Insider Trading March 16, 2026

Arq General Counsel Makes Small Insider Purchase as Company Navigates Operational Hurdles

Claiborne Benson Smith adds 2,000 shares amid production pauses, impairment charge and lender amendments

By Ajmal Hussain ARQ
Arq General Counsel Makes Small Insider Purchase as Company Navigates Operational Hurdles
ARQ

Arq, Inc.'s general counsel purchased a total of 2,000 shares in two separate transactions in March 2026, spending $3,836. The buy comes as the company reports mixed quarterly results, records a $45 million non-cash impairment tied to Corbin assets and GAC production, pauses granular activated carbon output to address a thermal oxidizer limitation, and updates a credit agreement with MidCap Funding IV Trust.

Key Points

  • Arq General Counsel Claiborne Benson Smith purchased 2,000 shares across two transactions in March 2026, spending $3,836 and now directly owning 102,491 shares.
  • Arq reported 9% sales growth for Q4 2025, beating expectations by 2%, but gross margin was 14%, below Clear Street’s projection; the company recorded a $45 million non-cash impairment related to Corbin assets and GAC production.
  • GAC production is paused due to issues with a thermal oxidizer that currently supports 15 million pounds of annual production versus a target of 25 million; lenders and analysts adjusted price targets while maintaining Buy ratings, and the company amended its credit agreement with MidCap Funding IV Trust to temporarily lower minimum liquidity requirements.

Arq, Inc. (NASDAQ:ARQ) disclosed that Claiborne Benson Smith, the company’s General Counsel and Corporate Secretary, completed two insider purchases of the company’s common stock in March 2026 totaling $3,836.

Per a Form 4 filed with the Securities and Exchange Commission, Smith acquired 1,000 shares on March 12, 2026 at $1.9185 per share and purchased an additional 1,000 shares on March 16, 2026 at $1.9179 per share. After these transactions, Smith directly holds 102,491 shares of Arq, Inc.

The insider purchases occurred while ARQ shares were trading at $1.88, a price point that represents a 62% decline over the past year and sits close to the stock’s 52-week low of $1.54. Analysis from InvestingPro noted that the stock appears undervalued at current levels and that InvestingPro supplies 11 additional tips and expanded metrics for investors seeking deeper data on the company.

Operationally and financially, Arq reported mixed results for the fourth quarter of 2025. The company recorded 9% sales growth in the quarter, beating expectations by 2%. Despite the top-line beat, Arq’s gross margin came in at 14%, materially underperforming Clear Street’s forecast.

Arq also recorded a $45 million non-cash impairment charge associated with its Corbin assets and the company’s granular activated carbon (GAC) production. Management has paused GAC production in response to issues with the facility’s thermal oxidizer. The oxidizer is currently supporting only 15 million pounds of annual production capacity, below the targeted 25 million pounds, prompting the temporary production halt while the issue is addressed.

Following these developments, Canaccord Genuity and Clear Street each lowered their respective price targets for Arq, adjusting them to $5.00 and $6.50, respectively. Both firms retained Buy ratings despite the reductions.

In parallel with operational adjustments, Arq amended its Credit, Security, and Guaranty Agreement with MidCap Funding IV Trust. The amendments alter the calculations used to determine borrowing availability and make changes to the company’s minimum liquidity requirements. Specifically, the minimum liquidity threshold was temporarily reduced to $2.0 million until February 27, 2026; after that date the minimum will increase to $5.0 million.

The insider purchase by Arq’s top legal officer is a modest transaction in dollar terms but comes against a backdrop of production challenges, a large impairment charge and revised lender covenants. These facts provide context for investors evaluating the company’s near-term operating profile and capital position.


Note: This article presents the facts disclosed by the company, regulatory filings and analyst updates without commentary beyond the reported information.

Risks

  • Operational risk from the paused granular activated carbon (GAC) production driven by thermal oxidizer limitations could constrain manufacturing output and revenue recovery - impacts manufacturing and industrial segments.
  • Financial risk related to the $45 million non-cash impairment charge tied to Corbin assets increases reported losses or reduces asset values on the balance sheet - impacts capital markets and credit assessments.
  • Liquidity and covenant risk stemming from amendments to the credit agreement, including a temporary reduction of minimum liquidity to $2.0 million prior to an increase to $5.0 million, may affect the company’s access to borrowing under certain conditions - impacts credit and lending markets.

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