← Back to All US Stocks

ARQ Stock Analysis - Arq, Inc. AI Rating

ARQ Nasdaq Miscellaneous Chemical Products CIK: 0001515156
Analysis Date: Mar 20, 2026 | Data as of: 2025-12-31
AI Rating
STRONG SELL
92% Confidence

Investment Thesis

Arq is experiencing severe operational distress with significant losses despite positive revenue growth. The company is burning cash with negative operating cash flow and free cash flow, while maintaining a dangerously thin liquidity position with a current ratio of 1.04x and only $6.6M in cash against ongoing capital expenditures.

ARQ Strengths

  • + Revenue growth of 10.4% YoY shows market demand
  • + Reasonable gross margin of 32.5% indicates viable core product economics
  • + Moderate debt-to-equity ratio of 0.17x provides some leverage capacity

ARQ Risks

  • ! Operating losses of $53.0M with negative operating margin of -44.0% indicating core business is unprofitable
  • ! Negative operating cash flow of -$2.7M and free cash flow of -$11.3M signal unsustainable cash burn
  • ! Critical liquidity crisis with current ratio of 1.04x and only $6.6M cash, insufficient for $8.6M capex and operational needs
  • ! Negative interest coverage of -67.0x shows inability to service debt from operations
  • ! ROE and ROA both severely negative at -31.3% and -22.8% respectively

Key Metrics to Watch

ARQ Financial Metrics

Revenue
$120.3M
Net Income
$-52.6M
EPS (Diluted)
$-1.27
Free Cash Flow
$-11.3M
Total Assets
$230.6M
Cash Position
$6.6M

ARQ Profitability Ratios

Gross Margin 32.5%
Operating Margin -44.0%
Net Margin -43.7%
ROE -31.3%
ROA -22.8%
FCF Margin -9.4%

ARQ Balance Sheet & Liquidity

Current Ratio
1.04x
Quick Ratio
0.66x
Debt/Equity
0.17x
Debt/Assets
27.2%
Interest Coverage
-66.95x
Long-term Debt
$28.7M

ARQ 5-Year Financial Trend

ARQ 5-year financial data: Year 2021: Revenue $100.3M, Net Income -$1.9M, EPS $-0.11. Year 2022: Revenue $103.0M, Net Income $60.4M, EPS $3.27. Year 2023: Revenue $103.0M, Net Income -$8.9M, EPS $-0.48. Year 2024: Revenue $109.0M, Net Income -$12.2M, EPS $-0.42. Year 2025: Revenue $120.3M, Net Income -$5.1M, EPS $-0.14.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Arq, Inc.'s revenue has grown significantly by 20% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.14 indicates the company is currently unprofitable.

ARQ Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-9.4%
Free cash flow / Revenue

ARQ Quarterly Performance

Quarterly financial performance data for Arq, Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2025 $34.8M $203.0K $-0.02
Q2 2025 $25.4M $203.0K $-0.05
Q1 2025 $21.7M $203.0K $0.00
Q3 2024 $29.8M $1.6M $0.04
Q2 2024 $20.4M -$2.0M $-0.06
Q1 2024 $20.8M -$3.4M $-0.09
Q3 2023 $28.4M -$326.0K $-0.07
Q2 2023 $20.4M -$326.0K $-0.02

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

ARQ Capital Allocation

Operating Cash Flow
-$2.7M
Cash generated from operations
Capital Expenditures
$8.6M
Investment in assets
Dividends
None
No dividend program

ARQ SEC Filings

Access official SEC EDGAR filings for Arq, Inc. (CIK: 0001515156)

📄 10-K Annual Reports 📋 10-Q Quarterly Reports 📰 8-K Current Reports 📊 Proxy Statements 🔍 All Filings

Related Stock Analysis

ASII
Accredited Solutions, Inc.
STRONG SELL
ASFT
Appsoft Technologies, Inc.
STRONG SELL
ASCWF
ASPAC II Acquisition Corp.
STRONG SELL
ASBPW
Aspire Biopharma Holdings, Inc.
STRONG SELL
Disclaimer: This analysis is generated by Claude AI based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Mar 20, 2026 | Data as of: 2025-12-31 | Powered by Claude AI