{"success":true,"data":{"pressRelease":{"id":"114662","rtpr_id":"nGNX94hwHN","ticker":"ARQ","exchange":"NASDAQ","all_tickers":["ARQ"],"title":"Arq Reports Second Quarter 2026 Results","author":"Globe Newswire","published_at":"2026-08-10T20:45:45.295Z","article_body":"Generated revenue of approximately $30 million, up 5%\n\nReported Adjusted EBITDA((1)) of approximately $5.8 million, up 59% on prior\nyear period\n\n9(th) consecutive quarter of positive Adjusted EBITDA, driven by foundational\nPAC business\n\nGross margin improved to 38.5%, an increase of 520 bps over prior year\n\nReaffirmed full-year 2026 guidance of $120-125 million revenue and $17-20\nmillion Adjusted EBITDA\n\nGREENWOOD VILLAGE, Colo., Aug. 10, 2026 (GLOBE NEWSWIRE) -- Arq, Inc. (NASDAQ:\nARQ) (the \"Company\" or \"Arq\"), a producer of activated carbon and other\nenvironmentally efficient carbon products for use in purification and\nsustainable materials, today announced its financial and operating results for\nthe quarter ended June 30, 2026.\n\nFinancial Highlights\n* Generated revenue of $29.9 million in Q2 2026 versus $28.6 million in Q2\n2025, driven by increased pricing and volumes\n* Gross margin of 38.5% in Q2 2026, up significantly versus 33.3% in Q2 2025\n* Net loss of $0.7 million in Q2 2026 vs. Net loss of $2.4 million in Q2 2025\n(as adjusted)\n* Adjusted EBITDA((1)) of $5.8 million in Q2 2026 vs. $3.7 million in Q2 2025,\ndriven by continued strength and improving profitability of core PAC business,\nand no drag from previous period granular activated carbon (\"GAC\") production\nexpense\n* Exited Q2 2026 with cash and restricted cash of $12.1 million, including\n$11.2 million in restricted cash, with quarter-end unrestricted cash\nreflecting the timing of borrowings and receipts. Unrestricted cash improved\nto $3.0 million as of July 1, 2026, and as of July 31, 2026, stood at\napproximately $3.1 million\n* Reaffirmed full year 2026 guidance of revenue between $120 - $125 million\nand Adjusted EBITDA of $17 - $20 million\n((1) Adjusted EBITDA is a non-GAAP financial measure. Please refer to the\nsection titled “Note on Non-GAAP Financial Measures” included at the end\nof this press release for the definitions of non-GAAP financial measures and\nreconciliations to GAAP measures included in this press release.)\n\nRecent Business & Other Highlights\n* Biennial Red River Plant turnaround (\"TAR\") completed in April 2026,\nmaterially under budget\n* Reiterated full-year 2026 capex guidance of $8 to $10 million\n* Advanced PAC for PFAS™, a highly engineered powdered activated carbon\n(\"PAC\") product that can help utilities address PFAS contamination while\npotentially eliminating the capital cost of new GAC equipment. Customer\ntesting ongoing and potential for material volume, pricing, and margin\ncontribution from 2027 onward\n* Strategic optimization review ongoing, including a broader operational\nassessment that has identified near-term opportunities to increase furnace\nthroughput, reduce unit costs, and further refine GAC expansion plan\n* Continued progress towards monetizing the Corbin Facility and related\ntechnologies; paving tests for Arq's asphalt product with a leading U.S.\nasphalt company remain ongoing, and recent trials suggest that the inclusion\nof Corbin Wetcake as an additive has positive impacts on multiple performance\nmetrics\n* Appointed seasoned finance executive Shimon Steinmetz as Chief Financial\nOfficer in May 2026, started July 2026\nManagement Commentary\n\n\"The second quarter demonstrated the earning power of our foundational PAC\nbusiness,\" said Bob Rasmus, CEO of Arq. \"Even in what is typically our\nseasonally softer quarter, and one that included our biennial Red River Plant\nturnaround, we delivered Adjusted EBITDA well ahead of the prior-year period,\ndriven by continued pricing discipline and the underlying strength of our core\noperations. The turnaround was completed under budget and, importantly,\nwithout disrupting our ability to serve customers. With a warm start to the\nsummer and favorable seasonal demand dynamics, we remain confident in the\noutlook for our PAC business through the remainder of the year.\"\n\nMr. Rasmus continued, \"Our strategic optimization review remains ongoing. I\nhave been clear that we will remain highly disciplined on any further capital\nspending. The PFAS opportunity remains compelling, and we continue to see an\nimportant role for Arq in providing solutions for our customers. With that in\nmind, as a possible interim step while we determine the best path to bringing\nour own GAC line online, I am encouraged by the early progress of our PAC for\nPFAS™ strategy, which I believe could meaningfully add to the volumes,\npricing, and margins of our PAC business, while helping remove PFAS from our\nnation's water.\"\n\nMr. Rasmus concluded, \"This quarter again demonstrated the profitability and\nresilience of our core PAC business. Taken together with the encouraging\nprogress in our PFAS-related solutions, we have multiple avenues open to us to\ncreate meaningful shareholder value. As a Board and management team that owns\na significant stake in the company, we remain closely aligned with our\nshareholders and confident in the opportunities ahead for further growth.”\n\nSecond Quarter 2026 Results\n\nRevenue totaled $29.9 million for the second quarter of 2026, reflecting an\nincrease of 5% compared to $28.6 million in the prior year period. The\nincrease was driven predominantly by increased pricing and volumes.\n\nCost of revenue totaled $18.4 million for the second quarter of 2026, a\ndecrease of approximately 4% compared to $19.1 million in the prior year\nperiod, with the biennial Red River Plant turnaround completed during the\nquarter. The Company capitalized approximately $3.1 million related to these\nplanned major maintenance activities.\n\nGross margin totaled 38.5% for the second quarter of 2026, up significantly\nfrom 33.3% in the prior year period. Selling, general and administrative\nexpenses totaled $6.8 million, compared to $5.9 million in the prior year\nperiod. This increase of approximately $0.9 million was primarily driven by\nseverance and recruiting costs associated with recent leadership changes.\n\nResearch and development costs totaled $1.0 million for the second quarter of\n2026, a decrease of 64% compared to $2.7 million in the prior year period.\nThis was primarily driven by certain expenses relating to the GAC ramp-up that\nwere incurred during the second quarter of 2025 and that were not repeated\nduring the second quarter of 2026.\n\nOperating loss was $0.1 million for the second quarter of 2026, compared to\noperating loss of $1.8 million in the prior year period. Net loss was $0.7\nmillion in the second quarter of 2026, or $0.02 per diluted share, compared to\nnet loss of $2.4 million or $0.06 per diluted share in the prior year period,\nas adjusted. The reduction in both cases was driven by the factors above.\n\nAdjusted EBITDA was $5.8 million for the second quarter of 2026, compared to\nAdjusted EBITDA of $3.7 million in the prior year period. The increase was\nprimarily driven by the continued strength and improving profitability of the\ncore PAC business, including enhanced pricing and cost discipline, current\nperiod charges for severance associated with recent leadership changes and\nnon-cash equity compensation, and the absence of negative offsets from GAC\nproduction.\n\nSee the section below titled \"Note on Non-GAAP Financial Measures\" regarding\nthe use of the non-GAAP financial measure Adjusted EBITDA and a reconciliation\nto the most comparable GAAP financial measure.\n\nStrategic Optimization Review Update\n\nArq's strategic optimization review remains ongoing as the Company works to\nincrease profitability and maximize the value of its asset base. The review\nhas extended beyond the Red River Plant GAC facility to a broader operational\nassessment of the existing business, focused on maximizing furnace throughput\nand reducing unit costs, work that has already identified meaningful near-term\nopportunities to increase capacity and profitability.\n\nThe GAC component of the review is not fully complete but the Company has\nreceived cost estimates from two independent engineering consultants to finish\nthe conversion and fix the issues previously discussed. Those estimates still\ninclude a wide range of contingencies that are subject to ongoing revision,\nwith a construction and commissioning timeframe of around 12 months. The\nCompany is continuing to evaluate and refine the GAC optimization process to\nensure that the project will generate targeted returns.\n\nGAC market fundamentals remain favorable ahead of the U.S. Environmental\nProtection Agency's April 2027 PFAS monitoring deadline, when water companies\nwith PFAS contamination above the new 4 parts per trillion threshold must\nbegin reporting PFAS numbers publicly. Against that backdrop, the Company is\nadvancing a new high-value strategy \"PAC for PFAS™”: a highly engineered\nPAC product capable of removing PFAS contaminants in certain situations. The\nCompany believes that this new product can support compliance for utilities\nmarginally outside the threshold without the capital cost of new GAC\nequipment, and address PFAS and taste and odor at once for those already using\nPAC. Customer testing is ongoing, but the Company believes that PAC for\nPFAS™ could offer an attractive interim solution for customers and for Arq,\nwhich could lead to material near-term growth in volume and pricing from 2027\nonward, ahead of any future GAC products.\n\nArq also remains in discussions with multiple parties to monetize its Corbin\nFacility and its related technologies, which represent additional optionality\nand a potential funding source. In asphalt, paving tests with a leading U.S.\nasphalt company continue, and recent trials at the NCAT Test Track, which\nsimulates multiple years of wear in a fraction of the time, indicate that the\ninclusion of Corbin Wetcake as an additive has positive impacts on multiple\nperformance metrics.\n\nCapex and Balance Sheet\n\nCapital expenditures totaled $1.2 million for the second quarter of 2026,\ncompared to $1.9 million in the prior year period. The decrease was driven by\nincreased spend on completion and commissioning of the GAC facility during the\nsecond quarter of 2025.\n\nCash as of June 30, 2026, totaled $12.1 million, including $11.2 million of\nrestricted cash, compared to $15.0 million as of December 31, 2025.\nUnrestricted cash at quarter-end reflected the timing of borrowings and\nreceipts around period-end. Unrestricted cash improved to $3.0 million as of\nthe end of the first week of July, and as of July 31, 2026, stood at\napproximately $3.1 million.\n\nTotal debt, inclusive of financing leases, as of June 30, 2026, totaled $30.7\nmillion compared to $28.5 million as of December 31, 2025. The increase was\ndriven primarily by increased borrowings on the Company’s revolving credit\nfacility with MidCap Financial, which totaled $21.4 million as of June 30,\n2026.\n\nConference Call and Webcast Information\n\nArq will host a conference call to discuss the Company's financial performance\non Tuesday, August 11, 2026 at 8:30 a.m. Eastern Time. The conference call\nwebcast information will be available via the Investor Resources section of\nArq's website at www.arq.com. Interested parties may participate in the\nconference call by registering at https://www.webcast-eqs.com/Arq_Q2_2026.\nAlternatively, the live conference call may be accessed by dialing (877)\n407-0890 or +1 (201) 389-0918 and referencing Arq.\n\nA supplemental investor presentation will be available on the Company's\nInvestor Resources section of the website prior to the start of the conference\ncall. A replay of the event will be made available shortly after the event and\naccessible via the same webcast link referenced above. Alternatively, the\nreplay may be accessed by dialing (877) 660-6853 or (201) 612-7415 and\nentering Access ID 13761157. The dial-in replay will expire after August 18,\n2026.\n\nAbout Arq\n\nArq (NASDAQ: ARQ) is a diversified, environmental technology company with\nproducts that enable a cleaner and safer planet while actively reducing our\nenvironmental impact. As the only vertically integrated producer of activated\ncarbon products in North America, we deliver a reliable domestic supply of\ninnovative, hard-to-source, high-demand products. We apply our extensive\nexpertise to develop groundbreaking solutions to remove harmful chemicals and\npollutants from water, land and air. Learn more at: www.arq.com.\n\nCaution on Forward-Looking Statements\n\nThis press release contains forward-looking statements within the meaning of\nSection 21E of the Securities Exchange Act of 1934, which provides a “safe\nharbor” for such statements in certain circumstances. When used in this\npress release, the words “can,” “will,” \"may,\" “intends,”\n“expects,” \"continuing,\" “believes,” similar expressions and any other\nstatements that are not historical facts are intended to identify those\nassertions as forward-looking statements. All statements that address\nactivities, events or developments that the Company intends, expects or\nbelieves may occur in the future are forward-looking statements. These\nforward-looking statements include, but are not limited to, statements or\nexpectations regarding: the future of our GAC Facility and Corbin Facility and\nthe anticipated timing, results, and conclusions of our overall business\noptimization review and the actions we may take upon the completion of such\nreview, including efforts to maximize throughput and optimize unit costs; the\nanticipated commercial success and efficacy of our new product applications,\nincluding PAC for PFAS™; the anticipated benefits of transitioning away from\nusing Corbin Wetcake to a bituminous proven performance coal as a feedstock\nfor our GAC products in the future; financial guidance for fiscal year 2026;\nthe anticipated effects from fluctuations in the pricing of our AC products,\nincluding through expansion into higher-value end markets; expected supply and\ndemand for our AC products and services, including our GAC and PAC for PFAS™\nproducts; the seasonal impact on our customers and their demand for our\nproducts; the future profitability and sustainability of our PAC business; our\nability to fund our business over the next twelve months; our ability to\nmonetize our Corbin Facility and access new markets for our feedstocks and\nother products, including renewable natural gas, asphalt, purified coal, rare\nearth minerals and synthetic graphite markets; any future plant development\nprojects, that may be necessary to remediate design flaws in our GAC Facility,\nand our ability to finance any such projects; the effectiveness of our\ntechnologies and products and the benefits they provide; probability of any\nloss occurring with respect to certain guarantees made by Tinuum Group; the\ntiming and amounts of or changes in future revenue, funding for our business\nand projects, margins, expenses, earnings, tax rates, cash flows, royalty\npayment obligations, working capital, liquidity and other financial and\naccounting measures; the performance of obligations secured by our surety\nbonds; the amount, use and timing of future capital expenditures needed to\nfund our business plan and total anticipated capital expenditures for the\ncurrent fiscal year; the adoption and scope of regulations to control certain\nchemicals in drinking water and other environmental concerns and the impact of\nsuch regulations on our customers' and our businesses, including any increase\nor decrease in demand and sales of our AC products resulting from such\nregulations; our near-term priorities and objectives and our long-term outlook\nregarding the growth of our business; and the impact of prices of competing\npower generation sources such as natural gas and renewable energy on demand\nfor our products.. These forward-looking statements included in this press\nrelease involve risks and uncertainties. Actual events or results could differ\nmaterially from those discussed in the forward-looking statements as a result\nof various factors including, but not limited to, the timing and scope of new\nand pending regulations and any legal challenges to or extensions of\ncompliance dates of them; the U.S. government’s failure to promulgate new\nregulations or enforce existing regulations that benefit our business; changes\nin laws and regulations, accounting rules, prices, economic conditions and\nmarket demand; availability, cost of and demand for alternative energy sources\nand other technologies and their impact on coal-fired power generation in the\nU.S.; technical, start up and operational difficulties; competition within the\nindustries in which the Company operates; risks associated with our debt\nfinancing; our inability to effectively and efficiently commercialize new\nproducts, including our GAC products; our inability to effectively identify\nsolutions to the design flaws in GAC Facility at our Red River Plant or\nexecute on any remedial measures or modifications thereto; disruptions at any\nof our facilities, including by natural disasters or extreme weather; risks\nrelated to our information technology systems, including the risk of\ncyberattacks on our networks; failure to protect our intellectual property\nfrom infringement or claims that we have infringed on the intellectual\nproperty of others; our inability to obtain future financing or financing on\nterms that are favorable to us; our inability to ramp up our operations to\neffectively address recent and expected growth in our business; loss of key\npersonnel; ongoing effects of the inflation and macroeconomic uncertainty,\nincluding from increased domestic and international tariffs and armed\nconflicts around the world, and such uncertainty's effect on market demand and\ninput costs; availability of materials and equipment for our business;\nintellectual property infringement claims from third parties; the impacts of\nany current or future write-downs or write-offs, restructuring, impairment or\nother charges; our failure to realize the anticipated benefits of\nacquisitions, joint ventures, and divestitures we may engage in; pending\nlitigation; factors relating to our business strategy, goals and expectations,\nincluding our ability to execute on our GAC business plan; our ability to\nmaintain relationships with customers, suppliers and others with whom the\nCompany does business and meet supply requirements; our results of operations\nand business generally; risks related to diverting management's attention from\nour ongoing business operations; costs related to the ongoing manufacturing of\nour products, including costs necessary to resume GAC production;\nopportunities for additional sales of our AC products and end-market\ndiversification, including for our Corbin Wetcake; the rate of coal-fired\npower generation in the U.S.; the timing and cost of any future capital\nexpenditures and the resultant impact to our liquidity and cash flows; and the\nother risk factors described in our filings with the SEC, including those\ndescribed in Item 1A. Risk Factors of our Annual Report on Form 10-K for the\nyear ended December 31, 2025. You are cautioned not to place undue reliance on\nthe forward-looking statements and to consult filings we have made and will\nmake with the SEC for additional discussion concerning risks and uncertainties\nthat may apply to our business and the ownership of our securities. In\naddition to causing our actual results to differ, the factors listed above may\ncause our intentions to change from those statements of intention set forth in\nthis press release. Such changes in our intentions may also cause our results\nto differ. We may change our intentions, at any time and without notice, based\nupon changes in such factors, our assumptions, or otherwise. The\nforward-looking statements speak only as to the date of this press release,\nand we disclaim any duty to update such statements unless required by law.\n\nSource: Arq, Inc.\n\nInvestor Contact:\nAnthony Nathan, Arq\nMarc Silverberg, ICR\ninvestors@arq.com \n\n \n Arq, Inc. and Subsidiaries \n Condensed Consolidated Balance Sheets \n (Unaudited) \n \n As of \n (in thousands, except share data) June 30, 2026 December 31, 2025 As Adjusted ((1)) \n ASSETS \n Current assets: \n Cash $ 906 $ 6,573 \n Receivables, net 20,030 14,980 \n Inventories, net 19,407 15,895 \n Prepaid expenses and other current assets 6,894 6,404 \n Total current assets 47,237 43,852 \n Restricted cash, long-term 11,236 8,467 \n Property, plant and equipment, net of accumulated depreciation of $34,264 and $28,375, respectively 139,038 143,154 \n Other long-term assets, net 35,500 35,501 \n Total Assets $ 233,011 $ 230,974 \n LIABILITIES AND STOCKHOLDERS’ EQUITY \n Current liabilities: \n Accounts payable and accrued expenses $ 15,412 $ 15,269 \n Revolving credit facility 21,410 18,950 \n Current portion of long-term debt obligations 1,099 1,063 \n Other current liabilities 8,068 7,015 \n Total current liabilities 45,989 42,297 \n Long-term debt obligations, net of current portion 8,195 8,452 \n Other long-term liabilities 10,606 11,868 \n Total Liabilities 64,790 62,617 \n Commitments and contingencies \n Stockholders’ equity: \n Preferred stock: par value of $0.001 per share, 50,000,000 shares authorized, none issued or outstanding — — \n Common stock: par value of $0.001 per share, 100,000,000 shares authorized, 47,506,052 and 47,348,394 shares issued, and 42,887,906 and 42,730,248 shares outstanding at June 30, 2026 and December 31, 2025, respectively 47 47 \n Treasury stock, at cost: 4,618,146 and 4,618,146 shares as of June 30, 2026 and December 31, 2025, respectively (47,692 ) (47,692 ) \n Additional paid-in capital 203,518 201,784 \n Retained earnings 12,348 14,218 \n Total Stockholders’ Equity 168,221 168,357 \n Total Liabilities and Stockholders’ Equity $ 233,011 $ 230,974 \n\n((1) Adjusted to reflect a retrospective change in accounting method for\nplanned major maintenance costs.)\n\n Arq, Inc. and Subsidiaries \n Condensed Consolidated Statements of Operations \n (Unaudited) \n \n Three Months Ended June 30, Six Months Ended June 30, \n (in thousands, except per share data) 2026 2025 As Adjusted ((1)) 2026 2025 As Adjusted ((1)) \n Revenue $ 29,883 $ 28,584 $ 58,936 $ 55,831 \n \n Cost of revenue, exclusive of depreciation and amortization 18,372 19,066 37,486 36,398 \n \n Operating expenses: \n Selling, general and administrative 6,789 5,918 14,158 11,971 \n Research and development 958 2,697 1,940 3,571 \n Depreciation, amortization, depletion and accretion 3,542 2,721 6,407 5,138 \n Loss (gain) on sale of assets 290 (27 ) 290 118 \n Total operating expenses 11,579 11,309 22,795 20,798 \n Operating loss (68 ) (1,791 ) (1,345 ) (1,365 ) \n Other income (expense): \n Interest expense (748 ) (594 ) (1,453 ) (1,318 ) \n Other income 83 16 928 281 \n Total other expense (665 ) (578 ) (525 ) (1,037 ) \n Loss before income taxes (733 ) (2,369 ) (1,870 ) (2,402 ) \n Income tax expense — — — — \n Net loss $ (733 ) $ (2,369 ) $ (1,870 ) $ (2,402 ) \n Loss per common share: \n Basic $ (0.02 ) $ (0.06 ) $ (0.04 ) $ (0.06 ) \n Diluted $ (0.02 ) $ (0.06 ) $ (0.04 ) $ (0.06 ) \n Weighted-average number of common shares outstanding: \n Basic 42,102 41,507 41,914 41,415 \n Diluted 42,102 41,507 41,914 41,415 \n\n((1) Adjusted to reflect a retrospective change in accounting method for\nplanned major maintenance costs.)\n\n Arq, Inc. and Subsidiaries \n Condensed Consolidated Statements of Cash Flows \n (Unaudited) \n \n Six Months Ended June 30, \n (in thousands) 2026 2025 As Adjusted ((1)) \n Cash flows from operating activities \n Net loss $ (1,870 ) $ (2,402 ) \n Adjustments to reconcile net loss to net cash used in operating activities: \n Depreciation, amortization, depletion and accretion 6,407 5,138 \n Stock-based compensation expense 1,934 1,470 \n Operating lease expense 1,382 1,161 \n Loss on sale of long-term assets, net 290 118 \n Amortization of debt discount and debt issuance costs 205 173 \n Other non-cash items, net (59 ) (160 ) \n Changes in operating assets and liabilities: \n Receivables (5,050 ) (671 ) \n Prepaid expenses and other assets (683 ) (2,853 ) \n Inventories (2,690 ) (1,580 ) \n Other long-term assets, net (2,197 ) (1,631 ) \n Accounts payable and accrued expenses 178 (5,709 ) \n Other current liabilities 1,224 1,651 \n Operating lease liabilities (1,562 ) 204 \n Other long-term liabilities (168 ) (185 ) \n Net cash used in operating activities (2,659 ) (5,276 ) \n Cash flows from investing activities \n Acquisition of property, plant, equipment and intangible assets, net (1,973 ) (5,589 ) \n Acquisition of mine development costs (128 ) (96 ) \n Distributions from equity method investee in excess of cumulative earnings 78 155 \n Net cash used in investing activities (2,023 ) (5,530 ) \n Cash flows from financing activities \n Borrowings on revolving credit facility 58,173 61,884 \n Repayments of revolving credit facility (55,714 ) (57,184 ) \n Principal payments on notes payable (358 ) (393 ) \n Repurchase of common stock to satisfy tax withholdings (200 ) (48 ) \n Principal payments on finance lease obligations (117 ) (264 ) \n Net cash provided by financing activities 1,784 3,995 \n Decrease in Cash and Restricted Cash (2,898 ) (6,811 ) \n Cash and Restricted Cash, beginning of period 15,040 22,235 \n Cash and Restricted Cash, end of period $ 12,142 $ 15,424 \n Supplemental disclosure of non-cash investing and financing activities: \n Accrued purchases for property and equipment $ 912 $ 553 \n Acquisition of property and equipment under finance lease $ 242 $ — \n\n((1) Adjusted to reflect a retrospective change in accounting method for\nplanned major maintenance costs.)\n\nNote on Non-GAAP Financial Measures\n\nTo supplement our financial information presented in accordance with U.S.\nGenerally Accepted Accounting Principles (\"U.S. GAAP\"), we provide certain\nsupplemental financial measures, including EBITDA and Adjusted EBITDA, which\nare measurements that are not calculated in accordance with U.S. GAAP. EBITDA\nis defined as earnings before interest, taxes, depreciation and amortization,\nand Adjusted EBITDA is defined as EBITDA reduced by non-cash gains, increased\nby share-based compensation expense, executive transition and severance ((2)),\nGAC Facility pre-production feedstock, other non-cash losses and non-recurring\ncosts and fees. EBITDA and Adjusted EBITDA should be considered in addition\nto, and not as a substitute for, net loss in accordance with U.S. GAAP as a\nmeasure of performance. See below for a reconciliation from net loss, the\nnearest U.S. GAAP financial measure, to EBITDA and Adjusted EBITDA.\n\nWe believe that the EBITDA and Adjusted EBITDA measures are less susceptible\nto variances that affect our operating performance. We include these non-GAAP\nmeasures because management uses them in the evaluation of our operating\nperformance, and believe they help to facilitate comparison of operating\nresults between periods. We believe the non-GAAP measures provide useful\ninformation to both management and users of the financial statements by\nexcluding certain expenses, gains, and losses which can vary widely across\ndifferent industries or among companies within the same industry and may not\nbe indicative of core operating results and business outlook.\n\nEBITDA and Adjusted EBITDA:\n\nThe following table reconciles net loss, our most directly comparable\nas-reported financial measure calculated in accordance with U.S. GAAP, to\nEBITDA and Adjusted EBITDA.\n\nArq, Inc. and Subsidiaries\nReconciliation of Net Loss to Adjusted EBITDA\n(Unaudited)\n\n Three Months Ended June 30, Six Months Ended June 30, \n (in thousands) 2026 2025 As Adjusted ((1)) 2026 2025 As Adjusted ((1)) \n Net loss $ (733 ) $ (2,369 ) $ (1,870 ) $ (2,402 ) \n Depreciation, amortization, depletion and accretion 3,542 2,721 6,407 5,138 \n Amortization of Upfront Customer Consideration 180 127 360 254 \n Interest expense, net 693 585 638 1,256 \n Income tax expense — — — — \n EBITDA $ 3,682 $ 1,064 $ 5,535 $ 4,246 \n Share-based compensation 1,043 734 1,934 1,470 \n Executive transition and severance ((2)) 827 — 827 — \n Loss (gain) on sale of assets 290 (27 ) 290 118 \n GAC Facility pre-production feedstock ((3)) — 1,897 — 1,897 \n Adjusted EBITDA $ 5,842 $ 3,668 $ 8,586 $ 7,731 \n\n((1) Adjusted to reflect a retrospective change in accounting method for\nplanned major maintenance costs.(2) Represents expenses related to executive\nseverance and separation, as well as legal fees and recruiting costs\nassociated with the CFO, COO and CAO transitions. In addition to these\namounts, we also incurred approximately $0.2 million of share-based\ncompensation associated with executive transition and severance during the\nthree months ended June 30, 2026, which is included in the Share-based\ncompensation adjustment above.(3) Represents expenses related to feedstock\nutilized in pre-production testing of our GAC Facility during the three months\nended June 30, 2025 included within \"Research and development\" expense in the\nCondensed Consolidated Statements of Operations.)\n\n(https://www.globenewswire.com/NewsRoom/AttachmentNg/0161daad-7f01-41c7-9f7d-f97787ec179c)\n\n\n\nGlobeNewswire, Inc. 2026","article_body_html":"","raw_payload":{"data":{"id":"nGNX94hwHN","title":"Arq Reports Second Quarter 2026 Results","author":"Globe Newswire","ticker":"ARQ","created":"2026-08-10T20:45:45.295Z","tickers":["ARQ"],"exchange":"NASDAQ","article_body":"Generated revenue of approximately $30 million, up 5%\n\nReported Adjusted EBITDA((1)) of approximately $5.8 million, up 59% on prior\nyear period\n\n9(th) consecutive quarter of positive Adjusted EBITDA, driven by foundational\nPAC business\n\nGross margin improved to 38.5%, an increase of 520 bps over prior year\n\nReaffirmed full-year 2026 guidance of $120-125 million revenue and $17-20\nmillion Adjusted EBITDA\n\nGREENWOOD VILLAGE, Colo., Aug. 10, 2026 (GLOBE NEWSWIRE) -- Arq, Inc. (NASDAQ:\nARQ) (the \"Company\" or \"Arq\"), a producer of activated carbon and other\nenvironmentally efficient carbon products for use in purification and\nsustainable materials, today announced its financial and operating results for\nthe quarter ended June 30, 2026.\n\nFinancial Highlights\n* Generated revenue of $29.9 million in Q2 2026 versus $28.6 million in Q2\n2025, driven by increased pricing and volumes\n* Gross margin of 38.5% in Q2 2026, up significantly versus 33.3% in Q2 2025\n* Net loss of $0.7 million in Q2 2026 vs. Net loss of $2.4 million in Q2 2025\n(as adjusted)\n* Adjusted EBITDA((1)) of $5.8 million in Q2 2026 vs. $3.7 million in Q2 2025,\ndriven by continued strength and improving profitability of core PAC business,\nand no drag from previous period granular activated carbon (\"GAC\") production\nexpense\n* Exited Q2 2026 with cash and restricted cash of $12.1 million, including\n$11.2 million in restricted cash, with quarter-end unrestricted cash\nreflecting the timing of borrowings and receipts. Unrestricted cash improved\nto $3.0 million as of July 1, 2026, and as of July 31, 2026, stood at\napproximately $3.1 million\n* Reaffirmed full year 2026 guidance of revenue between $120 - $125 million\nand Adjusted EBITDA of $17 - $20 million\n((1) Adjusted EBITDA is a non-GAAP financial measure. Please refer to the\nsection titled “Note on Non-GAAP Financial Measures” included at the end\nof this press release for the definitions of non-GAAP financial measures and\nreconciliations to GAAP measures included in this press release.)\n\nRecent Business & Other Highlights\n* Biennial Red River Plant turnaround (\"TAR\") completed in April 2026,\nmaterially under budget\n* Reiterated full-year 2026 capex guidance of $8 to $10 million\n* Advanced PAC for PFAS™, a highly engineered powdered activated carbon\n(\"PAC\") product that can help utilities address PFAS contamination while\npotentially eliminating the capital cost of new GAC equipment. Customer\ntesting ongoing and potential for material volume, pricing, and margin\ncontribution from 2027 onward\n* Strategic optimization review ongoing, including a broader operational\nassessment that has identified near-term opportunities to increase furnace\nthroughput, reduce unit costs, and further refine GAC expansion plan\n* Continued progress towards monetizing the Corbin Facility and related\ntechnologies; paving tests for Arq's asphalt product with a leading U.S.\nasphalt company remain ongoing, and recent trials suggest that the inclusion\nof Corbin Wetcake as an additive has positive impacts on multiple performance\nmetrics\n* Appointed seasoned finance executive Shimon Steinmetz as Chief Financial\nOfficer in May 2026, started July 2026\nManagement Commentary\n\n\"The second quarter demonstrated the earning power of our foundational PAC\nbusiness,\" said Bob Rasmus, CEO of Arq. \"Even in what is typically our\nseasonally softer quarter, and one that included our biennial Red River Plant\nturnaround, we delivered Adjusted EBITDA well ahead of the prior-year period,\ndriven by continued pricing discipline and the underlying strength of our core\noperations. The turnaround was completed under budget and, importantly,\nwithout disrupting our ability to serve customers. With a warm start to the\nsummer and favorable seasonal demand dynamics, we remain confident in the\noutlook for our PAC business through the remainder of the year.\"\n\nMr. Rasmus continued, \"Our strategic optimization review remains ongoing. I\nhave been clear that we will remain highly disciplined on any further capital\nspending. The PFAS opportunity remains compelling, and we continue to see an\nimportant role for Arq in providing solutions for our customers. With that in\nmind, as a possible interim step while we determine the best path to bringing\nour own GAC line online, I am encouraged by the early progress of our PAC for\nPFAS™ strategy, which I believe could meaningfully add to the volumes,\npricing, and margins of our PAC business, while helping remove PFAS from our\nnation's water.\"\n\nMr. Rasmus concluded, \"This quarter again demonstrated the profitability and\nresilience of our core PAC business. Taken together with the encouraging\nprogress in our PFAS-related solutions, we have multiple avenues open to us to\ncreate meaningful shareholder value. As a Board and management team that owns\na significant stake in the company, we remain closely aligned with our\nshareholders and confident in the opportunities ahead for further growth.”\n\nSecond Quarter 2026 Results\n\nRevenue totaled $29.9 million for the second quarter of 2026, reflecting an\nincrease of 5% compared to $28.6 million in the prior year period. The\nincrease was driven predominantly by increased pricing and volumes.\n\nCost of revenue totaled $18.4 million for the second quarter of 2026, a\ndecrease of approximately 4% compared to $19.1 million in the prior year\nperiod, with the biennial Red River Plant turnaround completed during the\nquarter. The Company capitalized approximately $3.1 million related to these\nplanned major maintenance activities.\n\nGross margin totaled 38.5% for the second quarter of 2026, up significantly\nfrom 33.3% in the prior year period. Selling, general and administrative\nexpenses totaled $6.8 million, compared to $5.9 million in the prior year\nperiod. This increase of approximately $0.9 million was primarily driven by\nseverance and recruiting costs associated with recent leadership changes.\n\nResearch and development costs totaled $1.0 million for the second quarter of\n2026, a decrease of 64% compared to $2.7 million in the prior year period.\nThis was primarily driven by certain expenses relating to the GAC ramp-up that\nwere incurred during the second quarter of 2025 and that were not repeated\nduring the second quarter of 2026.\n\nOperating loss was $0.1 million for the second quarter of 2026, compared to\noperating loss of $1.8 million in the prior year period. Net loss was $0.7\nmillion in the second quarter of 2026, or $0.02 per diluted share, compared to\nnet loss of $2.4 million or $0.06 per diluted share in the prior year period,\nas adjusted. The reduction in both cases was driven by the factors above.\n\nAdjusted EBITDA was $5.8 million for the second quarter of 2026, compared to\nAdjusted EBITDA of $3.7 million in the prior year period. The increase was\nprimarily driven by the continued strength and improving profitability of the\ncore PAC business, including enhanced pricing and cost discipline, current\nperiod charges for severance associated with recent leadership changes and\nnon-cash equity compensation, and the absence of negative offsets from GAC\nproduction.\n\nSee the section below titled \"Note on Non-GAAP Financial Measures\" regarding\nthe use of the non-GAAP financial measure Adjusted EBITDA and a reconciliation\nto the most comparable GAAP financial measure.\n\nStrategic Optimization Review Update\n\nArq's strategic optimization review remains ongoing as the Company works to\nincrease profitability and maximize the value of its asset base. The review\nhas extended beyond the Red River Plant GAC facility to a broader operational\nassessment of the existing business, focused on maximizing furnace throughput\nand reducing unit costs, work that has already identified meaningful near-term\nopportunities to increase capacity and profitability.\n\nThe GAC component of the review is not fully complete but the Company has\nreceived cost estimates from two independent engineering consultants to finish\nthe conversion and fix the issues previously discussed. Those estimates still\ninclude a wide range of contingencies that are subject to ongoing revision,\nwith a construction and commissioning timeframe of around 12 months. The\nCompany is continuing to evaluate and refine the GAC optimization process to\nensure that the project will generate targeted returns.\n\nGAC market fundamentals remain favorable ahead of the U.S. Environmental\nProtection Agency's April 2027 PFAS monitoring deadline, when water companies\nwith PFAS contamination above the new 4 parts per trillion threshold must\nbegin reporting PFAS numbers publicly. Against that backdrop, the Company is\nadvancing a new high-value strategy \"PAC for PFAS™”: a highly engineered\nPAC product capable of removing PFAS contaminants in certain situations. The\nCompany believes that this new product can support compliance for utilities\nmarginally outside the threshold without the capital cost of new GAC\nequipment, and address PFAS and taste and odor at once for those already using\nPAC. Customer testing is ongoing, but the Company believes that PAC for\nPFAS™ could offer an attractive interim solution for customers and for Arq,\nwhich could lead to material near-term growth in volume and pricing from 2027\nonward, ahead of any future GAC products.\n\nArq also remains in discussions with multiple parties to monetize its Corbin\nFacility and its related technologies, which represent additional optionality\nand a potential funding source. In asphalt, paving tests with a leading U.S.\nasphalt company continue, and recent trials at the NCAT Test Track, which\nsimulates multiple years of wear in a fraction of the time, indicate that the\ninclusion of Corbin Wetcake as an additive has positive impacts on multiple\nperformance metrics.\n\nCapex and Balance Sheet\n\nCapital expenditures totaled $1.2 million for the second quarter of 2026,\ncompared to $1.9 million in the prior year period. The decrease was driven by\nincreased spend on completion and commissioning of the GAC facility during the\nsecond quarter of 2025.\n\nCash as of June 30, 2026, totaled $12.1 million, including $11.2 million of\nrestricted cash, compared to $15.0 million as of December 31, 2025.\nUnrestricted cash at quarter-end reflected the timing of borrowings and\nreceipts around period-end. Unrestricted cash improved to $3.0 million as of\nthe end of the first week of July, and as of July 31, 2026, stood at\napproximately $3.1 million.\n\nTotal debt, inclusive of financing leases, as of June 30, 2026, totaled $30.7\nmillion compared to $28.5 million as of December 31, 2025. The increase was\ndriven primarily by increased borrowings on the Company’s revolving credit\nfacility with MidCap Financial, which totaled $21.4 million as of June 30,\n2026.\n\nConference Call and Webcast Information\n\nArq will host a conference call to discuss the Company's financial performance\non Tuesday, August 11, 2026 at 8:30 a.m. Eastern Time. The conference call\nwebcast information will be available via the Investor Resources section of\nArq's website at www.arq.com. Interested parties may participate in the\nconference call by registering at https://www.webcast-eqs.com/Arq_Q2_2026.\nAlternatively, the live conference call may be accessed by dialing (877)\n407-0890 or +1 (201) 389-0918 and referencing Arq.\n\nA supplemental investor presentation will be available on the Company's\nInvestor Resources section of the website prior to the start of the conference\ncall. A replay of the event will be made available shortly after the event and\naccessible via the same webcast link referenced above. Alternatively, the\nreplay may be accessed by dialing (877) 660-6853 or (201) 612-7415 and\nentering Access ID 13761157. The dial-in replay will expire after August 18,\n2026.\n\nAbout Arq\n\nArq (NASDAQ: ARQ) is a diversified, environmental technology company with\nproducts that enable a cleaner and safer planet while actively reducing our\nenvironmental impact. As the only vertically integrated producer of activated\ncarbon products in North America, we deliver a reliable domestic supply of\ninnovative, hard-to-source, high-demand products. We apply our extensive\nexpertise to develop groundbreaking solutions to remove harmful chemicals and\npollutants from water, land and air. Learn more at: www.arq.com.\n\nCaution on Forward-Looking Statements\n\nThis press release contains forward-looking statements within the meaning of\nSection 21E of the Securities Exchange Act of 1934, which provides a “safe\nharbor” for such statements in certain circumstances. When used in this\npress release, the words “can,” “will,” \"may,\" “intends,”\n“expects,” \"continuing,\" “believes,” similar expressions and any other\nstatements that are not historical facts are intended to identify those\nassertions as forward-looking statements. All statements that address\nactivities, events or developments that the Company intends, expects or\nbelieves may occur in the future are forward-looking statements. These\nforward-looking statements include, but are not limited to, statements or\nexpectations regarding: the future of our GAC Facility and Corbin Facility and\nthe anticipated timing, results, and conclusions of our overall business\noptimization review and the actions we may take upon the completion of such\nreview, including efforts to maximize throughput and optimize unit costs; the\nanticipated commercial success and efficacy of our new product applications,\nincluding PAC for PFAS™; the anticipated benefits of transitioning away from\nusing Corbin Wetcake to a bituminous proven performance coal as a feedstock\nfor our GAC products in the future; financial guidance for fiscal year 2026;\nthe anticipated effects from fluctuations in the pricing of our AC products,\nincluding through expansion into higher-value end markets; expected supply and\ndemand for our AC products and services, including our GAC and PAC for PFAS™\nproducts; the seasonal impact on our customers and their demand for our\nproducts; the future profitability and sustainability of our PAC business; our\nability to fund our business over the next twelve months; our ability to\nmonetize our Corbin Facility and access new markets for our feedstocks and\nother products, including renewable natural gas, asphalt, purified coal, rare\nearth minerals and synthetic graphite markets; any future plant development\nprojects, that may be necessary to remediate design flaws in our GAC Facility,\nand our ability to finance any such projects; the effectiveness of our\ntechnologies and products and the benefits they provide; probability of any\nloss occurring with respect to certain guarantees made by Tinuum Group; the\ntiming and amounts of or changes in future revenue, funding for our business\nand projects, margins, expenses, earnings, tax rates, cash flows, royalty\npayment obligations, working capital, liquidity and other financial and\naccounting measures; the performance of obligations secured by our surety\nbonds; the amount, use and timing of future capital expenditures needed to\nfund our business plan and total anticipated capital expenditures for the\ncurrent fiscal year; the adoption and scope of regulations to control certain\nchemicals in drinking water and other environmental concerns and the impact of\nsuch regulations on our customers' and our businesses, including any increase\nor decrease in demand and sales of our AC products resulting from such\nregulations; our near-term priorities and objectives and our long-term outlook\nregarding the growth of our business; and the impact of prices of competing\npower generation sources such as natural gas and renewable energy on demand\nfor our products.. These forward-looking statements included in this press\nrelease involve risks and uncertainties. Actual events or results could differ\nmaterially from those discussed in the forward-looking statements as a result\nof various factors including, but not limited to, the timing and scope of new\nand pending regulations and any legal challenges to or extensions of\ncompliance dates of them; the U.S. government’s failure to promulgate new\nregulations or enforce existing regulations that benefit our business; changes\nin laws and regulations, accounting rules, prices, economic conditions and\nmarket demand; availability, cost of and demand for alternative energy sources\nand other technologies and their impact on coal-fired power generation in the\nU.S.; technical, start up and operational difficulties; competition within the\nindustries in which the Company operates; risks associated with our debt\nfinancing; our inability to effectively and efficiently commercialize new\nproducts, including our GAC products; our inability to effectively identify\nsolutions to the design flaws in GAC Facility at our Red River Plant or\nexecute on any remedial measures or modifications thereto; disruptions at any\nof our facilities, including by natural disasters or extreme weather; risks\nrelated to our information technology systems, including the risk of\ncyberattacks on our networks; failure to protect our intellectual property\nfrom infringement or claims that we have infringed on the intellectual\nproperty of others; our inability to obtain future financing or financing on\nterms that are favorable to us; our inability to ramp up our operations to\neffectively address recent and expected growth in our business; loss of key\npersonnel; ongoing effects of the inflation and macroeconomic uncertainty,\nincluding from increased domestic and international tariffs and armed\nconflicts around the world, and such uncertainty's effect on market demand and\ninput costs; availability of materials and equipment for our business;\nintellectual property infringement claims from third parties; the impacts of\nany current or future write-downs or write-offs, restructuring, impairment or\nother charges; our failure to realize the anticipated benefits of\nacquisitions, joint ventures, and divestitures we may engage in; pending\nlitigation; factors relating to our business strategy, goals and expectations,\nincluding our ability to execute on our GAC business plan; our ability to\nmaintain relationships with customers, suppliers and others with whom the\nCompany does business and meet supply requirements; our results of operations\nand business generally; risks related to diverting management's attention from\nour ongoing business operations; costs related to the ongoing manufacturing of\nour products, including costs necessary to resume GAC production;\nopportunities for additional sales of our AC products and end-market\ndiversification, including for our Corbin Wetcake; the rate of coal-fired\npower generation in the U.S.; the timing and cost of any future capital\nexpenditures and the resultant impact to our liquidity and cash flows; and the\nother risk factors described in our filings with the SEC, including those\ndescribed in Item 1A. Risk Factors of our Annual Report on Form 10-K for the\nyear ended December 31, 2025. You are cautioned not to place undue reliance on\nthe forward-looking statements and to consult filings we have made and will\nmake with the SEC for additional discussion concerning risks and uncertainties\nthat may apply to our business and the ownership of our securities. In\naddition to causing our actual results to differ, the factors listed above may\ncause our intentions to change from those statements of intention set forth in\nthis press release. Such changes in our intentions may also cause our results\nto differ. We may change our intentions, at any time and without notice, based\nupon changes in such factors, our assumptions, or otherwise. The\nforward-looking statements speak only as to the date of this press release,\nand we disclaim any duty to update such statements unless required by law.\n\nSource: Arq, Inc.\n\nInvestor Contact:\nAnthony Nathan, Arq\nMarc Silverberg, ICR\ninvestors@arq.com \n\n \n Arq, Inc. and Subsidiaries \n Condensed Consolidated Balance Sheets \n (Unaudited) \n \n As of \n (in thousands, except share data) June 30, 2026 December 31, 2025 As Adjusted ((1)) \n ASSETS \n Current assets: \n Cash $ 906 $ 6,573 \n Receivables, net 20,030 14,980 \n Inventories, net 19,407 15,895 \n Prepaid expenses and other current assets 6,894 6,404 \n Total current assets 47,237 43,852 \n Restricted cash, long-term 11,236 8,467 \n Property, plant and equipment, net of accumulated depreciation of $34,264 and $28,375, respectively 139,038 143,154 \n Other long-term assets, net 35,500 35,501 \n Total Assets $ 233,011 $ 230,974 \n LIABILITIES AND STOCKHOLDERS’ EQUITY \n Current liabilities: \n Accounts payable and accrued expenses $ 15,412 $ 15,269 \n Revolving credit facility 21,410 18,950 \n Current portion of long-term debt obligations 1,099 1,063 \n Other current liabilities 8,068 7,015 \n Total current liabilities 45,989 42,297 \n Long-term debt obligations, net of current portion 8,195 8,452 \n Other long-term liabilities 10,606 11,868 \n Total Liabilities 64,790 62,617 \n Commitments and contingencies \n Stockholders’ equity: \n Preferred stock: par value of $0.001 per share, 50,000,000 shares authorized, none issued or outstanding — — \n Common stock: par value of $0.001 per share, 100,000,000 shares authorized, 47,506,052 and 47,348,394 shares issued, and 42,887,906 and 42,730,248 shares outstanding at June 30, 2026 and December 31, 2025, respectively 47 47 \n Treasury stock, at cost: 4,618,146 and 4,618,146 shares as of June 30, 2026 and December 31, 2025, respectively (47,692 ) (47,692 ) \n Additional paid-in capital 203,518 201,784 \n Retained earnings 12,348 14,218 \n Total Stockholders’ Equity 168,221 168,357 \n Total Liabilities and Stockholders’ Equity $ 233,011 $ 230,974 \n\n((1) Adjusted to reflect a retrospective change in accounting method for\nplanned major maintenance costs.)\n\n Arq, Inc. and Subsidiaries \n Condensed Consolidated Statements of Operations \n (Unaudited) \n \n Three Months Ended June 30, Six Months Ended June 30, \n (in thousands, except per share data) 2026 2025 As Adjusted ((1)) 2026 2025 As Adjusted ((1)) \n Revenue $ 29,883 $ 28,584 $ 58,936 $ 55,831 \n \n Cost of revenue, exclusive of depreciation and amortization 18,372 19,066 37,486 36,398 \n \n Operating expenses: \n Selling, general and administrative 6,789 5,918 14,158 11,971 \n Research and development 958 2,697 1,940 3,571 \n Depreciation, amortization, depletion and accretion 3,542 2,721 6,407 5,138 \n Loss (gain) on sale of assets 290 (27 ) 290 118 \n Total operating expenses 11,579 11,309 22,795 20,798 \n Operating loss (68 ) (1,791 ) (1,345 ) (1,365 ) \n Other income (expense): \n Interest expense (748 ) (594 ) (1,453 ) (1,318 ) \n Other income 83 16 928 281 \n Total other expense (665 ) (578 ) (525 ) (1,037 ) \n Loss before income taxes (733 ) (2,369 ) (1,870 ) (2,402 ) \n Income tax expense — — — — \n Net loss $ (733 ) $ (2,369 ) $ (1,870 ) $ (2,402 ) \n Loss per common share: \n Basic $ (0.02 ) $ (0.06 ) $ (0.04 ) $ (0.06 ) \n Diluted $ (0.02 ) $ (0.06 ) $ (0.04 ) $ (0.06 ) \n Weighted-average number of common shares outstanding: \n Basic 42,102 41,507 41,914 41,415 \n Diluted 42,102 41,507 41,914 41,415 \n\n((1) Adjusted to reflect a retrospective change in accounting method for\nplanned major maintenance costs.)\n\n Arq, Inc. and Subsidiaries \n Condensed Consolidated Statements of Cash Flows \n (Unaudited) \n \n Six Months Ended June 30, \n (in thousands) 2026 2025 As Adjusted ((1)) \n Cash flows from operating activities \n Net loss $ (1,870 ) $ (2,402 ) \n Adjustments to reconcile net loss to net cash used in operating activities: \n Depreciation, amortization, depletion and accretion 6,407 5,138 \n Stock-based compensation expense 1,934 1,470 \n Operating lease expense 1,382 1,161 \n Loss on sale of long-term assets, net 290 118 \n Amortization of debt discount and debt issuance costs 205 173 \n Other non-cash items, net (59 ) (160 ) \n Changes in operating assets and liabilities: \n Receivables (5,050 ) (671 ) \n Prepaid expenses and other assets (683 ) (2,853 ) \n Inventories (2,690 ) (1,580 ) \n Other long-term assets, net (2,197 ) (1,631 ) \n Accounts payable and accrued expenses 178 (5,709 ) \n Other current liabilities 1,224 1,651 \n Operating lease liabilities (1,562 ) 204 \n Other long-term liabilities (168 ) (185 ) \n Net cash used in operating activities (2,659 ) (5,276 ) \n Cash flows from investing activities \n Acquisition of property, plant, equipment and intangible assets, net (1,973 ) (5,589 ) \n Acquisition of mine development costs (128 ) (96 ) \n Distributions from equity method investee in excess of cumulative earnings 78 155 \n Net cash used in investing activities (2,023 ) (5,530 ) \n Cash flows from financing activities \n Borrowings on revolving credit facility 58,173 61,884 \n Repayments of revolving credit facility (55,714 ) (57,184 ) \n Principal payments on notes payable (358 ) (393 ) \n Repurchase of common stock to satisfy tax withholdings (200 ) (48 ) \n Principal payments on finance lease obligations (117 ) (264 ) \n Net cash provided by financing activities 1,784 3,995 \n Decrease in Cash and Restricted Cash (2,898 ) (6,811 ) \n Cash and Restricted Cash, beginning of period 15,040 22,235 \n Cash and Restricted Cash, end of period $ 12,142 $ 15,424 \n Supplemental disclosure of non-cash investing and financing activities: \n Accrued purchases for property and equipment $ 912 $ 553 \n Acquisition of property and equipment under finance lease $ 242 $ — \n\n((1) Adjusted to reflect a retrospective change in accounting method for\nplanned major maintenance costs.)\n\nNote on Non-GAAP Financial Measures\n\nTo supplement our financial information presented in accordance with U.S.\nGenerally Accepted Accounting Principles (\"U.S. GAAP\"), we provide certain\nsupplemental financial measures, including EBITDA and Adjusted EBITDA, which\nare measurements that are not calculated in accordance with U.S. GAAP. EBITDA\nis defined as earnings before interest, taxes, depreciation and amortization,\nand Adjusted EBITDA is defined as EBITDA reduced by non-cash gains, increased\nby share-based compensation expense, executive transition and severance ((2)),\nGAC Facility pre-production feedstock, other non-cash losses and non-recurring\ncosts and fees. EBITDA and Adjusted EBITDA should be considered in addition\nto, and not as a substitute for, net loss in accordance with U.S. GAAP as a\nmeasure of performance. See below for a reconciliation from net loss, the\nnearest U.S. GAAP financial measure, to EBITDA and Adjusted EBITDA.\n\nWe believe that the EBITDA and Adjusted EBITDA measures are less susceptible\nto variances that affect our operating performance. We include these non-GAAP\nmeasures because management uses them in the evaluation of our operating\nperformance, and believe they help to facilitate comparison of operating\nresults between periods. We believe the non-GAAP measures provide useful\ninformation to both management and users of the financial statements by\nexcluding certain expenses, gains, and losses which can vary widely across\ndifferent industries or among companies within the same industry and may not\nbe indicative of core operating results and business outlook.\n\nEBITDA and Adjusted EBITDA:\n\nThe following table reconciles net loss, our most directly comparable\nas-reported financial measure calculated in accordance with U.S. GAAP, to\nEBITDA and Adjusted EBITDA.\n\nArq, Inc. and Subsidiaries\nReconciliation of Net Loss to Adjusted EBITDA\n(Unaudited)\n\n Three Months Ended June 30, Six Months Ended June 30, \n (in thousands) 2026 2025 As Adjusted ((1)) 2026 2025 As Adjusted ((1)) \n Net loss $ (733 ) $ (2,369 ) $ (1,870 ) $ (2,402 ) \n Depreciation, amortization, depletion and accretion 3,542 2,721 6,407 5,138 \n Amortization of Upfront Customer Consideration 180 127 360 254 \n Interest expense, net 693 585 638 1,256 \n Income tax expense — — — — \n EBITDA $ 3,682 $ 1,064 $ 5,535 $ 4,246 \n Share-based compensation 1,043 734 1,934 1,470 \n Executive transition and severance ((2)) 827 — 827 — \n Loss (gain) on sale of assets 290 (27 ) 290 118 \n GAC Facility pre-production feedstock ((3)) — 1,897 — 1,897 \n Adjusted EBITDA $ 5,842 $ 3,668 $ 8,586 $ 7,731 \n\n((1) Adjusted to reflect a retrospective change in accounting method for\nplanned major maintenance costs.(2) Represents expenses related to executive\nseverance and separation, as well as legal fees and recruiting costs\nassociated with the CFO, COO and CAO transitions. In addition to these\namounts, we also incurred approximately $0.2 million of share-based\ncompensation associated with executive transition and severance during the\nthree months ended June 30, 2026, which is included in the Share-based\ncompensation adjustment above.(3) Represents expenses related to feedstock\nutilized in pre-production testing of our GAC Facility during the three months\nended June 30, 2025 included within \"Research and development\" expense in the\nCondensed Consolidated Statements of Operations.)\n\n(https://www.globenewswire.com/NewsRoom/AttachmentNg/0161daad-7f01-41c7-9f7d-f97787ec179c)\n\n\n\nGlobeNewswire, Inc. 2026"},"type":"article","timestamp":"2026-08-10T20:45:45.344154158Z","server_sent_at_ms":1786394745344},"received_at":"2026-08-10T20:45:45.630Z","source_url":"https://www.globenewswire.com/news-release/2026/08/10/3342290/25414/en/arq-reports-second-quarter-2026-results.html"},"analysis":{"id":"103664","press_release_id":"114662","analysis_json":{"industry":{"label":"Chemicals","sector":"Materials"},"redFlags":["Unrestricted cash stands at approximately $3.1 million against total debt of $30.7 million","Majority of cash ($11.2 million) is restricted, limiting immediate liquidity flexibility","Strategic optimization review for GAC facility remains ongoing with no finalized timeline"],"eventType":"earnings","narrative":"Arq reported Q2 revenue of $29.9 million, a 5% increase year-over-year, with gross margin expanding significantly to 38.5%.\n\nAdjusted EBITDA rose 59% to $5.8 million, marking the ninth consecutive quarter of positive Adjusted EBITDA, while the net loss narrowed to $0.7 million from $2.4 million in the prior year.\n\nThe company reaffirmed full-year 2026 guidance for revenue of $120-125 million and Adjusted EBITDA of $17-20 million, driven by the strength of its foundational PAC business.","sentiment":"bullish","agentHooks":{"shouldPost":true,"suggestedAngle":"Margin expansion and EBITDA growth highlight core PAC strength despite liquidity constraints."},"keyFigures":{"revenue":29900000,"guidance":"FY26 revenue $120-125 million, Adjusted EBITDA $17-20 million","revenueYoy":"5%","customDimensions":{"total_debt":30700000,"gross_margin":"38.5%","adjusted_ebitda":5800000,"restricted_cash":11200000,"unrestricted_cash":3100000}},"quotedText":"The second quarter demonstrated the earning power of our foundational PAC business","namedEntities":{"people":[{"name":"Bob Rasmus","role":"CEO"},{"name":"Shimon Steinmetz","role":"CFO"}],"products":["PAC","GAC","PAC for PFAS","Corbin Wetcake"],"companies":[{"name":"Arq, Inc.","ticker":"ARQ"},{"name":"MidCap Financial","relationship":"lender"}],"dollarAmounts":[{"amount":"$29.9 million","context":"Q2 2026 revenue"},{"amount":"$5.8 million","context":"Q2 2026 Adjusted EBITDA"},{"amount":"$12.1 million","context":"Q2 2026 cash and restricted cash"},{"amount":"$3.1 million","context":"Unrestricted cash as of July 31, 2026"}]},"materialImpact":{"score":4,"reasoning":"Q2 revenue grew 5% YoY to $29.9M while gross margin expanded 520 basis points to 38.5%. Adjusted EBITDA increased 59% to $5.8M and net loss narrowed significantly from $2.4M to $0.7M. Full-year guidance was reaffirmed."},"tickerRelevance":{"others":[],"primary":"ARQ"},"globalImportance":25,"audienceRelevance":15,"eventTypeSecondary":["guidance_update"],"importanceComponents":{"tickerTier":"small-cap","eventGravity":"solid operational improvement","sectorWeight":"industrial_materials"}},"event_type":"earnings","event_type_secondary":["guidance_update"],"sentiment":"bullish","material_impact_score":4,"narrative":"Arq reported Q2 revenue of $29.9 million, a 5% increase year-over-year, with gross margin expanding significantly to 38.5%.\n\nAdjusted EBITDA rose 59% to $5.8 million, marking the ninth consecutive quarter of positive Adjusted EBITDA, while the net loss narrowed to $0.7 million from $2.4 million in the prior year.\n\nThe company reaffirmed full-year 2026 guidance for revenue of $120-125 million and Adjusted EBITDA of $17-20 million, driven by the strength of its foundational PAC business.","key_figures":{"revenue":29900000,"guidance":"FY26 revenue $120-125 million, Adjusted EBITDA $17-20 million","revenueYoy":"5%","customDimensions":{"total_debt":30700000,"gross_margin":"38.5%","adjusted_ebitda":5800000,"restricted_cash":11200000,"unrestricted_cash":3100000}},"named_entities":{"people":[{"name":"Bob Rasmus","role":"CEO"},{"name":"Shimon Steinmetz","role":"CFO"}],"products":["PAC","GAC","PAC for PFAS","Corbin Wetcake"],"companies":[{"name":"Arq, Inc.","ticker":"ARQ"},{"name":"MidCap Financial","relationship":"lender"}],"dollarAmounts":[{"amount":"$29.9 million","context":"Q2 2026 revenue"},{"amount":"$5.8 million","context":"Q2 2026 Adjusted EBITDA"},{"amount":"$12.1 million","context":"Q2 2026 cash and restricted cash"},{"amount":"$3.1 million","context":"Unrestricted cash as of July 31, 2026"}]},"model_name":"glm-4.7","prompt_hash":"sha256:727b4b9429a443af","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-08-11T00:55:47.146Z","global_importance":25,"audience_relevance":15,"importance_components":{"tickerTier":"small-cap","eventGravity":"solid operational improvement","sectorWeight":"industrial_materials"}},"durationMs":116588,"modelName":"glm-4.7"}}