Earnings release
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Exhibit 99.1 1 See Use of Non-GAAP Measures below. 2 All figures for fuel costs, fuel contribution and fuel margin per gallon (other than related party) exclude the fixed margin or fixed fee paid to the GPMP segment for the cost of fuel. ARKO Petroleum Corp. Reports Third Quarter 2026 Results, Raises Full Year 2026 Guidance and Declares Quarterly Dividend ARKO Petroleum Corp. (Nasdaq: APC) (“APC” or the “Company”), one of the largest fuel wholesalers in North America, today announced financial results for the third quarter ended September 30, 2026, raised its full year 2026 financial guidance and declared a quarterly dividend of $0.50 per share. Third Quarter 2026 Key Highlights (vs. Year-Ago Period) 1,2 • Net income for the quarter increased to $13.3 million compared to $10.1 million. • Adjusted EBITDA for the quarter increased to $41.0 million compared to $37.4 million. • Net cash provided by operating activities for the quarter was $21.6 million compared to $25.0 million. • Discretionary Cash Flow for the quarter increased to $32.3 million compared to $26.5 million. • Raises full-year 2026 Adjusted EBITDA guidance to be in a range of $156 million to $157 million. • Post quarter-end, declared quarterly dividend of $0.50 per share of common stock to be paid on November 30, 2026. • On August 4, 2026, entered into an asset purchase agreement to acquire the business of U.S. Petroleum Partners, LLC ("USPP"), a strategic transaction that is expected to meaningfully expand APC’s scale and infrastructure and reflects the disciplined execution of the growth strategy outlined at the time of its initial public offering. “APC’s third-quarter results reinforce the strategy we outlined at the IPO," said Arie Kotler, Chairman, President and Chief Executive Officer of APC. "Adjusted EBITDA and Discretionary Cash Flow grew year over year, which we believe demonstrated the durability of our platform, the stability of its cash generation and our team’s ability to execute effectively through a volatile market environment. Based on year-to-date performance, our outlook for the balance of the year and the expected closing of USPP, we are raising our full-year 2026 Adjusted EBITDA guidance.” Third Quarter 2026 Segment Highlights Wholesale Segment For the Three Months Ended September 30, For the Nine Months Ended September 30, 2026 2025 2026 2025 (in thousands) Fuel gallons sold – fuel supply locations 211,648 220,220 613,626 624,826 Fuel gallons sold – consignment agent locations 37,564 40,191 110,287 115,635 Fuel contribution – fuel supply locations $ 15,279 $ 13,917 $ 43,452 $ 38,854 Fuel contribution – consignment agent locations $ 11,441 $ 11,151 $ 32,480 $ 31,650 Fuel margin, cents per gallon – fuel supply locations 7.2 6.3 7.1 6.2 Fuel margin, cents per gallon – consignment agent locations 30.5 27.7 29.5 27.4 Calculated as fuel revenue less fuel costs; excludes the fixed margin or fixed fee paid to the GPMP segment for the cost of fuel. Calculated as fuel contribution divided by fuel gallons sold. 1 1 2 2 1 2
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Note: Comparable wholesale sites exclude wholesale sites added through ARKO Retail Sites converted to dealer locations until the first quarter in which these sites had a full quarter of wholesale activity in the prior year. Refer to Use of Non-GAAP Measures below. For the third quarter of 2026, wholesale operating income increased by $1.7 million compared to the third quarter of 2025 primarily as a result of additional operating income from ARKO Retail Sites (as defined below) converted to dealer locations, which was partially offset by reduced operating income at comparable wholesale sites. For the third quarter of 2026, fuel contribution increased by $1.7 million compared to the third quarter of 2025. Fuel contribution for the third quarter of 2026 at fuel supply locations increased by $1.4 million compared to the third quarter of 2025, primarily due to $1.5 million of incremental contribution from ARKO Retail Sites converted to dealer locations. Fuel contribution for the third quarter of 2026 at consignment agent locations increased $0.3 million compared to the third quarter of 2025, primarily due to $0.4 million of incremental contribution from ARKO Retail Sites converted to dealer locations. Fuel margin per gallon at fuel supply locations increased 0.9 cents per gallon compared to the third quarter of 2025, and fuel margin per gallon at consignment agent locations increased 2.8 cents per gallon compared to the third quarter of 2025, both primarily due to increased prompt pay discounts related to higher fuel costs. For the third quarter of 2026, other revenues, net increased by $3.5 million, and site operating expenses increased by $3.8 million, in each case as compared to the third quarter of 2025, resulting primarily from ARKO Retail Sites converted to dealer locations. As part of the ongoing transformation plan of the Company's controlling stockholder, ARKO Corp. (Nasdaq: ARKO) (“ARKO Parent”), 17 ARKO Parent retail convenience stores that sell fuel ("ARKO Retail Sites") were converted to dealer locations in the Company's wholesale segment during the third quarter of 2026, bringing total conversions since program inception in 2024 to 488 sites. ARKO Parent has an aggregate of approximately 55 additional sites committed under letter of intent, under contract or already converted since quarter end. The Company expects that ARKO Parent will continue to convert a meaningful number of additional stores, and expects ARKO Parent to be largely complete by the end of 2027. Fleet Fueling Segment For the Three Months Ended September 30, For the Nine Months Ended September 30, 2026 2025 2026 2025 (in thousands) Fuel gallons sold – proprietary cardlock locations 32,619 33,124 95,839 98,039 Fuel gallons sold – third-party cardlock locations 3,617 3,458 10,776 9,926 Fuel contribution – proprietary cardlock locations $ 16,837 $ 16,209 $ 49,534 $ 47,985 Fuel contribution – third-party cardlock locations $ 776 $ 531 $ 1,909 $ 1,825 Fuel margin, cents per gallon – proprietary cardlock locations 51.6 48.9 51.7 48.9 Fuel margin, cents per gallon – third-party cardlock locations 21.5 15.3 17.8 18.4 Calculated as fuel revenue less fuel costs; excludes the fixed margin or fixed fee paid to the GPMP segment for the cost of fuel. Calculated as fuel contribution divided by fuel gallons sold. For the third quarter of 2026, fuel contribution increased by $0.9 million compared to the third quarter of 2025. At proprietary cardlocks, fuel contribution increased by $0.6 million, and fuel margin per gallon also increased for the third quarter of 2026 compared to the third quarter of 2025. At third-party cardlock locations, fuel contribution increased $0.3 million, and fuel margin per gallon also increased for the third quarter of 2026 compared to the third quarter of 2025. These increases primarily resulted from significant volatility in the fuel market due to the geopolitical environment. 1 1 2 2 1 2
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The Company continues to invest in fleet fueling locations and opened five new fleet fueling locations in the first nine months of 2026 and two locations were added in October 2026. Currently, the Company has an additional 16 locations in various stages of planning and development, reflecting the attractive, durable cash flow profile of its fleet fueling business. GPMP Segment For the Three Months Ended September 30, For the Nine Months Ended September 30, 2026 2025 2026 2025 (in thousands) Fuel gallons sold – inter-segment 283,378 255,353 816,033 724,914 Fuel gallons sold – related party locations 191,439 223,815 565,566 660,800 Fuel contribution – related party locations $ 11,486 $ 11,191 $ 33,909 $ 33,040 Fuel margin, cents per gallon – related party locations 6.0 5.0 6.0 5.0 Calculated as fuel revenue less fuel costs Calculated as fuel contribution divided by fuel gallons sold. For the third quarter of 2026, fuel revenue – related party increased by $109.4 million, or 18.0%, compared to the third quarter of 2025, resulting primarily from an increase in the average price of fuel in the third quarter of 2026 compared to the third quarter of 2025, which was partially offset by a 32.4 million, or 14.5%, decrease in gallons sold, reflecting the challenging macroeconomic environment and ARKO Retail Sites converted to dealer locations which gallons were reflected after the conversion in fuel revenue – inter-segment. Fuel contribution – related party increased by $0.3 million for the third quarter of 2026 compared to the third quarter of 2025, primarily due to an increase in the fixed margin from 5.0 cents per gallon sold for the third quarter of 2025 to 6.0 cents per gallon sold for the third quarter of 2026, partially offset by fewer gallons sold to ARKO Retail Sites. Strategic Acquisition Transaction Announcement Highlights • On August 4, 2026, entered into an asset purchase agreement to acquire the business of USPP, a vertically integrated fuel supply and distribution platform serving customers throughout the Great Lakes region. The strategic transaction would meaningfully expand APC’s scale and infrastructure and reflects the disciplined execution of the growth strategy outlined at the time of its initial public offering. • The acquisition is expected to add approximately 280 million gallons of annual fuel volume, representing approximately 14% of APC’s trailing 12-month fuel volume, for the period ended September 30, 2026, across approximately 400 dealer locations and to meaningfully increase the Company's commercial and operational scale. • The acquisition is expected to be accretive, contribute approximately $30 million of annualized Adjusted EBITDA and enhance Discretionary Cash Flow, further diversifying the Company's earnings and strengthening its cash- generation capability. • The addition of two fuel terminals and expanded transportation capabilities is expected to enhance vertical integration, broaden the Company’s participation across the fuel value chain and create opportunities to increase terminal utilization, improve transportation efficiency, generate additional fixed-margin and fee-based income and capture incremental margin. • The consideration at closing will consist of $205 million in cash plus the value of inventory at closing. Additionally, at closing the Company will issue $30 million in APC Class A common stock that will be held in escrow and released to the seller subject to the acquired business achieving certain EBITDA-based financial targets in first four full quarters after closing. 1 2 1 . 2
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• The Company continues to work toward the closing of the transaction, which is expected to occur during the fourth quarter of fiscal year 2026. Additional details regarding the transaction, including the strategic and financial highlights, can be found in a separate press release and investor presentation issued by the Company on August 6, 2026, both available on the Investor Relations section of the Company's website at www.arkopetroleum.com. Liquidity and Capital Expenditures As of September 30, 2026, the Company’s total liquidity was approximately $715 million, consisting of approximately $10 million of cash and cash equivalents and approximately $705 million of availability under the Company's lines of credit. Total debt, net was approximately $189 million, resulting in Net Debt (as defined below) of approximately $338 million. For the quarter ended September 30, 2026, maintenance capital expenditures were $2.1 million and growth capital expenditures were $9.5 million, including the purchase of fee properties, the investments in new fleet fueling locations, purchase of fuel dispensers and other investments in the Company's sites. Quarterly Dividend The Company’s ability to return cash to its stockholders through its cash dividend program is consistent with its capital allocation framework and reflects the Company’s confidence in the strength of its cash generation ability and strong financial position. 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. Segment Update The following tables present certain information regarding changes in the wholesale, fleet fueling and GPMP segments for the periods presented: For the Three Months Ended September 30, For the Nine Months Ended September 30, Wholesale Segment 2026 2025 2026 2025 Number of sites at beginning of period 2,129 2,014 2,099 1,922 Newly opened or reopened sites 6 6 30 16 ARKO Retail Sites converted to dealer locations 17 65 79 194 Closed or divested sites (28) (32) (84) (79) Number of sites at end of period 2,124 2,053 2,124 2,053 Excludes bulk and spot purchasers. Includes all signed fuel supply agreements irrespective of fuel distribution commencement date. For the Three Months Ended September 30, For the Nine Months Ended September 30, Fleet Fueling Segment 2026 2025 2026 2025 Number of sites at beginning of period 290 287 295 280 Newly opened or reopened sites 4 2 5 11 Closed or divested sites — (1) (6) (3) Number of sites at end of period 294 288 294 288 1 2 1 2
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For the Three Months Ended September 30, For the Nine Months Ended September 30, GPMP Segment – related party sites (ARKO Retail Sites) 2026 2025 2026 2025 Number of sites at beginning of period 1,034 1,226 1,095 1,356 Newly opened or reopened sites — 1 3 2 ARKO Retail Sites converted to dealer locations (17) (65) (79) (194) Sites closed, divested or converted to rental (1) (4) (3) (6) Number of sites at end of period 1,016 1,158 1,016 1,158 Full Year 2026 Guidance Based on its year-to-date performance, outlook for the balance of the year and expected closing of USPP, the Company is raising its full year 2026 Adjusted EBITDA guidance and currently expects Adjusted EBITDA to be in the range of $156 million to $157 million. The Company is not currently providing reconciliations of Adjusted EBITDA to net income or Discretionary Cash Flow to net cash provided by operating activities for the year ending December 31, 2026 due to the unavailability of certain required inputs for providing forecasts of such GAAP measures, and the related reconciliations, that are not available without unreasonable efforts, including depreciation and amortization related to the Company's capital allocation as part of the Company's focus on strategic and organic growth, as well as inputs related to working capital adjustments. Conference Call and Webcast Details The Company will host a conference call today, November 4, 2026, to discuss these results at 5:00 p.m. Eastern Time. Investors and analysts interested in participating in the live call can dial 877-407-8306 or 201-689-8481. A simultaneous, live webcast will also be available on the Investor Relations section of the Company’s website at https://www.arkopetroleum.com/news-events/ir-calendar. The webcast will be archived for 30 days. About ARKO Petroleum Corp. ARKO Petroleum Corp. (Nasdaq: APC) is a growth-oriented, fuel distribution company and one of the largest fuel wholesalers in North America, supplying approximately 2.0 billion gallons of fuel annually to customers in approximately 3,500 locations in the District of Columbia and more than 30 states across the Mid-Atlantic, Midwestern, Northeastern, Southeastern, and Southwestern United States. We are engaged in (i) wholesale activity, which includes the supply of fuel to gas stations operated by third-party dealers, (ii) fleet fueling, which includes the operation of proprietary and third-party cardlock locations (unstaffed fueling locations) and the issuance of proprietary fuel cards that provide customers access to a nationwide network of fueling sites, and (iii) the wholesale distribution of fuel to substantially all of the retail convenience stores that sell fuel operated by ARKO Corp., our parent company (Nasdaq: ARKO), one of the largest operators of convenience stores in the United States, ranked by store count. To learn more about APC, visit: www.arkopetroleum.com. Forward-Looking Statements This document includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may address, among other things, the Company’s expected financial and operational results and the related assumptions underlying its expected results. These forward-looking statements are distinguished by use of words such as “accretive,” “anticipate,” “aim,” “believe,” “continue,” “could,” “estimate,” “expect,” “guidance,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “will,” “would” and the negative of these terms, and similar references to future periods. These statements
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are based on management’s current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to, among other things, changes in economic, business and market conditions; the Company’s ability to successfully integrate business that it may acquire, including the business of USPP; the Company’s ability to achieve the benefits that it expects to realize as a result of its acquisitions, including the business of USPP; the potential negative impact on the Company’s financial condition and results of operations if it fails to achieve the benefits that it expects to realize as a result of its business acquisitions, including the business of USPP; liabilities of the businesses that the Company acquires that are not known to the Company; the Company’s ability to maintain the listing of its Class A common stock on the Nasdaq Stock Market; changes in its strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects and plans; expansion plans and opportunities; changes in the markets in which it competes; changes in applicable laws or regulations, including those relating to environmental matters; market conditions and global and economic factors beyond its control; the success of ARKO Parent's transformation plan and its effect on the Company, including the dealerization of retail stores; and the outcome of any known or unknown litigation and regulatory proceedings. Detailed information about these factors and additional important factors can be found in the documents that the Company files with the Securities and Exchange Commission, such as Form 10-K, Form 10- Q and Form 8-K. Forward-looking statements speak only as of the date the statements were made. The Company does not undertake an obligation to update forward-looking information, except to the extent required by applicable law. Use of Non-GAAP Measures The Company discloses certain measures on a “comparable wholesale sites” basis, which is a non-GAAP measure. Information disclosed on a “comparable wholesale sites” basis excludes wholesale sites added through ARKO Retail Sites converted to dealer locations until the first quarter in which these sites had a full quarter of wholesale activity in the prior year. The Company believes that this information is useful for its investors, securities analysts, and other interested parties by providing greater comparability regarding its ongoing operating performance. Neither this measure nor those described below should be considered an alternative to measurements presented in accordance with generally accepted accounting principles in the United States (“GAAP”). The Company defines EBITDA as net income before net interest expense, income taxes, depreciation and amortization. Adjusted EBITDA further adjusts EBITDA by excluding the gain or loss on disposal of assets, impairment charges, acquisition costs, share-based compensation expense, other non-cash items, and other unusual or non-recurring charges. Both EBITDA and Adjusted EBITDA are non-GAAP financial measures. The Company uses EBITDA and Adjusted EBITDA for operational and financial decision-making and believes these measures are useful in evaluating its performance because they eliminate certain items that it does not consider indicators of its operating performance. EBITDA and Adjusted EBITDA are also used by many of its investors, securities analysts, and other interested parties in evaluating its operational and financial performance across reporting periods. The Company believes that the presentation of EBITDA and Adjusted EBITDA provides useful information to investors by allowing an understanding of key measures that it uses internally for operational decision-making, budgeting, evaluating acquisition targets, and assessing its operating performance. The Company defines Net Debt as the sum of total debt, net, financing leases and financial liabilities, less cash and cash equivalents. Net Debt is used by management to measure the effective level of our indebtedness. The Company defines the Ratio of Net Debt to Adjusted EBITDA as the ratio derived by dividing Net Debt by Adjusted EBITDA. The Ratio of Net Debt to Adjusted EBITDA is an important measure used by management to evaluate the Company's access to liquidity, and the Company believes it provides useful information for investors as a representation of its financial strength by presenting the sustainability of its debt levels and its ability to take on additional debt against Adjusted EBITDA, which is used as an operating performance measure. The Ratio of Net Debt to Adjusted EBITDA is also frequently used by investors and credit rating agencies to analyze the Company's operating performance.
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The Company defines Discretionary Cash Flow as net cash provided by operating activities, (i) less changes in operating assets and liabilities, maintenance capital expenditures, charges to allowance for credit losses, and non-cash rent expense, and (ii) plus acquisition costs, amortization of deferred income net of prepaid to related party, and certain other expenses (income). Discretionary Cash Flow will not reflect changes in working capital balances. Discretionary Cash Flow is a liquidity measure the Company and third parties, such as industry analysts, investors, lenders, rating agencies and others, use to assess its ability to internally fund its acquisitions, pay dividends, and service or incur additional debt. The Company believes that the presentation of Discretionary Cash Flow provides useful information to investors, securities analysts, and other interested parties for evaluating its liquidity. EBITDA, Adjusted EBITDA, Net Debt, the Ratio of Net Debt to Adjusted EBITDA and Discretionary Cash Flow should not be considered as alternatives to any financial measure presented in accordance with GAAP, including net income and net cash provided by operating activities. These non-GAAP measures have limitations as analytical tools and should not be considered in isolation, or as substitutes for the analysis of its results as reported under GAAP. The Company strongly encourages investors to review its financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, comparable wholesale sites, EBITDA, Adjusted EBITDA, Net Debt, the Ratio of Net Debt to Adjusted EBITDA and Discretionary Cash Flow, as defined by the Company, may not be comparable to similarly titled measures reported by other companies. It therefore may not be possible to compare the Company’s use of these non-GAAP financial measures with those used by other companies. Reconciliations of forward looking non-GAAP measures related to the business of USPP following its acquisition included in this press release to the corresponding GAAP financial measures are not included due to variability and difficulty in making accurate forecasts and projections, particularly in light of potential changes in USPP’s business following its acquisition, as well as, because certain information is not currently ascertainable or accessible, and because not all of the information necessary for a quantitative reconciliation of these forward-looking non-GAAP financial measures is available to the Company without unreasonable efforts. For the same reasons, the Company is unable to address the probable significance of the unavailable information, nor can the Company accurately predict all the components of the applicable non-GAAP financial measures and reconciling adjustments thereto; accordingly, the corresponding GAAP measures may be materially different than the non-GAAP measures. Such forward-looking information is also subject to uncertainty and various risks, including those set forth in the risk factors discussed above, and there can be no assurance that any forecasted results or conditions will actually be achieved. Company and Investor Contact Priya Trivedi ARKO Petroleum Corp. investors@arkopetroleum.com
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Condensed Consolidated Statements of Operations (Unaudited) For the Three Months Ended September 30, For the Nine Months Ended September 30, 2026 2025 2026 2025 (in thousands, except per share amounts) Revenues: Fuel revenue $ 1,146,866 $ 855,585 $ 3,053,383 $ 2,433,254 Fuel revenue – related party 718,372 609,022 1,948,864 1,787,503 Other revenues, net 20,351 16,401 59,744 44,587 Other revenues, net – related party 3,211 3,181 9,762 9,555 Total revenues 1,888,800 1,484,189 5,071,753 4,274,899 Operating expenses: Fuel costs 1,101,819 812,897 2,923,723 2,309,955 Fuel costs – related party 706,886 597,831 1,914,955 1,754,463 Site operating expenses, including allocated expenses 28,496 25,359 84,210 72,765 General and administrative expenses, including allocated expenses 11,226 10,938 33,804 32,078 Depreciation and amortization, including allocated expenses 14,917 13,749 44,420 40,553 Total operating expenses 1,863,344 1,460,774 5,001,112 4,209,814 Other expenses (income), net 226 (1,154) 1,778 923 Operating income 25,230 24,569 68,863 64,162 Interest and other financial income, including allocated income 222 183 692 408 Interest and other financial expenses, including allocated expenses (7,622) (11,244) (24,293) (31,437) Income before income taxes 17,830 13,508 45,262 33,133 Income tax expense (4,491) (3,408) (11,605) (8,472) Net income $ 13,339 $ 10,100 $ 33,657 $ 24,661 Net income per share – basic $ 0.28 $ 0.29 $ 0.74 $ 0.70 Net income per share – diluted $ 0.28 $ 0.29 $ 0.74 $ 0.70 Weighted average shares outstanding: Basic 47,570 35,000 45,454 35,000 Diluted 47,585 35,000 45,463 35,000
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Condensed Consolidated Balance Sheets (Unaudited) September 30, 2026 December 31, 2025 (in thousands) Assets Current assets: Cash and cash equivalents $ 10,109 $ 15,556 Trade receivables, net 178,406 80,832 Inventory 34,936 23,093 Other current assets 46,172 43,054 Total current assets 269,623 162,535 Non-current assets: Property and equipment, net 271,971 262,743 Right-of-use assets under operating leases 448,705 415,179 Right-of-use assets under financing leases, net 65,581 62,739 Goodwill 76,687 76,687 Intangible assets, net 138,737 154,326 Deferred tax asset 71,951 70,934 Other non-current assets 73,979 68,331 Total assets $ 1,417,234 $ 1,273,474 Liabilities Current liabilities: Long-term debt, current portion $ 1,151 $ 6,783 Accounts payable 122,124 75,224 Other current liabilities 72,491 53,586 Operating leases, current portion 30,800 27,820 Financing leases, current portion 2,372 2,095 Total current liabilities 228,938 165,508 Non-current liabilities: Long-term debt, net 187,730 385,247 Asset retirement obligation 49,749 47,571 Operating leases 472,305 431,364 Financing leases 102,476 94,638 Other non-current liabilities 128,177 113,031 Total liabilities 1,169,375 1,237,359 Total net investment — 36,115 Total stockholders' equity 247,859 — Total liabilities and stockholders' equity / total net investment $ 1,417,234 $ 1,273,474
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Condensed Consolidated Statements of Cash Flows (Unaudited) For the Three Months Ended September 30, For the Nine Months Ended September 30, 2026 2025 2026 2025 (in thousands) Cash flows from operating activities: Net income $ 13,339 $ 10,100 $ 33,657 $ 24,661 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 14,917 13,749 44,420 40,553 Deferred income taxes 919 4,542 3,397 2,518 (Gain) loss on disposal of assets and impairment charges, net (1,477) 326 (651) 2,618 Amortization of deferred financing costs 626 378 1,768 1,119 Amortization of deferred income (2,589) (3,452) (7,442) (7,960) Amortization of prepaid to related party 743 1,022 2,246 3,137 Accretion of asset retirement obligation 289 305 931 836 Non-cash rent 325 708 766 2,180 Charges to allowance for credit losses 227 276 848 820 Share-based compensation 528 103 1,922 605 Fair value adjustment of financial assets and liabilities — (1,443) 54 (1,272) Other operating activities, net — 21 — (191) Changes in assets and liabilities: Increase in trade receivables (36,585) (562) (98,422) (17,016) (Increase) decrease in inventory (4,991) (1,414) (11,843) 94 Decrease (increase) in other assets 194 (3,791) (11,265) (7,984) Decrease (increase) in related party assets 11,051 (1,384) 3,675 (4,965) Increase in accounts payable 12,421 10,124 45,150 9,796 Increase (decrease) in other current liabilities 6,532 (9,255) 18,743 (2,402) Decrease in asset retirement obligation — (187) (257) (479) Increase in non-current liabilities 5,116 4,856 10,874 16,504 Net cash provided by operating activities 21,585 25,022 38,571 63,172 Cash flows from investing activities: Purchase of property and equipment (11,324) (3,540) (25,956) (16,978) Proceeds from ARKO Parent for the conversion of ARKO Retail Sites to dealer locations, net 5,028 — 8,484 — Proceeds from sale of property and equipment 1,444 2,812 2,856 3,632 Net cash used in investing activities (4,852) (728) (14,616) (13,346) Cash flows from financing activities: Receipt of long-term debt 4,000 — 4,000 4,871 Repayment of long-term debt (590) (860) (210,564) (2,456) Repayment of related-party debt (248) — (578) — Principal payments on financing leases (564) (384) (1,600) (926) Proceeds from issuance of Class A shares in IPO, net of underwriting discounts and commissions — — 210,426 — Payment of IPO costs — — (2,163) — Dividends paid on common stock (23,785) — (36,153) — Pre-IPO net transfers (to) from ARKO Parent — (4,298) 7,230 (43,663) Net cash used in financing activities (21,187) (5,542) (29,402) (42,174) Net (decrease) increase in cash and cash equivalents and restricted cash (4,454) 18,752 (5,447) 7,652
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Cash and cash equivalents and restricted cash, beginning of period 14,563 14,241 15,556 25,341 Cash and cash equivalents and restricted cash, end of period $ 10,109 $ 32,993 $ 10,109 $ 32,993
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Supplemental Disclosure of Non-GAAP Financial Information Reconciliation of Net income to EBITDA and Adjusted EBITDA, Net cash provided by operating activities to Discretionary cash flow, and Adjusted EBITDA to Discretionary cash flow For the Three Months Ended September 30, For the Nine Months Ended September 30, For the Twelve- Months Ended 2026 2025 2026 2025 September 30, 2026 (in thousands) Net income $ 13,339 $ 10,100 $ 33,657 $ 24,661 $ 41,723 Interest and other financing expenses, net 7,400 11,061 23,601 31,029 34,664 Income tax expense 4,491 3,408 11,605 8,472 12,245 Depreciation and amortization 14,917 13,749 44,420 40,553 58,595 EBITDA 40,147 38,318 113,283 104,715 147,227 Acquisition costs (a) 1,731 166 2,627 379 2,740 (Gain) loss on disposal of assets and impairment charges (b) (1,477) 326 (651) 2,618 1,289 Share-based compensation expense (c) 528 103 1,922 605 2,314 Adjustment to contingent consideration (d) — (1,541) 54 (1,816) (337) Taxes paid in arrears (e) — — — — 178 IPO Costs (f) — — — — 565 Other (g) 24 76 (98) 136 37 Adjusted EBITDA $ 40,953 $ 37,448 $ 117,137 $ 106,637 $ 154,013 Net cash provided by operating activities $ 21,585 $ 25,022 $ 38,571 $ 63,172 Changes in operating assets and liabilities (h) 9,751 1,687 47,007 6,452 Maintenance capital expenditures (i) (2,079) (1,902) (7,288) (4,163) Acquisition costs (a) 1,731 166 2,627 379 Amortization of deferred income, net of prepaid to related party 1,846 2,430 5,196 4,823 Charges to allowance for credit losses (227) (276) (848) (820) Non-cash rent expense (j) (325) (708) (766) (2,180) Other (k) 24 66 (97) 127 Discretionary Cash Flow $ 32,306 $ 26,485 $ 84,402 $ 67,790 Adjusted EBITDA $ 40,953 $ 37,448 $ 117,137 $ 106,637 Cash received for interest 222 184 692 409 Cash paid for interest and allocated interest (6,690) (10,378) (21,589) (29,139) Cash paid for taxes, net of refunds (100) 1,133 (4,550) (5,954) Maintenance capital expenditures (i) (2,079) (1,902) (7,288) (4,163) Discretionary Cash Flow $ 32,306 $ 26,485 $ 84,402 $ 67,790 (a) Eliminates costs incurred that are directly attributable to business acquisitions and salaries of employees whose primary job function is to execute the Company's acquisition strategy and facilitate integration of acquired operations. (b) Eliminates the non-cash loss (gain) from the sale or disposal of property and equipment, the loss (gain) recognized upon the sale of related leased assets and impairment charges on property and equipment and right-of-use assets related to closed and non-performing sites. (c) Eliminates non-cash share-based compensation expense related to the Company's and ARKO Parent's equity incentive program to incentivize, retain, and motivate the Company's employees, members of our Board and certain of ARKO Parent's employees.
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(d) Eliminates fair value adjustments primarily related to the contingent consideration owed to the seller for the Empire acquisition, which closed in 2020. (e) Eliminates the payment of historical fuel and other tax amounts for multiple prior periods. (f) Eliminates one-time costs incurred related to the Company's IPO, which closed on February 13, 2026. (g) Eliminates other unusual or non-recurring items that the Company does not consider to be meaningful in assessing operating performance. (h) Excludes the change in current tax liabilities and accrued interest of $3.5 million, $0.1 million, $3.7 million and $0 for the three and nine months ended September 30, 2026 and 2025, respectively. (i) Maintenance capital expenditures are capital expenditures made to maintain the Company's long-term operating income or operating capacity, while growth and acquisition capital expenditures are capital expenditures that the Company expects will increase its operating income or operating capacity over the long-term. (j) Non-cash rent expense reflects the extent to which GAAP rent expense recognized exceeded (or was less than) cash rent payments. GAAP rent expense varies depending on the terms of the Company's lease portfolio. For newer leases, rent expense recognized typically exceeds cash rent payments, whereas, for more mature leases, rent expense recognized is typically less than cash rent payments. (k) Includes other unusual or non-recurring items. Reconciliation of Total debt, net to Net Debt As of September 30, 2026 As of December 31, 2025 (in thousands, except ratios) Total debt, net $ 188,881 $ 392,030 Financing leases 104,848 96,733 Financial liabilities 54,818 53,365 Cash and cash equivalents (10,109) (15,556) Net Debt $ 338,438 $ 526,572 Ratio of total debt, net to net income 4.5x 12.0x Ratio of Net Debt to Adjusted EBITDA 2.2x 3.7x
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Supplemental Disclosures of Segment Information Wholesale Segment For the Three Months Ended September 30, For the Nine Months Ended September 30, 2026 2025 2026 2025 (in thousands) Revenues: Fuel revenue $ 957,611 $ 725,990 $ 2,549,162 $ 2,052,153 Other revenues, net 17,223 13,697 50,737 36,550 Other revenues, net – related party 347 — 1,276 — Total revenues 975,181 739,687 2,601,175 2,088,703 Operating expenses: Fuel costs 930,891 700,922 2,473,230 1,981,649 Site operating expenses, including allocated expenses 18,467 14,637 54,227 41,054 Total operating expenses 949,358 715,559 2,527,457 2,022,703 Operating income $ 25,823 $ 24,128 $ 73,718 $ 66,000 Excludes the fixed margin or fixed fee paid to the GPMP segment for the cost of fuel. Fleet Fueling Segment For the Three Months Ended September 30, For the Nine Months Ended September 30, 2026 2025 2026 2025 (in thousands) Revenues: Fuel revenue $ 183,553 $ 122,692 $ 486,195 $ 359,219 Other revenues, net 2,888 2,240 8,034 6,603 Total revenues 186,441 124,932 494,229 365,822 Operating expenses: Fuel costs 165,940 105,952 434,752 309,409 Site operating expenses 7,207 6,769 20,941 20,131 Total operating expenses 173,147 112,721 455,693 329,540 Operating income $ 13,294 $ 12,211 $ 38,536 $ 36,282 Excludes the fixed margin or fixed fee paid to the GPMP segment for the cost of fuel. GPMP Segment For the Three Months Ended September 30, For the Nine Months Ended September 30, 2026 2025 2026 2025 (in thousands) Revenues: Fuel revenue – inter-segment $ 1,084,411 $ 681,767 $ 2,846,784 $ 1,925,105 Fuel revenue – related party 718,372 609,022 1,948,864 1,787,503 Fuel revenue – third party customers — — — 849 Other revenues, net 50 194 268 540 Other revenues, net – inter-segment — 2,122 767 6,330 1 1 1 1 1 1 1
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Other revenues, net – related party 754 686 2,252 2,007 Total revenues 1,803,587 1,293,791 4,798,935 3,722,334 Operating expenses: Fuel costs – inter-segment 1,067,409 668,997 2,797,822 1,888,858 Fuel costs – related party 706,886 597,831 1,914,955 1,754,463 Fuel costs – third party customers — — — 848 General and administrative expenses 550 816 1,605 2,464 Depreciation and amortization 1,812 1,839 5,437 5,519 Total operating expenses 1,776,657 1,269,483 4,719,819 3,652,152 Operating income $ 26,930 $ 24,308 $ 79,116 $ 70,182 Includes the fixed margin or fixed fee paid to the GPMP segment for the cost of fuel. 1 1