Arko Corp. (ARKO): Business Model Canvas [Dec-2025 Updated]

You're looking at Arko Corp. (ARKO) and trying to map out its strategy as we head into the end of 2025, wondering how they're balancing fuel volatility with convenience growth. Honestly, the story isn't just about gas margins anymore; it's a strategic pivot. We've mapped out their Business Model Canvas, and the core theme is a deliberate move toward a capital-light, food-focused wholesale hybrid, driven by their 'dealerization' program. This means less direct operational drag and more focus on supporting independent dealers while remodeling sites with new Quick Serve Restaurant (QSR) concepts. If you want to see exactly how their $875 million liquidity position supports this transformation across their 3,500+ sites, you need to see the full breakdown of their Key Activities and Revenue Streams below.

Arko Corp. (ARKO) - Canvas Business Model: Key Partnerships

You're looking at the critical external relationships Arko Corp. (ARKO) relies on to fuel its operations and drive its transformation strategy. These partnerships are the backbone of its wholesale distribution and its push into new revenue streams like renewable energy and enhanced foodservice.

Strategic Energy and Infrastructure Alliances

A significant recent development involves GPM Investments, LLC, Arko Corp.'s wholly owned U.S. company, signing a non-binding Memorandum of Understanding (MOU) with Apollo Power on November 17, 2025. This partnership focuses on sustainability and real estate monetization.

• The project evaluates the deployment of Apollo Power's flexible solar energy solutions at no fewer than 300 sites across the U.S.,.
• This large-scale turnkey project, including engineering, procurement, and construction (EPC) services, carries an estimated cumulative value of approximately $53 million,,.
• Apollo Power has been granted exclusivity for developing solar projects at designated sites during the 60-day period expected for finalizing binding agreements,.

This initiative leverages Arko Corp.'s extensive physical footprint, which, as of March 31, 2025, included a network operating or distributing fuel to more than 3,500 gas stations and convenience stores, spanning more than 30 U.S. states,.

Wholesale Fuel Distribution Network

The wholesale segment is heavily dependent on its network of third-party operators. Arko Corp. acts as a key supplier to these entities, which include independent fuel dealers and consignment agents.

As of March 31, 2025, the company supplied fuel to more than 1,960 independent dealer sites. This channel optimization, known as dealerization, is a major focus, aiming for a cumulative annualized operating income benefit of more than $20 million at scale, excluding G&A savings,,.

The progress on this strategy through late 2025 is measurable:

The financial contribution from these partners shows activity; for instance, in the second quarter of 2025, fuel contribution at consignment agent locations increased by $0.2 million compared to the prior year period.

Retail Inventory and Supply Chain

For its retail operations, which include approximately 1,330 company-operated stores as of March 31, 2025, Arko Corp. relies on a broad base of fuel and merchandise suppliers across its operational footprint, which covers more than 30 U.S. states.

The focus on in-store experience and product mix is reflected in the margins achieved through these supplier relationships. For the second quarter of 2025, merchandise margin reached 33.6%, up from 32.8% in the second quarter of 2024.

Quick Serve Restaurant (QSR) Brand Integration

Arko Corp. partners with multiple popular Quick Serve Restaurant (QSR) brands to enhance the value proposition within its convenience stores, moving toward a more food-forward focus,,. This is part of a pilot program involving seven planned remodels designed to elevate the customer experience,.

The company is actively integrating these concepts, as evidenced by the opening of a new Dunkin' store in the first quarter of 2025. Furthermore, they are introducing a new branded food offering called Fas Craves as part of these remodels, which emphasize hot grab-and-go food, pizza, and bakery items.

Finance: review the Q4 2025 supplier contract renewal pipeline by end of January 2026.

Arko Corp. (ARKO) - Canvas Business Model: Key Activities

You're looking at the core engine driving Arko Corp.'s transformation, which centers heavily on optimizing its existing footprint while selectively growing high-return assets. The key activities are a mix of aggressive channel shifting and targeted capital investment in customer experience.

Executing the 'dealerization' program, converting retail to wholesale sites is a major focus to reduce operating expenses. For the three months ending September 30, 2025, Arko Corp. converted 65 retail stores to dealer sites. That brought the total number of stores converted in the nine months ended September 30, 2025, to 194 sites. The company continues to expect that, at scale, this channel optimization will deliver a cumulative annualized operating income benefit of more than $20 million, before G&A savings. This is a clear move to shift from higher-cost retail operations to the more predictable, lower-overhead wholesale model.

The company is also actively remodeling stores with a new 'food-forward' focus, centered around the Fas Craves concept. This is a direct response to declines in core categories like fuel and cigarettes. Arko Corp. is running a pilot program targeting seven of these new-format stores in the Richmond area, with an intention to finish all seven by the end of 2025. Each remodel represents a significant capital outlay, costing between $700,000 and $1.1 million per location. The second Fas Craves location opened in Mechanicsville, Virginia, on August 6, 2025, and this concept was also featured in a New-to-Industry (NTI) store opening in Kinston, NC, on July 31, 2025. The early performance of these new-format stores is reportedly exceeding expectations.

Managing a vast network of over 3,500 gas and convenience sites is the scale Arko Corp. operates within, primarily through its wholly owned subsidiary, GPM Investments, LLC. As of March 31, 2025, the network breakdown looked like this:

This scale placed GPM Investments at No. 7 on CSP's 2025 Top 202 ranking of U.S. c-store chains by store count.

Strategic development of New-to-Industry (NTI) stores in 2025 represents the growth side of the strategy, focusing on new, presumably higher-margin, locations. Arko Corp. opened two new NTI stores in 2025, including the one in Kinston, North Carolina, in July. The company targeted opening three more NTI stores in the fourth-quarter of 2025. Furthermore, Arko Corp. is advancing a number of NTI cardlock locations with target openings set for 2026.

Fuel procurement and supply chain management via GPM Petroleum is handled internally by GPM Petroleum LP (GPMP), which sells and supplies fuel to the retail and wholesale sites, charging a fixed fee, especially to fleet fueling sites. This intercompany structure isolates the fixed fee component from the variable fuel costs when calculating contribution metrics for the parent company. For instance, in the third quarter of 2025, fuel contribution at fuel supply locations increased by $1.8 million compared to the prior year period, partly due to incremental contribution from retail stores converted to dealers. The retail fuel margin for Arko Corp. in Q3 2025 was 43.6 cents per gallon.

You should check the Q4 2025 filings to see if they hit the target of seven Fas Craves remodels by year-end. Finance: draft 13-week cash view by Friday.

Arko Corp. (ARKO) - Canvas Business Model: Key Resources

You're looking at the core assets Arko Corp. (ARKO) relies on to run its business, the stuff that can't easily be replicated. These are the tangible and intangible things that make their operations possible, especially as of late 2025.

GPM Investments, LLC is the wholly-owned operating subsidiary, the engine running the retail and wholesale side of the house. It's the entity that manages the physical stores and fuel distribution network. Honestly, the financial health underpinning this entire operation is key.

As of June 30, 2025, Arko Corp. reported total liquidity of approximately $875 million. This figure is made up of cash and cash equivalents totaling approximately $294 million and availability under lines of credit of about $582 million. That's a solid cushion to work with.

The real estate forms a massive part of the asset base. You know they have an extensive real estate portfolio, and they actively manage it through financing structures. For instance, the Standby Real Estate Purchase, Designation and Lease Program agreement with Blue Owl was extended through September 30, 2025, which gives Blue Owl the option to purchase up to $1.5 billion of ARKO's real estate assets, with an adjusted available capacity of $1.0 billion under the amended terms. Plus, capital expenditures in the second quarter ended June 30, 2025, included the purchase of 22 fee properties.

Here's a quick look at the balance sheet liquidity snapshot from the second quarter end:

The fleet fueling segment relies heavily on its proprietary fuel card network. This resource allows customers access to a nationwide network of fueling sites. For the third quarter ended September 30, 2025, fuel contribution at proprietary cardlocks increased by $0.5 million compared to the prior year period, showing the segment is contributing positively.

The retail footprint is diverse, built through acquisitions creating a family of brands. This is a significant intangible asset for market penetration. You'll want to note the scale here:

• Portfolio includes more than 25 regional convenience store brands, such as fas Mart, Li'l Cricket, and Scotchman.
• As of March 31, 2025, the total network comprised nearly 3,600 locations.
• This total included approximately 1,330 company-operated stores.
• It also included over 1,960 independent dealer sites supplied with fuel.

The latest liquidity figure we have is from the third quarter end, showing continued strength. As of September 30, 2025, liquidity was approximately $891 million, with outstanding debt at about $912 million, resulting in net debt of approximately $605 million.

Finance: draft 13-week cash view by Friday.

Arko Corp. (ARKO) - Canvas Business Model: Value Propositions

Convenient one-stop access to fuel and merchandise is delivered through a substantial physical footprint. As of March 31, 2025, ARKO Corp. operates nearly 3,600 locations across the United States.

Enhanced in-store experience via new food-focused remodels is a key strategic push. The company has foodservice offerings at approximately 1,185 stores and operates 110 quick service major national brand restaurants. The pilot program for new format stores, emphasizing a stronger food-forward focus, saw its first opening in June 2025, with a third remodeled store planned to reopen during the fourth quarter of 2025.

Value and discounts through the Fueling America's Future loyalty program directly benefit the customer base. The fas REWARDS® program has about 2.3 million enrolled members. These enrolled members can save up to $2 per gallon or up to $40 per fill up by stacking rewards earned through qualifying purchases at more than 1,350 branded retail stores.

Consistent fuel supply and wholesale support for independent dealers is managed through a significant distribution network. The wholesale segment supplied fuel to 1,922 dealer locations in 2024. This channel optimization strategy is expected to yield a cumulative annualized operating income benefit of more than $20 million at scale.

Nationwide access for commercial fleets is provided via the fleet fueling segment, which includes cardlock locations. This segment comprised 280 cardlock locations as of March 31, 2025. In 2024, this segment sold 148.9 million gallons of fuel, with diesel fuel making up approximately 80% of those sales.

The core offerings supporting these value propositions include:

• Fuel and merchandise sales across 1,330 company-operated stores.
• Merchandise margin for the third quarter of 2025 reached 33.7%.
• Retail fuel margin for the third quarter of 2025 was 43.6 cents per gallon.
• Wholesale fuel sales volume was 949.4 million gallons in 2024.
• The company maintained a quarterly dividend of $0.03 per share of common stock in 2025.

Arko Corp. (ARKO) - Canvas Business Model: Customer Relationships

You're looking at how Arko Corp. keeps the customers coming back, from the quick stop for gas to the wholesale contracts that keep other businesses running.

Automated self-service for fuel and standard retail transactions

Arko Corp. supports high-volume, low-friction interactions across its network of more than 1,350 branded retail stores, including fas mart®, E-Z mart®, and Scotchman® banners. The focus on modernizing the physical touchpoints is evident in the pilot program for new format stores. As of the third quarter of 2025, two remodeled stores had reopened in the summer of 2025, with a third planned for the fourth quarter of 2025 and the remaining four slated for the first half of 2026. Furthermore, the company expanded its network with one Dunkin' and two new NTI (new-to-industry) stores in 2025, with two more NTI locations targeted for the second half of 2025.

Loyalty program management for repeat retail customer engagement

The fas REWARDS loyalty program is central to driving repeat retail business. As of the third quarter ended September 30, 2025, the program reached approximately 2.4 million members. This represented a robust 37% growth in the quarter, adding 35,000 new enrollees in Q3 2025 alone. The program allows members to accumulate cents-off fuel rewards in a virtual wallet, which can be stacked to achieve savings of up to $2 off per gallon or up to $40 per fill-up, subject to state restrictions. The app, which supports order and delivery/pickup, was active across 1,233 locations as of early 2023. To give you a sense of historical impact, in the third quarter of 2023, loyalty members visited stores four more times per month and spent about $41 more, on average, than non-members, with loyalty driving almost 20% of merchandise sales that quarter.

Dedicated B2B sales and support for independent dealers and fleet accounts

Arko Corp. manages relationships with independent dealers and fleet accounts primarily through its wholesale and fleet fueling segments, which feed volume into the overall platform. The ongoing dealerization strategy is a key component of this relationship management, converting company-operated sites to dealer-operated. As of September 30, 2025, 65 retail stores were converted to dealer sites during the third quarter, bringing the total converted since mid-2024 to 282 sites, with commitments for an additional 185 sites. This channel optimization is expected to deliver a cumulative annualized operating income benefit in excess of $20 million before G&A savings at scale. The wholesale segment showed strength, with operating income rising to $24.1 million for the third quarter of 2025, up from $20.3 million in the prior year, supported by a 7.5% increase in gallons. Proprietary cardlocks, part of the fleet fueling operation, saw fuel contribution increase by $1.0 million in the first quarter of 2025 compared to the first quarter of 2024.

Transactional relationship for bulk and spot fuel purchasers

The relationship with bulk and spot fuel purchasers is purely transactional, centered on the wholesale supply of fuel. The wholesale segment's volumes enhance the company's overall purchasing power. For the three months ended September 30, 2025, fuel contribution across the wholesale-related categories showed mixed results compared to the prior year period. Fuel contribution at fuel supply locations increased by $1.8 million in Q3 2025 versus Q3 2024, though this was partially offset by lower volumes at comparable wholesale sites. The retail fuel margin for Q3 2025 was 43.6 cents per gallon, up from 41.3 cents per gallon in Q3 2024.

• Loyalty members can stack fuel rewards for up to $2 off per gallon.
• Loyalty members can save up to $40 per fill-up via stacked discounts.
• Dealerization expected to yield over $20 million in cumulative annualized operating income benefit at scale.
• Wholesale segment gallons increased by 7.5% in Q3 2025.

Finance: draft 13-week cash view by Friday

Arko Corp. (ARKO) - Canvas Business Model: Channels

You're looking at how Arko Corp. (ARKO) gets its products and services to customers across its four segments: retail, wholesale, fleet fueling, and GPM Petroleum. It's a mix of direct operation and wholesale supply, with a clear strategic shift happening right now.

The retail channel, which is the convenience store side, is actively being optimized. This means fewer company-operated sites and more dealer-supplied sites, which ARKO Corp. calls dealerization. As of the second quarter ended June 30, 2025, ARKO Corp. converted 70 retail stores to dealer sites during that three-month period alone. Since the initiative started in the middle of 2024, the total number of converted sites reached 282 sites by the end of Q2 2025. This ongoing channel optimization is expected to yield a cumulative annualized operating income benefit in excess of $20 million at scale.

The wholesale segment acts as the supplier for these independent dealers, and this channel is key to the dealerization strategy. The goal is to enhance purchasing power across the entire platform. To give you a sense of the scale, as of late 2024, ARKO Corp.'s retail network encompassed approximately 2,950 locations, with close to 1,350 company-operated stores and approximately 1,600 dealer sites. By Q2 2025, the company's c-store network included over 1,200 company-operated c-stores across 30 states.

The fleet fueling channel uses both proprietary and third-party cardlock locations. This segment is where ARKO Corp. issues proprietary fuel cards for nationwide access. As of the second quarter of 2025, the fuel margins achieved through these specific channels show the operational performance:

The company also mentioned advancing NTI (new-to-industry) cardlock locations with target openings in 2026.

Digital channels are primarily accessed through the loyalty program, which is used to drive traffic and sales. ARKO Corp. promotes its fas REWARDS® loyalty program for exclusive savings on merchandise and gas. While specific ARKO Corp. 2025 loyalty metrics aren't detailed here, the industry focus in 2025 highlights the importance of this digital touchpoint:

• 60% of brands are prioritizing Customer Lifetime Value (CLV) as a top metric.
• 70% of brands report increased customer engagement thanks to their loyalty initiatives.
• 57% of brands are focusing on personalization in their loyalty strategies.

The company noted increased engagement from loyalty-driven promotions in Q2 2025. That's the real-life number for digital channel impact right now.

Arko Corp. (ARKO) - Canvas Business Model: Customer Segments

You're looking at the core groups Arko Corp. (ARKO) serves, which are neatly divided across its four operating segments: Retail, Wholesale, Fleet Fueling, and GPM Petroleum. Honestly, understanding these buckets is key to seeing where the money comes from.

Everyday retail customers buying fuel and convenience merchandise.

This is the bread-and-butter business, operating convenience stores under brands like fas mart. These customers drive the merchandise and retail fuel sales. For the third quarter ended September 30, 2025, the retail fuel margin was a solid 43.6 cents per gallon, up from 41.3 cents per gallon in the prior year period. The merchandise margin, reflecting what they keep after the cost of goods sold, stood at 33.7% for Q3 2025, an improvement from 32.8% the year before. To be fair, merchandise revenue for the first quarter of 2025 was $354.5 million, though this was down from $414.7 million year-over-year, showing the pressure on consumer spending.

• Merchandise Margin (Q3 2025): 33.7%
• Retail Fuel Margin (Q3 2025): 43.6 cents per gallon
• Q1 2025 Merchandise Revenue: $354.5 million

Independent fuel dealers and consignment agents (B2B wholesale).

This segment supplies fuel to third-party dealers and consignment agents. It's a volume-driven business where Arko Corp. acts as a critical distributor. The strategic channel optimization, which involves converting company-operated retail stores to dealer sites, is a major focus here, with 282 sites converted since mid-2024. For the third quarter of 2025, wholesale operating income increased $3.8 million compared to the third quarter of 2024.

Here's a quick look at the segment structure and some recent operational metrics:

Commercial fleets and professional drivers using fuel cards.

The Fleet Fueling segment targets professional drivers and commercial operations, offering access to a nationwide fueling network through proprietary and third-party cardlock locations and fuel cards. At the end of the first quarter of 2025, this segment operated 280 sites. This group values network access and streamlined payment processing, which the fas REWARDS® loyalty program also supports with exclusive savings on gas.

Price-conscious consumers responding to inflation and value offers.

You see this group reacting to the 'pressured consumer environment' mentioned in Q1 2025 results. Arko Corp. counters this by focusing on value delivery. The merchandise margin improvement to 33.6% in Q2 2025 and 33.7% in Q3 2025 shows they are managing costs while trying to maintain attractive pricing for shoppers. The company's ongoing transformation includes new format stores with an 'improved food-forward focus,' which is a direct action to enhance the value proposition for these everyday shoppers. The total revenue over the last twelve months ending September 30, 2025, was $7.89B.

Arko Corp. (ARKO) - Canvas Business Model: Cost Structure

You're looking at the costs Arko Corp. shoulders to keep the lights on and the fuel pumps flowing as of late 2025. It's a structure heavily influenced by commodity prices and a massive, ongoing operational shift.

Fuel costs remain the single largest drain on the operating expense line, which is expected given the nature of the business. While the exact Q2 2025 fuel cost figure isn't explicitly isolated in the same way as other line items, the scale is evident when looking at comparable periods; for instance, for the three months ended September 30, 2025, Fuel costs totaled $1,453,175 thousand.

Site operating expenses are actively being managed down through the dealerization program. For the three months ended June 30, 2025, convenience store operating expenses dropped by $25.9 million, a 12.8% reduction year-over-year. A significant chunk of that, about $25.4 million, came directly from the retail stores that were closed or converted to dealers.

The transformation plan is central to cost control. Arko Corp. converted 70 retail stores to dealer sites during the three months ended June 30, 2025, bringing the total conversion count to 282 sites since the middle of 2024. This channel optimization is expected to eventually yield a cumulative annualized operating income benefit in excess of $20 million, plus more than $10 million in expected annual structural G&A savings once fully scaled.

The total Operating expenses for the three months ended June 30, 2025, were reported at $1,960,084 thousand. This figure encompasses all major cost centers.

Here's a look at the key expense categories and related financial metrics for the period:

Capital expenditures reflect investment back into the physical footprint, which is a necessary cost for future growth and modernization. For the quarter ended June 30, 2025, capital expenditures totaled approximately $45.3 million. This spending covered several areas:

• Purchase of 22 fee properties.
• Investments in NTI (new-to-industry) stores.
• Remodeling of the new format stores.
• Upgrades to fuel dispensers and EV chargers.

The Costs of Merchandise Sold (COGS) for the retail segment is intrinsically linked to the merchandise margin performance. For Q2 2025, the merchandise margin improved to 33.6% from 32.8% the year prior, even as merchandise contribution fell by $21.3 million (or 13.7%), largely due to the store conversions.

Finally, servicing the balance sheet is a fixed cost you can count on. With $916 million in outstanding debt as of June 30, 2025, the associated financing cost for the quarter was reported as net interest and other financial expenses of $19.5 million, down from $21.4 million in the year-ago period due to lower average interest rates.

Arko Corp. (ARKO) - Canvas Business Model: Revenue Streams

You're looking at how Arko Corp. generates its money, which is a mix of direct retail sales and wholesale/supply activities. For the second quarter of 2025, the retail merchandise segment brought in $400.1 million in revenue, achieving a 33.6% margin on those sales. That margin improvement shows discipline in managing the cost of goods sold, even with same-store merchandise sales down 4.2% year-over-year for the quarter.

On the fuel side, the retail operation posted an average margin of 44.9 cents per gallon for Q2 2025. This is up from 41.6 cents per gallon in the prior year period. The company is actively shifting its model, having converted 70 retail stores to dealer sites during Q2 2025 alone. This transformation impacts how revenue is recognized across the retail and wholesale segments.

Here's a quick look at some key financial figures from the latest reporting period and the outlook:

The wholesale fuel supply to independent dealers operates on consignment or cost plus arrangements, where Arko Corp. retains inventory ownership and shares profit, or on a fixed-fee basis for cost plus arrangements. The GPM Petroleum segment is integral here; it sells and supplies fuel to Arko Corp.'s own retail and wholesale sites and charges a fixed fee, primarily to the fleet fueling sites. It's important to note that the reported retail fuel margin figures exclude this estimated fixed margin or fixed fee paid to GPM Petroleum LP (GPMP) for the cost of fuel, which is an intercompany charge.

The core revenue streams for Arko Corp. include:

• Retail merchandise sales, with a Q2 2025 margin of 33.6%.
• Retail fuel sales, achieving a Q2 2025 margin of 44.9 cents per gallon.
• Wholesale fuel supply to independent dealers under various contractual terms.
• Fixed fee revenue generated by the GPM Petroleum segment, mainly from fleet fueling sites.

The company is maintaining its full-year 2025 Adjusted EBITDA guidance in the range of $233 million to $253 million.