Overview

* Arko ( ARKO ) Q2 net income rises to $20.1 mln from $14.1 mln yr-ago

* Adjusted EBITDA of $76.9 mln beats analyst expectations, per LSEG data

* Co converted 70 retail stores to dealer sites as part of transformation plan

Outlook

* Company expects Q3 2025 Adjusted EBITDA between $70 mln and $80 mln

* ARKO ( ARKO ) maintains full-year 2025 Adjusted EBITDA guidance of $233 mln to $253 mln

* Company plans to convert more retail stores to dealer sites through 2026

* Company expects over $20 mln annualized operating income benefit from channel optimization

Result Drivers

* STORE CONVERSIONS - Conversion of 70 retail stores to dealer sites contributed to operating income benefits, per CEO Arie Kotler

* NEW FORMAT STORES - Pilot program for new format stores aims to elevate customer experience and improve merchandise offerings

* MACROECONOMIC CHALLENGES - Decline in same store sales attributed to inflation and elevated household debt impacting discretionary spending

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Net $20.10

Income mln

Q2 Beat $76.90 $74 mln

Adjusted mln (3

EBITDA Analysts

)

Q2 $0.03

Dividend

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "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. ( ARKO ) is $7.00, about 42% above its August 5 closing price of $4.06

* The stock recently traded at 57 times the next 12-month earnings vs. a P/E of 212 three months ago

Press Release:

(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.)