Arq Reports Second Quarter 2024 Results

Core Insights - Arq, Inc. reported a revenue of $25.4 million for Q2 2024, marking a 24% increase year-over-year, driven by improved contract terms and a favorable product mix [2][6] - The company achieved a 16% increase in average selling prices (ASP) in Q2 2024, representing the fifth consecutive quarter of double-digit year-over-year growth in ASP [2][6] - Gross margin improved to 32% in Q2 2024, up from 25% in the prior year, attributed to higher revenue and a focus on profitability [2][8] Financial Performance - The net loss for Q2 2024 was $2.0 million, a significant improvement from a loss of $5.9 million in the same period last year [2][13] - Adjusted EBITDA for Q2 2024 was $0.5 million, compared to an adjusted EBITDA loss of $3.0 million in the prior year [2][14] - Cash and restricted cash as of June 30, 2024, totaled $37.2 million, down from $44.0 million at the end of Q1 2024 [2][17] Business Developments - The company secured additional granular activated carbon (GAC) supply contracts, bringing total contracted volume to 13 million pounds per year, which is 52% of the expanded nameplate capacity of 25 million pounds [3] - Arq was added to the Russell 3000 and Russell 2000 Indices in July 2024, enhancing its visibility in the investment community [3] - A $15 million private placement of common stock was completed in May 2024, bolstering the company's liquidity [3] Operational Updates - The commissioning of the Corbin facility began in early Q2 2024, with production expected to ramp up in Q4 2024 [3][5] - The company anticipates achieving first GAC deliveries from the Red River facility in Q1 2025, despite facing construction delays due to unprecedented rain [5] - Capital expenditure forecasts for the full year 2024 remain at $60 - $70 million, consistent with previous guidance [2][16]