Arq Inc. $(ARQ)$ has announced its financial and operating results for the second quarter ended June 30, 2025. The company reported a 13% increase in revenue, totaling $28.6 million, compared to the same period last year. This growth was primarily driven by higher average sales prices and increased volumes sold. The net loss for the quarter was $2.1 million, slightly up from a $2.0 million net loss in the prior year period. Adjusted EBITDA showed significant improvement, reaching $3.7 million, up from $1.1 million in the previous year, marking the fifth consecutive quarter of positive Adjusted EBITDA. Operating loss was reported at $1.6 million, compared to $1.4 million in the prior year period. The company also noted a decrease in selling, general, and administrative expenses to $5.9 million, from $7.0 million a year earlier, largely due to reduced payroll and benefits expenses. Meanwhile, research and development costs rose to $2.7 million, from $0.9 million in the previous year, due to non-recurring expenses related to pre-production testing at the GAC Facility. Arq achieved a gross margin of 33.3% for the quarter, improving from 32.2% in the prior year period. The company successfully commissioned its first Granular Activated Carbon (GAC) line at Red River, marking a significant operational milestone. Looking ahead, Arq plans to make a final investment decision on a second GAC line by the end of 2025. Capital expenditures for the full year 2025 are expected to remain within the previously guided range of $8 - $12 million.
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