ARQQ Stock Analysis: Arqit Quantum | NASDAQ
Software - Infrastructure | NASDAQ, USA | Market Cap: 383m USD | 12M Return: -29.2% | KYG0567U1278 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 6.27M
Warnings
Tailwinds
No distinct edge detected
Seasonality 5.2 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 UK-based cybersecurity company that delivers encryption services via both satellite and terrestrial platforms. Its flagship offering, QuantumCloud, is a platform-as-a-service that generates symmetric software encryption keys designed to resist attacks from quantum computers. The company also provides maintenance, support, and professional services to complement its core product. Arqit maintains a strategic collaboration with RAD to develop quantum-safe encryption solutions tailored for telecom networks and is headquartered in London, United Kingdom.
Arqit operates within the Application Software segment of the Information Technology sector, a space that includes providers of specialized security and enterprise software. The companys subscription-based platform model aligns with broader industry trends toward cloud-delivered, as-a-service cybersecurity offerings, which allow customers to scale usage without deploying on-premises hardware.
- Government defense contracts expand for quantum-safe encryption
- Telecom partnerships accelerate QuantumCloud platform adoption
- Cash burn and share dilution concerns persist amid limited revenue
| 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 August 08, 2026, the stock is trading at USD 22.90 with a total of 256,709 shares traded. Over the past week, the price has changed by +33.68%, over one month by +15.42%, over three months by +48.41% and over the past year by -29.19%.
Current recommended Stop Loss: 16.60 (which is 27.5% or 2.7 ATR below the current price).
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 | 162% |
P/E Forward = 18.7266
P/S = 352.2145
P/B = 10.4579
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 = 355.8m USD (382.5m + Debt 2.17m - CCE 28.9m)
Interest Coverage Ratio = -742.7 (Ebit TTM -51.2m / Interest Expense TTM 69.0k)
EV/FCF = -8.53x (Enterprise Value 355.8m / FCF TTM -41.7m)
FCF Yield = -11.72% (FCF TTM -41.7m / Enterprise Value 355.8m)
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 = 9.82 (Enterprise Value 355.8m / 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 = 15.01% (E(382.5m)/V(384.7m) * Re(15.08%) + D(2.17m)/V(384.7m) * Rd(3.18%) * (1-Tc(0.21)))
Discount Rate = 15.08% (= 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%