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Arq, Inc., together with its consolidated subsidiaries ("Arq", the "Company," "we," "us", or "our") is an environmental technology company principally engaged in the sale of consumable air, water, and soil treatment solutions, primarily based on activated carbon ("AC"). Our proprietary AC products enable customers to reduce air, water, and soil contaminants, including mercury, per - and…
The business is unprofitable at the operating level (-44.01% margin). The thesis depends entirely on whether and when it reaches sustainable profitability.
Revenue grew 10.4%, still solid. Margins contracted 42.2pp, which offsets some of the top-line progress.
ROIC dropped from -0.66% to -18.14%, capital efficiency is deteriorating. Negative free cash flow of -$11M. The business is consuming cash, not generating it.
Profitability & Returns
Revenue (TTM)
$122M
▲ +10.4% YoY
Net Income (TTM)
-$54M
▼ -929.8% YoY
Op. Margin
-46.61%
▼ -42.2pp YoY
ROIC
-19.44%
▼ -17.5pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
-$2M
▲ +84.9% YoY
Op. Cash Flow (TTM)
$3M
▼ -126.1% YoY
Net Debt
$35M
Cash & Equiv.
$5M
5Y CAGR: +12.3%
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