Arq Q2 Revenue Climbs 5%, Adjusted EBITDA Soars 59%; 2026 Guidance Reaffirmed
ARQ sits 54% above its 52-week low of $1.54.
Summary
Arq posted Q2 2026 revenue of $29.9M (up 5% YoY) and Adjusted EBITDA of $5.8M (up 59%), reaffirmed its full-year guidance, and updated on its strategic review and new PFAS product.
Key Events · Earnings and Guidance · ARQ
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Q2 Revenue and Profitability Beat
Revenue reached $29.9M, a 5% increase YoY, while Adjusted EBITDA surged 59% to $5.8M, marking the ninth consecutive quarter of positive Adjusted EBITDA.
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Full-Year Guidance Reaffirmed
Management reiterated 2026 guidance of $120-125M in revenue and $17-20M in Adjusted EBITDA, signaling confidence in the core PAC business despite operational challenges.
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Strategic Review and GAC Halt
The strategic optimization review continues, with GAC production halted through 2027 because of design flaws. The company is evaluating cost estimates to fix the facility, which could entail a 12-month construction timeline.
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New PAC for PFAS™ Product Advancement
A high-value PAC product for PFAS removal is advancing, with customer testing underway. The company believes this could drive material volume and pricing growth from 2027 onward.
Analysis · ARQ · Industrial Applications And Services
A solid quarter for Arq featured revenue growth and a sharp jump in profitability, powered by its core PAC business. The reaffirmed full-year guidance underscores management's confidence even as GAC production remains halted and cash is tight. While the strategic review and the new PAC for PFAS™ product offer potential upside, the balance sheet warrants caution with only $3.1M in unrestricted cash.
At the time of this filing, ARQ was trading at $2.37 on NASDAQ in the Industrial Applications And Services sector, with a market capitalization of approximately $88.9M. The 52-week trading range was $1.54 to $7.89. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.