Arq, Inc. (ARQ)
NASDAQ:ARQ
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Arq Inc
(NASDAQ:ARQ)
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Rating:53Neutral
Price Target:
$3.00
▲(33.93% Upside)
Action:Reiterated
Date:06/01/26
The score is held back primarily by very weak profitability and still-negative free cash flow despite sharp TTM revenue growth and low reported leverage. Near-term technical momentum is moderately positive, while valuation remains challenged due to ongoing losses. Guidance reiteration and liquidity-related actions are supportive, but uncertainty around GAC timing/capital needs and tight unrestricted cash temper confidence.
Positive Factors
Revenue Growth
Sustained top-line expansion (+150% TTM) indicates underlying demand and successful commercialization across core PAC and environmental end markets. Durable revenue growth supports scale, improves fixed-cost absorption, and creates a runway to convert volume into margin improvement if cost discipline and mix persist.
Negative Factors
Weak Profitability
Severe negative operating and net margins show that current scale and pricing have not translated to sustainable profitability. Persistent losses erode equity, limit reinvestment capacity, and require meaningful margin improvement or structural cost changes to reach durable cash‑generating status over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Sustained top-line expansion (+150% TTM) indicates underlying demand and successful commercialization across core PAC and environmental end markets. Durable revenue growth supports scale, improves fixed-cost absorption, and creates a runway to convert volume into margin improvement if cost discipline and mix persist.
Read all positive factors
Arq Inc (ARQ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$114.18M
Dividend YieldN/A
Average Volume (3M)294.29K
Price to Earnings (P/E)―
Beta (1Y)1.91
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. Volume271,622
30 Day Avg. Volume294,291
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 Cap1.33
Enterprise Value/Revenue1.25
Enterprise Value/Gross Profit4.53
Enterprise Value/Ebitda-3.81
Forecast
1Y Price Target
$5.33Price Target Upside138.10% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)-0.07
Revenue Forecast (FY)$123.80M
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: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 | -39.92M | -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
Neutral
2.24
Price Trends
2.45
Positive
2.84
Negative
4.17
Negative
Market Momentum
0.07
Negative
55.05
Neutral
59.22
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 2.24 is below the 20-day moving average (MA) of 2.63, below the 50-day MA of 2.45, and below the 200-day MA of 4.17, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 55.05 is Neutral, neither overbought nor oversold. The STOCH value of 59.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | $4.74B | 162.41 | 5.54% | ― | 32.11% | -71.47% | |
57 Neutral | $45.50M | -14.38 | -7.34% | ― | -0.69% | 1.97% | |
53 Neutral | $114.18M | ― | -27.88% | ― | 6.71% | -3120.50% | |
47 Neutral | $26.49M | -3.95 | -53.54% | ― | 73.54% | 17.08% | |
45 Neutral | $44.96M | -1.93 | -338.76% | ― | ― | ― | |
43 Neutral | $12.04M | -0.98 | -73.79% | ― | 6.94% | 38.10% |
* Industrials Sector Average
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Arq Inc Corporate Events
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...
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...
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.