in the United States, and says it is among the largest in both. As of December 31, 2025, it operated 1,118 convenience stores under more than 25 regional brands, in the District of Columbia and more than 30 states. It also supplied fuel to 2,099 dealer locations and ran 295 cardlock locations (unstaffed fueling sites) for its fleet fueling business, which also issues fuel cards.
It reports four segments: retail, wholesale, fleet fueling and GPMP. Retail sells fuel and merchandise and brings in much of its revenue and most of its profit. Wholesale supplies fuel to dealers and other customers.
It grew mostly by buying other chains, with 26 deals from 2013 through 2025. Since the second half of 2024 it has been converting many of its stores into dealer locations under a multi-year plan. In February 2026 it listed a subsidiary, ARKO Petroleum, which now runs the wholesale, fleet fueling and GPMP segments.
Its biggest risks, as it describes them
- Weaker economic conditions, trade policy or consumer confidence in the U.S.
- Acquisitions that cost too much, fail to be integrated or fall short of expectations.
- Wholesale motor fuel price changes, and falling demand for fuel-based transportation.
- Lower cigarette and tobacco use, and regulation and lawsuits about tobacco.
- Competition in a fragmented industry, and its ability to remodel stores and build new ones.
Income statement
From fiscal 2020 to 2025, earnings per share grew 0.0% a year and net income 10.6% a year, as new shares raised the share count by 62% and diluted each share's earnings.
Returns on capital
Balance sheet
Five years at a glance
| Fiscal year end | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Cash and short-term investments | 311 | 301 | 222 | 267 | 312 |
| Debt incl. finance leases | 953 | 983 | 1,068 | 1,104 | 1,125 |
| Net debt (negative means net cash) | 642 | 682 | 846 | 836 | 814 |
| Net debt to EBITDA | 2.7x | 2.5x | 3.4x | 3.7x | 3.4x |
| Debt to equity | 3.8x | 3.5x | 3.9x | 4.0x | 4.2x |
| Interest coverage | 1.9x | 2.7x | 1.3x | 1.0x | 1.1x |
| Current ratio | 1.7x | 1.7x | 1.5x | 1.6x | 1.7x |
| Quick ratio | 1.2x | 1.2x | 1.0x | 1.1x | 1.2x |
Cash flow
Projections
Project ARKO's revenue, net income and earnings per share five years ahead in a bull, a base and a bear case with your own figures, and see the share prices your P/E estimates give them, or value it with a discounted cash flow model. Every projected figure is yours: it is not a forecast of ours.
What ARKO says to expect
- Full year 2026: adjusted EBITDA and retail fuel margin
The Company now expects full year 2026 Adjusted EBITDA to be in the range of $250 million and $265 million, compared with its previous guidance of $245 million and $265 million. The Company is also increasing its outlook for average annual retail fuel margin to a range of 47.0 cents per gallon to 49.0 cents per gallon, with higher margins expected to offset anticipated lower retail fuel volumes.
Insider trades
No officer, director or 10% owner of ARKO reported buying or selling its shares on the open market between November 7, 2025 and November 6, 2026.
Indicators
Four widely used measures, worked out from the company's filings. The cutoffs are the ones their authors or users go by, not a verdict of ours.
| Indicator | FY23 | FY24 | FY25 |
|---|---|---|---|
| Piotroski F-score | 4 of 8 | 6 of 8 | 6 of 8 |
| Rule of 40 | 3.2% | −6.0% | −11.6% |
| Altman Z'' | 0.86 | 0.85 | 0.90 |
| Accruals ratio | −3.0% | −5.5% | −4.8% |
The nine F-score tests
| Test | FY23 | FY24 | FY25 |
|---|---|---|---|
| Net income is positive | Pass | Pass | Pass |
| Cash from operations is positive | Pass | Pass | Pass |
| Return on assets rose | Fail | Fail | Pass |
| Cash from operations exceeds net income | Pass | Pass | Pass |
| Debt fell relative to assets | Fail | Pass | Fail |
| Current ratio rose | Fail | Pass | Pass |
| Share count didn't rise | Pass | Pass | Pass |
| Gross margin rose | — | — | — |
| Revenue rose relative to assets | Fail | Fail | Fail |
| F-score | 4 of 8 | 6 of 8 | 6 of 8 |
Compare
Put ARKO side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.
Similar companies
| Company | Year | Revenue growth | Operating margin | Free cash flow margin | Return on capital | Net debt to EBITDA | F-score | Compare |
|---|---|---|---|---|---|---|---|---|
| ARKO | FY25 | −12.5% | 1.3% | 0.8% | 7.3% | 3.4x | 6 | |
| Advance Auto Parts | FY25 | −5.4% | −0.5% | −3.5% | −1.5% | 1.3x | 5 | Compare |
| Camping World | FY25 | 4.4% | 2.8% | — | 4.9% | 5.0x | — | Compare |
| Sonic Automotive | FY25 | 6.5% | 2.4% | 2.8% | 12.2% | 3.7x | 6 | Compare |
| PHINIA | FY25 | 2.4% | 7.3% | 5.4% | — | 1.5x | — | Compare |
7 years of figures
| Fiscal year | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|---|---|
| Income statement | |||||||
| Revenue | 4,129 | 4,010 | 7,417 | 9,143 | 9,413 | 8,732 | 7,644 |
| Revenue growth | — | −2.9% | 85.0% | 23.3% | 3.0% | −7.2% | −12.5% |
| Gross profit | — | — | — | — | — | — | — |
| Research and development | — | — | — | — | — | — | — |
| Operating income | 1 | 80 | 142 | 167 | 118 | 94 | 102 |
| Net income | −44 | 14 | 59 | 72 | 34 | 21 | 23 |
| Diluted EPS (US$) | −0.65 | 0.15 | 0.42 | 0.53 | 0.24 | 0.13 | 0.15 |
| Diluted shares (millions) | 67 | 71 | 125 | 123 | 120 | 117 | 115 |
| Cash flow | |||||||
| Cash from operations | 43 | 174 | 159 | 209 | 136 | 222 | 193 |
| Capital expenditure | 58 | 45 | 226 | 99 | 111 | 114 | 127 |
| Free cash flow | −15 | 129 | −67 | 111 | 25 | 108 | 65 |
| Dividends paid | 0 | 0 | 0 | 11 | 14 | 14 | 14 |
| Share buybacks | 0 | 0 | 0 | 40 | 34 | 32 | 28 |
| Acquisitions | 34 | 364 | 203 | 420 | 495 | 0 | 0 |
| Stock-based compensation | 0 | 2 | 6 | 12 | 15 | 12 | 15 |
| Balance sheet at fiscal year end | |||||||
| Cash and short-term investments | 32 | 294 | 311 | 301 | 222 | 267 | 312 |
| Debt incl. finance leases | — | 984 | 953 | 983 | 1,068 | 1,104 | 1,125 |
| Total assets | — | 2,740 | 2,942 | 3,255 | 3,650 | 3,621 | 3,535 |
| Total liabilities | — | 2,448 | 2,589 | 2,874 | 3,274 | 3,244 | 3,168 |
| Shareholders' equity | 195 | 192 | 254 | 281 | 276 | 277 | 267 |
| Margins and ratios | |||||||
| Gross margin | — | — | — | — | — | — | — |
| Operating margin | 0.0% | 2.0% | 1.9% | 1.8% | 1.2% | 1.1% | 1.3% |
| Net margin | −1.1% | 0.3% | 0.8% | 0.8% | 0.4% | 0.2% | 0.3% |
| Free cash flow margin | −0.4% | 3.2% | −0.9% | 1.2% | 0.3% | 1.2% | 0.8% |
| Rule of 40 (growth + FCF margin) | — | 0.3% | 84.1% | 24.5% | 3.2% | −6.0% | −11.6% |
| Return on capital | — | — | 13.4% | 12.0% | 8.4% | 6.5% | 7.3% |
| Return on equity | — | — | 26.6% | 26.9% | 12.3% | 7.5% | 8.4% |
| Return on assets | — | — | 2.1% | 2.3% | 1.0% | 0.6% | 0.6% |
| Net debt to EBITDA | — | 4.5x | 2.7x | 2.5x | 3.4x | 3.7x | 3.4x |