ARKO Petroleum Corp. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net income increased to $13.3 million for the quarter ended September 30, 2026, compared to $10.1 million in the same period in 2025.
• Adjusted EBITDA increased to $41.0 million for the quarter, up from $37.4 million in the prior year period.
• Net cash provided by operating activities was $21.6 million for the quarter, compared to $25.0 million in 2025.
• Discretionary Cash Flow increased to $32.3 million for the quarter, compared to $26.5 million in 2025.
• Total revenues for the quarter were $1.89 billion, up from $1.48 billion in the prior year period.
• Fuel revenue was $1.15 billion for the quarter, compared to $855.6 million in 2025.
• Fuel revenue from related party locations was $718.4 million for the quarter, up from $609.0 million in 2025.
• Total debt, net was approximately $189 million as of September 30, 2026.
• Net Debt was approximately $338 million as of September 30, 2026.
• Total liquidity was approximately $715 million as of September 30, 2026, consisting of $10 million in cash and $705 million in availability under lines of credit.
• Maintenance capital expenditures were $2.1 million and growth capital expenditures were $9.5 million for the quarter.

Guidance and Future Outlook:

• Full-year 2026 Adjusted EBITDA guidance was raised to a range of $156 million to $157 million.
• The Company expects the acquisition of U.S. Petroleum Partners, LLC (USPP) to close during the fourth quarter of fiscal year 2026.
• The Company is not providing reconciliations of Adjusted EBITDA to net income or Discretionary Cash Flow to net cash provided by operating activities for the full year 2026 due to unavailability of certain required inputs without unreasonable efforts.
• The Company expects ARKO Parent to be largely complete in converting retail stores to dealer locations by the end of 2027.

Business Segments and Product Lines:

• Wholesale Segment:
  • Fuel contribution increased by $1.7 million in the third quarter compared to 2025.
  • Fuel margin per gallon at fuel supply locations increased to 7.2 cents from 6.3 cents in 2025.
  • Fuel margin per gallon at consignment agent locations increased to 30.5 cents from 27.7 cents in 2025.
  • 17 ARKO Retail Sites were converted to dealer locations during the quarter, bringing total conversions since 2024 to 488 sites.
  • ARKO Parent has approximately 55 additional sites committed, under contract, or converted since quarter-end.
  • Number of wholesale sites increased to 2,124 at the end of the quarter from 2,053 in 2025.
• Fleet Fueling Segment:
  • Fuel contribution increased by $0.9 million in the third quarter compared to 2025.
  • Fuel margin per gallon at proprietary cardlock locations increased to 51.6 cents from 48.9 cents in 2025.
  • Fuel margin per gallon at third-party cardlock locations increased to 21.5 cents from 15.3 cents in 2025.
  • Five new fleet fueling locations were opened in the first nine months of 2026, with two added in October 2026.
  • 16 additional locations are in various stages of planning and development.
  • Number of fleet fueling sites increased to 294 at the end of the quarter from 288 in 2025.
• GPMP Segment:
  • Fuel revenue from related party locations increased by 18.0% to $718.4 million in the third quarter compared to 2025.
  • Fuel contribution from related party locations increased by $0.3 million in the third quarter compared to 2025.
  • Fuel margin per gallon at related party locations increased to 6.0 cents from 5.0 cents in 2025.
  • Fuel gallons sold to related party locations decreased by 14.5% to 191.4 million gallons in the third quarter compared to 2025.
  • Number of related party sites decreased to 1,016 at the end of the quarter from 1,158 in 2025.

Market and Competitive Landscape:

• The Company operates as one of the largest fuel wholesalers in North America, supplying approximately 2.0 billion gallons of fuel annually to approximately 3,500 locations.
• The acquisition of USPP is expected to add approximately 280 million gallons of annual fuel volume, representing approximately 14% of APC's trailing 12-month fuel volume.
• The USPP acquisition includes approximately 400 dealer locations and two fuel terminals in the Great Lakes region.
• Volatility in the fuel market due to the geopolitical environment contributed to increased prompt pay discounts and fuel margins in the third quarter.

Risks and Challenges:

• Forward-looking statements are subject to uncertainty regarding economic, business, and market conditions.
• Risks include the ability to successfully integrate acquired businesses, specifically USPP, and achieve expected benefits.
• Potential negative impacts on financial condition if expected benefits from acquisitions are not realized.
• Liabilities of acquired businesses that are not currently known to the Company.
• Success of ARKO Parent's transformation plan and its effect on the Company, including the dealerization of retail stores.
• Changes in applicable laws or regulations, including environmental matters.
• Outcome of any known or unknown litigation and regulatory proceedings.

Management Commentary and Tone:

• Arie Kotler, Chairman, President, and CEO, stated that third-quarter results reinforce the strategy outlined at the IPO.
• Management believes the results demonstrated the durability of the platform, stability of cash generation, and the team's ability to execute effectively through a volatile market environment.
• Management cited year-to-date performance and the expected closing of USPP as reasons for raising full-year guidance.
• The Board declared a quarterly dividend reflecting confidence in the strength of cash generation ability and strong financial position.

Other Key Points:

• The Board declared a quarterly dividend of $0.50 per share of common stock, payable on November 30, 2026, to stockholders of record as of November 18, 2026.
• This dividend is consistent with an expected annual dividend rate of $2.00 per share.
• On August 4, 2026, the Company entered into an asset purchase agreement to acquire the business of U.S. Petroleum Partners, LLC (USPP).
• The USPP acquisition consideration consists of $205 million in cash plus the value of inventory at closing.
• The Company will issue $30 million in APC Class A common stock to be held in escrow and released to the seller subject to the acquired business achieving certain EBITDA-based financial targets in the first four full quarters after closing.
• The USPP acquisition is expected to be accretive, contribute approximately $30 million of annualized Adjusted EBITDA, and enhance Discretionary Cash Flow.
• The Company expects the USPP transaction to meaningfully expand scale and infrastructure, reflecting the disciplined execution of the growth strategy outlined at the time of its IPO.