Arq's third quarter revenue of $38.2 million beat estimates by 8% as margins expanded

Arq reported record results for the third quarter 2026, characterized by record revenue and its tenth consecutive quarter of positive Adjusted EBITDA. Performance was driven by higher sales volumes in the core powdered activated carbon (PAC) business and significant operational efficiency gains.

Key Highlights

• Quarterly revenue grew 9% year-over-year to $38.2 million, exceeding analyst expectations of $35.23 million.
• Gross margin expanded by 1,100 basis points to 39.7%, up from 28.8% in the prior year period, due to improved PAC business performance.
• Management narrowed and raised the low end of full-year 2026 Adjusted EBITDA guidance to $19 million to $20 million, while reiterating revenue targets of $120 million to $125 million.
• Strategic initiatives for the Corbin Facility remain in progress, with management continuing to evaluate monetization options and technology licensing opportunities with multiple parties.