Arq Inc (ARQ) AI Stock Analysis

• Market Cap: $284.32M
• Dividend Yield: N/A
• Average Volume (3M): 253.18K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.77
• Revenue Growth: 11.96%
• EPS Growth: 70.59%
• Country: US
• Employees: 200
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): -0.05
• Shares Outstanding: 42,691,242
• 10 Day Avg. Volume: 171,442
• 30 Day Avg. Volume: 253,178
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 2.16
• Enterprise Value/Gross Profit: 5.96
• Enterprise Value/Ebitda: 23.71
• 1Y Price Target: $10.33
• Price Target Upside: 55.11% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 50 Neutral
• Price Target: $7.00 ▲(5.11% Upside)

Arq Inc's overall stock score is primarily influenced by its financial performance challenges, including negative profitability and cash flow issues. However, positive strategic developments and revenue growth highlighted in the earnings call provide some optimism. The technical analysis and valuation further reflect mixed prospects, with bearish momentum and a negative P/E ratio.

Positive Factors

Revenue Growth

The consistent revenue growth reflects strong market demand and effective sales strategies, indicating potential for sustained business expansion.

Strategic Diversification

Reducing reliance on a single market mitigates risk and opens new revenue streams, enhancing long-term stability and growth potential.

Strong Balance Sheet

A strong balance sheet with low leverage provides financial flexibility, allowing the company to invest in growth opportunities and weather economic downturns.

Negative Factors

Profitability Challenges

Ongoing profitability issues could hinder reinvestment in the business and affect long-term financial health if not addressed.

Cash Flow Difficulties

Negative cash flow growth indicates potential liquidity issues, limiting the company's ability to fund operations and strategic initiatives.

Net Loss

Continued net losses suggest challenges in achieving profitability, which could impact investor confidence and long-term viability if not reversed.

Arq Inc Business Overview & Revenue Model

Company Description

Arq Inc (ARQ) is a technology company focused on developing innovative solutions in the fields of data analytics and artificial intelligence. The company operates primarily in the software sector, providing advanced tools and platforms that enable businesses to harness the power of big data for decision-making processes. Core products include data management software, analytics platforms, and AI-driven insights that cater to various industries such as healthcare, finance, and retail.

How the Company Makes Money

Arq Inc generates revenue through a subscription-based model for its software platforms, charging clients monthly or annually for access to its data analytics and AI solutions. Additionally, the company offers tiered licensing options for enterprise clients, providing customized solutions and support at higher price points. Key revenue streams also include professional services such as consulting, training, and implementation support for clients looking to integrate Arq's technologies into their existing systems. Strategic partnerships with major cloud service providers and industry leaders further enhance Arq's market reach and contribute to its earnings through collaborative projects and joint marketing efforts.

Arq Inc Financial Statement Overview

Summary

Arq Inc faces profitability and cash flow challenges despite maintaining a strong balance sheet with low leverage. The negative net profit margin and cash flow difficulties are significant concerns, though the stable gross profit margin and low debt-to-equity ratio provide some stability.

Income Statement

Arq Inc's income statement shows mixed results. The TTM (Trailing-Twelve-Months) gross profit margin is stable at 36.27%, indicating efficient cost management. However, the net profit margin is negative at -1.40%, reflecting ongoing profitability challenges. Revenue growth is modest at 2.78%, suggesting limited expansion. The EBIT and EBITDA margins are low at 2.03% and 9.11%, respectively, indicating pressure on operational efficiency.

Balance Sheet

The balance sheet of Arq Inc reveals a strong equity position with a low debt-to-equity ratio of 0.05, indicating low financial leverage and reduced risk. However, the return on equity is negative at -0.76%, highlighting challenges in generating returns for shareholders. The equity ratio is healthy, suggesting a stable financial structure.

Cash Flow

Cash flow analysis indicates significant challenges. The free cash flow growth rate is negative at -57.63%, and the free cash flow to net income ratio is highly negative, reflecting cash flow difficulties. The operating cash flow to net income ratio is low at 0.02, indicating insufficient cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	117.64M	108.96M	99.18M	102.99M	100.29M	67.36M
Gross Profit	42.67M	39.44M	31.86M	16.11M	26.79M	8.43M
EBITDA	10.73M	6.58M	1.46M	-1.96M	85.50M	-1.33M
Net Income	-1.65M	-5.11M	-12.25M	-8.92M	60.40M	-20.30M
Balance Sheet
Total Assets	284.54M	284.37M	235.50M	192.17M	197.41M	156.12M
Cash, Cash Equivalents and Short-Term Investments	6.96M	13.52M	45.36M	66.43M	78.75M	30.93M
Total Debt	38.45M	34.36M	31.74M	12.44M	10.50M	26.88M
Total Liabilities	67.77M	67.09M	57.10M	52.19M	50.11M	70.91M
Stockholders Equity	216.77M	217.28M	178.40M	139.98M	147.30M	85.21M
Cash Flow
Free Cash Flow	-17.85M	-74.69M	-44.17M	-11.92M	69.48M	46.58M
Operating Cash Flow	695.00K	10.48M	-16.65M	-2.42M	77.08M	54.05M
Investing Cash Flow	-61.75M	-85.07M	-28.54M	-8.24M	-6.70M	-7.47M
Financing Cash Flow	32.35M	42.68M	22.91M	-1.68M	-17.53M	-27.73M

Arq Inc Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 6.66
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 6.66 is below the 20-day moving average (MA) of 6.94, below the 50-day MA of 7.12, and above the 200-day MA of 5.66, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 41.79 is Neutral, neither overbought nor oversold. The STOCH value of 33.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ARQ.

Arq Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CECO	―	$1.71B	33.94	18.85%	―	29.86%	331.33%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CLIR	―	$47.18M	-8.01	-46.19%	―	19.03%	11.70%
ARQ	―	$284.32M	―	-0.81%	―	11.96%	70.59%
FTEK	―	$82.04M	-25.12	-7.69%	―	-4.78%	-1359.72%
LIQT	―	$22.59M	-1.75	-78.97%	―	-12.76%	15.23%
SCWO	―	$63.08M	―	-160.82%	―	―	―

Arq Inc Corporate Events

Arq, Inc. Earnings Call: Strategic Gains Amid Challenges

Arq, Inc. Reports Strong Performance Amidst Strategic Challenges

Arq, Inc. Reports Revenue Growth Amid Losses

Arq, Inc. is an environmental technology company specializing in consumable air, water, and soil treatment solutions, primarily based on activated carbon, with operations in the advanced purification technologies market. In its latest earnings report for the quarter ending June 30, 2025, Arq, Inc. reported a net loss of $2.1 million, an improvement from the $1.9 million loss in the same period last year. The company’s revenue increased to $28.6 million from $25.4 million in the previous year, driven by higher sales volumes in its primary markets. Despite the revenue growth, Arq, Inc. continues to face challenges with operating losses and interest expenses impacting its bottom line. The company’s management remains focused on improving operational efficiencies and expanding its market presence to drive future growth.

Arq Inc Launches GAC Production Line at Red River

On August 6, 2025, Arq Inc. announced the successful commissioning of its first granular activated carbon (GAC) production line at the Red River Plant, marking a significant milestone in its corporate transformation. The company has commenced commercial-scale production, with initial sales completed, and plans to ramp up to a target of 25 million pounds annualized production. This development positions Arq to meet the strong demand in the GAC market, enhancing its strategic value and growth opportunities.

The most recent analyst rating on (ARQ) stock is a Buy with a $10.00 price target. To see the full list of analyst forecasts on Arq Inc stock, see the ARQ Stock Forecast page.