ARKO Corp. announced its financial results for the second quarter ended June 30, 2025, reporting that Adjusted EBITDA exceeded the midpoint of its guidance, demonstrating execution discipline amid macroeconomic headwinds. Merchandise contribution decreased by $21.3 million, or 13.7%, compared to the prior year, primarily due to the impact of retail stores converted to dealers and a $3.7 million decrease in same-store merchandise contribution. Retail fuel contribution also decreased by $10.1 million, or 8.6%, largely due to converted stores and gallon demand declines.
Despite these declines, merchandise margin increased to 33.6% for the quarter, up from 32.8% in the prior year, and fuel margin increased by 3.3 cents per gallon to 44.9 cents. The wholesale segment's operating income increased by $2.0 million, benefiting from additional operating income from converted retail sites. Convenience store operating expenses decreased by $25.9 million, or 12.8%, primarily due to the reduction in expenses from converted retail stores.
ARKO maintained its full-year 2025 Adjusted EBITDA guidance range of $233 million to $253 million. The company repurchased approximately 2.2 million shares of common stock for $9.2 million during the quarter, at an average price of $4.11 per share, with $11.3 million remaining under the program. Total liquidity stood at approximately $875 million as of June 30, 2025, including $294 million in cash and cash equivalents.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.