Arq, Inc. announced its financial and operating results for the first quarter ended March 31, 2025, reporting a revenue of $27.2 million, a 25% increase compared to $21.7 million in the prior year period. This growth was primarily driven by higher average selling prices, positive changes in product mix, and increased volumes.
The company achieved a gross margin of 36.4% for the quarter and reported a net income of $0.2 million, compared to a net loss of ($3.4) million in Q1 2024. Adjusted EBITDA was $4.1 million, marking the fourth consecutive quarter of positive Adjusted EBITDA, a significant improvement from a loss of ($0.4) million in the prior year period.
Despite strong performance in the Powdered Activated Carbon (PAC) business, including signing the second largest PAC contract in company history, Arq updated the timing for first commercial Granular Activated Carbon (GAC) production at Red River to the end of Q2 or early Q3 2025. This delay is attributed to ongoing fine-tuning and testing related to product binding and shaping, as the company has not yet achieved the consistency needed for commercial-scale production.
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