Arq, Inc. (ARQ) AI Stock Analysis

Arq, Inc., headquartered in Greenwood Village, Colorado, produces activated carbon products across North America. Formerly named Advanced Emissions Solutions, Inc., the company rebranded to Arq, Inc. in February 2024. Its offerings include granular activated carbon, powdered activated carbon, colloidal carbon products, and Arq Powder Wetcake, which is derived from fine, low-ash coal waste particles. These products address water treatment, soil sediments, groundwater remediation, air emissions control, and asphalt additives. The company utilizes proprietary technologies and manufacturing processes to provide environmental remediation and industrial solutions designed to meet air and water regulatory standards.

Arq generated revenue of $120.3M in FY2025, up 10.4% from $109.0M in FY2024 and expanding at a 5-year CAGR of 12.3% from FY2020. Gross margin declined to 27.9% in FY2025 from 36.2% in FY2024, while operating margin came in at -6.7%. Net income worsened from -$5.1M in FY2024 to -$52.6M in FY2025, with EPS at -$0.06. For the trailing twelve months ended June 30, 2026, revenue reached $123.4M with an operating margin of 0.7% and a profit margin of -42.2%. In the latest quarter ended June 30, 2026, quarterly revenue grew 4.5% year-over-year.

As of June 30, 2026, Arq held $906,000 in cash and short-term investments alongside total debt of $17.1M, yielding net debt of $16.2M. The company had a current ratio of 1.03 and a debt-to-equity ratio of 0.10 against shareholders' equity of $168.2M. Cash generation remained negative in FY2025, with operating cash flow at -$2.5M and free cash flow at -$11.1M. Capital expenditures absorbed $8.6M in FY2025, while share buybacks totaled $66,000, and share count expanded 123.4% over five years.

Arq trades at an enterprise value of $125.4M and a market capitalization of $78.2M. Its price-to-sales multiple is 0.6x and EV-to-revenue is 1.0x, compared to a median price-to-sales of 1.5x for US-listed Industrials peers. The company has a forward P/E of 65.8x and an EV-to-EBITDA of 30.3x, both higher than the US-listed Industrials peer medians of 17.2x and 13.9x, respectively. Over the trailing 1-year period, the stock fell 74.1%, trailing the S&P 500 return of 16.8%.

Wall Street coverage includes 4 Strong Buy ratings, 0 Buy ratings, and 0 Hold or Sell ratings. The mean price target is $4.03, representing a 124.9% premium over the October 16, 2026 closing price of $1.79. For the fiscal year ending December 31, 2026, analysts estimate an EPS of -$0.01 on revenue of $124.1M. For the next fiscal year, consensus estimates forecast EPS of $0.04 and revenue of $139.1M, reflecting 12.1% revenue growth. The company beat EPS estimates once over the last four quarters, with next earnings scheduled for November 4, 2026.

This page is an AI-written research summary of Arq, Inc. (ARQ). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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