Free cash flow remains highly volatile, fluctuating between -0.7% and 3.5% over the last ten quarters, while earnings quality is often obscured by extreme OCF/NI ratios like the 53.14x observed in 2023Q4.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 |
|---|
| Cash from Operations | 167.85M | 192.59M | 221.86M | 136.09M | 209.26M | 159.19M | 173.84M | 43.3M | 58.5M | 27.51M | 37.67M | 40.15M | 21.55M | 4.11M | 9.36M |
| Operating CF Margin % | - | 2.52% | 2.54% | 1.45% | 2.29% | 2.15% | 4.33% | 1.05% | 1.44% | 0.9% | 1.94% | 2.32% | 1.33% | 0.29% | 0.8% |
| Operating CF Growth % | -44.11% | -13.19% | 63.02% | -34.96% | 31.45% | -8.43% | 301.51% | -25.99% | 112.67% | -26.98% | -6.17% | 86.29% | 424.89% | -56.12% | - |
| Net Income | 27.36M | 22.74M | 20.84M | 34.37M | 71.98M | 59.43M | 30.12M | -47.16M | 23.46M | -5.82M | -5.45M | 952.65K | -2.3M | -4.6M | -1.33M |
| Depreciation & Amortization | -1.64M | 874K | 132.41M | 127.6M | 101.75M | 97.19M | 74.4M | 62.4M | 53.81M | 38.19M | 28.25M | 23.73M | 17.79M | 14.42M | 11.05M |
| Stock-Based Compensation | -2.04M | 1.29M | 1.69M | 15.02M | 12.16M | 5.8M | 1.89M | 516K | 490K | 764.74K | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 9.51M | -396K | -12.8M | -4.68M | 22.3M | 4.85M | -4.75M | 4.3M | -9.78M | -6.1M | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 137.82M | 126.41M | 3.36M | 10.52M | 6.6M | 12.02M | 16.96M | 9.86M | -34.86M | 99.55M | 14.36M | 4.85M | -6.53M | -7.7M | -358.09K |
| Working Capital Changes | -4.57M | 41.66M | 76.34M | -46.73M | -5.53M | -20.1M | 55.22M | 13.38M | 25.38M | -12.74M | 498.6K | 10.62M | 12.6M | 1.99M | 773.76K |
| Change in Receivables | -51.11M | 7.75M | 38.06M | 0 | -50.23M | -16M | -24.01M | -1.69M | 6.45M | -8.36M | -7.59M | 378.8K | 2.01M | 7.7M | 2.36M |
| Change in Inventory | 14.42M | 40.63M | 22.69M | 0 | -6.85M | -21.82M | 6.62M | -7.3M | -7.35M | -6.96M | -3.69M | 1.47M | 2.09M | -4.44M | -1.59M |
| Change in Payables | 3.73M | -33.98M | -24.17M | -6.17M | 31.64M | 16.81M | 26.89M | 8.83M | 6.31M | 6.12M | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -122.24M | -119.79M | -114.86M | -296.82M | -175.49M | -171.78M | -407.55M | -73.04M | -104.65M | -54.37M | -126.75M | -52.78M | -37.1M | -47.83M | 15.99M |
| Capital Expenditures | 42.46M | 0 | -113.91M | -111.16M | -98.59M | -226.21M | -44.68M | -58.26M | -51.62M | -39.23M | -42.09M | -10.63M | -7.07M | -5.05M | -6.89M |
| CapEx % of Revenue | 0.56% | 1.67% | 1.3% | 1.18% | 1.08% | 3.05% | 1.11% | 1.41% | 1.27% | 1.29% | 2.17% | 0.61% | 0.44% | 0.35% | 0.59% |
| Acquisitions | 925K | 0 | -2.68M | -495.87M | -423.73M | -203.07M | -363.99M | -33.59M | -71.37M | 1.55M | -55.14M | -69.64M | -2.31M | -42.15M | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -165.63M | -119.79M | 1.74M | 310.21M | 287.9M | 311.72M | 1.11M | 18.81M | 18.34M | -16.64M | -29.52M | 27.48M | -27.73M | -624.06K | 22.88M |
| Cash from Financing | -46.05M | -41.51M | -56M | 85.36M | 10.55M | -26.38M | 491.05M | 31.69M | 45.84M | 22.44M | 119.18M | 7.3M | 13.28M | 55.52M | -25.46M |
| Debt Issued (Net) | -206.04M | 9.03M | 16.26M | 152.39M | 73.39M | -11.65M | 413.27M | 57.85M | 54.56M | 8.29M | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | 182.45M | -27.96M | -31.99M | -33.69M | -40.04M | 0 | 154.88M | 0 | 0 | 22.75M | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | -19.24M | -13.62M | -19.77M | -20.02M | -16.64M | -5.89M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -24.87M | -27.96M | -31.99M | -33.69M | -40.04M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -3.21M | -8.96M | -20.51M | -13.31M | -6.15M | -8.84M | -77.1M | -26.15M | -8.72M | -5.98M | 119.18M | 7.3M | 13.28M | 55.52M | -25.46M |
| Net Change in Cash | -393K | 31.31M | 50.99M | -75.35M | 44.23M | -40.43M | 260.21M | 3.21M | -1.71M | -5.64M | 29.22M | -5.34M | -3.05M | 11.08M | -214.8K |
| Free Cash Flow | 37.68M | 65.22M | 107.94M | 24.89M | 110.48M | -67.26M | 129.17M | -14.96M | 6.88M | -11.72M | -4.41M | 29.52M | 14.49M | -945.32K | 2.47M |
| FCF Margin % | 0.5% | 0.85% | 1.24% | 0.26% | 1.21% | -0.91% | 3.22% | -0.36% | 0.17% | -0.39% | -0.23% | 1.7% | 0.89% | -0.07% | 0.21% |
| FCF Growth % | -73.17% | -39.58% | 333.77% | -77.48% | 264.27% | -152.07% | 963.18% | -317.41% | 158.72% | -165.54% | -114.95% | 103.8% | 1632.28% | -138.34% | - |
| FCF per Share | 0.34 | 0.57 | 0.92 | 0.21 | 0.90 | -0.54 | 0.29 | -0.03 | 0.01 | -0.02 | -0.01 | 0.05 | 0.03 | -0.00 | 0.01 |
| FCF Conversion (FCF/Net Income) | 1.38x | 8.47x | 10.64x | 3.96x | 2.92x | 2.69x | 12.68x | -0.99x | 5.33x | -4.72x | -6.94x | 22.02x | -7.51x | -1.08x | 8.02x |
| Interest Paid | 27.6M | 87.27M | 92.1M | 82.48M | 57.65M | 51.49M | 40.03M | 30.62M | 26.81M | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 5.04M | 5.04M | 10.42M | 29.46M | 6.75M | 14.91M | 1.16M | 2.78M | 1.83M | 0 | 0 | 0 | 0 | 0 | 0 |
High leverage and margin compression
As reported in recent financial statements, ARKO exhibits a significant disconnect between net income and operating cash flow, with OCF/NI ratios frequently reaching extreme levels, such as the 53.14x observed in 2023Q4, suggesting that reported earnings are heavily influenced by non-cash items and working capital fluctuations.
The persistent gap between net income and operating cash flow indicates that the company's accounting earnings are not a reliable proxy for cash generation. Investors should monitor this divergence, as it suggests that the underlying business may be struggling to convert accounting profits into actual liquidity.
Based on quarterly data, ARKO's free cash flow trajectory remains highly inconsistent, with margins fluctuating between -0.7% and 3.5% over the last ten quarters, reflecting the inherent difficulty in maintaining positive cash generation amidst a strategy heavily reliant on external financing and volatile fuel spreads.
The inability to sustain positive free cash flow suggests that the company's operational model may be structurally challenged by its high fixed-cost base. This volatility warrants further investigation into whether the current cash flow profile can support the company's ongoing debt service requirements.
According to recent SEC filings, ARKO's capital expenditure as a percentage of revenue has remained relatively low, peaking at 4.1% in 2025Q4, which may indicate a strategy of prioritizing acquisition-led growth over the significant reinvestment required to modernize its aging, acquired retail site footprint.
Low capital intensity relative to peers may suggest that the company is deferring necessary maintenance or NTI investments to preserve cash. This approach appears to prioritize short-term financial metrics over the long-term competitive viability of its physical store assets.
As indicated by historical cash flow statements, ARKO frequently relies on working capital swings to bolster operating cash flow, with a notable $57.5M inflow in 2024Q3, highlighting the company's sensitivity to inventory and payables management within its complex fuel distribution and retail segments.
The reliance on working capital adjustments to manage cash flow suggests that the company's core operations may not be generating sufficient organic liquidity. Investors should monitor these fluctuations closely, as they may mask underlying operational inefficiencies or liquidity pressures during periods of fuel price volatility.
Quick answers to the most common questions about buying ARKO stock.
Arko Corp. (ARKO) generated $192.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Arko Corp. (ARKO) generated $65.2M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Arko Corp. (ARKO) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Arko Corp. (ARKO) returned $13.6M to shareholders via cash dividends and spent $28.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.