(ARQQ) Arqit Quantum - Overview
Sector: Technology | Industry: Software - Infrastructure | Exchange: NASDAQ (USA) | Market Cap: 294m USD | Total Return: -27.6% in 12m
Avg Turnover: 7.30M
Warnings
Share dilution 155.5% YoY
Interest Coverage Ratio -225.5 is critical
Beneish M-Score -0.46 > -1.5 - likely earnings manipulation
Altman Z'' -15.00 < 1.0 - financial distress zone
Tailwinds
No distinct edge detected
Arqit Quantum Inc. (ARQQ) is a London-based cybersecurity firm specializing in symmetric key agreement platforms. Its core product, QuantumCloud, utilizes satellite and terrestrial infrastructure to generate encryption keys designed to secure data against both current and future computational threats, including quantum-driven decryption.
The company operates within the emerging Quantum-Safe or Post-Quantum Cryptography (PQC) sector, which focuses on replacing legacy public-key infrastructure (PKI) that is vulnerable to high-scale quantum processing. Arqit employs a Platform-as-a-Service (PaaS) business model, generating revenue through recurring software subscriptions and professional services, such as its strategic collaboration with RAD for telecommunications security.
For a deeper analysis of the companys valuation metrics and market position, consider reviewing the data available on ValueRay.
- Commercial deployment scale of QuantumCloud platform-as-a-service drives recurring revenue growth
- Strategic partnerships with telecom providers like RAD validate market adoption rates
- High research and development costs impact path toward positive cash flow
- Transition from satellite hardware to software-only model shifts margin profile expectations
- Global adoption of quantum-safe encryption standards influences long-term contract pipeline
| Net Income: -75.3m TTM > 0 and > 6% of Revenue |
| FCF/TA: -1.90 > 0.02 and ΔFCF/TA -50.25 > 1.0 |
| NWC/Revenue: 1.79k% < 20% (prev 1.44k%; Δ 351.7% < -1%) |
| CFO/TA -1.81 > 3% & CFO -65.6m > Net Income -75.3m |
| 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: 46.78% > 18% (prev -1.13%; Δ 4.79k% > 0.5%) |
| Asset Turnover: 4.54% > 50% (prev 2.99%; Δ 1.54% > 0%) |
| Interest Coverage Ratio: -225.5 > 6 (EBITDA TTM -68.3m / Interest Expense TTM 318k) |
| 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: -2.28 (EBIT TTM -71.7m / Avg Total Assets 31.5m) |
| D: -27.09 (Book Value of Equity -209.5m / Total Liabilities 7.73m) |
| Altman-Z'' = -60.73 = D |
| DSRI: 3.93 (Receivables 3.30m/471k, Revenue 1.43m/800k) |
| GMI: 1.00 (fallback, negative margins) |
| AQI: 0.78 (AQ_t 0.06 / AQ_t-1 0.07) |
| SGI: 1.79 (Revenue 1.43m / 800k) |
| TATA: -0.27 (NI -75.3m - CFO -65.6m) / TA 36.2m) |
| Beneish M = -0.46 (Cap -4..+1) = D |
As of May 30, 2026, the stock is trading at USD 16.51 with a total of 473,420 shares traded.
Over the past week, the price has changed by +0.36%,
over one month by +24.89%,
over three months by +0.30% and
over the past year by -27.59%.
Arqit Quantum has received a consensus analysts rating of 4.00. Therefore, it is recommended to buy ARQQ.
- StrongBuy: 0
- Buy: 1
- Hold: 0
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 60 | 263.4% |
P/E Forward = 18.7266
P/S = 270.9713
P/B = 10.3053
Revenue TTM = 1.43m USD
EBIT TTM = -71.7m USD
EBITDA TTM = -68.3m 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 = 2.89m USD (from shortLongTermDebtTotal, last quarter) + Leases 719k
Net Debt = -26.0m USD (calculated: Debt 2.89m - CCE 28.9m)
Enterprise Value = 268.3m USD (294.3m + Debt 2.89m - CCE 28.9m)
Interest Coverage Ratio = -225.5 (Ebit TTM -71.7m / Interest Expense TTM 318k)
EV/FCF = -3.89x (Enterprise Value 268.3m / FCF TTM -69.0m)
FCF Yield = -25.72% (FCF TTM -69.0m / Enterprise Value 268.3m)
FCF Margin = -4.83k% (FCF TTM -69.0m / Revenue TTM 1.43m)
Net Margin = -5.27k% (Net Income TTM -75.3m / Revenue TTM 1.43m)
Gross Margin = 46.78% ((Revenue TTM 1.43m - Cost of Revenue TTM 760k) / Revenue TTM)
Gross Margin QoQ = -6.74% (prev 30.89%)
Tobins Q-Ratio = 7.40 (Enterprise Value 268.3m / Total Assets 36.2m)
Interest Expense / Debt = 11.00% (Interest Expense 318k / Debt 2.89m)
Taxrate = 21.0% (US default 21%)
NOPAT = -56.7m (EBIT -71.7m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 4.88 (Total Current Assets 32.2m / Total Current Liabilities 6.59m)
Debt / Equity = 0.10 (Debt 2.89m / totalStockholderEquity, last quarter 28.5m)
Debt / EBITDA = 0.38 (negative EBITDA) (Net Debt -26.0m / EBITDA -68.3m)
Debt / FCF = 0.38 (negative FCF - burning cash) (Net Debt -26.0m / FCF TTM -69.0m)
Total Stockholder Equity = 21.9m (last 4 quarters mean from totalStockholderEquity)
RoA = -239.2% (out of range, set to none)
RoE = -28.74% (Net Income TTM -75.3m / Total Stockholder Equity 262.0m)
RoCE = -27.25% (EBIT -71.7m / Capital Employed (Equity 262.0m + L.T.Debt 1.14m))
RoIC = -308.9% (out of range, set to none) (NOPAT -56.7m / Invested Capital 18.3m)
WACC = 11.93% (E(294.3m)/V(297.2m) * Re(11.96%) + D(2.89m)/V(297.2m) * Rd(11.00%) * (1-Tc(0.21)))
Discount Rate = 11.96% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 22.47 | Cagr: -59.32%
[DCF] Fair Price = unknown (Cash Flow -69.0m)
EPS Correlation: N/A | EPS CAGR: N/A | SUE: -1.06 | # QB: -1
Revenue Correlation: 50.88 | Revenue CAGR: 43.17% | SUE: N/A | # QB: 0
EPS current Year (2026-09-30): EPS=-1.52 | Chg30d=+7.88% | Revisions=+20% | GrowthEPS=+29.8% | GrowthRev=+368.3%
EPS next Year (2027-09-30): EPS=-1.06 | Chg30d=N/A | Revisions=N/A | GrowthEPS=+30.3% | GrowthRev=+214.2%