Arq Inc (ARQ) AI Stock Analysis

• Market Cap: $227.52M
• Dividend Yield: N/A
• Average Volume (3M): 242.64K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.32
• Revenue Growth: 14.33%
• EPS Growth: 85.35%
• Country: US
• Employees: 200
• Sector: Industrials
• Sector Strength: 88
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): <0.01
• Shares Outstanding: 42,211,120
• 10 Day Avg. Volume: 217,190
• 30 Day Avg. Volume: 242,642
• PEG Ratio: 0.04
• Price to Book (P/B): 0.32
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.76
• Enterprise Value/Market Cap: -0.04
• Enterprise Value/Revenue: -0.02
• Enterprise Value/Gross Profit: -0.23
• Enterprise Value/Ebitda: -0.29
• 1Y Price Target: $8.00
• Price Target Upside: 51.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 56 Neutral
• Price Target: $5.50 ▲(3.97%Upside)

Arq Inc's overall score reflects mixed financial performance and valuation concerns. While there is a strong technical outlook and positive earnings call sentiment, the company faces profitability challenges and valuation issues. The appointment of a new CFO is a positive strategic move but not included in the score due to weight redistribution.

Positive Factors

Contract Renegotiation

Arq has now renegotiated all of the company's PAC contracts — eliminating negative margins.

Market Demand

Large water utilities and municipalities are moving at an accelerated pace to secure GAC supply, which is beneficial for Arq.

Negative Factors

Business Transition

The GAC metamorphosis is taking longer than expected, delaying the financial inflection point the GAC transition promises.

Financial Performance

Arq reported earnings that missed consensus estimates, with revenue and gross margin coming in below expectations.

Arq Inc Business Overview & Revenue Model

Company Description

Arq Inc (ARQ) is a technology company that specializes in providing innovative digital solutions across various sectors. The company focuses on developing cutting-edge software products and services that enhance efficiency and productivity for businesses. Arq Inc's core offerings include cloud computing services, data analytics solutions, and cybersecurity tools that cater to a diverse range of industries, including healthcare, finance, and retail.

How the Company Makes Money

Arq Inc generates revenue primarily through a subscription-based model for its cloud computing and data analytics services. Clients pay recurring fees to access Arq's software solutions, which are delivered via the cloud. Additionally, the company earns income from one-time licensing fees and consulting services related to the implementation and customization of its software products. Arq Inc also partners with other technology firms to integrate its solutions into broader platforms, expanding its customer base and revenue potential. Significant factors contributing to its earnings include the growing demand for digital transformation and the increasing importance of data security, which drive the adoption of Arq's cybersecurity tools.

Arq Inc Financial Statement Overview

Summary

Arq Inc shows moderate revenue growth but faces significant challenges in profitability and cash flow. The income statement indicates moderate growth, with a TTM revenue increase of 5%. However, the negative net profit margin and stressed cash flow dynamics highlight financial pressures. The balance sheet is strong, with low leverage and a high equity ratio, but the negative cash flow requires attention to improve financial health.

Income Statement

Arq Inc's income statement reflects moderate growth in revenue with a challenging profitability trajectory. The TTM (Trailing-Twelve-Months) revenue growth is notable at approximately 5% over the previous year, indicating positive sales momentum. However, profitability metrics such as the gross profit margin (34.66%) and net profit margin (-1.3%) suggest pressures on cost management and overall earnings. The EBIT margin (1.47%) and EBITDA margin (9.03%) show slight improvements but remain low, indicating ongoing operational challenges.

Balance Sheet

The balance sheet of Arq Inc indicates a solid equity position with a debt-to-equity ratio of 0.05, reflecting low leverage. This is favorable for financial stability and risk management. The return on equity (ROE) remains negative due to net losses, but the equity ratio stands strong at 76.92%, suggesting a robust capital structure with significant equity relative to total assets.

Cash Flow

Arq Inc faces significant challenges in cash flow management. Operating cash flow is negative, indicating cash outflows from operations. The free cash flow is also negative, driven by substantial capital expenditures. The free cash flow to net income ratio cannot be reliably assessed due to negative figures, highlighting stressed cash flow dynamics that could impact future growth and investment capacity.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
114.47M	108.96M	99.18M	102.99M	100.29M	67.36M
	Gross Profit
39.67M	39.44M	31.86M	16.11M	26.79M	8.43M
	EBIT
1.68M	-1.96M	-13.34M	-12.03M	2.15M	-16.01M
	EBITDA
10.33M	6.58M	1.46M	-1.96M	85.50M	-1.33M
	Net Income Common Stockholders
-1.49M	-5.11M	-12.25M	-8.92M	60.40M	-20.30M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.34M	13.52M	45.36M	66.43M	78.75M	30.93M
	Total Assets
283.67M	284.37M	235.50M	192.17M	197.41M	156.12M
	Total Debt
10.66M	34.36M	31.74M	12.44M	10.50M	26.88M
	Net Debt
4.32M	20.85M	-13.62M	-53.99M	-68.25M	-4.05M
	Total Liabilities
65.50M	67.09M	57.10M	52.19M	50.11M	70.91M
	Stockholders Equity
218.17M	217.28M	178.40M	139.98M	147.30M	85.21M
Cash Flow		Free Cash Flow
-38.66M	-74.69M	-44.17M	-11.92M	69.48M	46.58M
	Operating Cash Flow
-3.42M	10.48M	-16.65M	-2.42M	77.08M	54.05M
	Investing Cash Flow
-79.03M	-85.07M	-28.54M	-8.24M	-6.70M	-7.47M
	Financing Cash Flow
46.29M	43.31M	22.91M	-1.68M	-17.53M	-27.73M

Arq Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARQ, the sentiment is Positive. The current price of 5.29 is above the 20-day moving average (MA) of 4.83, above the 50-day MA of 4.20, and below the 200-day MA of 5.64, indicating a neutral trend. The MACD of 0.32 indicates Negative momentum. The RSI at 65.55 is Neutral, neither overbought nor oversold. The STOCH value of 72.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ARQ.

Arq Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CECO	79 Outperform	$943.06M	20.96	18.34%	―	8.89%	278.44%
Sector *	66 Neutral	$4.51B	12.29	5.40%	3.67%	4.15%	-12.21%
ARQ	56 Neutral	$227.52M	―	-0.76%	―	14.33%	85.35%
CLIR	55 Neutral	$32.40M	―	-75.96%	―	10.88%	3.57%
FTEK	54 Neutral	$60.63M	―	-6.95%	―	7.30%	-247.48%
LIQT	54 Neutral	$15.38M	―	-69.66%	―	-17.77%	0.86%
SCWO	39 Underperform	$57.24M	―	-110.71%	―	―	―

Arq Inc Corporate Events

Arq Inc Announces Board Changes at Annual Meeting

On June 3, 2025, Arq Inc. held its annual meeting where significant changes to the Board of Directors were made, with L. Spencer Wells and Gilbert Li stepping down. The meeting included votes on various proposals, including the election of six directors, approval of executive compensation, and the ratification of Moss Adams LLP as the independent auditor for 2025. Richard Campbell-Breeden was appointed as Chair of the Board, with Laurie Bergman, Carol Eicher, and Campbell-Breeden taking key committee roles.

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.

Arq Inc Delays Commissioning of GAC Facility

Arq, Inc. announced a revised timeline for the commissioning of its granular activated carbon (GAC) facility at the Red River Plant. Initially expected by the end of Q1 2025, the final commissioning and first commercial production are now anticipated by the end of Q2 or early Q3 2025 due to extended fine-tuning and testing. Despite producing small non-commercial volumes, the company aims to ensure consistent commercial-scale production without increasing capital expenditures. A ramp-up period of three to six months is expected to achieve full capacity.

Arq Inc Appoints Jay L. Voncannon as CFO

On April 2, 2025, Arq Inc. appointed Jay L. Voncannon as Chief Financial Officer, marking a significant step in the company’s ongoing transformation and growth strategy. Voncannon, with over 35 years of experience in finance, previously served as CFO at CoorsTek, Inc., and brings extensive expertise in strategic growth and profitability. His appointment is expected to strengthen Arq’s financial leadership and support its accelerated growth in the activated carbon market.