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Arq Inc
(NASDAQ:ARQ)
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Rating:53Neutral
Price Target:
$2.00
▼(-7.41% Downside)
Action:Reiterated
Date:08/29/26
Overall score reflects weak financial performance (ongoing losses and negative free cash flow) as the primary constraint, partly offset by encouraging earnings-call indicators (margin and adjusted EBITDA improvement with reaffirmed 2026 guidance). Technicals are broadly neutral, while valuation support is limited due to negative earnings and no dividend yield.
Positive Factors
PAC Margin Expansion
The substantial PAC-led margin improvement indicates better economics in the core business, not merely higher sales. If sustained, stronger gross profit can support reinvestment, improve operating leverage, and provide a more durable path toward positive earnings.
Negative Factors
Persistent Losses
Deeply negative profitability remains the central fundamental weakness despite revenue growth. Ongoing losses can consume the benefits of scale, limit internally funded investment, and weaken the company’s ability to absorb execution setbacks until margins improve consistently.
Read all positive and negative factors
Positive Factors
Negative Factors
PAC Margin Expansion
The substantial PAC-led margin improvement indicates better economics in the core business, not merely higher sales. If sustained, stronger gross profit can support reinvestment, improve operating leverage, and provide a more durable path toward positive earnings.
Read all positive factors
Arq Inc (ARQ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$81.22M
Dividend Yield8.33%
Average Volume (3M)222.65K
Price to Earnings (P/E)―
Beta (1Y)2.06
Revenue Growth4.93%
EPS Growth-3567.25%
CountryUS
Employees202
SectorIndustrials
Sector Strength72
IndustryIndustrial - Pollution & Treatment Controls
Share Statistics
EPS (TTM)-1.26
Shares Outstanding43,668,484
10 Day Avg. Volume266,254
30 Day Avg. Volume222,645
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 Cap1.78
Enterprise Value/Revenue1.17
Enterprise Value/Gross Profit4.07
Enterprise Value/Ebitda-3.85
Forecast
1Y Price Target
$4.75Price Target Upside119.91% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)-0.01
Revenue Forecast (FY)$124.23M
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. generates revenue primarily by selling activated carbon-based products and related solutions to industrial customers that need to comply with environmental regulations. Key revenue streams include (1) product sales of activated carbon ma...
Arq Inc Earnings Call Summary
Earnings Call Date:Aug 10, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call highlights a clear operating improvement driven by PAC: margin expansion, strong adjusted EBITDA growth, reduced net loss, introduction of a promising PAC for PFAS product, and active options to monetize non-core assets. Key risks remain around the large and uncertain capital needed for a potential GAC conversion ($40–$60M), restricted cash timing effects and existing leverage, and the delayed timeline for any GAC production. On balance, the company delivered meaningful operational progress and new product momentum while management is taking a disciplined capital allocation approach.Positive Updates
Revenue Stability
Revenue of approximately $30.0 million in Q2 2026, up modestly year-over-year, driven by improved volumes and pricing.
Negative Updates
GAC Conversion Cost Uncertainty
Estimated capital required to complete bituminous GAC conversion remains a wide range of $40 million to $60 million (Phase 1 = 25 million pounds capacity); company has not committed and will only proceed if returns justify the spend, leaving material strategic uncertainty.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Stability
Revenue of approximately $30.0 million in Q2 2026, up modestly year-over-year, driven by improved volumes and pricing.
Read all positive updates
Company Guidance
The company reiterated full‑year 2026 guidance of $120–$125 million revenue and $17–$20 million adjusted EBITDA, with capital expenditures reaffirmed at $8–$10 million and the biennial Red River turnaround (cost $3.1 million, capitalized) not expected to recur before April 2028; Q2 results included ~$30 million revenue, ~38.5% gross margin (up ~520 bps YoY), and ~$5.8 million adjusted EBITDA (vs. $3.7M a year ago) with a net loss of ~$0.7 million. Management said PAC for PFAS may drive meaningful 2027 contribution (some H2 2026 sales possible), expects no bituminous GAC production/sales in 2027, and provided a preliminary GAC conversion estimate of $40–$60 million to reach ~25 million pounds capacity (12‑month build estimate). Balance sheet figures cited: total cash $12.1 million (≈$11.2M restricted), unrestricted cash ~$3.1 million as of July 31, and total debt ~$30.9 million (≈$21.4M MidCap revolver, $8.1M CTV); the company plans to fund needs via existing cash, cash generation, cost savings and potential incremental credit while targeting up to a 50% increase in adjusted EBITDA (management’s $30M EBITDA goal).Arq Inc Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
66
Positive
Cash Flow
22
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 123.44M | 120.34M | 108.96M | 99.18M | 102.99M | 100.29M |
| Gross Profit | 35.55M | 33.53M | 39.44M | 31.86M | 22.52M | 34.72M |
| EBITDA | -37.58M | -38.40M | 6.58M | 1.46M | -1.96M | 85.50M |
| Net Income | -52.26M | -52.61M | -5.11M | -12.25M | -8.92M | 60.40M |
Balance Sheet | ||||||
| Total Assets | 233.01M | 230.58M | 284.37M | 235.50M | 181.16M | 185.44M |
| Cash, Cash Equivalents and Short-Term Investments | 906.00K | 6.57M | 13.52M | 45.36M | 66.43M | 78.75M |
| Total Debt | 17.10M | 37.39M | 34.36M | 31.74M | 12.44M | 10.50M |
| Total Liabilities | 64.79M | 62.62M | 67.09M | 57.10M | 41.19M | 38.13M |
| Stockholders Equity | 168.22M | 167.96M | 217.28M | 178.40M | 139.98M | 147.30M |
Cash Flow | ||||||
| Free Cash Flow | -5.40M | -11.05M | -74.69M | -44.17M | -14.97M | 19.80M |
| Operating Cash Flow | -35.00K | -2.48M | 10.48M | -16.65M | -6.06M | 26.00M |
| Investing Cash Flow | -4.73M | -8.41M | -85.07M | -28.54M | -4.61M | 44.38M |
| Financing Cash Flow | 1.49M | 3.70M | 42.68M | 22.91M | -1.68M | -17.53M |
Arq Inc Technical Analysis
Negative
2.16
Price Trends
2.09
Negative
2.21
Negative
2.54
Negative
Market Momentum
-0.07
Positive
39.53
Neutral
30.05
Neutral
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 2.16 is above the 20-day moving average (MA) of 1.95, above the 50-day MA of 2.09, and below the 200-day MA of 2.54, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 39.53 is Neutral, neither overbought nor oversold. The STOCH value of 30.05 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
56 Neutral | $3.44B | -98.81 | -3.60% | 2.96% | 37.64% | -145.85% | |
54 Neutral | $43.08M | -12.19 | -8.88% | ― | 8.89% | -6.47% | |
53 Neutral | $81.22M | -1.47 | -28.98% | 8.33% | 4.93% | -3567.25% | |
49 Neutral | $42.30M | -1.90 | -401.94% | ― | ― | ― | |
47 Neutral | $16.61M | -2.66 | -58.08% | ― | 82.74% | 17.79% | |
43 Neutral | $11.64M | -0.43 | -68.70% | ― | -0.17% | 37.55% |
* Industrials Sector Average
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Arq Inc Corporate Events
Business Operations and StrategyExecutive/Board Changes
Arq Appoints Peter Owino as Chief Accounting Officer
Positive
Aug 28, 2026
On August 24, 2026, Arq’s board appointed veteran finance executive Peter Owino, 52, as Chief Accounting Officer, effective September 1, 2026, following his stint as interim CAO under a consulting arrangement since June 2026. The move formal...
Business Operations and StrategyExecutive/Board Changes
Arq Restructures CEO Compensation Toward Long-Term Equity Alignment
Positive
Jul 23, 2026
On July 23, 2026, Arq, Inc. amended the employment agreement of President and CEO Robert Rasmus, setting a new term through July 23, 2029, while reducing his annual salary to $50,000 and eliminating his eligibility for annual bonuses and long-term...
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.