Arq, Inc. (ARQ)
NASDAQ:ARQ
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Arq Inc
(NASDAQ:ARQ)
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Rating:55Neutral
Price Target:
$2.50
▲(11.61% Upside)
Action:Reiterated
Date:06/12/26
ARQ’s score is most constrained by weak profitability and negative free cash flow despite rapid revenue growth and low leverage. Technicals are moderately positive in the short term but remain weak versus longer-term moving averages. Guidance and operational commentary were constructive (reiterated 2026 targets and FCF expectations), while liquidity/cost pressures and uncertainty around GAC restart timing remain key risks.
Positive Factors
Rapid revenue growth
Sustained, large top-line expansion (TTM +150%) reflects strong product demand and expanding customer adoption of activated carbon consumables. Durable growth improves scale economics potential and supports investment in capacity and R&D over the next 2–6 months.
Negative Factors
Deep operating losses
Severe negative margins indicate the business has not yet translated revenue growth into profitability. Until gross margins and operating cost structure improve, sustained losses will limit reinvestment capacity and elevate execution risk over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Rapid revenue growth
Sustained, large top-line expansion (TTM +150%) reflects strong product demand and expanding customer adoption of activated carbon consumables. Durable growth improves scale economics potential and supports investment in capacity and R&D over the next 2–6 months.
Read all positive factors
Arq Inc (ARQ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$100.45M
Dividend YieldN/A
Average Volume (3M)304.26K
Price to Earnings (P/E)―
Beta (1Y)2.02
Revenue Growth6.71%
EPS Growth-3120.50%
CountryUS
Employees200
SectorIndustrials
Sector Strength72
IndustryIndustrial - Pollution & Treatment Controls
Share Statistics
EPS (TTM)-1.29
Shares Outstanding42,926,258
10 Day Avg. Volume339,034
30 Day Avg. Volume304,259
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 Cap1.50
Enterprise Value/Revenue1.24
Enterprise Value/Gross Profit4.50
Enterprise Value/Ebitda-3.73
Forecast
1Y Price Target
$4.75Price Target Upside112.05% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-0.07
Revenue Forecast (FY)$123.80M
Arq Inc Business Overview & Revenue Model
Company Description
Operating throughout North America, Arq, Inc. is a specialized manufacturer of activated carbon materials. Their product range encompasses various types of activated carbon, specifically granular, powdered, and colloidal forms. Additionally, they ...
How the Company Makes Money
Arq, Inc. makes money primarily by manufacturing and selling activated carbon products to industrial customers. Its key revenue stream is product sales—particularly powdered activated carbon used for emissions control (e.g., mercury removal and ot...
Arq Inc Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 17, 2026
Earnings Call Sentiment Neutral
The call conveyed a mix of constructive operational and strategic developments alongside near-term financial impacts from one-time and carryover items. Key positives include revenue growth (+7% YoY), exceptionally strong January/February margins (38% and 47%), successful under-budget plant turnaround, reiterated 2026 guidance (revenue $120M–$125M; adjusted EBITDA $17M–$20M), and strengthening GAC market fundamentals with encouraging alternative-use progress (asphalt). Offsetting these were a noncash inventory revaluation (~$800k) and carryover GAC costs (~$600k) that reduced Q1 adjusted EBITDA to ~$2.7M (down ~34% YoY) and produced a small net loss, higher SG&A, modest unrestricted cash, and ongoing uncertainty/timing and capital needs for GAC restart/expansion. Management characterized most negative items as nonrecurring and emphasized balance-sheet and capital-allocation plans, creating a cautiously constructive tone.Positive Updates
Revenue Growth
Q1 revenue of $29.1 million, up ~7% year-over-year driven principally by increased sales volumes.
Negative Updates
Inventory Revaluation and Carryover GAC Costs
Noncash inventory revaluation of ~ $800,000 increased COGS (reduced gross margin) and an additional ~$600,000 of carryover GAC-related expenses negatively impacted Q1 results and adjusted EBITDA; management states these carryover costs will not recur.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Growth
Q1 revenue of $29.1 million, up ~7% year-over-year driven principally by increased sales volumes.
Read all positive updates
Company Guidance
The company reiterated its full‑year 2026 guidance: revenue of $120–$125 million, adjusted EBITDA of $17–$20 million (which at the $17M low end would be a ~30% improvement vs. 2025), PAC volumes of 122–125 million pounds at an average selling price of $0.88–$0.91/lb, and capital expenditures of $8–$10 million (with recent TAR outperformance providing some flexibility within that range); management expects the PAC business to be free‑cash‑flow generative in 2026 and beyond. For context, Q1 produced ~$29.0–29.1M revenue (up ~7% YoY), adjusted EBITDA of ~$2.7M (vs. $4.1M prior year), a net loss of ~$0.8M (impacted by a noncash inventory revaluation of ~ $0.8M and carryover GAC costs of ~ $0.6M), ending cash of $15.9M (≈$4.7M unrestricted) and total debt of $30.2M (including $20.9M drawn on the revolver); management noted comfort with leverage up to ~3x adjusted EBITDA (implying roughly $60M of debt capacity at the top end of guidance).Arq Inc Financial Statement Overview
Summary
Income Statement
24
Negative
Balance Sheet
68
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 122.14M | 120.34M | 108.96M | 99.18M | 102.99M | 100.29M |
| Gross Profit | 33.56M | 33.53M | 39.44M | 31.86M | 22.52M | 34.72M |
| EBITDA | -40.49M | -38.40M | 6.58M | 1.46M | -1.96M | 85.50M |
| Net Income | -53.66M | -52.61M | -5.11M | -12.25M | -8.92M | 60.40M |
Balance Sheet | ||||||
| Total Assets | 232.13M | 230.58M | 284.37M | 235.50M | 181.16M | 185.44M |
| Cash, Cash Equivalents and Short-Term Investments | 4.67M | 6.57M | 13.52M | 45.36M | 66.43M | 78.75M |
| Total Debt | 38.33M | 37.39M | 34.36M | 31.74M | 12.44M | 10.50M |
| Total Liabilities | 64.32M | 62.62M | 67.09M | 57.10M | 41.19M | 38.13M |
| Stockholders Equity | 167.81M | 167.96M | 217.28M | 178.40M | 139.98M | 147.30M |
Cash Flow | ||||||
| Free Cash Flow | -2.89M | -11.05M | -74.69M | -44.17M | -14.97M | 19.80M |
| Operating Cash Flow | 3.21M | -2.48M | 10.48M | -16.65M | -6.06M | 26.00M |
| Investing Cash Flow | -5.39M | -8.41M | -85.07M | -28.54M | -4.61M | 44.38M |
| Financing Cash Flow | 3.23M | 3.70M | 42.68M | 22.91M | -1.68M | -17.53M |
Arq Inc Technical Analysis
Negative
2.24
Price Trends
2.52
Negative
2.68
Negative
3.82
Negative
Market Momentum
-0.04
Positive
38.40
Neutral
12.25
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 2.63, below the 50-day MA of 2.52, and below the 200-day MA of 3.82, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 38.40 is Neutral, neither overbought nor oversold. The STOCH value of 12.25 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 |
|---|---|---|---|---|---|---|---|
64 Neutral | $5.37B | 188.18 | 5.54% | ― | 32.11% | -71.47% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
57 Neutral | $67.01M | -22.70 | -7.34% | ― | -0.69% | 1.97% | |
55 Neutral | $100.45M | -1.82 | -27.88% | ― | 6.71% | -3120.50% | |
46 Neutral | $22.41M | -3.61 | -53.54% | ― | 73.54% | 17.08% | |
45 Neutral | $25.76M | -0.92 | -73.79% | ― | 6.94% | 38.10% | |
45 Neutral | $33.77M | -1.35 | -338.76% | ― | ― | ― |
* Industrials Sector Average
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Arq Inc Corporate Events
Business Operations and StrategyExecutive/Board Changes
Arq Appoints Interim Accounting Officer Amid Finance Transition
Neutral
Jun 18, 2026
On June 14, 2026, Arq, Inc.’s board appointed veteran accountant Peter Owino as Interim Chief Accounting Officer, effective June 12, 2026, making him the company’s principal accounting officer while a permanent successor is sought. Owi...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and ComplianceShareholder Meetings
Arq Inc Shareholders Approve New Incentive Plan and Governance
Positive
Jun 11, 2026
On June 10, 2026, Arq, Inc. held its 2026 Annual Meeting of Stockholders, where investors approved a new 2026 Omnibus Incentive Plan authorizing up to 1.5 million new shares plus remaining capacity from the 2024 plan for a broad array of equity an...
Business Operations and StrategyExecutive/Board Changes
Arq Inc Announces New Chief Financial Officer Appointment
Positive
May 27, 2026
On May 26, 2026, Arq’s board appointed veteran finance executive Shimon Steinmetz as executive vice president and chief financial officer, with his start date set on or before July 27, 2026, and concurrently approved an employment package fe...
Executive/Board ChangesRegulatory Filings and Compliance
Arq Announces Executive Leadership Departures and Severance Agreements
Neutral
May 1, 2026
Arq, Inc. disclosed that on March 4, 2026, Chief Operating Officer Jeremy “Deke” Williamson and Chief Financial Officer Jay Voncannon stepped down from their executive roles, remaining employed until April 18, 2026, and that their Sepa...
Regulatory Filings and Compliance
Arq Inc Updates Material Agreement Affecting Security Holder Rights
Neutral
Apr 17, 2026
Arq Inc. referenced prior disclosure under Item 1.01 of a filing, noting that the description of its entry into a material definitive agreement is incorporated by reference into another section. The excerpt indicates a cross-reference within regul...
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...
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.