Arq, Inc. Reports 5% Revenue Growth and Improved Net Loss in Q2 2026

Arq, Inc. reported its financial results for the second quarter of 2026, revealing a revenue increase of 5% to $29.9 million compared to $28.6 million in the same period last year. For the first half of 2026, revenue rose 6% to $58.9 million from $55.8 million in the prior year. Despite the revenue growth, the company recorded a net loss of $733,000 for the second quarter, an improvement from a loss of $2.4 million in the same quarter of 2025. The year-to-date net loss also decreased to $1.9 million from $2.4 million in the previous year.

The company’s financial position showed a slight increase in total assets, which rose to $233.0 million as of June 30, 2026, compared to $231.0 million at the end of 2025. Current assets increased to $47.2 million, driven by higher receivables and inventories. However, total liabilities also increased to $64.8 million from $62.6 million, primarily due to higher borrowings under the revolving credit facility, which rose to $21.4 million from $19.0 million. Stockholders' equity decreased slightly to $168.2 million from $168.4 million.

Strategically, Arq has paused production at its GAC Facility due to design flaws and is conducting a comprehensive engineering and production process optimization review. This decision follows independent testing that indicated the facility could not achieve its intended production capacity without further modifications. The company is also transitioning from using Corbin Wetcake to a bituminous coal feedstock for GAC production, which is expected to enhance performance and address previous design issues. The Corbin Facility remains idled as a cost-saving measure.

Operationally, Arq's customer base and product demand have shown resilience, particularly in the power generation sector, which has benefited from seasonal electricity demand and stable natural gas prices. The company reported an increase in sales volumes of activated carbon products, particularly in the industrial and municipal water markets. As of June 30, 2026, the company had 42.1 million shares outstanding, with a basic loss per share of $0.02, an improvement from $0.06 in the prior year.

Looking ahead, Arq anticipates continued demand for its products, particularly in the activated carbon market, and expects to improve operational efficiency through the ongoing optimization review. The company believes its current liquidity, including cash on hand and availability under its revolving credit facility, will be sufficient to fund operations for the next 12 months. However, the company remains cautious about potential impacts from market conditions and regulatory changes affecting the coal and environmental technology sectors.