Liquidity remains under severe pressure as evidenced by a cash balance that plummeted from $48.7M in 2024Q3 to just $4.7M in 2026Q1, exacerbated by historical capital intensity spikes like the 158.9% CapEx-to-revenue ratio seen in 2024Q4.
Arq, Inc. (ARQ) cash flow statement — 10-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 |
|---|
| Cash from Operations | -35K | -2.48M | 10.48M | -16.65M | -6.06M | 26M | 54.05M | 62.26M | 37.29M | 37.13M | 19.99M |
| Operating CF Margin % | - | -2.06% | 9.62% | -16.79% | -5.89% | 25.92% | 80.23% | 88.84% | 155.72% | 81.84% | 39.49% |
| Operating CF Growth % | -699.36% | -123.66% | 162.91% | -174.76% | -123.31% | -51.9% | -13.19% | 66.98% | 0.43% | 85.7% | - |
| Net Income | -52.26M | -52.61M | -5.11M | -12.25M | -8.92M | 60.4M | -20.3M | 35.54M | 35.34M | 27.7M | 96.57M |
| Depreciation & Amortization | 13.49M | 11.75M | 8.59M | 10.54M | 6.42M | 7.93M | 8.54M | 7.37M | 723K | 789K | 979K |
| Stock-Based Compensation | 2.94M | 3.36M | 2.71M | 2.65M | 1.98M | 1.93M | 2.5M | 2.01M | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 10.6M | 3.49M | 8.65M | 5.23M | 22.73M | -61.4M |
| Other Non-Cash Items | 38.95M | 45.27M | 4M | -1.13M | 2M | -49.05M | 60.62M | 10.22M | -15.7M | -31.57M | -26.73M |
| Working Capital Changes | -2.86M | -10.24M | 276K | -16.47M | -7.54M | -5.81M | -790K | -1.53M | 36K | -12.51M | -12.52M |
| Change in Receivables | -4.48M | -104K | 1.32M | -2.26M | 1.17M | 1.51M | -1.75M | 2.16M | 13.06M | 32.48M | 29.31M |
| Change in Inventory | 2.14M | 3.25M | 1.64M | -2.57M | -9.69M | 1.39M | 4.75M | 5.5M | 237K | 0 | 0 |
| Change in Payables | -809K | -6.7M | 216K | -12.06M | 0 | 1.98M | -196K | 2.22M | -197K | -920K | -4.25M |
| Cash from Investing | -4.73M | -8.41M | -85.07M | -28.54M | -4.61M | 44.38M | -7.47M | -13.24M | -63.72M | -489K | 1.65M |
| Capital Expenditures | -5.46M | -9.11M | -85.35M | -30.21M | -8.91M | -6.2M | -6.68M | -7.85M | -467K | -428K | -289K |
| CapEx % of Revenue | 4.42% | 7.57% | 78.33% | 30.45% | 8.66% | 6.18% | 9.92% | 11.2% | 1.95% | 0.94% | 0.57% |
| Acquisitions | 0 | 10K | 150K | 48K | 0 | 0 | 0 | -661K | -62.5M | 57K | 52K |
| Investments | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 646K | 685K | 127K | 1.62M | 4.31M | 50.58M | -781K | -4.73M | 0 | 0 | -223K |
| Cash from Financing | 1.49M | 3.7M | 42.68M | 22.91M | -1.68M | -17.53M | -27.73M | -55.72M | 19.51M | -32.89M | -15.67M |
| Debt Issued (Net) | 4.4M | 3.76M | 2.26M | 6.92M | -1.25M | -17.19M | -22.05M | -31.35M | 65.86M | -236K | -14.5M |
| Equity Issued (Net) | -218K | -66K | 41.27M | 15.99M | -388K | -246K | -696K | -6.24M | -26.11M | -16.96M | -196K |
| Dividends Paid | 0 | 0 | 0 | 0 | -45K | -93K | -4.98M | -18.27M | -20.16M | -15.69M | 0 |
| Share Repurchases | -218K | -66K | -1.14M | -230K | -388K | -246K | -696K | -6.24M | -26.11M | -16.96M | -196K |
| Other Financing | -2.69M | 0 | -853K | 0 | 0 | 0 | 0 | 156K | -76K | 0 | -979K |
| Net Change in Cash | -6M | -6.94M | -31.92M | -22.28M | -12.35M | 52.85M | 18.85M | -6.69M | -12.12M | 3.75M | 5.97M |
| Free Cash Flow | -5.4M | -11.05M | -74.69M | -44.17M | -14.97M | 19.8M | 47.36M | 54.41M | 36.82M | 36.7M | 19.7M |
| FCF Margin % | -4.37% | -9.19% | -68.55% | -44.53% | -14.54% | 19.74% | 70.31% | 77.63% | 153.76% | 80.9% | 38.92% |
| FCF Growth % | 89.11% | 85.2% | -69.11% | -194.95% | -175.64% | -58.2% | -12.95% | 47.78% | 0.33% | 86.25% | - |
| FCF per Share | -0.13 | -0.27 | -2.07 | -1.52 | -0.81 | 1.07 | 2.62 | 2.96 | 1.84 | 1.71 | 0.89 |
| FCF Conversion (FCF/Net Income) | 0.10x | 0.05x | -2.05x | 1.36x | 0.68x | 0.43x | -2.66x | 1.75x | 1.05x | 1.33x | 0.20x |
| Interest Paid | 0 | 0 | 0 | 0 | 334K | 524K | 2.49M | 5.65M | 1.4M | 3.64M | 3.65M |
| Taxes Paid | 0 | 0 | 0 | 0 | 3K | 8.88M | 0 | 4.31M | 7.46M | 1.67M | 541K |
Quick answers to the most common questions about buying ARQ stock.
Arq, Inc. (ARQ) generated $-2.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Arq, Inc. (ARQ) reported negative free cash flow of $11.1M in 2025, indicating capital requirements exceeded cash from operations.
Arq, Inc. (ARQ) spent $9.1M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Arq, Inc. (ARQ) spent $0.1M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Liquidity and operational execution
Metrics are mathematically derived from official filings.
Earnings Quality Lacks Cash Support
Based on reported financial data, the disconnect between net income and operating cash flow is profound, with the OCF/NI ratio reaching an extreme -28.59 in 2025Q1, indicating that reported earnings are currently failing to translate into meaningful cash generation for the company's core industrial operations.
The persistent divergence between accounting profits and cash flow suggests that non-cash charges and working capital volatility are masking the underlying cash burn. Investors should monitor this relationship closely, as the inability to convert earnings into cash may indicate that the current business model is not yet self-sustaining.
Free Cash Flow Remains Negative
As reported in recent filings, ARQ's free cash flow trajectory remains consistently negative, with a significant -139.6% FCF margin observed in 2024Q4, underscoring the heavy capital requirements needed to support the ongoing transition toward higher-value GAC production at the Red River facility.
The recurring negative FCF suggests that the company is currently in a deep investment phase that is consuming, rather than generating, liquidity. This trend warrants further investigation into whether the anticipated regulatory tailwinds will be sufficient to offset the high cash burn before the company's liquidity position becomes constrained.
Capital Intensity Pressures Liquidity Runway
According to recent SEC filings, ARQ's capital intensity has been highly volatile, peaking at a 158.9% CapEx-to-revenue ratio in 2024Q4, which reflects the aggressive investment required to retool manufacturing assets for the company's strategic pivot toward water treatment and PFAS-related carbon products.
The high level of capital expenditure relative to revenue suggests that the company is prioritizing long-term capacity expansion over immediate cash preservation. Analysts should evaluate whether these investments are yielding the expected operational efficiencies, as the current pace of spending appears unsustainable given the company's limited cash reserves.
Working Capital Volatility Obscures Cash
Based on reported figures, working capital fluctuations have been a significant drag on cash flow, notably with a $9.5M outflow in 2025Q1, suggesting that the company is struggling to manage its inventory and receivables effectively during this period of strategic operational transformation.
The erratic nature of working capital changes may indicate inefficiencies in the supply chain or challenges in collecting payments from new customer segments. This volatility complicates the assessment of the company's underlying cash-generating potential and suggests that operational processes are still in a state of flux.