Arq, Inc. reported record full-year revenue driven by its Powdered Activated Carbon (PAC) business, but faced significant challenges with its Granular Activated Carbon (GAC) segment, leading to a substantial impairment charge and a pause in GAC production. The company is undergoing a strategic reset with leadership changes and is providing inaugural financial guidance for 2026, focusing on optimizing its PAC operations while reviewing the GAC business.
Generated record revenue of $120.3 million for full-year 2025, up 10% over the prior year, driven by improved ASP and product diversification.
positiveAchieved record Adjusted EBITDA of $13.2 million for FY 2025, a 26% improvement year-over-year, despite GAC start-up costs.
positiveDelivered record Powdered Activated Carbon (PAC) business performance with over 117 million pounds of volume for FY 2025.
positiveAverage Selling Price (ASP) for Q4 2025 was up approximately 7% compared to the prior year period, marking the twelfth consecutive quarter of year-over-year percentage growth in ASP.
positiveProvided inaugural financial guidance for fiscal year 2026, projecting revenue of $120-125 million and Adjusted EBITDA of $17-20 million.
neutralGross margin significantly compressed to 13.6% in Q4 2025 from 36.3% in Q4 2024, primarily due to high GAC start-up costs.
negativeRecorded a non-cash impairment charge of $45 million related to Corbin assets in Q4 2025 due to the temporary idling of the facility.
negativeReported a Net loss of $50.0 million in Q4 2025, a significant increase from a Net loss of $1.3 million in the prior year period.
negativeAdjusted EBITDA in Q4 2025 was $0.3 million, a substantial decrease from $3.8 million in the prior year period, reflecting negative impacts of GAC start-up costs.
negativePausing GAC production and development due to engineering and production process optimization review, with no GAC production expected in fiscal year 2026.
attentionFull-year 2025 Net loss was $52.6 million, compared to a Net loss of $5.1 million in FY 2024, with increased operating expenses driven by impairment charges and R&D.
negativeMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total |
|---|---|---|---|---|
Powdered Activated Carbon (PAC) | N/A | — | — | — |
| Total Revenue | $0.00M | — | — | 100.0% |
Segment performance shows business unit health and growth drivers.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
We believe the decision to pause development of our GAC line is in the best interests of shareholders.
Our foundational PAC business delivered record performance in 2025 with revenues of approximately $120 million, up 10% year-over-year, while Adjusted EBITDA of $13 million represented a 26% improvement despite GAC start-up costs significantly impacting profitability.
The PAC business has funded its own turnaround while supporting strategic growth initiatives, demonstrating operational strength and market position durability.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.