Revenue growth is inconsistent, with a 17.4% year-over-year increase in 2026Q2, but profitability is dictated by extreme gross margin volatility, ranging from 3.1% to 34.2% over the past ten quarters.
Arko Corp. (ARKO) annual income statement — 14-year revenue, gross profit & net income history
| 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 |
|---|
| Sales/Revenue | 7.93B | 7.64B | 8.73B | 9.41B | 9.14B | 7.42B | 4.01B | 4.13B | 4.06B | 3.04B | 1.94B | 1.73B | 1.62B | 1.43B | 1.18B |
| Revenue Growth % | -2.05% | -12.47% | -7.23% | 2.95% | 23.26% | 84.96% | -2.87% | 1.57% | 33.66% | 56.92% | 11.8% | 6.94% | 13.28% | 21.73% | - |
| Cost of Goods Sold | 6.63B | 7.25B | 8.33B | 8.99B | 8.72B | 7.05B | 3.75B | 3.99B | 3.92B | 2.96B | 1.55B | 1.41B | 1.4B | 1.27B | 1.05B |
| COGS % of Revenue | - | 94.83% | 95.45% | 95.5% | 95.42% | 95.05% | 93.56% | 96.69% | 96.53% | 97.48% | 79.76% | 81.61% | 86.22% | 88.52% | 89.46% |
| Gross Profit | 1.3B | 395.5M | 397.22M | 423.63M | 418.55M | 367.48M | 258.36M | 136.77M | 141.2M | 76.71M | 392.33M | 318.82M | 223.31M | 164.24M | 123.93M |
| Gross Margin % | 16.43% | 5.17% | 4.55% | 4.5% | 4.58% | 4.95% | 6.44% | 3.31% | 3.47% | 2.52% | 20.24% | 18.39% | 13.78% | 11.48% | 10.54% |
| Gross Profit Growth % | - | -0.43% | -6.24% | 1.21% | 13.9% | 42.23% | 88.9% | -3.14% | 84.06% | -80.45% | 23.06% | 42.77% | 35.96% | 32.52% | - |
| Operating Expenses | 1.19B | 293.2M | 303.19M | 305.62M | 251.54M | 225.4M | 178.05M | 135.45M | 105.29M | 46.03M | 374.27M | 302M | 218.19M | 169.37M | 123.55M |
| OpEx % of Revenue | - | 3.84% | 3.47% | 3.25% | 2.75% | 3.04% | 4.44% | 3.28% | 2.59% | 1.51% | 19.31% | 17.42% | 13.46% | 11.84% | 10.51% |
| Selling, General & Admin | 167.07M | 165.71M | 162.92M | 165.29M | 139.97M | 124.67M | 94.42M | 69.31M | 62.02M | 46.03M | 366.87M | 294.93M | 212.96M | 165.2M | 118.91M |
| SG&A % of Revenue | - | 2.17% | 1.87% | 1.76% | 1.53% | 1.68% | 2.35% | 1.68% | 1.53% | 1.51% | 18.93% | 17.01% | 13.14% | 11.55% | 10.12% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 2M | 127.49M | 140.27M | 140.33M | 111.57M | 100.73M | 83.62M | 66.14M | 43.27M | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 111.36M | 102.3M | 94.03M | 118.01M | 167.01M | 142.08M | 80.31M | 1.32M | 35.91M | 30.69M | 25.46M | 23.88M | 10.35M | -964.93K | 5.02M |
| Operating Margin % | 1.4% | 1.34% | 1.08% | 1.25% | 1.83% | 1.92% | 2% | 0.03% | 0.88% | 1.01% | 1.31% | 1.38% | 0.64% | -0.07% | 0.43% |
| Operating Income Growth % | - | 8.8% | -20.33% | -29.34% | 17.55% | 76.91% | 5966.01% | -96.31% | 17.03% | 20.53% | 6.6% | 130.78% | 1172.54% | -119.21% | - |
| EBITDA | 241.86M | 236.75M | 226.44M | 245.61M | 268.77M | 239.28M | 154.71M | 63.73M | 89.73M | 68.87M | 53.71M | 47.61M | 28.14M | 13.46M | 16.07M |
| EBITDA Margin % | 3.05% | 3.1% | 2.59% | 2.61% | 2.94% | 3.23% | 3.86% | 1.54% | 2.21% | 2.26% | 2.77% | 2.75% | 1.74% | 0.94% | 1.37% |
| EBITDA Growth % | 2.27% | 4.55% | -7.81% | -8.62% | 12.32% | 54.66% | 142.77% | -28.98% | 30.28% | 28.22% | 12.81% | 69.23% | 109.09% | -16.25% | - |
| D&A (Non-Cash Add-back) | 130.5M | 134.45M | 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 |
| EBIT | 112.36M | 121.83M | 124.62M | 138.29M | 170.19M | 145.09M | 82.08M | 2.77M | 45.93M | 21.27M | 25.46M | 23.88M | 10.35M | -964.93K | 5.02M |
| Net Interest Income | -72M | -73.32M | -67.16M | -71.24M | -59.41M | -71.21M | -49.91M | -41.81M | -19.93M | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 14.6M | 19.53M | 30.59M | 20.27M | 3.18M | 3M | 1.77M | 1.45M | 10.02M | 19.91M | 12.95M | 9.8M | 3.96M | 3.04M | 3.05M |
| Interest Expense | 86.6M | 92.86M | 97.75M | 91.52M | 62.58M | 74.21M | 51.67M | 43.26M | 29.95M | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -85.59M | -73.22M | -67.04M | -71.28M | -59.48M | -71.02M | -51.17M | -42.32M | -19.93M | -39.22M | -20.34M | -16.87M | -9.19M | -7.21M | -7.69M |
| Pretax Income | 25.76M | 29.09M | 26.99M | 46.73M | 107.53M | 71.06M | 29.14M | -40.99M | 15.98M | -8.53M | 5.12M | 7.02M | 1.16M | -8.17M | -2.67M |
| Pretax Margin % | 0.32% | 0.38% | 0.31% | 0.5% | 1.18% | 0.96% | 0.73% | -0.99% | 0.39% | -0.28% | 0.26% | 0.4% | 0.07% | -0.57% | -0.23% |
| Income Tax | 6.61M | 6.34M | 6.14M | 12.17M | 35.56M | 11.63M | -1.5M | 6.17M | -7.93M | -9.73M | 2.51M | 3.38M | 886.48K | 1.64M | 2.43M |
| Effective Tax Rate % | 25.65% | 21.8% | 22.76% | 26.03% | 33.07% | 16.37% | -5.14% | -15.04% | -49.64% | 114.09% | 49.05% | 48.22% | 76.48% | -20.12% | -91.18% |
| Net Income | 14.79M | 22.74M | 20.84M | 34.37M | 71.75M | 59.2M | 13.71M | -43.54M | 10.97M | -5.83M | -5.43M | 1.82M | -2.87M | -3.8M | 1.17M |
| Net Margin % | 0.19% | 0.3% | 0.24% | 0.37% | 0.78% | 0.8% | 0.34% | -1.05% | 0.27% | -0.19% | -0.28% | 0.11% | -0.18% | -0.27% | 0.1% |
| Net Income Growth % | -0.07% | 9.11% | -39.35% | -52.1% | 21.2% | 331.79% | 131.49% | -497.04% | 288.13% | -7.35% | -397.86% | 163.54% | 24.52% | -425.77% | - |
| Net Income (Continuing) | 19.16M | 22.74M | 20.84M | 34.57M | 71.98M | 59.43M | 30.64M | -47.16M | 23.91M | 1.2M | -5.43M | 1.82M | -2.87M | -3.8M | 1.17M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -11K | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 68.7M | 0 | 0 | 16K | 56K | 224K | -161K | 129.12M | 134.77M | 133.69M | 106.26M | 32.74M | 31.18M | 24.89M | 32.86M |
| EPS (Diluted) | 0.13 | 0.15 | 0.13 | 0.24 | 0.53 | 0.42 | 0.07 | -0.11 | 0.01 | -0.01 | -0.01 | 0.00 | -0.01 | -0.01 | 0.00 |
| EPS Growth % | -10.78% | 15.38% | -45.83% | -54.72% | 26.19% | 491.55% | 164.55% | -869.23% | - | - | - | - | - | - | - |
| EPS (Basic) | - | 0.15 | 0.13 | 0.24 | 0.54 | 0.43 | 0.07 | -0.11 | 0.01 | -0.01 | -0.01 | 0.00 | -0.01 | -0.01 | 0.00 |
| Diluted Shares Outstanding | 115.88M | 114.98M | 116.95M | 119.61M | 123.22M | 125.44M | 442.33M | 442.33M | 766.18M | 759.43M | 592.33M | 579.7M | 578.74M | 487.39M | 350.13M |
| Basic Shares Outstanding | 112.19M | 113.31M | 116.14M | 118.78M | 121.48M | 124.41M | 442.23M | 442.23M | 766.19M | 767.31M | 592.33M | 579.74M | 578.75M | 487.41M | 350.13M |
| Dividend Payout Ratio | - | 59.89% | 67.23% | 41.53% | 15.18% | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying ARKO stock.
For fiscal year 2025, Arko Corp. (ARKO) reported total revenue of $7.64B. This represents a 550.3% increase compared to $1.18B in 2012.
Arko Corp. (ARKO) is profitable, generating $22.7M in net income for the fiscal year ending 2025 with a net profit margin of 0.3%.
Arko Corp. (ARKO) reported an operating income of $102.3M, resulting in an operating profit margin of 1.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Arko Corp. (ARKO) generated $395.5M in gross profit for the year, representing a gross profit margin of 5.2%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Volatile Gross Margins
Metrics are mathematically derived from official filings.
Revenue Growth Volatility Amid Margin Swings
ARKO's revenue growth has been inconsistent, swinging from a 17.4% year-over-year increase in 2026Q2 to a 9.9% decline in 2025Q4, suggesting its top line is highly sensitive to commodity price fluctuations and consumer demand shifts.
The company's revenue trajectory lacks a clear directional trend, with periods of growth immediately followed by contraction. This volatility appears driven by the underlying wholesale fuel business, where revenue is heavily influenced by the price of gasoline and diesel, rather than consistent volume growth. The lack of R&D investment suggests limited organic growth drivers beyond its core retail and fuel distribution operations.
Extreme Gross Margin Instability
ARKO's gross margin is exceptionally volatile, ranging from a low of 3.1% in 2026Q1 to a high of 34.2% in 2025Q4, indicating a business model where profitability is dictated by wholesale fuel price spreads rather than pricing power.
The dramatic swings in gross margin, such as the 31.1 percentage point jump from 2026Q1 to 2025Q4, point to a pass-through cost structure where the company has minimal control over its primary cost of goods sold. This pattern is characteristic of fuel distributors where margins are set by the difference between wholesale and retail prices, making the income statement highly susceptible to commodity market dynamics. The company's margins are structurally lower than peers like Casey's, which benefits from a higher-margin convenience store mix.
Minimal Operating Leverage in a Low-Margin Model
Operating income has not scaled meaningfully with revenue, as seen in 2026Q2 where a 17.4% revenue increase yielded only a 1.3% operating margin, suggesting the business lacks significant operating leverage and overhead efficiency.
The relationship between gross profit and operating income reveals a cost structure where SG&A expenses remain relatively fixed in absolute terms, ranging from $38.6M to $43.7M per quarter. However, because gross profit itself is so volatile, operating income swings dramatically, from a loss of $11.8M in 2025Q1 to a profit of $56.7M in 2025Q2. This indicates that the company's profitability is almost entirely a function of its gross margin, with limited ability to improve results through operational efficiencies.
Net Income Distorted by Non-Operating Items
Reported net income is of low quality, as evidenced by a 75% year-over-year EPS decline in 2026Q2 despite a 17.4% revenue increase, suggesting significant non-operating items or tax effects are obscuring core operational performance.
The disconnect between revenue growth and net income growth is stark. In 2026Q2, revenue grew 17.4% but EPS fell 75%, implying that non-operating expenses, interest costs, or tax provisions heavily impacted the bottom line. The company's net margin is consistently razor-thin, often below 1%, making it highly vulnerable to even minor non-operating charges. The minimal stock-based compensation suggests this is not a primary driver of earnings dilution.
2025Q4 Gross Margin Spike as Key Inflection
The most significant operational inflection occurred in 2025Q4, when gross margin surged to 34.2% from 5.5% in the prior quarter, driving a swing from a net loss to profitability and highlighting the business's dependence on favorable wholesale fuel spreads.
This single quarter represents a dramatic, though likely temporary, improvement in the company's core economics. The 28.7 percentage point gross margin expansion suggests a period where retail fuel prices remained high while wholesale costs fell, creating a wide spread. This inflection demonstrates that ARKO's profitability is not driven by operational improvements but by external market conditions, making its earnings power difficult to predict and sustain.
Structural Margin Compression Risk
The strongest challenge to ARKO's income statement narrative is the persistent risk of structural margin compression, as the company's core business appears to offer minimal pricing power and is exposed to competitive pressures from larger, more diversified peers.
Short-sellers would focus on the company's inability to maintain consistent margins, with gross margins frequently falling below 6%. This suggests that in a competitive retail fuel market, ARKO may be forced to sacrifice margins to maintain volume. Furthermore, the company's operating margin is significantly below peers like Murphy USA and Casey's, indicating a less efficient cost structure or a less profitable business mix. The lack of R&D investment raises questions about the company's long-term ability to differentiate itself or adapt to changing consumer behaviors.