ARKO Petroleum Corp. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net income for the quarter increased to $13.3 million compared to $10.1 million in the prior year period.
• Adjusted EBITDA for the quarter increased to $41.0 million compared to $37.4 million in the prior year period.
• Net cash provided by operating activities for the quarter was $21.6 million compared to $25.0 million in the prior year period.
• Discretionary Cash Flow for the quarter increased to $32.3 million compared to $26.5 million in the prior year period.
• Total revenues for the quarter were $1,888.8 million compared to $1,484.2 million in the prior year period.
• Operating income for the quarter was $25.2 million compared to $24.6 million in the prior year period.
• Total debt, net was approximately $189 million as of September 30, 2026, resulting in Net Debt of approximately $338 million.
• Total liquidity was approximately $715 million, consisting of $10 million in cash and cash equivalents and $705 million in availability under lines of credit.
• The ratio of Net Debt to Adjusted EBITDA was 2.2x as of September 30, 2026, compared to 3.7x as of December 31, 2025.

Guidance and Future Outlook:

• The Company raised its full-year 2026 Adjusted EBITDA guidance 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 does not currently provide 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.

Business Segments and Product Lines:

• Wholesale Segment:
  • Fuel contribution increased by $1.7 million year-over-year, driven by $1.5 million from ARKO Retail Sites converted to dealer locations.
  • Fuel margin per gallon at fuel supply locations increased to 7.2 cents from 6.3 cents; at consignment agent locations, it increased to 30.5 cents from 27.7 cents.
  • 17 ARKO Retail Sites were converted to dealer locations during the quarter, bringing total conversions since 2024 inception to 488 sites.
  • The Company expects approximately 55 additional sites to be converted under letter of intent, contract, or already converted since quarter end, with the transformation largely complete by end of 2027.
  • Number of wholesale sites increased to 2,124 at period end from 2,053 in the prior year period.
• Fleet Fueling Segment:
  • Fuel contribution increased by $0.9 million year-over-year.
  • Fuel margin per gallon at proprietary cardlock locations increased to 51.6 cents from 48.9 cents; at third-party cardlock locations, it increased to 21.5 cents from 15.3 cents.
  • Five new fleet fueling locations 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 period end from 288 in the prior year period.
• GPMP Segment:
  • Fuel revenue related to related parties increased by $109.4 million (18.0%) year-over-year, primarily due to higher average fuel prices.
  • Fuel gallons sold to related parties decreased by 32.4 million (14.5%) year-over-year due to the challenging macroeconomic environment and site conversions.
  • Fuel contribution related to related parties increased by $0.3 million, primarily due to an increase in the fixed margin from 5.0 cents to 6.0 cents per gallon.
  • Number of related party sites decreased to 1,016 at period end from 1,158 in the prior year period.

Market and Competitive Landscape:

• 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.
• USPP serves customers throughout the Great Lakes region across approximately 400 dealer locations.
• The acquisition is expected to add two fuel terminals and expand transportation capabilities, enhancing vertical integration.
• The Company operates in approximately 3,500 locations across the District of Columbia and more than 30 states.

Risks and Challenges:

• Fuel gallons sold to related parties decreased due to a challenging macroeconomic environment.
• Forward-looking statements are subject to uncertainty regarding economic, business, and market conditions, including the ability to successfully integrate acquired businesses like USPP.
• Risks include potential negative impacts on financial condition if expected benefits from acquisitions are not realized, unknown liabilities of acquired businesses, and changes in applicable laws or regulations.
• The success of ARKO Parent's transformation plan and its effect on the Company, including the dealerization of retail stores, is a key factor.

Management Commentary and Tone:

• Arie Kotler, Chairman, President and CEO, stated that third-quarter results reinforce the strategy outlined at the IPO.
• Management highlighted that Adjusted EBITDA and Discretionary Cash Flow growth demonstrated the durability of the platform, stability of cash generation, and the team's ability to execute effectively through a volatile market environment.
• Management expressed confidence in the strength of cash generation and strong financial position, reflected in the declaration of a quarterly dividend.

Other Key Points:

• The Board declared a quarterly dividend of $0.50 per share of common stock to be paid 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, plus $30 million in APC Class A common stock held in escrow subject to EBITDA-based financial targets for 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.
• Maintenance capital expenditures for the quarter were $2.1 million, and growth capital expenditures were $9.5 million.
• The Company opened five new fleet fueling locations in the first nine months of 2026 and two in October 2026.