Arq (ARQ) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $29.9 million, a 5% year-over-year increase, driven by strong PAC pricing and volume growth, with adjusted EBITDA up 59% to $5.8 million and gross margin improving to 38.5% from 33.3% YoY.

• Net loss narrowed to $0.7 million from $2.4 million in Q2 2025, reflecting improved operations and profitability in the PAC business.

• The biennial Red River plant turnaround was completed under budget at $3.1 million, supporting operational efficiency.

• The company is prioritizing operational efficiency, cost reduction, and strategic growth, particularly through the new PAC for PFAS product targeting water utilities facing new EPA standards.

• Strategic review of the GAC business continues, with no GAC production expected in 2026 or 2027 and no major CapEx commitment until returns are justified.

Financial highlights

• Revenue for Q2 2026 was $29.9 million, up 5% year-over-year, with PAC pricing up 7% and volume up 4%.

• Gross margin reached 38.5%, up 520 basis points from the prior year quarter.

• Adjusted EBITDA was $5.8 million, up from $3.7 million in Q2 2025.

• Net loss narrowed to $0.7 million from $2.4 million in Q2 2025.

• Cash and restricted cash at quarter end totaled $12.1 million.

Outlook and guidance

• Full-year 2026 revenue guidance reaffirmed at $120–$125 million, with adjusted EBITDA expected between $17–$20 million.

• CapEx guidance for 2026 reiterated at $8–$10 million.

• PAC for PFAS is expected to contribute meaningfully in 2027 and beyond, with initial sales in H2 2026.

• No GAC production or sales expected in 2026 or 2027; optimization review to determine future investment.

• Sufficient liquidity projected for the next 12 months based on current cash and credit availability.