Slide 1: Q1 2026 Earnings Call
Q1 2026 Earnings Call May 7, 2026
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and 21E of the Securities Exchange Act of 1934, as amended, which provides a “safe harbor” for such statements in certain circumstances. When used in this pre
Slide 3: Notable Q1 2026 Financial Highlights & Recent Updates
Notable Q1 2026 Financial Highlights & Recent Updates Adjusted EBITDA1 2026 Outlook Total Revenue $29.1M $2.7M Reiterate Guidance Driven by strong PAC operational and Reiterated inaugural guidance, +7% YoY, driven by ongoing sales performance, partially offset by including full-year 2026 revenue str
Slide 4: Q1 2026 Financial Highlights
Q1 2026 Financial Highlights $ millions unless noted Q1 2026 Q1 2025 • Revenue growth driven by increased Revenue $29.1 $27.2 PAC sales and partially offset by decreases in price caused by product mix Gross Margin 34% 36% • Gross margin and net income also impacted by ~$800k non-cash inventory reval
Slide 5: GAC Strategic Optimization Review Update
GAC Strategic Optimization Review Update What We’re Doing: Why We’re Doing It: • Strategic optimization review ongoing to determine practical path forward for economically attractive GAC Ensure optimal production production scale economics • Working with two separate equipment and engineering design
Slide 6: GAC Market Dynamics
GAC Market Dynamics Basis for entering market remains unchanged and extremely compelling • GAC fundamentals remain strong – continued excess demand versus supply in short, medium and long term; competitors raising prices as the EPA’s April 2027 PFAS monitoring deadline approaches • Water market rema
Slide 7: Management and Board Alignment with Shareholders
Management and Board Alignment with Shareholders Meaningful ownership and continued commitment Insider Ownership: Board and Management CEO Robert Rasmus: A History of Commitment 140,000 20% Cumulative Shares Purchased Insiders In addition to 950,000 shares purchased 120,718 120,000 pre-joining the c
Slide 8: Financial Guidance & Outlook (Full-Year 2026)
Financial Guidance & Outlook (Full-Year 2026) • Guidance based on proven PAC Total Revenue operations with over 15 years’ $120 – $125M experience Adjusted EBITDA • 96% contract visibility on 2026 volumes $17 – $20M • Strong pricing reflects continued specialty product mix and market diversification
Slide 9: Key Near-term Priorities & Objectives
Key Near-term Priorities & Objectives Continue optimization of cash-generative foundational PAC business Conduct and complete strategic optimization review of GAC business Continue expansion into adjacent PAC market opportunities Deliver on 2026 financial guidance 9
Slide 10: Financial Detail
Financial Detail
Slide 11: Consolidated Balance Sheet
Consolidated Balance Sheet1 As of (in thousands, except share data) March 31, 2026 December 31, 2025 ASSETS Current assets: Cash $ 4,672 $ 6,573 Receivables, net 15,952 14,980 Inventories, net 19,913 15,895 Prepaid expenses and other current assets 5,513 6,404 Total current assets 46,050 43,852 Rest
Slide 12: Consolidated Statements of Operations
Consolidated Statements of Operations1 Three Months Ended March 31, (in thousands, except per share data) 2026 2025 Revenue $ 29,053 $ 27,247 Cost of revenue, exclusive of depreciation and amortization 19,114 17,332 Operating expenses: Selling, general and administrative 7,369 6,053 Research and dev
Slide 13: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows1 Three Months Ended March 31, (in thousands) 2026 2025 Cash flows from operating activities Net (loss) income $ (842) $ 203 Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities: Depreciation, amortization, depletion a
Slide 14: Consolidated Statements of Cash Flows - Cont.
Consolidated Statements of Cash Flows - Cont. 1 Three Months Ended March 31, (in thousands) 2026 2025 Cash flows from financing activities Borrowings on revolving credit facility 32,439 30,700 Repayments of revolving credit facility (30,481) (28,344) Repurchase of common stock to satisfy tax withhol
Slide 15: Note on Non-GAAP Financial Measures
Note on Non-GAAP Financial Measures To supplement our financial information presented in accordance with U.S. Generally Accepted Accounting Principles ("U.S. GAAP"), we provide certain supplemental financial measures, including EBITDA and Adjusted EBITDA, which are measurements that are not calculat
Slide 16: Reconciliation of Net Loss to Adjusted EBITDA
Reconciliation of Net Loss to Adjusted EBITDA 1 Three Months Ended March 31, (in thousands) 2026 2025 Net (loss) income $ (842) $ 203 Depreciation, amortization, depletion and accretion 2,570 2,181 Amortization of Upfront Customer Consideration 180 127 Interest expense, net (55) 671 Income tax expen
Slide 17: Appendix
Appendix
Slide 18: Company Overview
Company Overview General Applications of Our Products o Arq is a diversified, environmental technology company producing activated carbon products PFAS which reduce or reverse environmental liabilities, Remediation including PFAS or “forever chemicals”. Our products enable a cleaner and safer planet
Slide 19: What is Activated Carbon?
What is Activated Carbon? • Also known as activated charcoal • Activated carbons are largely engineered sorbent materials which purify, filter and remove pollutants from air, water and soil • When activated, able to “adsorb” a wide range of harmful compounds from air, gas & liquids • “Activation” pr
Slide 20: Products & Market Applications
Products & Market Applications GAC from bituminous coal best at remediating PFAS and forever chemicals Applications Market Focus • Potable Water • PFAS Remediation Granular Municipal water, PFAS Growth Activated remediation, soil & • Wastewater Treatment Business Carbon groundwater remediation, • Bi
Slide 21: PFAS Regulations & Impact
PFAS Regulations & Impact EPA under new Administration remains committed to reducing and removing PFAS contamination Landscape Update Arq Implications & Additional Detail • Apr 2024: 2024: EPA issues rule • Arq estimates regulations could boost municipal requiring municipal drinking water water mark
Slide 22: Arq Benefiting from U.S. Tariffs
Arq Benefiting from U.S. Tariffs • Only domestic producer with fully integrated activated carbon supply chain - competitive advantage further amplified under tariffs • Many competitors face headwinds due to imported feedstock dependencies • Net beneficiary of current tariff environment - positioned
Slide 23: Developing New Markets: Arq-Enabled Great Lakes Restoration Project
Developing New Markets: Arq-Enabled Great Lakes Restoration Project • Thomson Reservoir cleanup marks largest activated carbon sediment remediation in U.S. history • Activated carbon supplied exclusively by Arq and deployed to isolate and neutralize toxic dioxins and furans from industrial legacy po
Slide 24: Strong North American GAC Market Fundamentals
Strong North American GAC Market Fundamentals Data suggest demand outpacing supply – Arq anticipates a 3-5x increase in demand over next 5 years not accounting for potential incremental demand growth from other sectors (e.g., biogas) • Arq expects annual GAC market to grow ~75% to >700mm lbs1 • Woul
Slide 25: GAC Usage in Water Industry
GAC Usage in Water Industry EPA confirms GAC as a Best Available Technology (“BAT”) for PFAS removal 1 • 77% of water entities still lack any PFAS treatment solution per GAO, despite many GAC systems under construction 2 • Water systems must currently monitor PFAS by 2027 and remediate by 2029 if le
Slide 26: EPA Confirms GAC as a Best Available Technology for PFAS removal
EPA Confirms GAC as a Best Available Technology for PFAS removal Alternative technologies for PFAS removal and how they compare PFAS Technology Advantage Disadvantage Lowest unit cost ꭗ Requires longer contact time Strong PFAS removal performance ꭗ More frequent media change-outs Handles varie
Slide 27: GAC Usage in Biogas & Renewable Natural Gas Industry
GAC Usage in Biogas & Renewable Natural Gas Industry • Biogas is produced when organic material • The RNG is passed directly through a GAC column to achieve decomposes in anaerobic conditions. Biogas can be this purification processed to remove impurities – such as CO2, H2S and Siloxane – to produce
Slide 28: GAC Market Summary
GAC Market Summary Estimated 2025 GAC Demand by Sector 1 Pharma / chem Municipal wastewater Food • GAC demand dominated by Groundwater potable water 3% 1% 3% 6% • Smaller markets can offer higher Industrial Wastewater pricing and growth 7% • Provides potential for meaningful diversification for Arq
Slide 29: Activated Carbon (AC) Competitive Landscape
Activated Carbon (AC) Competitive Landscape Arq remains only public pure-play in activated carbon • Attractive growth market with concentrated pool of private competitors Entering GAC market at sweet-spot: providing meaningful scale while also representing a • Calgon Carbon Corporation is the viab
Slide 30: Growth Beyond Activated Carbon
Growth Beyond Activated Carbon Advanced alternative product developments creating multiple potential revenue streams from Corbin feedstock Potential applications: • Asphalt: Using Arq wetcake as a blending component to extend asphalt life, maintain blackness, and improve freeze-thaw durability. Test
Slide 31: Arq Investor Relations
Arq Investor Relations Contacts: Anthony Nathan, Arq Marc Silverberg, ICR investors@arq.com 8051 E. Maplewood Ave, Suite 210 Greenwood Village, CO 80111 Nasdaq: ARQ