Arcturus Therapeutics (ARCT) AI Stock Analysis

• Market Cap: $480.91M
• Dividend Yield: N/A
• Average Volume (3M): 613.30K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.43
• Revenue Growth: -26.88%
• EPS Growth: 13.41%
• Country: US
• Employees: 174
• Sector: Healthcare
• Sector Strength: 49
• Industry: Biotechnology
• EPS (TTM): -0.34
• Shares Outstanding: 27,154,530
• 10 Day Avg. Volume: 1,107,040
• 30 Day Avg. Volume: 613,300
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.27
• Enterprise Value/Revenue: 1.09
• Enterprise Value/Gross Profit: 2.43
• Enterprise Value/Ebitda: -2.32
• 1Y Price Target: $56.56
• Price Target Upside: 222.46% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

• Rating: 58 Neutral
• Price Target: $18.50 ▲(5.47% Upside)

Arcturus Therapeutics' overall stock score is primarily influenced by its financial challenges, including declining revenues and negative cash flow. However, positive technical indicators and promising clinical progress provide some optimism. The company's valuation remains a concern due to ongoing losses, but strategic developments and shareholder support offer potential for future growth.

Positive Factors

Clinical Development

Delivering on more than 3% FEV1 improvement should drive a sharp upside rerating, given even a 15% penetration into Class 1 would represent approximately $1B in peak sales.

Financial Stability

ARCT reported a net loss per share that was significantly better than consensus, ending with a strong cash position sufficient to fund operations into 2028.

Market Opportunity

Cystic fibrosis is modeled as a greater than $1 billion sales opportunity for Arcturus, indicating significant revenue potential.

Negative Factors

Price Target Adjustment

The price target is now adjusted to $42 from a prior $45, reflecting updated model assumptions.

Revenue Expectations

Assumed revenue for Kostaive is decreased, with expectations now starting in 2028 and lower ramping figures.

Arcturus Therapeutics Business Overview & Revenue Model

Company Description

Arcturus Therapeutics Holdings Inc., an RNA medicines company, focuses on the development of vaccines for infectious, and liver and respiratory rare diseases in the United States. The company's development programs comprise LUNAR-OTC development program for ornithine transcarbamylase (OTC) deficiency; and LUNAR-CF program for cystic fibrosis lung disease caused by mutations in cystic fibrosis transmembrane conductance regulator (CFTR) gene, as well as vaccine programs include LUNAR-COV19 and LUNAR-FLU. It has collaboration partnerships with Vinbiocare Biotechnology Joint Stock Company for the manufacture of COVID-19 vaccines; Janssen Pharmaceuticals, Inc. to develop nucleic acid-based therapeutic candidates for the treatment of hepatitis B virus; Ultragenyx Pharmaceutical, Inc. to develop mRNA therapeutic candidates for rare disease targets; CureVac AG to develop mRNA therapeutic and vaccine candidates for various indications; Singapore Economic Development Board and Duke-NUS Medical School to develop LUNAR-COV19 vaccine; and Millennium Pharmaceuticals, Inc. to discover siRNA medicines for the treatment of non-alcoholic steatohepatitis. The company was founded in 2013 and is headquartered in San Diego, California.

How the Company Makes Money

Arcturus Therapeutics generates revenue through a combination of product development partnerships, licensing agreements, and potential future product sales. The company's revenue model includes upfront payments and milestone payments from collaborations with larger pharmaceutical companies, which can significantly contribute to its earnings. Key partnerships, such as those with pharmaceutical giants for the development and commercialization of RNA-based therapies, provide additional funding and resources. Additionally, Arcturus may eventually earn royalties from the sales of products developed under these agreements, further diversifying its revenue streams.

Arcturus Therapeutics Financial Statement Overview

Summary

Arcturus Therapeutics faces significant financial challenges, with declining revenues and persistent losses impacting profitability and cash flow. While the balance sheet remains relatively stable with low leverage, the negative cash flow trends and profitability issues pose risks to financial stability.

Income Statement

Arcturus Therapeutics has experienced a significant decline in revenue from 2022 to TTM, with a negative revenue growth rate. The gross profit margin is positive, but the net profit margin is negative due to substantial net losses. The EBIT and EBITDA margins are also negative, reflecting ongoing operational challenges.

Balance Sheet

The company's balance sheet shows a relatively low debt-to-equity ratio, indicating manageable leverage. However, the return on equity is negative due to net losses. The equity ratio is strong, suggesting a solid capital structure with a significant portion of assets financed by equity.

Cash Flow

Arcturus Therapeutics has negative free cash flow and operating cash flow, indicating cash burn. The free cash flow growth rate is negative, showing deterioration in cash generation. The ratios of operating and free cash flow to net income are not favorable, highlighting cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	117.50M	138.39M	157.75M	205.75M	12.36M	9.54M
Gross Profit	52.92M	134.84M	154.79M	58.25M	-161.40M	-46.41M
EBITDA	-55.32M	-77.40M	-24.17M	13.70M	-201.66M	-70.64M
Net Income	-60.16M	-80.94M	-29.73M	9.35M	-203.67M	-72.15M
Balance Sheet
Total Assets	309.27M	344.07M	429.40M	450.39M	392.81M	476.46M
Cash, Cash Equivalents and Short-Term Investments	196.47M	237.03M	292.00M	391.88M	370.49M	462.89M
Total Debt	22.93M	28.55M	30.22M	94.75M	69.15M	20.75M
Total Liabilities	78.22M	103.09M	150.89M	180.07M	164.60M	79.90M
Stockholders Equity	231.05M	240.98M	278.51M	270.31M	228.21M	396.55M
Cash Flow
Free Cash Flow	-64.67M	-60.40M	-21.00M	24.27M	-138.45M	-44.60M
Operating Cash Flow	-5.78M	-59.75M	-18.10M	31.99M	-135.04M	-42.86M
Investing Cash Flow	-219.45K	-648.00K	-2.90M	-7.73M	-3.41M	-1.74M
Financing Cash Flow	1.30M	5.42M	-24.09M	-2.86M	48.02M	436.14M

Arcturus Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARCT, the sentiment is Positive. The current price of 17.54 is above the 20-day moving average (MA) of 15.25, above the 50-day MA of 14.27, and above the 200-day MA of 14.66, indicating a bullish trend. The MACD of 1.25 indicates Negative momentum. The RSI at 59.83 is Neutral, neither overbought nor oversold. The STOCH value of 53.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ARCT.

Arcturus Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATAI	63 Neutral	$1.04B	―	-62.43%	―	-0.90%	-89.51%
ARCT	58 Neutral	$480.91M	―	-24.57%	―	-26.88%	13.41%
Sector *	51 Neutral	$7.83B	-0.15	-40.10%	2.29%	21.46%	-2.01%
VSTM	44 Neutral	$547.75M	―	-437.92%	―	-78.63%	1.88%
AURA	43 Neutral	$403.78M	―	-55.39%	―	―	-9.14%
ORKA	41 Neutral	$554.65M	―	-53.15%	―	―	39.03%
TSVT	41 Neutral		―		―	-32.07%	98.22%

Arcturus Therapeutics Corporate Events

Arcturus Therapeutics Announces Positive Phase 2 Results

On June 30, 2025, Arcturus Therapeutics announced positive interim results from Phase 2 studies of ARCT-810, an mRNA therapeutic for treating OTC deficiency. The studies showed significant reductions in glutamine levels and improvements in urea cycle function, with ARCT-810 being safe and well tolerated. These findings suggest a promising path forward for addressing an unmet medical need in OTC deficiency, potentially leading to a pivotal study.

Arcturus Therapeutics Approves Key Proposals at Annual Meeting

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.