Gross margins have experienced significant degradation, falling from a peak of 49.8% in 2023Q4 to 34.2% in 2026Q1, reflecting the ongoing difficulty of maintaining pricing power during the Red River facility transition.
Arq, Inc. (ARQ) annual income statement — 10-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 |
|---|
| Sales/Revenue | 123.44M | 120.34M | 108.96M | 99.18M | 102.99M | 100.29M | 67.36M | 70.09M | 23.95M | 45.36M | 50.62M |
| Revenue Growth % | 4.93% | 10.44% | 9.86% | -3.69% | 2.69% | 48.89% | -3.89% | 192.7% | -47.22% | -10.39% | - |
| Cost of Goods Sold | 87.89M | 86.8M | 69.52M | 67.32M | 80.47M | 65.58M | 50.4M | 49.44M | 6.25M | 31.89M | 39.82M |
| COGS % of Revenue | - | 72.13% | 63.8% | 67.88% | 78.13% | 65.38% | 74.82% | 70.55% | 26.11% | 70.29% | 78.66% |
| Gross Profit | 35.55M | 33.53M | 39.44M | 31.86M | 22.52M | 34.72M | 16.96M | 20.64M | 17.69M | 13.48M | 10.8M |
| Gross Margin % | 28.8% | 27.87% | 36.2% | 32.12% | 21.87% | 34.62% | 25.18% | 29.45% | 73.89% | 29.71% | 21.34% |
| Gross Profit Growth % | - | -14.99% | 23.8% | 41.46% | -35.13% | 104.66% | -17.82% | 16.68% | 31.26% | 24.75% | - |
| Operating Expenses | 43.93M | 41.64M | 41.4M | 45.2M | 34.59M | 29.87M | 57.95M | 35.54M | 24.09M | 17.62M | 26.9M |
| OpEx % of Revenue | - | 34.6% | 38% | 45.57% | 33.59% | 29.78% | 86.02% | 50.7% | 100.61% | 38.84% | 53.14% |
| Selling, General & Admin | 24.74M | 22.55M | 28.7M | 37.38M | 28.14M | 24.64M | 24.43M | 28.16M | 23.37M | 16.83M | 26.57M |
| SG&A % of Revenue | - | 18.74% | 26.34% | 37.69% | 27.32% | 24.56% | 36.27% | 40.19% | 97.59% | 37.1% | 52.49% |
| Research & Development | 5.71M | 7.34M | 4.05M | 0 | 0 | 0 | 0 | 0 | 0 | 157K | -648K |
| R&D % of Revenue | - | 6.1% | 3.72% | - | - | - | - | - | - | 0.35% | -1.28% |
| Other Operating Expenses | 4M | 11.75M | 8.66M | 7.81M | 6.45M | 5.23M | 33.51M | 7.37M | 723K | 632K | 979K |
| Operating Income | -8.38M | -8.11M | -1.96M | -13.34M | -12.07M | 4.85M | -40.98M | -14.89M | -6.4M | -4.14M | -16.1M |
| Operating Margin % | -6.79% | -6.74% | -1.8% | -13.44% | -11.72% | 4.84% | -60.84% | -21.25% | -26.73% | -9.13% | -31.8% |
| Operating Income Growth % | - | -313.78% | 85.31% | -10.5% | -348.72% | 111.84% | -175.17% | -132.7% | -54.51% | 74.27% | - |
| EBITDA | 4.81M | 3.64M | 6.63M | -2.79M | -5.65M | 12.79M | -32.44M | -7.52M | -5.68M | -3.35M | -15.12M |
| EBITDA Margin % | 3.9% | 3.03% | 6.09% | -2.81% | -5.49% | 12.75% | -48.16% | -10.73% | -23.71% | -7.39% | -29.87% |
| EBITDA Growth % | -57.92% | -45.12% | 337.64% | 50.6% | -144.21% | 139.41% | -331.32% | -32.5% | -69.31% | 77.82% | - |
| D&A (Non-Cash Add-back) | 13.19M | 11.75M | 8.59M | 10.54M | 6.42M | 7.93M | 8.54M | 7.37M | 723K | 789K | 979K |
| EBIT | -51.07M | -50.15M | -2.02M | -9.08M | -8.37M | 77.56M | -9.87M | 54.71M | 48.03M | 55.05M | 41.81M |
| Net Interest Income | -1.17M | -2.45M | -2.15M | -1.17M | -97K | -1.16M | -3.79M | -6.91M | -2.15M | -2.97M | -4.8M |
| Interest Income | 0 | 0 | 1.1M | 1.85M | 239K | 326K | 127K | 261K | 0 | 54K | 268K |
| Interest Expense | 1.17M | 2.45M | 3.26M | 3.01M | 336K | 1.49M | 3.92M | 7.17M | 2.15M | 3.02M | 5.07M |
| Other Income/Expense | -43.86M | -44.49M | -3.31M | 1.24M | 3.36M | 71.22M | 27.19M | 62.43M | 52.28M | 56.17M | 52.84M |
| Pretax Income | -52.24M | -52.6M | -5.27M | -12.1M | -8.71M | 76.07M | -13.79M | 47.54M | 45.88M | 52.02M | 36.74M |
| Pretax Margin % | -42.32% | -43.71% | -4.84% | -12.2% | -8.46% | 75.85% | -20.47% | 67.83% | 191.59% | 114.68% | 72.58% |
| Income Tax | 12K | 12K | -164K | 153K | 209K | 15.67M | 6.51M | 12M | 10.42M | 24.15M | -60.94M |
| Effective Tax Rate % | -0.02% | -0.02% | 3.11% | -1.26% | -2.4% | 20.6% | -47.21% | 25.24% | 22.72% | 46.42% | -165.86% |
| Net Income | -52.26M | -52.61M | -5.11M | -12.25M | -8.92M | 60.4M | -20.3M | 35.54M | 35.45M | 27.87M | 97.68M |
| Net Margin % | -42.33% | -43.72% | -4.69% | -12.35% | -8.66% | 60.22% | -30.14% | 50.7% | 148.06% | 61.44% | 192.96% |
| Net Income Growth % | -3063.14% | -929.75% | 58.29% | -37.37% | -114.76% | 397.51% | -157.13% | 0.23% | 27.2% | -71.46% | - |
| Net Income (Continuing) | -52.26M | -52.61M | -5.11M | -12.25M | -8.92M | 60.4M | -20.3M | 35.54M | 35.45M | 27.87M | 97.68M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -1.24 | -1.27 | -0.14 | -0.42 | -0.48 | 3.27 | -1.13 | 1.93 | 1.76 | 1.29 | 4.34 |
| EPS Growth % | -3294.32% | -807.14% | 66.67% | 12.5% | -114.68% | 389.38% | -158.55% | 9.66% | 36.43% | -70.28% | - |
| EPS (Basic) | - | -1.27 | -0.14 | -0.42 | -0.48 | 3.31 | -1.13 | 1.96 | 1.78 | 1.30 | 4.40 |
| Diluted Shares Outstanding | 42.1M | 41.52M | 36.05M | 29.1M | 18.45M | 18.46M | 18.04M | 18.37M | 20.03M | 21.41M | 22.23M |
| Basic Shares Outstanding | 42.1M | 41.52M | 36.05M | 29.1M | 18.45M | 18.26M | 18.04M | 18.15M | 19.9M | 21.37M | 21.93M |
| Dividend Payout Ratio | - | - | - | - | - | 0.15% | - | 51.42% | 56.88% | 56.29% | - |
Quick answers to the most common questions about buying ARQ stock.
For fiscal year 2025, Arq, Inc. (ARQ) reported total revenue of $120.3M. This represents a 137.7% increase compared to $50.6M in 2016.
Arq, Inc. (ARQ) reported a net loss of $52.6M for the fiscal year ending 2025.
Arq, Inc. (ARQ) reported an operating income of $-8.1M, resulting in an operating profit margin of -6.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Arq, Inc. (ARQ) generated $33.5M in gross profit for the year, representing a gross profit margin of 27.9%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Liquidity and operational execution
Metrics are mathematically derived from official filings.
Revenue Growth Lacks Consistent Momentum
According to the latest quarterly filings, ARQ's revenue growth has exhibited significant volatility, fluctuating between a 3.8% contraction in 2024Q4 and a 25.3% expansion in 2025Q1, suggesting that the company's transition toward higher-value GAC products has yet to establish a stable, predictable upward trajectory.
The inconsistent revenue performance reflects the challenges of pivoting from legacy coal-related services to specialized water treatment markets. Investors should monitor whether the recent 6.6% growth in 2026Q1 represents the beginning of a sustainable trend or merely a recovery from previous operational disruptions.
Structural Margin Compression Remains Evident
As reported in financial statements, ARQ's gross margin has experienced substantial degradation, falling from a peak of 49.8% in 2023Q4 to 34.2% in 2026Q1, which highlights the difficulty of maintaining pricing power during the ongoing transition of the Red River facility's production mix.
The sharp decline in gross profitability suggests that the company is struggling to offset the high fixed costs associated with its manufacturing infrastructure. This margin compression appears to be a direct consequence of underutilized capacity and the shift toward more competitive, albeit higher-potential, water treatment applications.
Operating Leverage Pressured by Overhead
Based on reported figures, ARQ's operating income has frequently dipped into negative territory, with a -3.4% operating margin in 2026Q1, indicating that the company has failed to achieve the necessary scale to cover its significant SG&A and R&D expenses during this capital-intensive pivot.
The inability to scale operating income alongside revenue suggests that the current cost structure is too heavy for the existing volume of business. This lack of operating leverage warrants further investigation into whether management can streamline overhead costs without compromising the technical requirements of the GAC production transition.
Net Income Obscured by Volatility
Analysis of the income statement reveals that ARQ's net income is highly erratic, exemplified by a massive -170% net margin in 2025Q4, which suggests that non-operating items and restructuring costs are significantly distorting the underlying profitability of the core industrial operations.
The extreme swings in net income appear to be driven by non-recurring charges related to the corporate rebranding and merger activities. Investors should look past these headline figures to assess whether the core business can generate consistent cash flow once these transitional expenses subside.
Liquidity Risks Challenge Growth Thesis
Data from recent filings indicates that ARQ's persistent net losses, combined with a cash balance of only $6.5M, create a precarious financial position that may necessitate dilutive capital raises if the company fails to reach cash-flow break-even in the immediate future.
Short-term liquidity constraints represent a significant risk to the long-term strategic pivot, as the company may be forced to prioritize survival over necessary capital investments. The market's current valuation appears to assume a successful transition, yet the financial data suggests that the margin for error is extremely thin.