Arq(ARQ) - 2025 Q1 - Quarterly Results

Financial Performance - Revenue for Q1 2025 totaled $27.2 million, reflecting a 25% increase compared to $21.7 million in the prior year period[7] - Net income for Q1 2025 was $0.2 million, a significant improvement from a net loss of ($3.4) million in the prior year period[13] - Operating income for Q1 2025 was $662,000, compared to a loss of $2,980,000 in Q1 2024, indicating a significant turnaround[26] - Adjusted EBITDA for Q1 2025 was $4.1 million, compared to an Adjusted EBITDA loss of ($0.4) million in the prior year period, marking the 4th consecutive quarter of positive Adjusted EBITDA[13] - Adjusted EBITDA for Q1 2025 was $4,063,000, compared to a loss of $362,000 in Q1 2024, showing improved operational performance[33] Cost and Expenses - Gross margin for Q1 2025 was 36.4%, slightly down from 36.9% in the prior year period, impacted by start-up costs associated with the GAC line[8] - Selling, general and administrative expenses decreased by approximately 21% to $6.1 million in Q1 2025, down from $7.7 million in the prior year period[9] - The company incurred $17,332,000 in cost of revenue for Q1 2025, which is an increase from $13,713,000 in Q1 2024, reflecting higher operational costs[26] - Research and development expenses decreased to $874,000 in Q1 2025 from $1,625,000 in Q1 2024, a reduction of 46.0%[26] Capital and Debt - Capital expenditures for 2025 are forecasted to remain between $8 million and $12 million, with Q1 2025 capex totaling $3.7 million[14] - Total debt as of March 31, 2025, was $26.8 million, an increase from $24.8 million as of December 31, 2024, primarily due to the revolving credit facility[15] Assets and Liabilities - Total current assets decreased to $48,234,000 as of March 31, 2025, down from $52,356,000 at the end of 2024, a decline of 7.4%[24] - Total liabilities decreased to $65,498,000 as of March 31, 2025, down from $67,092,000 at the end of 2024, a reduction of 2.4%[24] Sales and Market Activity - Average sales price (ASP) increased by approximately 13% in Q1 2025, marking the 8th consecutive quarter of double-digit year-over-year growth in ASP[5] - The company signed its second largest PAC contract in history in April 2025, indicating strong business momentum[5] - The first commercial GAC production is now expected by the end of Q2 or early Q3 2025, reflecting a delay from previous guidance[6] Shareholder Information - The weighted-average number of common shares outstanding increased to 41,322,000 in Q1 2025 from 37,062,000 in Q1 2024, an increase of 11.0%[26] Cash Position - Cash and restricted cash at the end of Q1 2025 was $14,803,000, down from $44,019,000 at the end of Q1 2024, a decrease of 66.4%[28]