Arq, Inc. reported a total revenue of $120.3 million for the fiscal year ended December 31, 2025, marking a 10% increase from $109.0 million in 2024. The growth was primarily driven by higher sales volumes and improved pricing for activated carbon products, particularly in the power generation sector. However, the company also faced a significant increase in cost of revenue, which rose by 25% to $86.8 million, leading to an operating loss of $53.0 million compared to a loss of $2.0 million in the previous year. This substantial increase in losses was largely attributed to a $44.8 million impairment charge related to the Corbin Facility, which was idled in January 2026 due to production challenges.
In terms of strategic developments, Arq completed the acquisition of Legacy Arq in February 2023, which provided access to additional bituminous coal feedstock and a manufacturing facility in Kentucky. However, the company has since paused production at its GAC Facility due to design flaws and has initiated a review to optimize production processes. The transition from using Corbin Wetcake to a more reliable bituminous coal feedstock is expected to address these issues, although the company does not anticipate significant revenue from GAC products in fiscal year 2026.
Operationally, Arq's workforce consisted of 202 employees as of December 31, 2025, a slight increase from the previous year. The company reported that its top three customers accounted for approximately 42% of total revenue, highlighting a concentration risk. Additionally, the company is actively pursuing opportunities in the water purification market, particularly in response to new PFAS regulations set to take effect in the coming years, which are expected to drive demand for its products.
Looking ahead, Arq's management expressed cautious optimism regarding future growth, contingent on resolving current production issues and successfully transitioning to new feedstock sources. The company is also focused on maintaining liquidity, with cash and restricted cash totaling $15.0 million as of December 31, 2025, alongside a revolving credit facility that had $1.4 million available. However, the ongoing challenges related to the GAC Facility and the need for additional capital expenditures may impact the company's financial performance in the near term.
About Arq, Inc.
Arq, Inc. is an environmental technology company specializing in the manufacture and sale of activated carbon (AC) products used to remove contaminants from air, water, and soil. Its core offerings include powdered and granular activated carbon for markets such as coal-fired power generation, industrial purification, water treatment, and environmental remediation. Arq’s vertically integrated model includes raw material mining and proprietary technologies, serving customers focused on regulatory compliance and pollution control.
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