📊 ARKO Key Takeaways
Is ARKO Corp. (ARKO) a Good Investment?
ARKO exhibits severe fundamental distress with negative profitability (net margin -0.4%), inability to cover interest payments (0.5x coverage), and negative free cash flow (-$11.6M). Declining revenues (-12.5% YoY) combined with high leverage (debt/equity 1.78x) indicate the company cannot sustain current debt service without significant operational improvement.
ARKO’s fundamentals show a business that remains profitable and cash generative, but the quality of those profits is weak given a 12.5% revenue decline, a 1.3% operating margin, and only a 0.9% free cash flow margin. Balance sheet risk is elevated, with debt/equity at 3.41x and interest coverage at just 1.1x, leaving limited room for operating missteps despite improved net income and solid liquidity.
ARKO Corp. Key Strengths (ARKO)
- Adequate short-term liquidity with current ratio of 1.62x
- Positive operating cash flow of $18.7M despite overall losses
- Cash reserves of $272.1M provide near-term operational buffer
- Positive net income growth and diluted EPS growth despite lower revenue
- Operating cash flow remains positive and supports positive free cash flow
- Current and quick ratios indicate acceptable near-term liquidity
ARKO Stock Risks: ARKO Corp. Investment Risks
- Interest coverage of 0.5x indicates inability to service debt from operations
- Negative free cash flow of -$11.6M shows unsustainable cash burn despite operations
- Revenue decline of 12.5% YoY signals deteriorating market position and demand fundamentals
- Revenue contraction suggests pressure on core demand or fuel-related sales mix
- Very thin operating and net margins leave earnings vulnerable to small cost or volume changes
- High leverage and weak interest coverage increase refinancing and balance sheet risk
Key Metrics to Watch
- Interest coverage ratio - must improve above 1.0x threshold for solvency
- Free cash flow trend - critical need for positive FCF to validate business sustainability
- Revenue stabilization - declining top-line is core pressure on all other metrics
- Interest coverage and debt reduction progress
- Same-store sales and free cash flow margin sustainability
ARKO Corp. (ARKO) Financial Metrics & Key Ratios
💡 AI Analyst Insight
ARKO Corp. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
ARKO Profit Margin, ROE & Profitability Analysis
ARKO vs Consumer Sector: How ARKO Corp. Compares
How ARKO Corp. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is ARKO Corp. Stock Overvalued? ARKO Valuation Analysis 2026
Based on fundamental analysis, ARKO Corp. shows some fundamental concerns relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
ARKO Corp. Balance Sheet: ARKO Debt, Cash & Liquidity
ARKO Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: ARKO Corp.'s revenue has grown significantly by 27% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.24 reflects profitable operations.
ARKO Revenue Growth, EPS Growth & YoY Performance
ARKO Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $1.8B | -$6.6M | $-0.07 |
| Q3 2025 | $2.0B | $9.7M | $0.07 |
| Q2 2025 | $2.0B | $7.4M | $0.04 |
| Q1 2025 | $1.8B | -$594.0K | $-0.02 |
| Q3 2024 | $2.3B | $9.7M | $0.07 |
| Q2 2024 | $2.4B | $11.9M | $0.07 |
| Q1 2024 | $2.1B | -$594.0K | $-0.02 |
| Q3 2023 | $2.4B | $21.4M | $0.17 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
ARKO Corp. Dividends, Buybacks & Capital Allocation
ARKO SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for ARKO Corp. (CIK: 0001823794)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ARKO
What is the AI rating for ARKO?
ARKO Corp. (ARKO) has a Combined AI Grade of C from Claude (C) and ChatGPT (C) with 80% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ARKO's key strengths?
Claude: Adequate short-term liquidity with current ratio of 1.62x. Positive operating cash flow of $18.7M despite overall losses. ChatGPT: Positive net income growth and diluted EPS growth despite lower revenue. Operating cash flow remains positive and supports positive free cash flow.
What are the risks of investing in ARKO?
Claude: Interest coverage of 0.5x indicates inability to service debt from operations. Negative free cash flow of -$11.6M shows unsustainable cash burn despite operations. ChatGPT: Revenue contraction suggests pressure on core demand or fuel-related sales mix. Very thin operating and net margins leave earnings vulnerable to small cost or volume changes.
What is ARKO's revenue and growth?
ARKO Corp. reported revenue of $1.8B.
Does ARKO pay dividends?
ARKO Corp. pays dividends, with $3.4M distributed to shareholders in the trailing twelve months.
Where can I find ARKO SEC filings?
Official SEC filings for ARKO Corp. (CIK: 0001823794) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ARKO's EPS?
ARKO Corp. has a diluted EPS of $-0.07.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is ARKO's fundamental grade?
Based on our AI fundamental analysis in June 2026, ARKO Corp. has a C grade with 80% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is ARKO stock overvalued or undervalued?
Valuation metrics for ARKO: ROE of -1.7% (sector avg: 18%), net margin of -0.4% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
What is ARKO's AI grade for 2026?
Our dual AI analysis gives ARKO Corp. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ARKO's free cash flow?
ARKO Corp.'s operating cash flow is $18.7M, with capital expenditures of $30.3M. FCF margin is -0.7%.
How does ARKO compare to other Consumer stocks?
Vs Consumer sector averages: Net margin -0.4% (avg: 8%), ROE -1.7% (avg: 18%), current ratio 1.62 (avg: 1.5).
Is ARKO Corp. carrying too much debt?
ARKO has a debt-to-equity ratio of 1.78x, which is above the Consumer sector average of 0.8x. However, the current ratio of 1.62 suggests adequate short-term liquidity.