Overview

* Arko ( 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 ( 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. ( ARKO ) 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:

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(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.)