ARKO Corp. reported its financial results for the second quarter of 2025, revealing a total revenue of $1.999 billion, a decrease of 16.3% from $2.388 billion in the same period last year. The decline was primarily driven by a significant drop in fuel revenue, which fell to $1.570 billion from $1.888 billion, reflecting a decrease in both the average price of fuel and the volume sold. Merchandise revenue also decreased by 15.6% to $400.1 million, attributed to lower sales from stores that were closed or converted to dealer sites. Despite the revenue decline, the company achieved an operating income of $56.7 million, up from $42.9 million in the prior year, largely due to a $20.8 million gain from the expiration of a real estate purchase option.
In terms of profitability, ARKO's net income attributable to common shareholders rose to $18.7 million, or $0.16 per share, compared to $12.6 million, or $0.11 per share, in the second quarter of 2024. The increase in net income was supported by lower operating expenses, which decreased by 16.4% to $1.960 billion, primarily due to reduced fuel and merchandise costs. The company reported an Adjusted EBITDA of $76.9 million, slightly down from $80.1 million in the previous year.
Strategically, ARKO has been actively converting retail locations to dealer sites, with 70 conversions completed in the second quarter, totaling 129 for the year-to-date. This initiative is part of a broader transformation plan aimed at enhancing profitability and operational efficiency. The company also launched a new store format in June 2025, focusing on improved foodservice offerings, which is expected to drive customer engagement and sales.
Operationally, ARKO's customer engagement metrics showed a positive trend, with approximately 2.35 million members enrolled in its fas REWARDS® loyalty program, marking a 9.8% increase year-over-year. The company operates 1,254 retail convenience stores and supplies fuel to 2,014 dealer locations across more than 30 states. As of June 30, 2025, ARKO's liquidity position was strong, with approximately $875 million available, including $294 million in cash and cash equivalents and $582 million in credit availability.
Looking ahead, ARKO Corp. remains focused on its transformation plan, which includes further store conversions and strategic capital investments to enhance its retail offerings. The company anticipates that these initiatives will contribute to improved financial performance in the coming quarters, despite the ongoing challenges posed by market conditions and competition in the convenience store sector.
About ARKO Corp.
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