Arq, Inc. SEC 10-Q Report

Arq, Inc., a company specializing in advanced purification technologies, has released its latest Form 10-Q report, highlighting significant improvements in both financial and operational performance. The report covers the company's activities and financial results for the three months ended March 31, 2025, showcasing robust growth and strategic advancements in its business operations.

Financial Highlights

• Revenue: $27.247 million, increased by 25% from the same period in 2024 due to higher volumes sold and increased pricing.
• Gross Profit: $9.915 million, remained flat as higher pricing and favorable customer mix were offset by start-up costs associated with the GAC line.
• Operating Income: $0.662 million, compared to an operating loss of $2.980 million in the same period in 2024, driven by higher revenue and reduced operating expenses.
• Net Income: $0.203 million, compared to a net loss of $3.419 million in the same period in 2024, primarily due to increased revenue and improved cost management.
• Net Income Per Share: $0.00 (Basic and Diluted), compared to a loss of $0.09 per share in the same period in 2024.

Business Highlights

• Revenue Segments: The company operates in the advanced purification technologies (APT) segment, primarily manufacturing and selling activated carbon (AC) products, including powdered activated carbon (PAC) and granular activated carbon (GAC). Revenue is derived from sales to coal-fired power generation, industrial, municipal water, and soil treatment markets.
• Geographical Performance: For the three months ended March 31, 2025, the company reported revenue of $24.6 million from the United States and $2.6 million from Canada, indicating a strong domestic market presence.
• Sales Units: The increase in revenue for the three months ended March 31, 2025, was driven by higher volumes sold and increased pricing, reflecting a shift in customer demand towards coal-fired power generation due to higher natural gas prices.
• New Product Launches: The company plans to begin using Arq Powder as a feedstock to manufacture high-quality GAC products for sale in the APT and other markets during the second half of 2025. Arq Powder is expected to enable access to new markets and applications, such as components for asphalt.
• New Production Launches: The company is expanding its Red River Plant to commence production of new GAC products, with commissioning expected by the end of the second quarter or early in the third quarter of 2025. The Corbin Facility was commissioned in January 2025, with plans to resume normal operations after the completion of the Red River Project.
• Future Outlook: The company anticipates that the implementation of new EPA regulations on PFAS will drive a material increase in GAC demand in the water purification market. Additionally, the company expects natural gas prices to remain consistent, favorably impacting sales of its products.

SEC Filing: Arq, Inc. [ ARQ ] - 10-Q - May. 07, 2025