Arko Corp., the parent company of convenience-store retailer GPM Investments, reported a return to profitability in fourth-quarter 2025, the company said Wednesday.
The company said its net income for the quarter increased to $1.9 million compared to a net loss of $2.3 million the same period a year earlier.
“Our strong fourth-quarter results demonstrate the material, tangible benefits of the transformative actions we have taken throughout 2025,” said Arie Kotler, chairman, president and CEO of Arko.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for the quarter was $65.7 million compared to $56.8 million a year earlier.
“Adjusted EBITDA increased approximately 16% quarter-over-quarter, merchandise margin expanded 140 basis points, and retail operating expenses declined approximately 16%, reflecting the impact of our conversions of retail sites to dealer locations and improved cost discipline across our retail model,” Kotler said.
Dealerization
During Arko’s earnings call, Kotler told investors that dealerization remains an important lever in the company’s transformation plan.
As of year-end, the company has completed 409 conversions with approximately 120 additional sites committed, either under letter of intent, under contract or already converted since year-end, Kotler said.
“This dealerization strategy is delivering exactly what we said it would,” Kotler told investors, according to a transcript from financial services site AlphaSense.
The company said its ongoing shift to dealer-operated locations and other channel changes should add more than $20 million a year in operation income, not including general and administrative savings.
Nicotine category
In the nicotine category, Kotler said the company picked up market share in every category in 2025.
He said the other tobacco products (OTP) segment for the year was up 4%.
“We built momentum in the fourth quarter and that momentum has carried into 2026,” he said.
Loyalty and fuel savings
Turning to loyalty, Kotler said the company’s fas Rewards platform and Fueling America’s Future campaign is performing well.
“Loyalty members outperformed across the board,” he said.
On Thursday, the company announced an expanded yearlong version of its Fueling America’s Future program in celebration of America’s 250th birthday.
Customers enrolled in Arko’s free loyalty program, fas Rewards, can now save up to $2.50 per gallon, for up to 20 gallons, through stackable fuel discounts earned on qualifying purchases inside their stores.
The limited‑time elevated savings is available throughout 2026 across Arko’s more than 1,000 retail convenience stores, the company said.
Store growth
On the earnings call, Kotler told investors he was encouraged by the company’s food-forward remodel program. The company opened its first remodel in June of 2025 in Ashland, Virginia.
“In the first six months, on an average daily basis, sales grew 14%, gallons grew 12%,” he said. “Average daily sales more than doubled in four different categories.”
Kotler said the company is in the planning stages for approximately 25 remodels, which will feature the fas crave food and beverage elements.
In June of 2025, the company launched its new fas craves store format focused on foodservice and convenience.
“We're also expanding food and beverage in non-remodel stores where space allows,” he said. “Food penetration across our network of stores is growing.”
The company said it opened two new-to-industry (NTI) retail stores in 2025. On Wednesday, the company opened its second NTI retail store in Agawam, Massachusetts.
The new Pride store is located at 395 Main St. GPM completed its acquisition of Pride Convenience Holdings LLC, in December of 2022.
- GPM Investments is No. 7 on CSP’s 2025 Top 202 ranking of U.S. c-store chains by store count.
GPM Investments is a wholly owned subsidiary of Richmond, Virginia-based Arko Corp. It has more than 1,500 stores under more than 25 regional store brands, including fas mart, Li’l Cricket and Scotchman.
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