Slide 1: Q2 2025 Earnings Call
Nasdaq: ARQ Q2 2025 Earnings Call August 12, 2025
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 2025 & Recent Achievements
Notable Q2 2025 & Recent Achievements Total Revenue Gross Margin Adjusted EBITDA1 $28.6 million 33.3% $3.7 million 13% growth YoY; driven by Reflects sustainable vs. $1.1 million prior year Average Selling Price (“ASP”) improvement in PAC period; 5 consecutive improvement & end-market performance qu
Slide 4: Q2 2025 Financial Highlights
Q2 2025 Financial Highlights $ millions unless noted Q2 2025 Q2 2024 Revenue $28.6 $25.4 ✓ Revenue increase of 13% driven by higher ASP and volumes Gross Margin 33.3% 32.2% ✓ Achieved 5 consecutive th Net loss ($2.1) ($2.0) quarter of positive Adjusted EBITDA: $3.7 million in Q2 Adjusted EBITDA(1) $
Slide 5: Steady Price Increases Underpin Sustainable PAC Business Performance
Steady Price Increases Underpin Sustainable PAC Business Performance YoY ASP % Change Outlook 30% o Long-term profitability and • 9% ASP increase YoY in Q2 2025 25% growth remains a focus • 16% average ASP increase YoY since Q2 2023 20% o Expanding into adjacent markets with enhanced pricing and 15%
Slide 6: Attractive & Consistent Growth in Gross Margin
Attractive & Consistent Growth in Gross Margin Material and consistent gross margin improvement due to ASP growth and focused cost cutting initiatives Gross Margin % 49.8% o Gross margin remained strong at 50% 33.3% in Q2 2025 45% o Actively optimizing gross margin with 40% 36.9% 38.6% 36.3% 36.4% r
Slide 7: Major Milestone Achieved: GAC Commissioning at Red River
Major Milestone Achieved: GAC Commissioning at Red River Completed commissioning of transformative GAC line; major milestone in Arq's ongoing business transformation • In August 2025, successfully completed commissioning of Arq’s 1st GAC production line • Achieved first sales revenue from GAC testin
Slide 8: Red River: Driving Arq's Corporate Transformation
Red River: Driving Arq’s Corporate Transformation Red River Project Corbin Project What it Delivers ✓ Generate strong additional GAC cash flow on top of PAC foundation ✓ Long-term revenue and profitability runway ✓ Expanded products and solutions portfolio • Adding production of GAC + expanding • Ut
Slide 9: PFAS Regulations & Impact
PFAS Regulations & Impact EPA under new Administration remains committed to reducing and removing PFAS contamination Landscape Update Arq Implications & Additional Detail • April 2024: 2024: EPA issues rule • Arq estimates regulations could boost requiring municipal drinking municipal water market d
Slide 10: Arq Benefiting from U.S. Tariffs
Arq Benefiting from U.S. Tariffs Unique position with fully integrated domestic supply chain • 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 •
Slide 11: Developing New Markets: Arq-Enabled Great Lakes Restoration Project
Developing New Markets: Arq-Enabled Great Lakes Restoration Project • Thomson Reservoir cleanup marks largest PAC 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 pollution • Arq
Slide 12: Growth Beyond Activated Carbon
Growth Beyond Activated Carbon Multiple initiatives focused on developing additional product opportunities and revenue streams from Corbin feedstock Potential applications: • Asphalt – using Arq Powder as a blending component to extend freeze-thaw durability, increase hardness, and provide recyclabl
Slide 13: Key Near-term Priorities & Objectives
Key Near-term Priorities & Objectives Continue optimization of foundational cash-generative PAC business Ramp production at Red River GAC Facility as next phase of transformation Finalize contracts for remaining Phase I GAC volumes Finalize FID for 2nd GAC line by year end 2025 Continue initiatives
Slide 14: Financial Detail
Financial Detail
Slide 15: Consolidated Balance Sheet
Consolidated Balance Sheet1 As of (in thousands, except share data) June 30, 2025 December 31, 2024 ASSETS Current assets: Cash $ 6,957 $ 13,516 Receivables, net 15,547 14,876 Inventories, net 20,778 19,314 Prepaid expenses and other current assets 7,382 4,650 Total current assets 50,664 52,356 Rest
Slide 16: Consolidated Statements of Operations
Consolidated Statements of Operations1 Three Months Ended June 30, Six Months Ended June 30, (in thousands, except per share data) 2025 2024 2025 2024 Revenue $ 28,584 $ 25,405 $ 55,831 $ 47,145 Cost of revenue, exclusive of depreciation and amortization 19,066 17,227 36,398 30,940 Operating expense
Slide 17: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows1 Six Months Ended June 30, (in thousands) 2025 2024 Cash flows from operating activities Net loss $ (1,930) $ (5,387) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation, amortization, depletion and accretion 4,666 3,374 Stoc
Slide 18: Consolidated Statements of Cash Flows - Cont.
1 Consolidated Statements of Cash Flows - Cont. Six Months Ended June 30, (in thousands) 2025 2024 Cash flows from investing activities Acquisition of property, plant, equipment and intangible assets, net $ (5,589) $ (28,766) Acquisition of mine development costs (96) (85) Distributions from equity
Slide 19: 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 20: Adjusted EBITDA Reconciliation to Net Loss
Adjusted EBITDA Reconciliation to Net Loss Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2025 2024 2025 2024 Net loss $ (2,133) $ (1,968) $ (1,930) $ (5,387) Depreciation, amortization, depletion and accretion 2,485 1,658 4,666 3,374 Amortization of Upfront Customer Considerat
Slide 21: Appendix
Appendix
Slide 22: Company Overview
Company Overview General Applications of Our Products o Arq is a diversified, environmental technology company producing activated carbon products which reduce or reverse environmental liabilities, PFAS Remediation including PFAS or “forever chemicals”. Our products enable a cleaner and safer planet
Slide 23: 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 24: 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 25: Our Key GAC Differentiators
Our Key GAC Differentiators Activated carbon is a technical sale – our unique products, process and supply chain are key differentiators We will be the only GAC producer: …with a vertically …using bituminous …and with estimated integrated domestic coal waste feedstock, lower Scope 1 & 2 supply chain
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: Growth Beyond Red River Phase I
Growth Beyond Red River Phase I Key Triggers Needed to Pursue Phase II Illustrative Red River GAC Buildout Assumes Phases I & II are built ~1-year apart; potential of 125 million lbs. • Successful commissioning of Red River Phase I completed 140 • Achieving Phase I annual nameplate production levels
Slide 28: 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 29: 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 30: 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 31: 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 32: 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 33: Advancing GAC Technology for Enhanced PFAS Removal Efficacy
Advancing GAC Technology for Enhanced PFAS Removal Efficacy Building Market Increasing Increasing Removal Enhancing GAC Adoption Treatment Capacity Speed Purity Advancing testing scale Improving water treatment Decreasing equipment size Reducing extractable from lab to field volume up to 10x or wate
Slide 34: Arq: Key Company Highlights
Arq: Key Company Highlights Vertically Integrated The only vertically integrated domestic activated carbon supply chain 100% Domestic Our vertically integrated supply chain consumes 100% domestic feedstock, differentiating us vs. internationally dependent peers Growth-Focused Legacy PAC assets provi
Slide 35: 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