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Arq Inc (ARQ)
NASDAQ:ARQ
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Arq Inc
(NASDAQ:ARQ)
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Rating:45Neutral
Price Target:
$4.00
▼(-2.44% Downside)
Arq Inc's overall stock score is driven by mixed financial performance and bearish technical indicators. While the earnings call highlights some positive developments, significant operational challenges and a weak valuation weigh heavily on the score.
Arq Inc (ARQ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$151.14M
Dividend YieldN/A
Average Volume (3M)196.97K
Price to Earnings (P/E)―
Beta (1Y)2.00
Revenue Growth7.20%
EPS Growth-2951.61%
CountryUS
Employees200
SectorN/A
Sector StrengthN/A
IndustryIndustrial - Pollution & Treatment Controls
Share Statistics
EPS (TTM)-0.02
Shares Outstanding42,693,886
10 Day Avg. Volume140,272
30 Day Avg. Volume196,969
Financial Highlights & Ratios
PEG Ratio0.80
Price to Book (P/B)1.26
Price to Sales (P/S)2.50
P/FCF Ratio-3.65
Enterprise Value/Market Cap2.16
Enterprise Value/Revenue2.76
Enterprise Value/Gross Profit8.28
Enterprise Value/Ebitda34.13
Forecast
1Y Price Target
$9.00Price Target Upside119.51% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Arq Inc Business Overview & Revenue Model
Company DescriptionArq Inc (ARQ) is a technology company focused on providing innovative solutions in the field of renewable energy and sustainability. The company specializes in the development of advanced materials and processes for carbon capture, energy storage, and renewable energy systems. By leveraging cutting-edge technologies, Arq Inc aims to deliver sustainable products and services that contribute to a greener future, targeting sectors such as energy, manufacturing, and environmental services.
How the Company Makes MoneyArq Inc generates revenue through several key streams. Primarily, the company monetizes its technology by licensing its proprietary materials and processes to various industries, including energy and manufacturing sectors, which are seeking to enhance their sustainability practices. Additionally, Arq Inc may engage in joint ventures or partnerships with larger firms to co-develop projects, sharing both the risks and rewards associated with new technologies. Grants and funding from government and environmental organizations aimed at promoting renewable energy initiatives also contribute to the company's earnings. Furthermore, the sale of carbon credits generated through its carbon capture technologies represents another significant revenue stream as businesses seek to meet regulatory requirements and sustainability goals.
Arq Inc Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 11, 2026
Earnings Call Sentiment Neutral
The earnings call reflects a mixed sentiment. While the PAC business shows strong performance and there are promising alternative revenue streams, significant challenges with GAC production delays and associated costs present notable setbacks. The overall sentiment is balanced due to both positive and negative aspects highlighted.Q3-2025 Updates
Positive Updates
Strong PAC Business Performance
The PAC business delivered strong financial results, with a 7% increase in average selling prices over the prior year and a 43% reduction in SG&A expenses. The company generated $16.7 million of adjusted EBITDA on a trailing 12-month basis, marking a $25 million improvement from a negative $8.7 million two years ago.
First Commercial Production and Sales of GAC
Achieved first commercial production and sales of granular activated carbon (GAC), although at well below capacity. There is strong market demand with numerous spot purchase requests at prices above existing contracts.
Potential Alternative Revenue Streams
Exploring alternative uses for Corbin feedstock, such as asphalt, purified coal, rare earth materials, and synthetic graphite, which could provide diversification and additional revenue opportunities.
Negative Updates
GAC Production Delays and Challenges
The ramp-up of GAC production has been slower than expected due to design issues and feedstock variability, leading to delays in reaching full capacity until mid-2026. The company incurred several million dollars in inefficiencies and costs related to these challenges.
Lower Overall Gross Margins
Gross margin in the quarter was 28.8%, significantly impacted by high fixed production costs and low early ramp volumes of GAC, compared to steadier margins in prior quarters.
Net Loss for the Quarter
The company reported a net loss of approximately $700,000 for the quarter, primarily due to the high fixed production cost on initial GAC volumes.
Company Guidance
During the Arq Third Quarter 2025 Earnings Conference Call, the company provided guidance on several key metrics. Arq reported a third quarter adjusted EBITDA of $5.2 million, despite facing challenges in its granular activated carbon (GAC) operations due to inefficiencies and post-commissioning costs. The PAC business showed strong performance with a 7% increase in average selling prices year-over-year and a 43% reduction in SG&A expenses. The company generated $16.7 million of adjusted EBITDA on a trailing 12-month basis, a $25 million improvement from the end of September 2023. Arq anticipates reaching full GAC capacity by mid-2026, with strategic investments in a new thermal oxidizer to support a production capacity of 25 million pounds per year. The company ended the quarter with $15.5 million in total cash and reiterated its full-year 2025 CapEx forecast of $8 million to $12 million.Arq Inc Financial Statement Overview
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Arq Inc Technical Analysis
Neutral
4.10
Price Trends
4.03
Negative
5.58
Negative
5.23
Negative
Market Momentum
-0.15
Negative
48.48
Neutral
86.62
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARQ, the sentiment is Neutral. The current price of 4.1 is above the 20-day moving average (MA) of 3.39, above the 50-day MA of 4.03, and below the 200-day MA of 5.23, indicating a neutral trend. The MACD of -0.15 indicates Negative momentum. The RSI at 48.48 is Neutral, neither overbought nor oversold. The STOCH value of 86.62 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ARQ.
Arq Inc Peers Comparison
UnderperformOutperform
Sector (―)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | ― | ― | ― | ― | ― | ― | |
72 Outperform | $2.11B | 41.59 | 18.85% | ― | 29.86% | 331.33% | |
51 Neutral | $50.34M | -16.53 | -7.10% | ― | -5.66% | -397.46% | |
48 Neutral | $31.98M | -6.56 | -53.13% | ― | -49.70% | -2.72% | |
45 Neutral | $151.14M | -37.55 | -1.80% | ― | 7.20% | -2951.61% | |
45 Neutral | $16.94M | -1.79 | -73.79% | ― | 10.97% | 44.99% | |
45 Neutral | $51.11M | -2.03 | -232.63% | ― | ― | ― |
* Sector Average
ARQ
Arq Inc
3.56
-2.74
-43.49%
CECO
Ceco Environmental
58.87
27.82
89.60%
FTEK
Fuel Tech
1.62
0.61
60.40%
CLIR
ClearSign Combustion
0.77
-0.39
-33.88%
LIQT
LiqTech International
1.80
0.02
1.12%
SCWO
374Water
2.45
-3.82
-60.93%
Arq Inc Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Arq Inc Amends Revolving Credit Agreement
Neutral
Dec 11, 2025
On December 9, 2025, Arq Inc. and its subsidiaries entered into a second amendment to their Revolving Credit Agreement with MidCap Funding IV Trust. This amendment adjusts the borrowing availability calculation and updates the company’s minimum liquidity covenant, reducing the required minimum liquidity to $2.0 million from December 10, 2025, through January 30, 2026, and then increasing it to $5.0 million from January 31, 2026, onward.
The most recent analyst rating on (ARQ) stock is a Buy with a $8.00 price target. To see the full list of analyst forecasts on Arq Inc stock, see the ARQ Stock Forecast page.
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.