Arq, Inc. reported its financial results for the third quarter of 2025, revealing a slight increase in revenue but a net loss compared to the same period last year. The company generated $35.1 million in revenue for the three months ended September 30, 2025, a 1% increase from $34.8 million in the prior year. For the nine months ending September 30, 2025, revenue rose 11% to $90.9 million, up from $81.9 million in 2024. However, the company recorded a net loss of $0.7 million for the quarter, contrasting with a net income of $1.6 million in Q3 2024. The nine-month net loss was $2.6 million, compared to a loss of $3.8 million in the same period last year.
The financial performance reflects several operational changes and strategic developments. Notably, Arq's cost of revenue increased by 17% to $25.0 million for the third quarter, driven by higher fixed production costs associated with the initial operations of its Granular Activated Carbon (GAC) Facility. The company has also ramped up its research and development expenses, which surged by 1.8 million due to pre-production testing and development activities related to the GAC Facility. Selling, general, and administrative expenses decreased significantly by 43% to $4.6 million, primarily due to reduced payroll and benefits costs.
Arq's operational metrics indicate a focus on expanding its market presence and product offerings. The company has achieved initial commercial production levels at its GAC Facility, which is expected to enhance its product mix and profitability as production scales up. The company is also exploring new applications for its Arq Powder, a byproduct of its manufacturing process, which could open additional markets. As of September 30, 2025, Arq's total assets stood at $277.9 million, with total liabilities of $60.8 million, reflecting a decrease in both compared to the end of 2024.
Looking ahead, Arq anticipates that demand for its products will continue to grow, particularly in the context of rising natural gas prices and regulatory changes regarding PFAS in drinking water. The company expects to reach full nameplate capacity at its GAC Facility by mid-2026, which should improve its gross margins as production stabilizes. Additionally, Arq is evaluating potential expansions and new market opportunities, which could further enhance its operational capabilities and financial performance in the coming years.
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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