Arq Q2 2025 Earnings Report: Revenue Surges 13%, EPS Falls Short of Estimates

Arq's Q2 2025 earnings show revenue up 13% to $28.6m, beating expectations. However, the net loss widened by 8.4% to $2.13m and EPS missed analyst estimates by 114%. The company's shares are up 33% from a week ago. The revenue is forecast to grow 18% p.a. on average during the next 3 years, compared to a 4.5% growth forecast for the Chemicals industry in the US.

Arq Inc. (NASDAQ: ARQ) released its fiscal 2025 Q2 earnings report, showing a mixed performance. The company reported a 13% year-over-year (YoY) increase in revenue to $28.6 million, beating market expectations. However, the net loss widened by 8.4% to $2.13 million, and earnings per share (EPS) missed analyst estimates by 114%. Despite these mixed results, the company's shares are up 33% from a week ago. Arq expects revenue to grow at an average annual rate of 18% over the next three years, compared to the Chemicals industry's forecast of 4.5% growth in the US [1].

Revenue Growth
Arq's total revenue rose by 13% YoY to $28.6 million in Q2 2025, compared to $25.41 million in Q2 2024. This growth was driven by higher average sales prices and increased volumes sold [3].

Earnings/Net Income
The company's per-share loss narrowed to $0.05 in Q2 2025 from $0.06 in the same period last year, reflecting a 16.7% improvement. However, the net loss expanded to -$2.13 million in Q2 2025, representing an 8.4% increase from -$1.97 million in Q2 2024 [2].

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 [2].

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 [2].

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 [2].

References:
[1] https://www.ainvest.com/news/arq-2025-q2-earnings-net-loss-narrows-revenue-growth-2508/
[2] https://www.globenewswire.com/news-release/2025/08/11/3131318/25414/en/Arq-Reports-Second-Quarter-2025-Results.html