Arq, Inc. announced its financial and operating results for the second quarter ended June 30, 2025, reporting a revenue of $28.6 million, a 13% increase compared to $25.4 million in the prior year period. This growth was predominantly driven by higher average selling prices and increased volumes.
The company achieved a gross margin of 33.3% for the quarter, an increase of approximately 110 basis points year-over-year, despite start-up costs associated with the GAC line at Red River. Adjusted EBITDA was $3.7 million, marking the fifth consecutive quarter of positive Adjusted EBITDA and a more than 200% improvement over the prior year period.
A major milestone was achieved with the successful commissioning of the first GAC line at Red River, and initial Phase 1 GAC product has already been sold to Renewable Natural Gas (RNG) customers in Q3 2025. Arq is now targeting a Final Investment Decision (FID) for a second GAC line prior to year-end 2025, signaling confidence in continued GAC market strength and expansion opportunities.
The company reported a net loss of $2.1 million for the second quarter of 2025, compared to a net loss of $2.0 million in the prior year period. Research and development costs increased to $2.7 million, primarily due to non-recurring expenses for feedstock utilized in pre-production testing of the GAC facility. Capital expenditures for full year 2025 remain in line with previous guidance of $8 million to $12 million.
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