ARQQ Stock Analysis: Arqit Quantum | NASDAQ
Software - Infrastructure | NASDAQ, USA | Market Cap: 428m USD | 12M Return: -56.5% | KYG0567U1278 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 6.30M
Warnings
Tailwinds
No distinct edge detected
Seasonality 5.4 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Arqit Quantum Inc. (ARQQ) is a London-based cybersecurity company that delivers encryption services through both satellite and terrestrial platforms. Its flagship product, QuantumCloud, is a Platform as a Service (PaaS) offering that generates software-based encryption keys designed to be resistant to compromise. The company also generates revenue from maintenance, support, and professional services.
The company operates within the broader Information Technology sector, specifically the application software and cybersecurity subsectors. Quantum-safe cryptography is an emerging area of cybersecurity focused on protecting data against potential future threats from quantum computing, which could theoretically break traditional encryption methods.
- QuantumCloud contract wins accelerate recurring revenue growth
- Cash burn pressures margins and risks dilutive equity raises
- NIST post-quantum standards lift demand for encryption services
| Net Income: -51.2m TTM > 0 and > 6% of Revenue |
| FCF/TA: -1.15 > 0.02 and ΔFCF/TA -22.19 > 1.0 |
| NWC/Revenue: 2.35k% < 20% (prev 6.53k%; Δ -4.18k% < -1%) |
| CFO/TA -1.15 > 3% & CFO -41.7m > Net Income -51.2m |
| Net Debt/EBITDA: error (EBITDA <= 0) |
| Current Ratio: 4.88 > 1.5 & < 3 |
| Outstanding Shares: last quarter (16.6m) vs 12m ago 227.7% < -2% |
| Gross Margin: 9.30% > 18% (prev -393.8%; Δ 403.1% > 0.5%) |
| Asset Turnover: 3.31% > 50% (prev 0.82%; Δ 2.49% > 0%) |
| Interest Coverage Ratio: -742.7 > 6 (EBIT TTM -51.2m / Interest Expense TTM 69.0k) |
| A: 0.71 (Total Current Assets 32.2m - Total Current Liabilities 6.59m) / Total Assets 36.2m |
| B: -6.62 (Retained Earnings -240.1m / Total Assets 36.2m) |
| C: -1.56 (EBIT TTM -51.2m / Avg Total Assets 32.8m) |
| D: 3.69 (Book Value of Equity 28.5m / Total Liabilities 7.73m) |
| Altman-Z'' = -23.59 = D |
| DSRI: 0.41 (Receivables 3.30m/1.79m, Revenue 1.09m/241k) |
| GMI: 1.00 (fallback, negative margins) |
| AQI: 0.86 (AQ_t 0.06 / AQ_t-1 0.07) |
| SGI: 4.51 (Revenue 1.09m / 241k) |
| TATA: -0.26 (NI -51.2m - CFO -41.7m) / TA 36.2m) |
| Beneish M = -1.11 (Cap -4..+1) = D |
As of October 07, 2026, the stock is trading at USD 23.43 with a total of 157,238 shares traded. Over the past week, the price has changed by -2.86%, over one month by +3.72%, over three months by +5.87% and over the past year by -56.50%.
Current recommended Stop Loss: 20.90 (which is 10.8% or 1.5 ATR below the current price).
Arqit Quantum has no consensus analysts rating.
| Analysts Target Price | 60 | 156.1% |
P/E Forward = 18.7266
P/S = 394.5188
P/B = 13.773
Revenue TTM = 1.09m USD
EBIT TTM = -51.2m USD
EBITDA TTM = -50.3m USD
Long Term Debt = 1.14m USD (estimated: total debt 2.17m - short term 1.03m)
Short Term Debt = 1.03m USD (from shortTermDebt, last quarter)
Debt = 2.17m USD (from shortLongTermDebtTotal, last quarter) (leases 2.17m already included)
Net Debt = -26.7m USD (calculated: Debt 2.17m - CCE 28.9m)
Enterprise Value = 401.8m USD (428.4m + Debt 2.17m - CCE 28.9m)
Interest Coverage Ratio = -742.7 (Ebit TTM -51.2m / Interest Expense TTM 69.0k)
EV/FCF = -9.63x (Enterprise Value 401.8m / FCF TTM -41.7m)
FCF Yield = -10.38% (FCF TTM -41.7m / Enterprise Value 401.8m)
FCF Margin = -3.84k% (FCF TTM -41.7m / Revenue TTM 1.09m)
Net Margin = -4.72k% (Net Income TTM -51.2m / Revenue TTM 1.09m)
Gross Margin = 9.30% ((Revenue TTM 1.09m - Cost of Revenue TTM 985k) / Revenue TTM)
Gross Margin QoQ = -6.74% (prev 30.89%)
Tobins Q-Ratio = 11.09 (Enterprise Value 401.8m / Total Assets 36.2m)
Interest Expense / Debt = 3.18% (Interest Expense 69.0k / Debt 2.17m)
Taxrate = 21.0% (US federal default 21%)
NOPAT = -40.5m (EBIT -51.2m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 4.88 (Total Current Assets 32.2m / Total Current Liabilities 6.59m)
Debt / Equity = 0.08 (Debt 2.17m / totalStockholderEquity, last quarter 28.5m)
Debt / EBITDA = 0.53 (negative EBITDA) (Net Debt -26.7m / EBITDA -50.3m)
Debt / FCF = 0.64 (negative FCF - burning cash) (Net Debt -26.7m / FCF TTM -41.7m)
Total Stockholder Equity = 21.9m (last 4 quarters mean from totalStockholderEquity)
RoA = -156.1% (out of range, set to none)
RoE = -233.6% (Net Income TTM -51.2m / Total Stockholder Equity 21.9m)
RoCE = -222.2% (out of range, set to none) (EBIT -51.2m / Capital Employed (Equity 21.9m + L.T.Debt 1.14m))
RoIC = -132.2% (out of range, set to none) (NOPAT -40.5m / Invested Capital 30.6m)
WACC = 16.18% (E(428.4m)/V(430.6m) * Re(16.25%) + D(2.17m)/V(430.6m) * Rd(3.18%) * (1-Tc(0.21)))
Discount Rate = 16.25% (= CAPM, Blume Beta Adj.) -> capped to 13.17%
Shares (quarterly) Correlation: -44.50 | Cagr: -59.32%
[DCF] Fair Price = unknown (Cash Flow -41.7m)
EPS Correlation: N/A | EPS CAGR: N/A | SUE: -1.01 | # QB: -1
Revenue Correlation: 42.08 | Revenue CAGR: 36.20% | SUE: N/A | # QB: 0
EPS current Year (2025-09-30): EPS=-2.55 | Chg30d=+20.81% | Revisions=+25% | GrowthEPS=+0.0% | GrowthRev=+83.3%
EPS next Year (2026-09-30): EPS=-1.52 | Chg30d=+7.88% | Revisions=+25% | GrowthEPS=+29.8% | GrowthRev=+368.3%