The stock may react positively to the strong PAC performance and improved 2026 Adjusted EBITDA guidance, but investors should monitor the GAC optimization review and its impact on future capital allocation and growth prospects.
Price Chart
Executive Summary
Arq reported record full-year 2025 revenue of $120.3 million, up 10% YoY, driven by strong PAC performance. However, the company recorded a $52.6 million net loss due to a $45 million non-cash impairment charge and GAC start-up costs. The company is pausing GAC production for a comprehensive review and provided 2026 guidance of $120-125 million revenue and $17-20 million Adjusted EBITDA, assuming no GAC contribution.
Key Financial Metrics
Key Facts
- Record full-year 2025 revenue of $120.3 million, up 10% YoY, driven by PAC performance.
- Net loss of $52.6 million in 2025 vs. $5.1 million in 2024, primarily due to a $45 million non-cash impairment charge and GAC start-up costs.
- Gross margin declined to 27.9% in 2025 from 36.2% in 2024 due to GAC start-up costs.
- Company is pausing GAC production to conduct a comprehensive engineering and production process optimization review; no GAC production expected in 2026.
- Provided inaugural 2026 guidance: revenue of $120-125 million and Adjusted EBITDA of $17-20 million, assuming no GAC contribution.
- Recorded Adjusted EBITDA of $13.2 million in 2025, a 26% improvement YoY, despite GAC start-up costs.
Financial Impact
Revenue increased by $11.4 million YoY, but net loss widened by $47.5 million due to a $45 million impairment charge and GAC start-up costs. 2026 guidance projects revenue of $120-125 million and Adjusted EBITDA of $17-20 million.
Segment Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| PAC | $120.3M | +10.0% |
Risk Factors
- The $45 million impairment charge and GAC start-up costs significantly impacted profitability.
- The pause in GAC production and uncertainty around its future scale and returns pose a risk to long-term growth plans.
- The company's reliance on PAC business, while strong, may limit diversification benefits.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001515156-26-000020 |
| Document: arq-20260309.htm | 0001515156-26-000020 |
| Document: 0001515156-26-000020-index-headers.html | 0001515156-26-000020 |
| Document: 0001515156-26-000020-index.html | 0001515156-26-000020 |
| Document: 0001515156-26-000020.txt | 0001515156-26-000020 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 30, 2026 27d ago | Press Release | $1.89 | awaiting T+60 | awaiting T+60 | $1.78 (−5.82%) |
Aug 10, 2026 11w ago | 8-K | $2.27 | awaiting T+60 | awaiting T+60 | $1.78 (−21.59%) |
Aug 10, 2026 11w ago | Press Release | $2.27 | awaiting T+60 | awaiting T+60 | $1.78 (−21.59%) |
Jul 23, 2026 13w ago | 8-K | $2.03 $1.78 | ▼ −12.10% | ▼ −15.83% | $1.78 (−12.10%) |
Jun 18, 2026 18w ago | 8-K | $2.58 $2.07 | ▼ −19.77% | ▼ −21.51% | $1.78 (−31.01%) |
Jun 11, 2026 19w ago | 8-K | $2.68 $2.21 | ▼ −17.54% | ▼ −20.80% | $1.78 (−33.58%) |
May 27, 2026 21w ago | 8-K | $2.75 $2.30 | ▼ −16.36% | ▼ −18.10% | $1.78 (−35.27%) |
May 6, 2026 24w ago | 8-K | $2.59 $2.01 | ▼ −22.39% | ▼ −26.23% | $1.78 (−31.27%) |
May 1, 2026 25w ago | 8-K | $2.45 $1.94 | ▼ −20.82% | ▼ −22.67% | $1.78 (−27.35%) |
Apr 28, 2026 26w ago | DEFA14A | $2.23 $2.03 | ▼ −9.19% | ▼ −13.30% | $1.78 (−20.18%) |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Create a free account Live analysis, Telegram alerts, watchlists and the MCP server for subscribers