Arq Inc (ARQ)
NASDAQ:ARQ
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Arq Inc
(NASDAQ:ARQ)
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Rating:50Neutral
Price Target:
$2.00
▼(-10.71% Downside)
Action:ReiteratedDate:04/01/26
The score is held back primarily by weak profitability and negative cash flow despite strong recent revenue momentum and a relatively low-debt balance sheet. Technicals remain bearish, while the earnings call adds some support via improving PAC guidance and high contract coverage, offset by significant GAC uncertainty and the recent write-down; liquidity amendments are a modest positive.
Positive Factors
PAC Business Growth & Guidance
Management issued explicit 2026 guidance driven by PAC volumes and pricing, implying a durable revenue and EBITDA base even without GAC. Clear multi-month guidance tied to core product reduces execution uncertainty and supports planning, investment sizing, and margin recovery in the PAC franchise.
Negative Factors
Negative Operating & Free Cash Flow
Sustained negative operating and free cash flow undermines funding for growth and forces reliance on credit or equity to bridge gaps. Over a multi‑month horizon this elevates liquidity risk, constrains discretionary investment, and makes the company sensitive to covenant and creditor negotiations.
Read all positive and negative factors
Positive Factors
Negative Factors
PAC Business Growth & Guidance
Management issued explicit 2026 guidance driven by PAC volumes and pricing, implying a durable revenue and EBITDA base even without GAC. Clear multi-month guidance tied to core product reduces execution uncertainty and supports planning, investment sizing, and margin recovery in the PAC franchise.
Read all positive factors
Arq Inc (ARQ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$90.84M
Dividend YieldN/A
Average Volume (3M)1.36M
Price to Earnings (P/E)―
Beta (1Y)1.82
Revenue Growth7.20%
EPS Growth-2951.61%
CountryUS
Employees200
SectorIndustrials
Sector Strength72
IndustryIndustrial - Pollution & Treatment Controls
Share Statistics
EPS (TTM)-1.20
Shares Outstanding42,849,250
10 Day Avg. Volume471,793
30 Day Avg. Volume1,363,305
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.81
Price to Sales (P/S)1.13
P/FCF Ratio-12.28
Enterprise Value/Market Cap1.40
Enterprise Value/Revenue1.05
Enterprise Value/Gross Profit3.78
Enterprise Value/Ebitda-3.30
Forecast
1Y Price Target
$5.75Price Target Upside156.70% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)-0.06
Revenue Forecast (FY)$126.77M
Arq Inc Business Overview & Revenue Model
Company Description
Arq, Inc. produces activated carbon products in North America. The company's products include granular activated carbon, powdered activated carbon, and colloidal carbon products; Arq Powder Wetcake, a fine and low-ash coal waste-derived particle; ...
How the Company Makes Money
Arq makes money primarily by manufacturing and selling activated carbon products to industrial and environmental customers. Revenue is generated through product sales (typically priced per unit/ton and fulfilled via customer purchase orders or sup...
Arq Inc Earnings Call Summary
Earnings Call Date:Mar 09, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 11, 2026
Earnings Call Sentiment Neutral
The call presents a balanced picture: the core PAC business is stable, growing and profitable with clear 2026 guidance and strong contract visibility, representing the primary positive takeaway. However, the company disclosed a major operational setback — pausing GAC production for an engineering and optimization review, a $45M noncash write-down, substantial Q4 losses and unresolved capital and timing estimates to reach economically attractive GAC scale. The positives in the PAC business mitigate some downside, but the material GAC uncertainty and recent large noncash charge temper overall optimism.Positive Updates
PAC Revenue Growth
Full year PAC-related revenue approximately $120 million, up 10% year-over-year from 2024, driven by higher average selling prices and volume growth.
Negative Updates
Pause of GAC Production and No 2026 GAC Output
Company announced a pause of granular activated carbon (GAC) production; there will be no GAC production in 2026 while a comprehensive engineering and production optimization review is completed, with no firm timeline for resumption.
Read all updates
Q4-2025 Updates
Positive
Negative
PAC Revenue Growth
Full year PAC-related revenue approximately $120 million, up 10% year-over-year from 2024, driven by higher average selling prices and volume growth.
Read all positive updates
Company Guidance
Arq guided fiscal 2026 revenue of $120–$125 million and adjusted EBITDA of $17–$20 million (guidance assumes no GAC contribution), driven by PAC volumes of 122–125 million pounds (vs. 117M in 2025 and 111M in 2024) at an average selling price of $0.88–$0.91 per pound (vs. $0.89 in 2025 and $0.82 in 2024); other chemicals/products are expected to contribute ~13–15% of revenue. The company noted strong commercial visibility—96% of 2026 targeted PAC volumes contracted, 75% visibility for 2027 and 43% for 2028—with a 3‑year customer retention rate of 86%, expects to be free‑cash‑flow generative after maintenance CapEx, and forecasted 2026 CapEx of $8–$10 million (including ~ $3 million for the routine biannual turnaround); balance sheet as of year‑end 2025 showed $15 million total cash ($6.6M unrestricted) and $28.5 million total debt.Arq Inc Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
68
Positive
Cash Flow
29
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 120.34M | 108.96M | 99.18M | 102.99M | 100.29M |
| Gross Profit | 33.53M | 39.44M | 31.86M | 22.52M | 34.72M |
| EBITDA | -38.40M | 6.58M | 1.46M | -1.96M | 85.50M |
| Net Income | -52.61M | -5.11M | -12.25M | -8.92M | 60.40M |
Balance Sheet | |||||
| Total Assets | 230.58M | 284.37M | 235.50M | 181.16M | 185.44M |
| Cash, Cash Equivalents and Short-Term Investments | 6.57M | 13.52M | 45.36M | 66.43M | 78.75M |
| Total Debt | 37.39M | 34.36M | 31.74M | 12.44M | 10.50M |
| Total Liabilities | 62.62M | 67.09M | 57.10M | 41.19M | 38.13M |
| Stockholders Equity | 167.96M | 217.28M | 178.40M | 139.98M | 147.30M |
Cash Flow | |||||
| Free Cash Flow | -11.05M | -74.69M | -44.17M | -14.97M | 19.80M |
| Operating Cash Flow | -2.48M | 10.48M | -16.65M | -6.06M | 26.00M |
| Investing Cash Flow | -8.41M | -85.07M | -28.54M | -4.61M | 44.38M |
| Financing Cash Flow | 3.70M | 42.68M | 22.91M | -1.68M | -17.53M |
Arq Inc Technical Analysis
Negative
2.24
Price Trends
2.89
Negative
3.22
Negative
4.83
Negative
Market Momentum
-0.16
Negative
37.68
Neutral
8.22
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARQ, the sentiment is Negative. The current price of 2.24 is below the 20-day moving average (MA) of 2.27, below the 50-day MA of 2.89, and below the 200-day MA of 4.83, indicating a bearish trend. The MACD of -0.16 indicates Negative momentum. The RSI at 37.68 is Neutral, neither overbought nor oversold. The STOCH value of 8.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ARQ.
Arq Inc Risk Analysis
Arq Inc disclosed 37 risk factors in its most recent earnings report. Arq Inc reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Arq Inc Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $2.20B | 42.25 | 16.53% | ― | 29.86% | 331.33% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
56 Neutral | $39.31M | -20.77 | -5.70% | ― | -5.66% | -397.46% | |
52 Neutral | $29.15M | -5.62 | -53.54% | ― | -49.70% | -2.72% | |
50 Neutral | $90.84M | -2.58 | -25.66% | ― | 7.20% | -2951.61% | |
50 Neutral | $55.64M | -0.93 | -241.68% | ― | ― | ― | |
46 Neutral | $17.31M | -1.35 | -73.79% | ― | 10.97% | 44.99% |
* Industrials Sector Average
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Arq Inc Corporate Events
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Arq amends revolving credit facility to enhance liquidity
Positive
Apr 1, 2026
On March 31, 2026, Arq, Inc. and certain subsidiaries entered into a fifth amendment to their existing revolving credit agreement with MidCap Funding IV Trust and other lenders, modifying key terms of the facility. The amendment replaces the prior...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Arq amends revolving credit agreement, easing liquidity requirements
Positive
Mar 4, 2026
On February 27, 2026, Arq Inc. and certain subsidiaries executed a fourth amendment to their Revolving Credit Agreement with MidCap Funding IV Trust and participating lenders, modifying key terms governing borrowing availability and liquidity thre...
Private Placements and FinancingRegulatory Filings and Compliance
Arq Inc amends revolving credit agreement, easing liquidity covenants
Neutral
Jan 29, 2026
On January 28, 2026, Arq, Inc. and certain subsidiaries entered into a third amendment to their existing revolving credit agreement with MidCap Funding IV Trust and participating lenders. The amendment extends prior changes to the calculation of b...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.