Arq, Inc.

Overview

Arq, Inc. (formerly ADA-ES, Inc. and Advanced Emissions Solutions, Inc.) rebranded to Arq in February 2024. Its common stock trades on Nasdaq under the ticker ARQ. The company operates in environmental technology, producing activated carbon consumables for air, water, and soil treatment.

Products and technology

• Activated carbon (AC) consumables for removing contaminants from gas, water, soil, and other streams.
• Product forms: powdered activated carbon (PAC), granular activated carbon (GAC), and a colloidal carbon product (CCP).
• Proprietary materials and processes designed to target pollutants such as mercury and PFAS.
• FluxSorb RC: an in situ remediation platform that uses engineered ACs injected into the subsurface for soil and groundwater treatment.

Primary markets and applications

• Coal-fired power generation (mercury control and related pollutants)
• Industrial purification and odor control
• Water treatment (drinking water and wastewater)
• Soil and groundwater remediation
• Other markets: industrial processes, waste-to-energy, cement, and potential applications in purified coal and synthetic graphite

Feedstocks and supply chain

• Lignite coal from the Five Forks Mine (Saline, Louisiana), owned and operated through a subsidiary of North American Coal Company, provides vertical integration for PAC.
• Corbin Wetcake: produced at the Corbin Facility (Corbin, Kentucky) from recovered bituminous coal fines; positioned to supply certain markets and applications.
• Additives and other raw materials sourced under supply agreements or spot purchases; pricing and supply constraints exist for these inputs.
• Transition plan to shift GAC production feedstock from Corbin Wetcake to bituminous proven-performance coal due to production and design constraints.

Facilities and operational status

• Red River Plant (Coushatta, Louisiana) and an adjacent production/distribution facility (leased land in Coushatta).
• Corbin Facility (Corbin, Kentucky) for processing bituminous coal fines into Corbin Wetcake; production undergoing optimization.
• GAC Facility constructed at the Red River Plant.
• GAC Facility: first commercial GAC volumes produced on August 6, 2025; ramp-up to nameplate capacity did not materialize. As of December 2025, GAC production was paused and the Corbin Facility idled while an engineering and production optimization review is underway.
• Current expectation is to move to bituminous coal feedstock for GAC production and to optimize facility design and economics.

People and organization

• As of December 31, 2025: 202 employees total, 201 of whom are full-time.
• Employees are distributed across four facilities.
• Health and safety program modeled after OHSAS 18001.

Customers and revenue

• The top three customers accounted for approximately 42% of revenue for the year ended December 31, 2025.

Research and development

• R&D expenses: $7.3 million in 2025 and $4.1 million in 2024.

Intellectual property

• Patents: 74 U.S. patents and 16 international patents issued or allowed; 17 U.S. provisional patents/applications; 36 international applications.
• In 2025: 4 new patents granted; 17 U.S. and 5 international patents/applications abandoned or expired.
• Trademarks: more than 50 registrations and applications worldwide.

Financing and liquidity

• Revolving Credit Facility of up to $30 million (secured) governed by a Credit, Security, and Guaranty Agreement with MidCap Funding IV Trust.
• Amendments in 2025–2026 adjusted the borrowing base and minimum liquidity covenants.
• Availability under the facility depends on the borrowing base formula and covenant compliance.

Regulatory and environmental landscape

• PFAS: EPA actions on drinking water standards (NPDWR) and related CERCLA and RCRA considerations that could influence demand for AC-based remediation.
• Mercury and Air Toxics Standards (MATS): historical regulatory activity has affected market dynamics.
• International regulations and U.S. mining-related requirements (SMCRA, MSHA) affect mining and production operations and compliance costs.

Recent developments

• GAC Facility: initial commissioning in early 2025 followed by an optimization and design review through 2026 due to production constraints; 2026 GAC revenue is not expected to be material.
• Feedstock strategy adjusted to favor bituminous coal over Corbin Wetcake for GAC production as part of facility optimization.

Revenue exposure

• Customer concentration risk: the top three customers represented about 42% of 2025 revenue.