The reaffirmed FY2026 guidance suggests management expects meaningful improvement in the next three quarters. Watch for progress on GAC optimization review results due by Q3 2026, which could unlock a growth catalyst. The low operating cash flow and high debt levels warrant monitoring for liquidity risk.
Price Chart
Executive Summary
Arq reported Q1 2026 revenue of $29.1M, beating consensus of $27.9M and up 7% YoY, but posted a GAAP net loss of $0.8M ($0.02 per share) vs. net income of $0.2M a year ago. Adjusted EBITDA fell to $2.7M from $4.1M. Management reaffirmed FY2026 guidance of $120-125M revenue and $17-20M Adjusted EBITDA, signaling confidence in full-year improvement despite the weaker quarter.
Key Financial Metrics
Key Facts
- Q1 2026 revenue $29.1M vs. consensus $27.9M (+4% beat), up 7% YoY from $27.2M
- GAAP EPS -$0.02 vs. consensus -$0.03 (beat), vs. $0.00 in prior year quarter
- Net loss $0.8M vs. net income $0.2M in Q1 2025
- Adjusted EBITDA $2.7M vs. $4.1M in Q1 2025, pressured by $0.8M inventory revaluation charge
- Gross margin 34.2% vs. 36.4% in prior year, reflecting product mix and GAC carry-over costs
- Reaffirmed FY2026 guidance: revenue $120-125M, Adjusted EBITDA $17-20M
- Cash and restricted cash $15.9M, total debt $30.2M; operating cash flow was negligible at $64k
Financial Impact
Revenue beat by $1.15M and EPS beat by $0.01, but profitability deteriorated YoY with net loss widening by ~$1M
Risk Factors
- GAC optimization review may result in further delays or capital requirements
- High debt of $30.2M vs. cash of $15.9M (of which $11.2M restricted) limits financial flexibility
- Net loss and declining adjusted EBITDA could pressure equity valuation
- Dependence on PAC business performance and contract visibility (96% of 2026 volumes booked)
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001515156-26-000064 |
| Document: ades-20260506.htm | 0001515156-26-000064 |
| Document: 0001515156-26-000064-index-headers.html | 0001515156-26-000064 |
| Document: 0001515156-26-000064-index.html | 0001515156-26-000064 |
| Document: 0001515156-26-000064.txt | 0001515156-26-000064 |
| 8-K Data (Synthetic) | 0001515156-26-000064 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 30, 2026 26d ago | Press Release | $1.89 | awaiting T+60 | — | $1.74 (−7.94%) |
Aug 10, 2026 11w ago | 8-K | $2.27 | awaiting T+60 | — | $1.74 (−23.35%) |
Aug 10, 2026 11w ago | Press Release | $2.27 | awaiting T+60 | — | $1.74 (−23.35%) |
Jul 23, 2026 13w ago | 8-K | $2.03 $1.78 | ▼ −12.10% | ▼ −15.83% | $1.74 (−14.07%) |
Jun 18, 2026 18w ago | 8-K | $2.58 $2.07 | ▼ −19.77% | ▼ −21.51% | $1.74 (−32.56%) |
Jun 11, 2026 19w ago | 8-K | $2.68 $2.21 | ▼ −17.54% | ▼ −20.80% | $1.74 (−35.07%) |
May 27, 2026 21w ago | 8-K | $2.75 $2.30 | ▼ −16.36% | ▼ −18.10% | $1.74 (−36.73%) |
May 6, 2026 24w ago | 8-K | $2.59 $2.01 | ▼ −22.39% | ▼ −26.23% | $1.74 (−32.82%) |
May 1, 2026 25w ago | 8-K | $2.45 $1.94 | ▼ −20.82% | ▼ −22.67% | $1.74 (−28.98%) |
Apr 28, 2026 25w ago | DEFA14A | $2.23 $2.03 | ▼ −9.19% | ▼ −13.30% | $1.74 (−21.97%) |
US Market Status
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