AI-extracted from the 10-Q filed 2026-08-10 — Q2 FY2026 (quarter ended June 30, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Arq swung to $733K net loss from $2.4M loss YoY on 5% revenue growth to $29.9M, driven by higher pricing and volumes, but paused GAC production indefinitely after design flaws.
Sales to power-generation, industrial and municipal water markets driven by seasonal electricity demand and higher natural gas prices supporting coal-fired dispatch.
Advanced Purification Technologies (APT) – Chemical productsNot separately quantifiedLower sales relative to prior year
Decreased revenues from lower-margin chemical product sales during Q2 2026 compared to Q2 2025.
Sales to power-generation, industrial and municipal water markets driven by seasonal electricity demand and higher natural gas prices supporting coal-fired dispatch.
Advanced Purification Technologies (APT) – Chemical productsNot separately quantifiedLower sales relative to prior year
Decreased revenues from lower-margin chemical product sales during Q2 2026 compared to Q2 2025.
Largest Expense Items
Cost of revenue, exclusive of depreciation and amortization$18.4M-4% YoY
Benefited from pause in Corbin Facility production, improved product mix, offset by higher per-unit costs from increased salaries and utilities.
Selling, general and administrative$6.8M+15% YoY
Increased primarily due to $551K severance related to departure of three executive team members, partially offset by decreased legal and recruiting fees.
Depreciation, amortization, depletion and accretion$3.5M+30% YoY
Increased due to significant plant and equipment placed in service during H2 2025, partially offset by decreased depreciation from impaired Corbin Facility assets.
Research and development$1.0M-64% YoY
Decreased primarily due to lower feedstock and outside services expenses for GAC Facility testing in prior year.
Margins: Gross margin improved YoY despite higher per-unit production costs, driven by idling of lower-margin Corbin Facility and improved product mix toward higher-margin PAC. Operating margin deteriorated slightly as SG&A and D&A increases outpaced cost of revenue savings.
Watch Items from the Filing
GAC Facility indefinitely paused: Company halted production in March 2026 after discovering thermal oxidizer can only support ~15M lbs/year vs. 25M+ lbs design capacity, requiring significant additional modifications. No GAC production expected in 2026–2027.
Litigation with engineering firm ongoing: Company commenced legal proceedings February 2025 against GAC Facility design firm for negligence and breach; design firm filed counterclaim April 2025. Material damages and cost overruns incurred.
Liquidity dependent on operating cash generation and revolving credit facility: Cash fell to $0.9M (excluding $11.2M restricted); company states 12-month liquidity adequate but contingent on contract execution and market execution.
Debt covenants waived and suspended: CTB Loan financial covenants waived for FY2025 and suspended for FY2026; revolving facility covenant amendments multiple times (May, Dec 2025, Jan–Mar 2026) suggest liquidity pressure.
Tinuum Group winding down: Company's 42.5% equity method investment in Tinuum Group continued wind-down; limited contingent guarantee obligations outstanding but no probability of loss recorded.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
About Arq, Inc. (ARQ): stock profile, AI score and financials
Arq, Inc. (ARQ) stock profile, AI quality score, and SEC EDGAR financial data, a Materials sector company. 13F Pro's AI-powered ranking engine scores ARQ at 25.8/100 on a composite quality score built from its SEC filings, placing it at rank #2,616 of 2,925 stocks — the bottom half of the AI-ranked universe. Areas of concern include balance sheet strength (10.7) and profitability (11.0), which score below median versus the broader universe. Shareholder dilution risk is elevated at 33.1/100, reflecting ongoing share issuance or stock-based compensation. Based on the latest XBRL financial filings (Q2 2026), Arq, Inc. reports quarterly revenue of $29.9M, net income of $-733.0K, an operating margin of -0.2%. Top institutional holders of ARQ by reported 13-F value include ROYCE & ASSOCIATES, AQR CAPITAL MANAGEMENT, VANGUARD CAPITAL MANAGEMENT, based on the most recent SEC filings. ARQ trades on the Nasdaq exchange and files with the SEC under CIK 1515156. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate ARQ daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for Arq, Inc. directly from SEC EDGAR.