0001515156-26-000062
SEC filingRevenue grew 6.6% to $29.1M from power-generation demand driven by higher natural gas prices, offset by lower product pricing, while operating income turned to a $982K loss from higher SG&A including Corbin utilities reclassification, though cash flow improved to positive $64K.
Arq, Inc. reported Q1 FY2026 results reflecting robust demand from power-generation customers amid sustained high natural gas prices, driving revenue growth, but tempered by pricing mix shifts and operational adjustments including a GAC production pause.
Operating income flipped to a -$982 thousand loss from $662 thousand profit (-248% YoY), resulting in a -3.4% operating margin. This deterioration stemmed from higher general and administrative expenses, including utilities costs related to the Corbin Facility—now classified in SG&A after prior recording in cost of revenue. These cost pressures outweighed gross profit stability, highlighting the impact of idling the Corbin Facility as a cost-saving measure.
Net income reflected a -$842 thousand loss versus $203 thousand profit (-515% YoY), with diluted EPS at -$0.02 compared to $0.00. The operating shortfall drove this swing, though the company generated positive net cash from operating activities of $64 thousand, a marked improvement from -$5.8 million prior year, aided by working capital efficiencies during the production pause.