Arq, Inc. (ARQ) · Nov 4, 2026 · Earnings
Beat — Diluted EPS $0.06 vs ~$0.04 consensus; revenue $38.2M vs ~$35.2M consensus
Arq’s Q3 earnings beat revenue and EPS expectations, while stronger PAC profitability pushed the low end of 2026 EBITDA guidance higher.
Arq is rebuilding around a profitable powdered activated carbon (PAC) business while its troubled granular activated carbon (GAC) facility remains paused; PAC for PFAS is the main prospective growth lever, with meaningful customer adoption still ahead. The prior business plan already assumed $120–125 million of 2026 revenue and $17–20 million of Adjusted EBITDA, excluding GAC contribution. Published Q3 expectations were roughly $35.2 million of revenue and $0.04 of EPS, giving this release a real benchmark rather than just a year-over-year comparison.
| Q3 2026 | Q3 2025 | Consensus / prior guide | |
|---|---|---|---|
| Revenue (Income Statement) | $38.2M (+8.9%) | $35.1M | $35.2M |
| Diluted EPS (Income Statement) | $0.06 | $(0.02) | $0.04 |
| Adjusted EBITDA (Non-GAAP reconciliation) | $8.8M (+71%) | $5.2M | |
| FY26 Adjusted EBITDA guidance (Guidance) | $19–20M | $17–20M |
The core business beat cleanly, not just on one adjusted metric. Revenue reached $38.2 million, ahead of both last year and the roughly $35.2 million consensus, while diluted EPS of $0.06 also exceeded the approximately $0.04 expectation. “Revenue totaled $38.2million for the third quarter of 2026, reflecting an increase of 9% compared to $35.1million in the prior year period.”
Profitability is improving through the PAC foundation. Adjusted EBITDA rose 71% to $8.8 million, and GAAP operating income swung to $3.1 million from a $1.1 million loss. The improvement came despite higher SG&A, which rose to $7.2 million from $4.6 million because of incentive compensation and professional fees. That makes the quarter more substantive than a simple cost-cutting beat: the company says the gain was driven primarily by stronger PAC profitability and cost discipline. “Adjusted EBITDA was $8.8million for the third quarter of 2026, compared to Adjusted EBITDA of $5.2million in the prior year period.”
The guidance raise confirms the improvement is not being treated as a one-quarter anomaly. Arq raised the bottom of its full-year Adjusted EBITDA range from $17 million to $19 million, narrowing the range to $19–20 million, while leaving revenue and capital-spending guidance unchanged. “Arq is raising the low end of its full-year 2026 Adjusted EBITDA guidance, narrowing the range to $19-20 million from $17-20 million previously.” 〔0〕
The longer-term growth story is still unproven. PAC for PFAS testing is progressing and the company sees potential for higher volumes, pricing, and margins as EPA monitoring begins in April 2027, but customer testing remains ongoing and meaningful orders are only described as feasible in 2027. Meanwhile, GAC production is still not the earnings engine investors originally expected, and Corbin monetization remains optional rather than executed. That limits the event from rewriting the whole company story, even though it materially strengthens the current PAC-led version of it.
Bottom line: Arq delivered a genuine Q3 beat and raised its EBITDA floor, validating the profitability of the PAC business. The filing strengthens the existing turnaround story, but the bigger PFAS and GAC growth avenues remain ahead rather than realized.
November 5 earnings call; PAC for PFAS order timing
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