Financial Performance - Total revenue reached $28.6 million, a 13% year-over-year increase driven by improved Average Selling Price (ASP) and end-market diversification[6] - Gross margin was 33.3%, reflecting sustainable improvement in PAC performance[6] - Adjusted EBITDA was $3.7 million, compared to $1.1 million in the prior year period, marking 5 consecutive quarters of positive Adjusted EBITDA[7, 11] - PAC pricing grew by 9% year-over-year in Q2 2025, with an average quarterly growth of approximately 16% in PAC ASP since Q2 2023[6, 16] GAC Commissioning and Expansion - The company completed the commissioning of its transformational GAC facility at Red River, with ramp-up to nameplate capacity underway[6, 24] - The company is targeting a Final Investment Decision (FID) for a 2nd GAC line prior to year-end 2025[8, 27] - The Red River plant is expected to add production of GAC and expand the plant to deliver an incremental 25 million pounds of GAC product[32] Market and Regulatory Landscape - EPA regulations could boost municipal water market demand by 3 to 5 times from approximately 170 million pounds per year[37] - The company is benefiting from U S tariffs due to its fully integrated domestic supply chain[38] Strategic Initiatives - The company is developing new markets, including the Arq-Enabled Great Lakes Restoration Project, which is the largest PAC sediment remediation in U S history[41, 42] - The company is exploring growth beyond activated carbon, with multiple initiatives focused on developing additional product opportunities and revenue streams from Corbin feedstock[43]

Financial Performance - Total revenue reached $27.2 million, a 25% year-over-year increase, driven by improved Average Selling Price (ASP) and end-market diversification[6, 10] - Adjusted EBITDA was $4.1 million, compared to a loss of $0.4 million in the prior year period, marking four consecutive quarters of positive Adjusted EBITDA[7, 10] - The company achieved net profitability during Q1 2025, with a net income of $0.2 million compared to a net loss of $3.4 million in Q1 2024[10] - Gross margin remained strong at 36.4% in Q1 2025[6, 20] PAC Business - The company achieved its 8th consecutive quarter of double-digit year-over-year growth in PAC ASP, with an approximately 13% ASP increase year-over-year[6, 11, 18] - 100% of PAC contracts are now net cash producers, as loss-making contracts have been eliminated[6, 7, 18] GAC Business & Red River Project - The Red River project is expected to add 25 million pounds of incremental GAC product capacity[27, 31] - The company has entered into supply contracts for approximately 16 million pounds of the Red River plant's nameplate capacity[31] - First commercial-scale production of on-specification GAC product is anticipated by the end of Q2 or early Q3 2025[31, 35] PFAS Regulations & Market Impact - EPA regulations potentially increase municipal water market demand by 3-5x vs the existing approximately 170 million pounds per year[39] - The company estimates that the annual GAC market could grow approximately 75% to over 700 million pounds[108]

Market Overview - The global activated carbon market is projected to grow from $6.6 billion in 2024 to $10.2 billion by 2029, at a CAGR of 9.3% [1][2][8] - Activated carbon is essential for sustainability, driven by environmental regulations and increasing demand for water purification, air filtration, and mercury emission reduction [1][3] Market Drivers - The U.S. EPA's MATS regulations and rising adoption in automotive, pharmaceuticals, and industrial sectors are fueling market expansion [1][4] - Growing legislation related to environmental protection is a key driver for the demand for activated carbon [3] - The demand is also influenced by the U.S. EPA's Disinfectants and Disinfection Byproducts Rule, which limits chemicals in drinking water [3] Market Segmentation - The market is segmented by type (powdered activated carbon, granular activated carbon, and others), feedstock material (wood and coal, coconut shell, and others), application (water treatment, air purification, food processing, mercury removal, medical and pharmaceutical, mining), and region (North America, Europe, Asia-Pacific, and Rest of the World) [5][12] Key Trends - Key trends include the development of reactivated carbon technologies, integration of nanotechnology, and compliance with ESG standards [1][3] - Activated carbon is gaining popularity in the automotive sector for reducing hydrocarbon emissions [4] Competitive Landscape - Industry leaders include Kuraray, Evoqua, and Jacobi Carbons, with detailed company profiles provided in the report [1][11][17] - The report includes an analysis of market shares, strategic alliances, and M&A activity within the activated carbon industry [11] Emerging Technologies - Innovations in activated carbon include microwave-assisted activation, plasma activation, and the incorporation of nanotechnology [12][16] - The report discusses the potential of reactivated carbon and other emerging technologies to provide profitable opportunities [12]