Slide 1: Investor Presentation
Investor Presentation Q2 Earnings Conference Call | August 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 Q2 2026 Financial Highlights & Recent Updates
Notable Q2 2026 Financial Highlights & Recent Updates Total Revenue Adjusted EBITDA1 2026 Outlook $29.9M $5.8M Reiterate Guidance Revenue increased 5% YoY, +59% YoY on PAC profitability, Reiterated inaugural guidance, driven by continued PAC pricing pricing discipline, and no GAC including full-year
Slide 4: Q2 2026 Financial Highlights
Q2 2026 Financial Highlights Solid financial and operational performance, including material improvement in profitability • Revenue growth driven by continued PAC $ millions unless noted Q2 2026 Q2 2025 pricing (+7% YoY) and volume (+4% YoY) improvements Revenue $29.9 $28.6 • Gross margin improvemen
Slide 5: Strategic Optimization Review Update
Strategic Optimization Review Update Ongoing optimization of broader operations targeted to potentially deliver up to 50% Adjusted EBITDA growth Existing business can potentially be made materially more profitable by: Ensure optimal GAC Optimization ✓ Increasing capacity utilization production scale
Slide 6: Introducing PAC for PFAS
Introducing PAC for PFAS PFAS removal for certain customers can provide incremental volume from 2027 What We’re Doing: Benefits to Customers Benefits to Arq • A highly engineered PAC product Lower capital Meaningful volume, pricing, designed to remove low levels of cost & margin upside 2027+ PFAS co
Slide 7: Low Capital Cost Strategy to Address PFAS
Low Capital Cost Strategy to Address PFAS Provides practical, proven and affordable solution to customers ahead of regulatory changes • Arq’s Next-Gen PAC products expected to enable immediate PFAS compliance for certain customers without infrastructure capex requirements • Arq’s products are expect
Slide 8: Coal-fired Power Market Provides Base Load Profitability for Arq
Coal-fired Power Market Provides Base Load Profitability for Arq Remains material portion of US grid through 2035 but diversification still prudent US Coal Operating Capacity (GW) vs Share of Electricity Generated (%) • Market has longer duration than previously anticipated 200 20% 150 15% • Operati
Slide 9: GAC Market Dynamics
GAC Market Dynamics Fundamentals remain strong, supporting both our GAC and PAC for PFASTM strategy • PAC for PFAS is complementary, near-term solution for certain customers and does not diminish underlying GAC opportunity • GAC fundamentals remain strong – mandatory PFAS monitoring begins April 202
Slide 10: Management & Board Alignment with Shareholders
Management & 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 120,718 Insiders 120,000 In addition to 950,000 shares purchased pre-joining the com
Slide 11: Financial Guidance & Outlook (Full-Year 2026)
Financial Guidance & Outlook (Full-Year 2026) Guidance based on proven PAC operations with 15+ years of experience • Strong pricing reflects Total Revenue Adjusted EBITDA continued specialty $120 – $125M $17 – $20M product mix and market diversification (vs. $13.2M in FY25) • Strategic optimization
Slide 12: Key Near-term Priorities & Objectives
Key Near-term Priorities & Objectives Achieve 50% increase in Adjusted EBITDA from base PAC/Lignite business Complete strategic optimization review of existing business, adjacent markets & GAC Continue expansion into new PAC market opportunities Deliver on 2026 financial guidance Create long-term sh
Slide 13: Financial Detail
Financial Detail Sf.
Slide 14: Consolidated Balance Sheet
Consolidated Balance Sheet2 As of (in thousands, except share data) Jun 30, 2026 Dec 31, 2025 As Adjusted (1) ASSETS Current assets: Cash $ 906 $ 6,573 Receivables, net 20,030 14,980 Inventories, net 19,407 15,895 Prepaid expenses and other current assets 6,894 6,404 Total current assets 47,237 43,8
Slide 15: Consolidated Statements of Operations
Consolidated Statements of Operations2 Three Months Ended June 30, Six Months Ended June 30, (in thousands, except per share data) 2026 2025 As Adjusted (1) 2026 2025 As Adjusted (1) Revenue $ 29,883 $ 28,584 $ 58,936 $ 55,831 Cost of revenue, exclusive of depreciation and amortization 18,372 19,066
Slide 16: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows 2 Six Months Ended June 30, (in thousands) 2026 2025 As Adjusted (1) Cash flows from operating activities Net loss $ (1,870) $ (2,402) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation, amortization, depletion and accretion
Slide 17: 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 18: Reconciliation of Net Loss to Adjusted EBITDA
Reconciliation of Net Loss to Adjusted EBITDA 2 Three Months Ended June 30, Six Months Ended June 30, 2025 2025 2026 2026 (in thousands) As Adjusted (1) As Adjusted (1) Net loss $ (733) $ (2,369) $ (1,870) $ (2,402) Depreciation, amortization, depletion and accretion 3,542 2,721 6,407 5,138 Amortiza
Slide 19: Appendix
Appendix 19
Slide 20: 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 21: 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 22: 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 23: 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 24: 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 25: 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 26: 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 27: 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 28: 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 29: 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 30: 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 31: Activated Carbon Competitive Landscape
Activated Carbon Competitive Landscape Arq remains only large scale public pure-play in activated carbon ✓ Exposure to large and growing PFAS remediation market • Attractive growth market with through planned PAC for PFAS and potentially through concentrated pool of private competitors conventional
Slide 32: 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 33: 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:33ARQ