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Arcturus Therapeutics (ARCT)
NASDAQ:ARCT
US Market

Arcturus Therapeutics (ARCT) AI Stock Analysis

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Arcturus Therapeutics

(NASDAQ:ARCT)

Rating:56Neutral
Price Target:
$13.00
▲(5.01%Upside)
Arcturus Therapeutics' overall stock score reflects its strong gross margins and strategic focus on mRNA therapeutics, offset by financial challenges such as consistent net losses and declining revenues. Technical analysis provides moderate support, while valuation remains a concern due to the negative P/E ratio.
Positive Factors
Financial Stability
Arcturus is funded into 2028, which is important in the current volatile biotech environment.
Regulatory Approvals
Covid-19 vaccine Kostaive continues to accrue regulatory approvals across geographies with filings on track.
Negative Factors
Financial Performance
The net result of the changes is a decrease in the year-end price target to $66 from $68.
Financial Transparency
The first-quarter profit allocation for Kostaive was not reported, leaving some uncertainty about the recent financial performance.

Arcturus Therapeutics (ARCT) vs. SPDR S&P 500 ETF (SPY)

Arcturus Therapeutics Business Overview & Revenue Model

Company DescriptionArcturus Therapeutics (ARCT) is a biotechnology company focused on the development of innovative RNA-based therapeutics for the treatment of diseases with high unmet medical needs. The company specializes in the research and development of messenger RNA (mRNA) therapeutics and vaccines, utilizing its proprietary technologies to deliver advanced therapeutic solutions. Arcturus operates primarily in the biotechnology and pharmaceutical sectors, aiming to transform patient care through its cutting-edge RNA medicines.
How the Company Makes MoneyArcturus Therapeutics makes money through the development and commercialization of its proprietary RNA-based therapeutics. The company generates revenue primarily through strategic collaborations and partnerships with other pharmaceutical and biotechnology companies. These partnerships often include milestone payments, research funding, and royalties on future product sales. Additionally, Arcturus may earn revenue from licensing its technology platforms and intellectual property to third parties. The company's earnings are significantly influenced by its ability to advance its product candidates through clinical trials and secure regulatory approvals, which can lead to commercialization and subsequent revenue generation.

Arcturus Therapeutics Earnings Call Summary

Earnings Call Date:May 12, 2025
(Q1-2025)
|
% Change Since: 6.82%|
Next Earnings Date:Aug 11, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a balanced outlook, with significant pipeline advancements and strategic focus on mRNA therapeutics leading to an extended cash runway and reduced expenses. However, the revenue decline and net loss present financial challenges. The EU approval of the KOSTAIVE vaccine is a notable achievement, despite conservative expectations for U.S. milestones.
Q1-2025 Updates
Positive Updates
Pipeline Advancements
Arcturus Therapeutics is progressing with its mRNA therapeutics pipeline, including ARCT-032 for cystic fibrosis and ARCT-810 for OTC deficiency, with ongoing Phase 2 studies showing no safety or tolerability issues.
Strategic Focus and Financial Stability
The company has strategically decided to focus resources on mRNA therapeutics, extending its cash runway until the first quarter of 2028 despite a challenging market environment.
EU Approval of KOSTAIVE Vaccine
Arcturus received EU approval for its self-amplifying mRNA COVID-19 vaccine, KOSTAIVE, and an initial milestone payment from CSL.
FDA Fast Track Designation
The company received FDA Fast Track designation for ARCT-2304, its sa-mRNA vaccine candidate for Pandemic Influenza A (H5N1).
Reduction in Operating Expenses
Research and development expenses decreased by $18.7 million year-over-year, and general and administrative expenses decreased by $3.6 million year-over-year.
Negative Updates
Revenue Decline
Revenues for the three months ended March 31, 2025, were $29.4 million compared to $38 million in the same period of 2024, primarily due to lower development milestone revenues.
Net Loss
Arcturus reported a net loss of approximately $14.1 million for the three months ended March 31, 2025.
Reduced Guidance on Upcoming Milestones
The company does not expect a milestone payment from U.S. KOSTAIVE approval until 2028, reflecting a conservative outlook.
Company Guidance
During the first quarter of 2025 earnings call, Arcturus Therapeutics provided guidance on several metrics across its pipeline and financial status. The company emphasized its mRNA therapeutics pipeline, specifically focusing on ARCT-032 for cystic fibrosis and ARCT-810 for OTC deficiency. ARCT-032 is in an open-label Phase 2 study, with completion of enrollment expected by year-end and interim data for the first two cohorts anticipated by mid-2025. For ARCT-810, interim Phase 2 data is expected in Q2 2025, with biomarkers like glutamine and a 15N ureagenesis assay being utilized. Financially, Arcturus reported Q1 2025 revenue of $29.4 million, a decrease from $38 million in the same period of 2024, and a net loss of $14.1 million. The company extended its cash runway to Q1 2028 by focusing R&D expenditures on CF and OTC programs. It also highlighted EU approval of the KOSTAIVE COVID-19 vaccine and anticipated filings in the UK and US later in 2025, with no immediate milestone payments expected from these approvals.

Arcturus Therapeutics Financial Statement Overview

Summary
Arcturus Therapeutics demonstrates strong gross profit margins and a solid cash position, crucial for the biotech sector. However, the company faces consistent net losses, declining revenue, and negative cash flows, indicating significant financial challenges that demand prudent management.
Income Statement
55
Neutral
Arcturus Therapeutics shows volatility in revenue and profitability, typical for the biotechnology industry. The TTM data reveals a gross profit margin improvement to over 100%, indicating cost management efficiency. However, consistent net losses and declining revenue highlight ongoing financial challenges. Revenue growth has been negative in recent years, with a significant decline from 2022 to 2024. The EBIT and EBITDA margins are negative, reflecting substantial operational expenses.
Balance Sheet
60
Neutral
The company's balance sheet reflects a solid equity position, with a debt-to-equity ratio that remains manageable, indicating moderate financial leverage. However, the equity ratio has decreased slightly due to increased liabilities. The return on equity is negative due to net losses, but the company maintains a strong cash position, which is critical for its operations in the capital-intensive biotechnology sector.
Cash Flow
45
Neutral
Cash flow analysis shows a challenging environment with negative operating and free cash flows. The TTM data indicates worsening free cash flow compared to previous periods, suggesting increased cash burn. The operating cash flow to net income ratio is less informative given the consistent net losses, but it remains critical to monitor cash flows closely due to the high cash requirements in biotechnology.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
135.17M138.39M157.75M205.75M12.36M9.54M
Gross Profit
136.31M134.84M154.79M62.70M-159.50M-46.41M
EBIT
-63.64M-95.67M-78.20M12.18M-202.85M-71.52M
EBITDA
-60.17M-77.40M-24.17M13.70M-201.66M-70.64M
Net Income Common Stockholders
-68.20M-80.94M-29.73M9.35M-206.86M-71.36M
Balance SheetCash, Cash Equivalents and Short-Term Investments
216.95M237.03M292.00M391.88M370.49M462.89M
Total Assets
331.79M344.07M429.40M450.39M392.81M476.46M
Total Debt
38.99M28.55M30.22M90.87M67.61M17.87M
Net Debt
-177.96M-208.48M-261.79M-301.01M-302.88M-445.02M
Total Liabilities
98.03M103.09M150.89M180.07M164.60M79.90M
Stockholders Equity
233.76M240.98M278.51M270.31M228.21M396.55M
Cash FlowFree Cash Flow
-89.09M-60.40M-21.00M24.27M-138.45M-44.60M
Operating Cash Flow
-89.55M-59.75M-18.10M31.99M-135.04M-42.86M
Investing Cash Flow
-545.00K-648.00K-2.90M-7.73M-3.41M-1.74M
Financing Cash Flow
18.39M5.42M-24.09M-2.86M48.02M436.14M

Arcturus Therapeutics Technical Analysis

Technical Analysis Sentiment
Negative
Last Price12.38
Price Trends
50DMA
11.66
Positive
100DMA
13.42
Negative
200DMA
16.27
Negative
Market Momentum
MACD
0.17
Positive
RSI
50.75
Neutral
STOCH
36.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARCT, the sentiment is Negative. The current price of 12.38 is below the 20-day moving average (MA) of 12.41, above the 50-day MA of 11.66, and below the 200-day MA of 16.27, indicating a neutral trend. The MACD of 0.17 indicates Positive momentum. The RSI at 50.75 is Neutral, neither overbought nor oversold. The STOCH value of 36.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ARCT.

Arcturus Therapeutics Risk Analysis

Arcturus Therapeutics disclosed 60 risk factors in its most recent earnings report. Arcturus Therapeutics reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Arcturus Therapeutics Peers Comparison

Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
56
Neutral
$337.38M-27.40%15.40%35.42%
55
Neutral
$447.68M-62.43%-0.90%-89.51%
54
Neutral
$5.38B3.31-45.11%3.29%16.82%0.04%
44
Neutral
$328.05M-2159.50%14.39%
43
Neutral
$411.09M-56.24%9.22%
41
Neutral
$471.75M-39.06%-48.01%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ARCT
Arcturus Therapeutics
12.38
-18.62
-60.06%
ORKA
Oruka Therapeutics
12.56
-8.80
-41.20%
VSTM
Verastem
5.60
2.13
61.38%
ATAI
ATAI Life Sciences
2.11
0.74
54.01%
AURA
Aura Biosciences Inc
6.42
-0.91
-12.41%

Arcturus Therapeutics Corporate Events

Executive/Board ChangesShareholder Meetings
Arcturus Therapeutics Approves Key Proposals at Annual Meeting
Positive
Jun 6, 2025

On June 6, 2025, Arcturus Therapeutics held its annual stockholders meeting where key proposals were voted on, including the election of nine directors to the Board, approval of executive compensation, and the ratification of Deloitte as the independent accounting firm for 2025. All proposals were approved, indicating strong shareholder support for the company’s leadership and strategic direction.

The most recent analyst rating on (ARCT) stock is a Buy with a $63.00 price target. To see the full list of analyst forecasts on Arcturus Therapeutics stock, see the ARCT Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.