ARKO (NASDAQ:ARKO) announced preliminary fourth-quarter and full-year 2025 financial results on Tuesday, February 3, 2026, coinciding with a major strategic milestone: the launch of an initial public offering (IPO) roadshow for its subsidiary, ARKO Petroleum Corp (APC).
The Richmond-based convenience store giant estimates full-year 2025 net income between $19.1 million and $21.3 million, while adjusted EBITDA is expected to land between $246 million and $249 million, nearly matching 2024’s performance despite a challenging macroeconomic environment.
The spotlight of the announcement was the APC spin-off.
ARKO Petroleum, a material arm of the company’s wholesale fuel distribution business, is offering 10.5 million shares of Class A common stock.
The IPO is expected to price between $18 and $20 per share, potentially raising up to $210 million and valuing the subsidiary at approximately $910 million.
The move is part of ARKO’s "dealerization" strategy, which involves shifting company-operated stores to a wholesale model to streamline operations and reduce overhead.
"Our preliminary results and the launch of the APC roadshow demonstrate the strength of our multi-segment model," said the company in a statement.
While fourth-quarter net income is expected to range from a $1.8 million loss to a $0.4 million profit, adjusted EBITDA for the quarter showed growth, projected at $63.1 million to $66.1 million—up from $56.9 million in the prior-year period.
This improvement reflects the company's success in managing merchandise margins and fuel profitability across its nearly 1,500 retail locations.
The company plans to use the proceeds from the APC offering to pay down debt and fund further acquisitions.
Final audited results and a detailed 2026 outlook are expected to be released later this quarter.