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Arcturus Therapeutics (ARCT)
NASDAQ:ARCT
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Arcturus Therapeutics
(NASDAQ:ARCT)
46Neutral
Positive Factors
Pipeline Development
Interim data from the ARCT-032 LunairCF study shows ongoing progress without safety or tolerability issues, indicating a positive outlook for the program.
Strategic Financial Management
The company's decision to eliminate some early R&D programs and consolidate facilities has extended its cash runway into 2028, demonstrating effective financial management.
Negative Factors
Financial Uncertainty
The first-quarter profit allocation for Kostaive was not reported, leaving some uncertainty about the recent financial performance.
Price Target Adjustment
The net result of the changes is a decrease in the year-end price target to $66 from $68.
Arcturus Therapeutics (ARCT) vs. S&P 500 (SPY)
Market Cap
$315.96M
Dividend YieldN/A
Average Volume (3M)437.50K
Price to Earnings (P/E)―
Beta (1Y)2.36
Revenue Growth15.40%
EPS Growth35.42%
CountryUS
Employees174
SectorHealthcare
Sector Strength41
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.52
Shares Outstanding27,120,604
10 Day Avg. Volume478,432
30 Day Avg. Volume437,496
Financial Highlights & Ratios
PEG Ratio0.09
Price to Book (P/B)1.30
Price to Sales (P/S)0.00
P/FCF Ratio-5.26
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$65.13Price Target Upside459.06% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
Arcturus Therapeutics Business Overview & Revenue Model
Company DescriptionArcturus 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 MoneyArcturus Therapeutics generates revenue primarily through strategic partnerships and collaborations with other pharmaceutical companies, leveraging its proprietary RNA-based technologies. These partnerships often involve upfront payments, milestone payments, and potential royalties on product sales. Additionally, Arcturus may engage in licensing agreements, allowing other companies to use its technology in exchange for fees, contributing further to its revenue streams. The company's ability to monetize its innovative platforms and demonstrate clinical success in its development programs are key factors influencing its earnings.
Arcturus Therapeutics Financial Statement Overview
Summary
Arcturus Therapeutics is facing a challenging financial landscape with volatile revenue growth and persistent losses impacting profitability metrics. While the company benefits from a strong cash position and moderate leverage, its inconsistent cash flow performance and negative net income indicate areas that require strategic improvement to achieve financial stability.Income Statement
Arcturus Therapeutics has shown volatile revenue growth with a recent decline from 2023 to 2024. The company has maintained a high gross profit margin, but the net profit margin remains negative due to persistent losses. The EBIT and EBITDA margins have also deteriorated, reflecting operational challenges.45
Neutral
Balance Sheet
The balance sheet displays a strong cash position and a negative net debt, indicating significant cash reserves. However, the debt-to-equity ratio has increased slightly, suggesting a moderate level of leverage. The equity ratio remains stable, reflecting a solid capital structure.55
Neutral
Cash Flow
The operating cash flow has been inconsistent, with a significant drop in 2024. Free cash flow has also been volatile and negative, pointing to challenges in generating cash from operations. The company needs to improve its cash flow management to support growth.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 152.31M | 157.75M | 205.75M | 12.36M | 9.54M | Gross Profit |
| 152.31M | 154.79M | 62.70M | -159.50M | -46.41M | EBIT |
| -95.67M | -78.20M | 12.18M | -202.85M | -71.52M | EBITDA |
| -77.40M | -24.17M | 13.70M | -201.66M | -70.64M | Net Income Common Stockholders |
| -80.94M | -29.73M | 9.35M | -206.86M | -71.36M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 237.03M | 292.00M | 391.88M | 370.49M | 462.89M | Total Assets |
| 344.07M | 429.40M | 450.39M | 392.81M | 476.46M | Total Debt |
| 25.00M | 30.22M | 90.87M | 67.61M | 17.87M | Net Debt |
| -212.03M | -261.79M | -301.01M | -302.88M | -445.02M | Total Liabilities |
| 103.09M | 150.89M | 180.07M | 164.60M | 79.90M | Stockholders Equity |
| 240.98M | 278.51M | 270.31M | 228.21M | 396.55M |
| Cash Flow | Free Cash Flow | |||
| -60.40M | -21.00M | 24.27M | -138.45M | -44.60M | Operating Cash Flow |
| -59.75M | -18.10M | 31.99M | -135.04M | -42.86M | Investing Cash Flow |
| -648.00K | -2.90M | -7.73M | -3.41M | -1.74M | Financing Cash Flow |
| 5.42M | -24.09M | -2.86M | 48.02M | 436.14M |
Arcturus Therapeutics Technical Analysis
Neutral
11.65
Price Trends
11.79
Negative
14.35
Negative
17.03
Negative
Market Momentum
-0.11
Positive
49.55
Neutral
22.90
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARCT, the sentiment is Neutral. The current price of 11.65 is below the 20-day moving average (MA) of 11.97, below the 50-day MA of 11.79, and below the 200-day MA of 17.03, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 49.55 is Neutral, neither overbought nor oversold. The STOCH value of 22.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (52)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
52 Neutral | $5.15B | 3.02 | -44.64% | 2.83% | 16.44% | -0.47% | |
46 Neutral | $315.96M | ― | -27.40% | ― | 15.40% | 35.42% | |
44 Neutral | $417.06M | ― | -2159.50% | ― | ― | 14.39% | |
44 Neutral | $330.56M | ― | -62.43% | ― | -0.90% | -89.51% | |
43 Neutral | $299.10M | ― | -56.24% | ― | ― | 9.22% | |
41 Neutral | $376.65M | ― | -39.06% | ― | ― | -48.01% | |
41 Neutral | $266.15M | ― | -1.94% | ― | -32.07% | 98.22% |
* Healthcare Sector Average
Performance Comparison
ARCT
Arcturus Therapeutics
11.65
-18.85
-61.80%
ORKA
Oruka Therapeutics
10.06
-10.98
-52.19%
VSTM
Verastem
7.59
-4.02
-34.63%
ATAI
ATAI Life Sciences
1.65
-0.08
-4.62%
TSVT
2seventy bio
5.00
0.62
14.16%
AURA
Aura Biosciences Inc
5.95
-1.15
-16.20%
Arcturus Therapeutics Earnings Call Summary
Earnings Call Date:May 12, 2025
(Q1-2025)
| % Change Since: 0.52%|
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.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.