Arq 2025 Q2 Earnings Net Loss Narrows Amid Revenue Growth

Arq (ARQ) reported its fiscal 2025 Q2 earnings on August 11, 2025, showing a 12.5% increase in revenue while narrowing per-share losses. The company is planning capital expenditures in line with previous guidance and expects a second GAC production line at Red River.

Revenue
Arq’s total revenue rose by 12.5% year-over-year to $28.58 million in Q2 2025, compared to $25.41 million in Q2 2024.

Earnings/Net Income
Arq reduced its per-share loss to $0.05 in Q2 2025 from $0.06 in the same period last year, reflecting a 16.7% improvement. However, the company’s net loss expanded to -$2.13 million in Q2 2025, representing an 8.4% increase from -$1.97 million in Q2 2024.

Price Action
ARQ’s stock price declined by 1.21% during the latest trading day but surged 19.56% during the past full trading week and rose 13.34% month-to-date.

Post-Earnings Price Action Review
A strategy of buying ARQ shares after its revenue increase and holding for 30 days generated a 205.54% return over the past three years—far outperforming the benchmark return of 48.60%. The strategy yielded an excess return of 156.94% and a CAGR of 93.62%, with a Sharpe ratio of 1.29 and a maximum drawdown of 0.00%. Despite its high volatility of 72.37%, the strategy demonstrated consistent growth.

CEO Commentary
CEO Bob Rasmus highlighted the successful commissioning of the first GAC line at Red River as a significant milestone. He emphasized the company’s continued transformation, strong financial performance, and five consecutive quarters of positive Adjusted EBITDA. Rasmus also noted sustained price improvements in the PAC business and favorable GAC market dynamics, expressing optimism about 3-5x demand growth driven by EPA regulatory changes and initial RNG customer sales in Q3 2025.

Guidance
Arq expects to make a final investment decision for a second GAC production line by year-end 2025 and anticipates full-year 2025 capital expenditures of $8–$12 million. Forward-looking demand for GAC is projected to grow 3–5% annually, with potential for higher growth from regulatory changes and RNG sales.

Additional News
Recent news included China’s fiscal policies supporting personal and service-sector loans, Trump’s comments on U.S.-China trade, and advancements in global robotics and automation. Key developments also included Korea’s mass amnesty, U.S.-Ukraine security talks, and new automotive and technology innovations in China.