As of March 31, 2026, ARKO Parent and the Company collectively leased 551 dealer locations, 155 cardlock locations, former store locations, and certain office and storage spaces, including land and buildings in certain cases. Most of the lease agreements are for long-term periods, ranging from 15 to 20 years, and generally include several renewal options for extension periods for five to 25 years. Additionally, ARKO Parent and the Company lease certain store equipment, office equipment, automatic tank gauges and fuel dispensers.

As of March 31, 2026, the Company directly leased a total of 177 dealer locations and cardlock locations. In addition, as of March 31, 2026, the Company or its subsidiaries leased jointly and severally with ARKO Parent from third party lessors 233 sites, of which 129 sites were attributable to the Business. As of March 31, 2026, the total lease liabilities related to such joint and several agreements were $337.2 million, of which $154.6 million related to the Business and was recorded on the condensed consolidated balance sheet. Refer to Note 12 for details on related party leases.

The components of lease cost recorded on the condensed consolidated statements of operations were as follows:


	For the Three Months Ended March 31,
	2026		2025
	(in thousands)
Finance lease cost:
Depreciation of right-of-use assets	$	959	$	405
Interest on lease liabilities		1,883		663
Operating lease costs included in site operating expenses		15,943		12,271
Operating lease costs included in general and administrative expenses		144		171
Lease cost related to variable lease payments, short-term leases and leases of low value assets		262		—
Right-of-use asset impairment charges and loss (gain) on disposals of leases		230		490
Total lease costs	$	19,421	$	14,000

The Company leases and subleases owned and leased properties to dealers and other tenants and subtenants, directly or as assigned by ARKO Parent, which are accounted for as operating or sales-type leases. The majority of these leases and subleases are for periods of up to 10 years, which may be a fixed period or a shorter period with an option or series of renewal options, and in certain cases with additional renewal options beyond 10 years. Some of the lease agreements include lease payments that are based upon the tenant’s or subtenant’s sales subject to fixed minimum lease payments. Lessees often post a security deposit as collateral at the time of lease inception. Total operating lease income was approximately $15.3 million and $9.4 million for the three months ended March 31, 2026 and 2025, respectively. Lease income is included in other revenues, net in the condensed consolidated statements of operations.