Arq Balance Sheet Health
Financial Health criteria checks 5/6
Arq has a total shareholder equity of $167.8M and total debt of $29.9M, which brings its debt-to-equity ratio to 17.8%. Its total assets and total liabilities are $232.1M and $64.3M respectively.
Key information
17.83%
Debt to equity ratio
US$29.91m
Debt
| Interest coverage ratio | n/a |
| Cash | US$4.67m |
| Equity | US$167.81m |
| Total liabilities | US$64.32m |
| Total assets | US$232.14m |
Recent financial health updates
Analysis Article • Dec 13
We Think Arq (NASDAQ:ARQ) Has A Fair Chunk Of Debt
The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...Analysis Article • Aug 07
These 4 Measures Indicate That Arq (NASDAQ:ARQ) Is Using Debt Extensively
NasdaqGM:ARQ 1 Year Share Price vs Fair Value Explore Arq's Fair Values from the Community and select yours Some say...Analysis Article • Mar 28
Does Arq (NASDAQ:ARQ) Have A Healthy Balance Sheet?
Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...Analysis Article • Apr 11
Does Arq (NASDAQ:ARQ) Have A Healthy Balance Sheet?
Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...Recent updates
Narrative Update • Apr 23
ARQ: Future Upside Will Rely On Core Business As GAC Ramp Slows
Analysts have reduced their price target on Arq by $1.00 to $3.63, citing lower fair value assumptions, slightly higher discount rates, and tempered expectations for revenue growth and profit margins. They are reassessing the timing and profitability of the GAC ramp while focusing more on the core PAC business.Narrative Update • Apr 08
ARQ: Future Upside Will Depend On Core Business As GAC Timeline Resets
Analysts have reduced Arq's implied upside, with the consolidated price target easing to about $5 after recent cuts from $7.50 and $8. This largely reflects longer timelines and execution issues around the Granular Activated Carbon expansion and leadership changes, even as analysts still highlight a focus on profitable growth in the core PAC business.Narrative Update • Mar 25
ARQ: Future Upside Will Rely On Core Business While GAC Delays Resolve
Analysts have trimmed Arq's price target from $8.63 to $4.63 as they account for delays in the Granular Activated Carbon ramp up, leadership turnover, and a sharper focus on profitable growth in the core PAC business. Analyst Commentary Recent Street commentary reflects a mixed view on Arq, with targets reduced but overall constructive opinions on the risk and reward tradeoff after the stock reaction to recent updates.Seeking Alpha • Mar 11
Arq: Granular Activated Carbon Expansion Turns Into Disaster
Summary Activated carbon products supplier Arq reported mixed fourth-quarter results with a small top-line beat more than offset by weaker-than-expected profitability. ARQ management blamed ramp-up costs for the company's Granular Activated Carbon ("GAC") operations which have turned from a long-standing headache into a full-blown disaster. A combination of feedstock issues and design flaws has resulted in delays and cost overruns. As a result, management has halted GAC production in order to conduct a comprehensive review. Total investment required for a new off-gas train and addressing other issues might be north of $30 million with another equity raise looking like the only viable option. With the higher-margin GAC opportunity in limbo, I am reducing my price target from $4.20 to $2.00 while keeping my "Hold" rating on the stock. Read the full article on Seeking AlphaNarrative Update • Mar 09
ARQ: Refined Discount Rate And P/E Assumptions Will Support Future Upside Reassessment
Narrative update on Arq Analysts reduced their Arq price target by $0.50, citing updated assumptions around the discount rate and future P/E, while keeping fair value estimates broadly unchanged. Analyst Commentary Recent commentary around the updated Arq price target focuses on how small changes in key assumptions can shift upside and downside scenarios without materially changing the core story.Narrative Update • Feb 23
ARQ: Higher Discount Rate Will Ultimately Set Up Cleaner Upside Reassessment
Analysts have reduced their price target on Arq by $0.50 to reflect updated views on discount rate assumptions and minor adjustments to forward P/E expectations. Analyst Commentary Recent Street research indicates that analysts have adjusted their views on Arq primarily around the discount rate they apply and updated forward P/E assumptions.Narrative Update • Feb 08
ARQ: Extended Production Challenges Will Ultimately Support Higher Utilization Upside
Narrative Update on Arq Analysts have trimmed their Arq price targets by $0.50 to $1.00, generally pointing to a longer than expected timeline to resolve Granular Activated Carbon production issues and the resulting pushout of utilization and revenue expectations into the later years of their models. Analyst Commentary Recent research notes focus on how the extended Granular Activated Carbon, or GAC, production issues influence Arq's valuation, growth outlook, and execution risk.Narrative Update • Jan 23
ARQ: Extended GAC Timeline Will Ultimately Support Higher Utilization Upside
Narrative Update on Arq Analysts have trimmed their price target on Arq by about $0.13, citing a slower ramp in Granular Activated Carbon utilization and delayed capacity additions. This feeds through to slightly lower modeled fair value and P/E assumptions, despite somewhat higher forecast profit margins.Narrative Update • Jan 09
ARQ: Extended Production Timeline Will Ultimately Support Higher Utilization Upside
Narrative update on Arq Analysts have trimmed their price target on Arq to US$8 from US$9, citing expectations that issues with the new Granular Activated Carbon production line could persist into mid 2026 and slow the ramp to higher utilization and future revenue contributions. Analyst Commentary Recent commentary around Arq focuses on how the extended Granular Activated Carbon production ramp could affect the company’s timeline for scaling and its valuation framework.Narrative Update • Dec 21
ARQ: Future High Utilization Will Support Upside Despite Extended Production Delays
Analysts have trimmed their price target on Arq to $8.00 from $9.00, citing extended operational challenges and a slower than previously expected ramp in Granular Activated Carbon production, which has pushed out revenue growth and margin assumptions. Analyst Commentary Bullish analysts highlight that despite the reduced price target, the valuation still reflects confidence in Arq's long term growth potential, supported by expectations for eventual stabilization and high utilization of its Granular Activated Carbon operations.Analysis Article • Dec 13
We Think Arq (NASDAQ:ARQ) Has A Fair Chunk Of Debt
The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...Narrative Update • Dec 07
ARQ: Future Utilization Ramp Will Drive Upside Despite Delayed Expansion
Analysts have trimmed their price target on Arq by $1 to $8, citing a slower ramp to peak utilization and delayed expansion of its Granular Activated Carbon production as reasons for more conservative revenue and margin expectations in coming years. Analyst Commentary Recent Street research reflects a more tempered outlook on Arq, with valuation adjustments primarily driven by operational timing rather than a fundamental shift in the long-term thesis.Narrative Update • Nov 23
ARQ: Future Profitability Will Drive Share Price Upside Potential
Narrative Update on Arq Price Target Analysts have revised Arq’s fair value estimate downward from $11.13 to $9.38 per share, citing recent adjustments to growth and profitability assumptions. Valuation Changes Fair Value Estimate has decreased from $11.13 to $9.38 per share, reflecting a noticeable downward revision.Analysis Article • Aug 22
Revenues Tell The Story For Arq, Inc. (NASDAQ:ARQ) As Its Stock Soars 28%
Arq, Inc. ( NASDAQ:ARQ ) shares have continued their recent momentum with a 28% gain in the last month alone...Narrative Update • Aug 11
New GAC Line And RNG Expansion Will Fuel Demand
Arq’s consensus analyst price target increased to $9.88, primarily reflecting a higher future P/E multiple, which suggests improved growth or profitability expectations. What's in the News Arq, Inc.Analysis Article • Aug 07
These 4 Measures Indicate That Arq (NASDAQ:ARQ) Is Using Debt Extensively
NasdaqGM:ARQ 1 Year Share Price vs Fair Value Explore Arq's Fair Values from the Community and select yours Some say...New Narrative • May 17
Optimizing PAC Business And Launching GAC Will Secure Future Success
Strategic diversification into premium markets and life-of-asset contracts strengthen revenue growth and margin expansion, affirming Arq's market position.Analysis Article • Apr 09
Slammed 29% Arq, Inc. (NASDAQ:ARQ) Screens Well Here But There Might Be A Catch
To the annoyance of some shareholders, Arq, Inc. ( NASDAQ:ARQ ) shares are down a considerable 29% in the last month...Analysis Article • Mar 28
Does Arq (NASDAQ:ARQ) Have A Healthy Balance Sheet?
Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...Seeking Alpha • Mar 07
Arq: Granular Activated Carbon Expansion Project Remains A Headache - Hold
Summary Despite some operational headwinds, activated carbon products producer Arq, Inc. reported solid fourth-quarter results with decent gross margins and strong operating cash flow. However, the company's granular activated carbon (“GAC”) expansion project continued to experience substantial cost overruns and delays. Much higher than initially expected capex requirements have negatively impacted the company's liquidity. In addition, ramp-up delays are likely to result in margin pressures this year. At this point, the GAC business remains a black box for investors and given the slower ramp-up, market participants will continue to struggle with assessing potential returns on investment. Should Arq finally start to execute on its promises, there could be a considerable upside for the shares. However, should management continue to overpromise and underdeliver, the stock is likely to remain in the penalty box for now. Read the full article on Seeking AlphaAnalysis Article • Nov 22
Arq, Inc.'s (NASDAQ:ARQ) 30% Jump Shows Its Popularity With Investors
Arq, Inc. ( NASDAQ:ARQ ) shares have had a really impressive month, gaining 30% after a shaky period beforehand. The...Seeking Alpha • Sep 20
Arq: Surprise Equity Offering Raises Questions (Rating Downgrade)
Summary After the close of Thursday's regular session, activated carbon products producer Arq, Inc. surprised market participants with a proposed equity offering. The offering comes just weeks after management advertised a near-term refinancing and material upsizing of the company's existing term loan facility. In the offering prospectus, the company disclosed the recent termination of the construction contract for its granular activated carbon ("GAC") manufacturing plant. Arq's stock is likely to remain in the penalty box until the company has proven its ability to ramp up GAC deliveries in time and on budget. Given persistent lack of execution and limited visibility regarding the financial impact of the new GAC business, I am downgrading the company's shares from "Hold" to "Sell". Read the full article on Seeking AlphaSeeking Alpha • Aug 20
Whether Or Not Trump Wins In November, Arq Is A $10 Stock
Summary ARQ shares have experienced a 37.7% drawdown from their 52-week-high to August 5th, driven by fears of potential changes in EPA regulations and a Trump win. ARQ competes in an oligopoly market and stands to benefit from increased demand for granular activated carbon well beyond Municipal Water. The GAC market is undersupplied. ARQ could have upwards of $25 million to $30 million of FY 2025 Adj. EBITDA power and has a lot of future EBITDA power, as its Red River plant can expand. Read the full article on Seeking AlphaSeeking Alpha • May 30
4 Reasons To Buy Arq Stock
Summary Arq, Inc. which specializes in the manufacture of environmental solutions has already generated impressive returns of 137% this year, outperforming the market. The company's granular activated carbon (GAC) portfolio is expected to benefit from new drinking water regulations and a potential supply deficit. Arq's gross margin progress is sustainable, driven by pricing effects with its PAC business, and the potential price-elastic nature of its GAC portfolio. ARQ offers solid topline growth outlook at a compelling EV/sales of just 1.5x. We appreciate the bullish developments on the charts, backed by growing institutional support, and the prospect for further rotational interest from investors focused on the environmental universe. Read the full article on Seeking AlphaAnalysis Article • Apr 11
Does Arq (NASDAQ:ARQ) Have A Healthy Balance Sheet?
Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...Seeking Alpha • Mar 18
Arq, Inc.: A Pot Of Gold At The End Of The Rainbow
Summary Arq, previously known as Advanced Emissions Solutions, reported strong Q4 FY2023 earnings. This marks back-to-back positive Adj. EBITDA quarters. The company's March 13, 2024 conference call was super positive, and (arguably) very few people are paying attention. Last week, ARQ shares finished the week up 68% and have the potential for further growth. This article discusses why. Read the full article on Seeking AlphaFinancial Position Analysis
Short Term Liabilities: ARQ's short term assets ($46.1M) exceed its short term liabilities ($45.1M).
Long Term Liabilities: ARQ's short term assets ($46.1M) exceed its long term liabilities ($19.2M).
Debt to Equity History and Analysis
Debt Level: ARQ's net debt to equity ratio (15%) is considered satisfactory.
Reducing Debt: ARQ's debt to equity ratio has reduced from 98.7% to 17.8% over the past 5 years.
Balance Sheet
Cash Runway Analysis
For companies that have on average been loss-making in the past, we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: ARQ has sufficient cash runway for more than a year based on its current free cash flow.
Forecast Cash Runway: Insufficient data to determine if ARQ has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.
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Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2026/05/13 10:17 |
| End of Day Share Price | 2026/05/13 00:00 |
| Earnings | 2026/03/31 |
| Annual Earnings | 2025/12/31 |
Data Sources
The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.
| Package | Data | Timeframe | Example US Source * |
|---|---|---|---|
| Company Financials | 10 years |
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| Analyst Consensus Estimates | +3 years |
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| Market Prices | 30 years |
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| Ownership | 10 years |
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| Management | 10 years |
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| Key Developments | 10 years |
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* Example for US securities, for non-US equivalent regulatory forms and sources are used.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.
Analysis Model and Snowflake
Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.
Learn about the world class team who designed and built the Simply Wall St analysis model.
Industry and Sector Metrics
Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.
Analyst Sources
Arq, Inc. is covered by 6 analysts. 5 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.
| Analyst | Institution |
|---|---|
| George Gianarikas | Canaccord Genuity |
| Aaron Spychalla | Craig-Hallum Capital Group LLC |
| Lars Christensen | Fearnley Securities |