Convenience store operator Arko's Q3 net income rises
Arko's Q3 net income rose to $13.5 million, while adjusted EBITDA slightly missed estimates. The company converted 65 retail stores to dealer sites as part of its transformation plan, and merchandise margin increased to 33.7%. For Q4 2025, Arko expects adjusted EBITDA between $50 million and $60 million, updating full-year guidance to $233 million-$243 million. The challenging macroeconomic environment impacted customer transactions and fuel demand. Analysts maintain a "buy" rating, with a median 12-month price target of $8.00, reflecting a potential 44.8% upside from its recent trading price of $4.42.
)
Overview
- Arko Q3 net income rises to $13.5 mln, adjusted EBITDA slightly misses estimates
- Company converted 65 retail stores to dealer sites, part of transformation plan
- Merchandise margin increased to 33.7%
Outlook
- Company expects Q4 2025 Adjusted EBITDA between $50 mln and $60 mln
- Company updates full-year 2025 Adjusted EBITDA guidance to $233 mln-$243 mln
- Arko is not providing net income guidance due to input volatility
Result Drivers
- STORE CONVERSIONS - Co converted 65 retail stores to dealer sites as part of transformation plan, expecting annualized operating income benefit
- REMODELING PILOT - Co advanced retail store remodeling pilot to improve customer experience with food-forward focus
- MACROECONOMIC IMPACT - Challenging macroeconomic environment led to decline in customer transactions and fuel demand
Key Details
Metric Beat/Mis Actual Consensu
s s
Estimate
Q3 Net $13.50
Income mln
Q3 Slight $75.20 $75.50
Adjusted Miss* mln mln (2
EBITDA Analysts
)
Q3 $0.03
Dividend
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
- The current average analyst rating on the shares is “buy” and the breakdown of recommendations is 2 “strong buy” or “buy”, 1 “hold” and no “sell” or “strong sell”
- The average consensus recommendation for the oil & gas refining and marketing peer group is “buy”
- Wall Street’s median 12-month price target for Arko Corp. is $8.00, about 44.8% above its November 4 closing price of $4.42
- The stock recently traded at 32 times the next 12-month earnings vs. a P/E of 61 three months ago
Press Release: For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact . (This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
