Arq Q2 2026 results: $29.9M revenue, $5.8M Adjusted EBITDA

Financial results

Revenue totaled $29.9 million for the second quarter ended June 30, 2026, a 5% increase versus $28.6 million in Q2 2025. Gross margin improved to 38.5% from 33.3% a year earlier. Operating loss was $0.1 million and net loss was $0.7 million for the quarter. Adjusted EBITDA was $5.8 million in Q2 2026 versus $3.7 million in Q2 2025, attributed to stronger PAC performance, pricing discipline and absence of prior‑period GAC pre‑production costs.

Operations and product development

The biennial Red River Plant turnaround completed in April 2026 materially under budget, with roughly $3.1 million capitalized related to planned maintenance. A strategic optimization review is ongoing, extending beyond the Red River GAC facility to identify near‑term opportunities to increase furnace throughput and reduce unit costs. The company received cost estimates from two independent engineering consultants for completing the GAC conversion, with a construction and commissioning timeframe of around 12 months.

PFAS strategy and commercialization pathways

Arq is advancing a highly engineered PAC for PFAS product; customer testing is ongoing and management expects potential material volume, pricing and margin contribution beginning in 2027. The company cites favorable GAC market fundamentals ahead of the U.S. EPA April 2027 PFAS monitoring deadline and is evaluating PAC as an interim compliance solution for some utilities.

Balance sheet, capex and guidance

Cash and restricted cash totaled $12.1 million at June 30, 2026, including $11.2 million restricted; unrestricted cash improved to about $3.1 million as of July 31, 2026. Total debt, including finance leases, was $30.7 million. Capital expenditures were $1.2 million in Q2; full‑year capex guidance is $8–10 million. The company reaffirmed 2026 guidance of $120–125 million in revenue and $17–20 million in Adjusted EBITDA.