Arq, Inc., formerly known as Advanced Emissions Solutions, Inc., reported a total revenue of $108.96 million for the fiscal year ending December 31, 2024, marking a 10% increase from $99.18 million in 2023. The company's net loss narrowed to $5.11 million, compared to a loss of $12.25 million in the previous year. This improvement in financial performance was attributed to a favorable product mix and improved pricing, which contributed approximately $6.9 million and $4.9 million, respectively, to revenue. However, these gains were partially offset by a decrease in sales volumes, particularly among power generation customers, due to lower natural gas prices that reduced coal-fired generation utilization.
In February 2023, Arq completed the acquisition of Legacy Arq, an environmental technology company, for a total consideration of $31.2 million. This acquisition provided Arq with access to additional U.S.-based bituminous coal feedstock and a manufacturing facility in Corbin, Kentucky. The company expects to begin using a new product, Arq Powder, as a feedstock for producing high-quality granular activated carbon (GAC) products by the end of the first quarter of 2025. The acquisition is anticipated to enhance Arq's market position and product offerings in the advanced purification technologies market.
Operationally, Arq's employee headcount stood at 203 as of December 31, 2024, with a focus on expanding its customer base in various markets, including water treatment and soil remediation. The company reported that its top three customers accounted for approximately 36% of total revenue, highlighting a significant reliance on a limited number of clients. The company is actively pursuing pre-approval processes with state and municipal agencies for its GAC products, which are expected to see increased demand due to new environmental regulations set to take effect in 2024.
Looking ahead, Arq anticipates that revenue will continue to grow, driven by regulatory requirements related to PFAS substances and other pollutants. However, the company also noted uncertainties regarding the future of these regulations, particularly in light of potential changes in the U.S. presidential administration. The company has secured a $30 million revolving credit facility to support its operational and capital needs, which will be crucial as it ramps up production at its facilities and integrates the operations of Legacy Arq.
About Arq, Inc.
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