Armata Pharmaceuticals (ARMP) AI Stock Analysis

• Market Cap: $233.00M
• Dividend Yield: N/A
• Average Volume (3M): 536.86K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.75
• Revenue Growth: -7.55%
• EPS Growth: -13.09%
• Country: US
• Employees: 60
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.74
• Shares Outstanding: 36,406,906
• 10 Day Avg. Volume: 121,090
• 30 Day Avg. Volume: 536,864
• PEG Ratio: 0.05
• Price to Book (P/B): -1.39
• Price to Sales (P/S): 12.93
• P/FCF Ratio: -1.70
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 53.60
• Enterprise Value/Gross Profit: 76.07
• Enterprise Value/Ebitda: -8.92
• 1Y Price Target: $12.00
• Price Target Upside: 87.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: $6.50 ▲(1.56% Upside)

The score is primarily held down by weak financial performance (large losses, ongoing cash burn, and a strained balance sheet with high debt and negative equity). Offsetting this, technicals are constructive with price above major moving averages and positive MACD, and corporate events are favorable with FDA support and positive Phase 2a data; valuation remains pressured due to negative earnings.

Positive Factors

FDA End-of-Phase 2 support to advance AP-SA02 to Phase 3

Regulatory agreement to proceed to a pivotal Phase 3 materially de-risks development timing and trial design. This durable milestone clarifies endpoints, enables protocol planning for H2 2026, and strengthens chances for future approval pathways and label discussions.

Positive Phase 2a efficacy data (diSArm)

Robust Phase 2a efficacy signals improve probability of Phase 3 success and validate the bacteriophage approach. Persistent clinical benefit supports a differentiated product profile versus antibiotics, underpinning sustainable commercial potential in severe S. aureus bacteremia.

First-mover bacteriophage positioning and strategic backing

Being first to Phase 3 in IV bacteriophage therapy confers durable competitive advantage: technical know-how, manufacturing experience, and credibility. DoD and strategic investor backing provide non-dilutive funding and partnerships that support long-term development and commercialization pathways.

Negative Factors

Highly leveraged balance sheet; negative equity

Elevated leverage and negative equity are persistent solvency risks that restrict strategic flexibility. This capital structure raises refinancing and covenant risk, increases cost of capital, and may force dilutive financings or constrain investment during the multi-year Phase 3 program.

Ongoing cash burn and weak cash generation

Sustained negative operating and free cash flow erodes runway and creates dependency on external capital. For a clinical-stage biotech, persistent burn elevates dilution risk and can delay programs if markets tighten, making long-term execution contingent on successful financing or partnerships.

Modest, declining revenue and large net losses

Shrinking revenue coupled with significant net losses indicates limited commercial diversification and inability to internally fund development. Continued negative margins will further erode equity and increase reliance on clinical or financing catalysts to generate sustainable revenue streams.

Armata Pharmaceuticals Business Overview & Revenue Model

Company Description

Armata Pharmaceuticals, Inc., a clinical-stage biotechnology company, focuses on the development of targeted bacteriophage therapeutics for antibiotic-resistant infections worldwide. It develops its products using its proprietary bacteriophage-based technology. The company's product candidates include AP-SA02 for the treatment of Staphylococcus aureus bacteremia; AP-PA02 for Pseudomonas aeruginosa; and AP-PA03 for the treatment of pneumonia. It has a partnership agreement with Merck & Co. for developing synthetic bacteriophage candidates to target undisclosed infectious disease agents. The company is headquartered in Marina del Rey, California.

How the Company Makes Money

Armata Pharmaceuticals generates revenue primarily through the development and commercialization of its bacteriophage therapies. This includes revenue from potential licensing agreements, partnerships with pharmaceutical companies, and government grants aimed at advancing antibiotic alternatives. The company may also benefit from milestone payments tied to successful clinical development phases and regulatory approvals of its therapies. Additionally, collaboration with research institutions and healthcare providers can create pathways for further funding and resource allocation, enhancing its financial stability.

Armata Pharmaceuticals Financial Statement Overview

Summary

Armata Pharmaceuticals is facing serious financial challenges, with negative revenue growth, persistent losses, and a weak balance sheet with negative equity. The cash flow situation is strained, heavily reliant on financing. The company must address these financial deficiencies to improve its financial health and sustainability.

Income Statement

Armata Pharmaceuticals shows a significant decline in revenue with no revenue reported in the most recent year from $4.5 million the previous year. The company has been consistently operating at a loss, with increasing negative EBIT and EBITDA margins. The net profit margin is also negative due to substantial net losses over the years, indicating financial distress.

Balance Sheet

The balance sheet reveals a negative stockholders' equity, which is concerning as liabilities exceed assets. The debt-to-equity ratio is not applicable due to negative equity, but high total liabilities relative to assets suggest a heavily leveraged position. The equity ratio is negative, indicating insolvency risks.

Cash Flow

Free cash flow remains negative, but there is a minor improvement in free cash flow growth due to reduced negative cash flow. The operating cash flow is significantly negative and larger than net income, suggesting inefficient cash management. The company relies on financing activities for cash inflow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.05M	5.17M	4.53M	5.51M	4.47M	823.00K
Gross Profit	3.56M	-29.25M	3.56M	-29.51M	-15.54M	-13.62M
EBITDA	-30.37M	-41.11M	-65.45M	-36.05M	-21.92M	-20.44M
Net Income	-46.90M	-18.92M	-69.05M	-36.92M	-23.16M	-22.18M
Balance Sheet
Total Assets	89.52M	86.44M	98.36M	107.88M	69.77M	39.52M
Cash, Cash Equivalents and Short-Term Investments	14.76M	9.29M	13.52M	14.85M	10.29M	9.65M
Total Debt	177.68M	126.52M	120.37M	48.81M	37.99M	13.15M
Total Liabilities	185.10M	134.46M	130.43M	71.80M	44.37M	20.66M
Stockholders Equity	-95.59M	-48.02M	-32.06M	36.08M	25.40M	18.86M
Cash Flow
Free Cash Flow	-27.43M	-39.43M	-55.57M	-34.69M	-24.88M	-19.09M
Operating Cash Flow	-27.02M	-37.55M	-47.42M	-32.48M	-23.57M	-18.27M
Investing Cash Flow	-413.00K	-1.88M	-8.13M	-2.21M	-1.30M	-824.00K
Financing Cash Flow	24.95M	34.96M	53.99M	44.02M	25.52M	23.21M

Armata Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARMP, the sentiment is Positive. The current price of 6.4 is above the 20-day moving average (MA) of 6.40, above the 50-day MA of 6.37, and above the 200-day MA of 3.44, indicating a bullish trend. The MACD of 0.09 indicates Positive momentum. The RSI at 50.64 is Neutral, neither overbought nor oversold. The STOCH value of 21.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ARMP.

Armata Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ORMP	62 Neutral	$146.47M	3.67	24.38%	―	―	814.20%
ARMP	52 Neutral	$233.00M	-4.84	―	―	-7.55%	-13.09%
ADAG	52 Neutral	$92.38M	-3.04	-63.41%	―	-87.59%	11.53%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ELUT	48 Neutral	$34.91M	-0.89	―	―	-14.92%	72.81%
INKT	48 Neutral	$56.14M	-3.94	―	―	―	21.48%
VERU	45 Neutral	$43.18M	-2.11	-61.92%	―	-100.00%	55.10%

Armata Pharmaceuticals Corporate Events

Armata Wins FDA Support to Advance Bacteriophage to Phase 3

On January 13, 2026, Armata Pharmaceuticals announced it had received an End-of-Phase 2 written response from the U.S. Food and Drug Administration supporting advancement of its intravenously administered Staphylococcus aureus bacteriophage candidate, AP-SA02, into a Phase 3 superiority study in complicated S. aureus bacteremia, targeted to start in the second half of 2026. The FDA’s Center for Biologics Evaluation and Research agreed that safety and efficacy data from Armata’s Phase 2a diSArm study, whose results were reported in May 2025 and highlighted at IDWeek 2025 in October 2025, justify progression to a pivotal trial that will test AP-SA02 plus best available antibiotic therapy against standard care alone and evaluate clinical response as the primary endpoint, positioning Armata as the first bacteriophage company to move a clinical candidate into Phase 3 and underscoring its potential to reshape treatment of severe S. aureus bacteremia with the backing of U.S. Department of Defense funding and support from key shareholder Innoviva.

The most recent analyst rating on (ARMP) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Armata Pharmaceuticals stock, see the ARMP Stock Forecast page.

Armata Pharmaceuticals Enters Capital Sales Agreement

On December 1, 2025, Armata Pharmaceuticals entered into a Capital on Demand Sales Agreement with JonesTrading Institutional Services LLC. This agreement allows Armata to offer and sell up to $100 million in common stock through an at-the-market offering program. The sales will be conducted by Jones as the sales agent, with Armata paying a commission of up to 3% on gross sales proceeds. This strategic move aims to bolster Armata’s financial flexibility and enhance its market presence, potentially impacting its operations and stakeholder interests.

The most recent analyst rating on (ARMP) stock is a Buy with a $9.00 price target. To see the full list of analyst forecasts on Armata Pharmaceuticals stock, see the ARMP Stock Forecast page.

Armata Pharmaceuticals Reports Positive Phase 2a Study Results

On October 22, 2025, Armata Pharmaceuticals announced positive results from its Phase 2a diSArm study of AP-SA02, a bacteriophage cocktail for treating complicated Staphylococcus aureus bacteremia, presented at IDWeek 2025. The study demonstrated higher cure rates and no relapse in patients treated with AP-SA02 compared to placebo, supporting the advancement to a Phase 3 trial. These findings suggest AP-SA02 could become a new standard of care for this severe infection, with implications for reducing hospital stays and improving patient outcomes.

The most recent analyst rating on (ARMP) stock is a Buy with a $9.00 price target. To see the full list of analyst forecasts on Armata Pharmaceuticals stock, see the ARMP Stock Forecast page.