Key Highlights

  • ARKO Petroleum (NASDAQ:APC) reported third-quarter Net Income of USD 13.3 million, up from USD 10.1 million a year earlier, as total revenues increased to USD 1.89 billion from USD 1.48 billion.
  • Operating income was USD 25.2 million compared with USD 24.6 million, and Adjusted EBITDA, a non-GAAP measure, rose to USD 41.0 million from USD 37.4 million.
  • Total fuel gallons fell to 478.3 million from 523.0 million, yet the total fuel Margin widened to 11.8 cents per gallon from 10.3 cents.
  • Operating cash flow was USD 21.6 million against USD 25.0 million, and the company declared a Dividend of 50 cents per share in the quarter.

Higher Pump Prices Offset a Smaller Gallon Volume

ARKO Petroleum (NASDAQ:APC) filed its third-quarter 10-Q on November 4, 2026. The company wholesales motor fuel and runs fleet fueling operations, and its Class A shares started trading after an initial public offering closed on February 13, 2026 at USD 18.00 a share. Total revenues reached USD 1.89 billion, including fuel Revenue of USD 1.15 billion and USD 718.4 million from related parties. Management attributes the revenue rise to higher average fuel prices, partly offset by fewer gallons amid a tough macroeconomic backdrop. Fuel revenue rose 34.0%, and net income increased about 32% (calculated). As of November 3, 2026, 12.57 million Class A and 35.0 million Class B shares were outstanding. Fuel revenue of USD 1.15 billion was therefore the largest component of the total.

Fuel Contribution Rises as Interest Costs Fall

Total fuel contribution reached USD 56.5 million versus USD 53.9 million, up roughly 5% (calculated), helped by fleet fueling locations and sites converted from ARKO Retail to dealer locations, and held back by lower contribution from comparable wholesale sites. Site operating expenses increased 12.4% to USD 28.5 million, and Depreciation rose 8.5%. Interest and other financial expenses, net, dropped USD 3.7 million to USD 7.4 million after IPO proceeds repaid about USD 206.7 million on the Capital One Credit line. General and administrative expenses grew 2.6% to USD 11.2 million, and income tax expense was USD 4.5 million. Nine-month net income reached USD 33.7 million, compared with USD 24.7 million.

Nine-Month Cash Conversion, Dividends and the Wholesale Unit

Earnings growth did not fully reach cash. Nine-month Operating Cash Flow was USD 38.6 million versus USD 63.2 million, while Discretionary Cash Flow, a non-GAAP measure, rose to USD 84.4 million from USD 67.8 million. Dividends declared across the nine months totaled 76 cents per share. The wholesale segment generated Operating Income of USD 25.8 million. The filing names ARKO Corp. (NASDAQ:ARKO) as parent, and related-party gallons fell 14.5% during the quarter. Risks include fuel price swings, lower gallon sales, severe weather and dependence on related-party volumes. The extract contains no guidance. The extract does not include management commentary on the fourth quarter.

Where Things Stand

Largely yes, though Volume is shrinking. ARKO Petroleum (NASDAQ:APC) grew net income because fuel margins per gallon widened, converted dealer sites and fleet fueling added contribution, and the IPO cut interest costs, even though gallons sold dropped about 8.6% (calculated). Revenue growth mostly reflects higher fuel prices rather than volume. Operating cash flow declined, so Earnings quality depends on working capital. Next markers are volume trends at comparable wholesale sites, the dividend, further dealer conversions and Acquisition costs, which rose in the quarter.