Arq, Inc.
- Open
- 2.54
- Day high
- 2.54
- Day low
- 2.48
- Prev close
- 2.55
- Volume
- 25K
- Mkt cap
- $107M
- P/E (TTM)
- —
- EPS (TTM)
- —
- P/B
- 0.6
- P/S
- 0.9
- Yield
- —
- Per share
- —
- ▼Insiders net selling -$38K over the last 3 months (0 open-market buys, 1 sale)
Arq, Inc. (ARQ) is a Industrials company listed on NASDAQ. The stock is down 53% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 1 sale (SEC Form 4).
Arq, Inc. (ARQ) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 2 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
ARQ earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 7, 2026 | $-0.02 | $-0.02 | +0.0% | $29M | +4.7% |
| Mar 10, 2026 | $-0.07 | $-0.07 | -2.2% | $29M | +2.9% |
| Nov 5, 2025 | $0.02 | $-0.02 | -200.0% | $35M | +22.7% |
| May 7, 2025 | $-0.03 | $0.00 | +115.9% | $27M | +8.1% |
| Mar 5, 2025 | $-0.03 | $-0.03 | +0.0% | $27M | -4.6% |
| Nov 7, 2024 | $0.04 | $0.04 | +14.3% | $35M | +22.7% |
| Mar 12, 2024 | $-0.08 | $0.10 | +225.0% | $28M | +4.1% |
| Nov 9, 2023 | $-0.11 | $-0.07 | +36.4% | $30M | +17.0% |
ARQ insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| May 6, 2026 | Voncannon Jay Loringofficer: Chief Financial Officer | Sell | 16,709 | $2.27 |
| Mar 25, 2026 | Smith Claiborne Bensonofficer: Gen Counsel, Corp Secretary | Tax | 8,025 | $2.27 |
| Mar 25, 2026 | Hansen Staciaofficer: Chief Accounting Officer | Tax | 8,894 | $2.27 |
| Mar 25, 2026 | Rasmus Robert E.director, officer: Chief Executive Officer | Tax | 845 | $2.27 |
| Mar 25, 2026 | Wong Joseph Mofficer: Chief Technology Officer | Tax | 10,085 | $2.27 |
| Mar 24, 2026 | Campbell-Breeden Richarddirector | Buy | 150,000 | $2.21 |
| Mar 19, 2026 | Wong Joseph Mofficer: Chief Technology Officer | Buy | 10,000 | $1.89 |
| Mar 17, 2026 | EICHER CAROL Sdirector | Buy | 77,500 | $1.95 |
| Mar 16, 2026 | Smith Claiborne Bensonofficer: Gen Counsel, Corp Secretary | Buy | 1,000 | $1.92 |
| Mar 3, 2026 | Williamson Jeremyofficer: Chief Operating Officer | Option | 68,600 | — |
| Mar 3, 2026 | Williamson Jeremyofficer: Chief Operating Officer | Option | 51,467 | — |
| Mar 3, 2026 | Wong Joseph Mofficer: Chief Technology Officer | Option | 30,225 | — |
| Mar 3, 2026 | Wong Joseph Mofficer: Chief Technology Officer | Tax | 17,338 | $3.51 |
| Mar 3, 2026 | Wong Joseph Mofficer: Chief Technology Officer | Option | 40,286 | — |
| Mar 3, 2026 | Smith Claiborne Bensonofficer: Gen Counsel, Corp Secretary | Tax | 10,176 | $3.51 |
Source: ARQ SEC Form 4 filings, latest May 6, 2026. For informational purposes only — not investment advice.
See the full ARQ insider & 13F page →Arq, Inc. company profile
Overview
Arq, Inc. (NASDAQ:ARQ) is a Colorado-based industrial company that specializes in producing activated carbon products for environmental applications. Founded in 1996 and originally known as Advanced Emissions Solutions, Inc., the company rebranded to Arq, Inc. in February 2024 to reflect its strategic transformation from an industrial manufacturing company to an environmental technology provider. The company went public in 2004 and has evolved from primarily serving the power generation sector to diversifying across water treatment, air purification, and environmental remediation markets. Arq operates manufacturing facilities across North America and has positioned itself as a vertically integrated supplier of activated carbon solutions.
Business
Arq operates in the activated carbon manufacturing industry, which produces specialized materials used for filtering and purifying air and water by removing contaminants through adsorption. Activated carbon is a form of carbon that has been processed to create millions of tiny pores, dramatically increasing its surface area and making it highly effective at capturing pollutants, chemicals, and other unwanted substances from liquids and gases. The company operates two primary business segments: **Powdered Activated Carbon (PAC) Business** - This segment produces fine carbon particles primarily used in water treatment facilities, power plants for mercury removal, and various industrial applications. PAC is mixed directly into water or flue gas streams where it captures contaminants before being filtered out. This business currently generates the majority of company revenues and has been transformed from a loss-making operation to profitability through contract optimization and pricing improvements. **Granular Activated Carbon (GAC) Business** - This newer segment produces larger carbon granules that are packed into filtration systems for water treatment, air purification, and specialized applications like renewable natural gas (RNG) purification. GAC systems allow for continuous filtration as water or air passes through carbon-filled vessels. The company is commissioning a new 25-million-pound-capacity GAC production facility at its Red River location, representing a significant growth opportunity as GAC commands pricing multiples higher than PAC. The company also produces specialized products including **Arq Powder Wetcake** (a coal waste-derived particle) and various **air emissions control additives**. Applications span municipal water treatment, groundwater remediation, soil sediment cleanup, industrial air emissions control, and asphalt additives. The business has been strategically repositioning toward higher-margin environmental applications, particularly targeting markets driven by increasingly stringent regulations around PFAS (per- and polyfluoroalkyl substances) contamination and other environmental contaminants.
Revenue model
Arq generates revenue primarily through direct product sales of activated carbon to industrial customers, municipalities, and equipment manufacturers. The company operates on a traditional manufacturing business model where it processes raw materials (primarily coal-based feedstock) into various activated carbon products and sells them at negotiated prices under multi-year contracts. **Revenue Streams:** The PAC business operates on relatively thin margins but provides steady cash flow through long-term contracts typically lasting 3-5 years with utilities, municipalities, and industrial customers. The company has successfully eliminated loss-making contracts and improved average selling prices by approximately 14-16% year-over-year through strategic repricing and market diversification. The emerging GAC business represents a higher-margin opportunity, with GAC products commanding pricing multiples significantly higher than PAC while production costs do not increase proportionally. GAC contracts range from 1-5 years and serve diverse end markets including municipal water systems, renewable natural gas facilities, air filtration equipment manufacturers, and specialized industrial applications. **Margin Influencing Factors:** Several factors can positively impact margins: tightening environmental regulations (particularly PFAS standards) that increase demand for activated carbon solutions; the company's vertically integrated supply chain that provides cost advantages; successful commissioning of the higher-margin GAC facility; and continued optimization of the PAC business through eliminating low-margin contracts and expanding into premium market segments. Margin pressures can arise from: raw material cost inflation, particularly for coal-based feedstock; competitive pricing pressure in commodity PAC markets; potential delays or technical issues in GAC facility commissioning; and general economic downturns that could reduce industrial demand. The company's domestic supply chain provides some protection against international trade disruptions and tariff impacts that could affect foreign competitors.
Competitive moat
Arq's competitive moat is moderate and primarily stems from its vertically integrated supply chain and regulatory positioning, though it faces meaningful competitive pressures. The company's strongest defensive position lies in its **domestic, vertically integrated operations** that provide cost advantages and supply chain reliability compared to international competitors. This integration spans from raw material sourcing through final product delivery, offering customers supply security and potentially benefiting from any trade restrictions on imported activated carbon. The company has developed **specialized technical expertise** in activated carbon production and applications, particularly in emerging markets like PFAS remediation and renewable natural gas purification. Its **first-mover advantage** in certain applications and **established customer relationships** with high retention rates (95% in 2024) provide some competitive protection. However, the moat faces significant challenges. The activated carbon industry includes large, well-established competitors with greater scale and resources. **Commodity-like nature** of many PAC applications limits pricing power and differentiation opportunities. The **capital-intensive nature** of expanding production capacity creates barriers to growth and increases financial risk during market downturns. **Regulatory dependency** presents both opportunity and risk - while tightening environmental standards drive demand, regulatory delays or changes could significantly impact growth prospects. The company's **small scale** relative to industry leaders limits its ability to compete on cost in commodity markets, forcing reliance on niche applications and premium segments. The competitive landscape includes both domestic and international players, with some customers potentially able to switch suppliers relatively easily, particularly in standardized PAC applications. The moat is best characterized as **narrow but defensible** in specialized applications, while remaining vulnerable in commodity segments.
Risks & safety
**Overall Assessment:** Moderate margin of safety with improving fundamentals but elevated execution risk around GAC facility commissioning. **Cash and Debt Position:** • Cash and short-term investments: $6.3 million (Q1 2025), down from $13.5 million (Q4 2024) • Total debt-to-equity ratio: 0.05 (very low leverage) • Current ratio: 1.12 (tight but adequate liquidity) • Negative free cash flow: -$4.8 million (Q1 2025) due to ongoing capital investments **Solvency Risk:** • Operating cash flow turned negative in Q1 2025 at -$5.8 million • Significant capital expenditure requirements for GAC facility completion • Access to $30 million revolving credit facility provides liquidity buffer **Valuation Metrics:** • Price-to-book ratio: 0.79 (trading below book value) • EV/EBITDA: 15.5x (reasonable for growth stage) • Graham number suggests potential undervaluation at current levels **Other Considerations:** • Heavy dependence on successful GAC facility commissioning for growth thesis • Positive EBITDA generation provides some operational stability • Strong balance sheet with minimal debt provides financial flexibility during transition period
Recent development
Over the past few years, Arq has undergone a significant strategic transformation from a struggling industrial manufacturer to a focused environmental technology company. The most critical development has been the **turnaround of the PAC business**, which was transformed from generating losses to consistent profitability through aggressive elimination of negative-margin contracts, strategic repricing initiatives, and market diversification beyond traditional power generation customers. The company's **major growth initiative centers on GAC production expansion** at its Red River facility, representing a $60-70 million capital investment to build a 25-million-pound annual capacity production line. This facility has faced commissioning challenges, particularly in Zone 3 operations involving binding and shaping processes, with commercial production now expected by end of Q2 or early Q3 2025, slightly delayed from original timelines. **Market positioning has evolved significantly**, with the company rebranding from Advanced Emissions Solutions to Arq, Inc. in February 2024 to reflect its environmental focus. The business has diversified from primarily serving power utilities to targeting higher-margin applications in municipal water treatment, PFAS remediation, renewable natural gas purification, and industrial air filtration. **Financial restructuring** included raising approximately $44 million in equity capital during 2024, refinancing debt facilities with more favorable terms, and implementing cost reduction programs that decreased SG&A expenses from $34 million in 2023 to $29 million in 2024. The company has also secured approximately 60% of initial GAC production capacity through advance contracting, providing revenue visibility for the new facility. **Strategic exploration** of adjacent opportunities includes potential expansion into rare earth minerals extraction, synthetic graphite production, and asphalt manufacturing, though these remain early-stage investigations. The company has also been exploring potential government funding opportunities for strategic initiatives and considering Phase 2 GAC expansion depending on initial facility performance.
ARQ company profile · for informational purposes only — not investment advice.
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