Armata Pharmaceuticals (ARMP) AI Stock Analysis

• Market Cap: $431.79M
• Dividend Yield: N/A
• Average Volume (3M): 536.86K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.71
• 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: 1.26
• Enterprise Value/Revenue: 107.41
• Enterprise Value/Gross Profit: 152.44
• Enterprise Value/Ebitda: -17.87
• 1Y Price Target: $15.00
• Price Target Upside: 41.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): -0.75
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: $7.50 ▼(-29.44% Downside)
• Action: Downgraded Date: 01/27/26
• Date: Action: Downgraded 01/27/26

The score is held down primarily by weak financial performance—declining revenue, large losses, sustained cash burn, and a strained capital structure with high debt and negative equity. Technicals are neutral-to-soft (near-term below key moving averages), while corporate events provide a meaningful offset via Phase 3 regulatory momentum and improved debt maturity timing; valuation remains constrained by negative earnings and no dividend.

Positive Factors

Regulatory progression to Phase 3

FDA End-of-Phase 2 written response supports advancing AP-SA02 into a Phase 3 superiority study. Moving the lead phage candidate into a pivotal trial materially de-risks the program, strengthens long-term commercial prospects, and can attract partners, grants, and non-dilutive defense funding.

Improved financing and governance alignment with Innoviva

Amendments extend Innoviva credit facilities to June 1, 2027, lengthen warrant expirations and extend the voting pact. These changes reduce near-term refinancing pressure, secure a shareholder-aligned lender relationship, and provide multi-year governance alignment to support clinical development execution.

Access to equity financing via ATM program

An at-the-market agreement to sell up to $100M of common stock gives durable access to public equity capital. This flexibility supports funding of clinical programs and operations, reducing sole reliance on debt and enabling tactical raises to finance pivotal trials as needed over the medium term.

Negative Factors

Highly leveraged balance sheet

The balance sheet is strained: total debt materially exceeds assets and equity is deeply negative. This is a solvency red flag that limits strategic optionality, increases refinancing vulnerability, and may force costly covenant negotiations, asset sales, or dilutive financing absent sustainable cash generation.

Sustained cash burn and weak cash generation

Persistent negative operating and free cash flow indicate ongoing cash burn to fund R&D and operations. Continued negative cash generation increases dependence on external financing, heightens dilution risk, and constrains the company's ability to scale trials or commercial activities without secured long-term funding.

Low and declining revenue base with large losses

Modest, declining revenue combined with a large net loss signals limited commercial scale and weak margin sustainability. This reduces internal funding capacity for pivotal trials and commercialization, increases reliance on partners or financings, and makes profitable scaling harder absent major revenue inflection.

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

Overall financials are weak: modest TTM revenue (~$5.1M) declining ~26%, large net loss (~-$46.9M), and material ongoing cash burn (TTM operating cash flow ~-$27.0M; FCF ~-$27.4M). Balance-sheet risk is the biggest issue, with heavy debt (~$177.7M) and negative equity (~-$95.6M).

Income Statement

TTM (Trailing-Twelve-Months) revenue is modest at ~$5.1M and down ~26% versus the prior period, signaling weakening top-line momentum. Profitability remains deeply negative with a large net loss (~-$46.9M) and very weak net and operating margins, despite a solid reported gross margin in TTM. Overall, the business appears highly unprofitable with limited revenue scale, offset only by the fact that revenue has shown intermittent growth in earlier years.

Balance Sheet

The balance sheet is pressured by heavy debt (~$177.7M in TTM) against negative stockholders’ equity (~-$95.6M), which is a key solvency red flag and suggests prior losses have significantly eroded the capital base. Total assets (~$89.5M) are well below total debt, highlighting elevated financial risk and reduced flexibility. The main positive is that leverage was materially lower in earlier years when equity was positive, but the current capital structure is notably strained.

Cash Flow

Cash generation is weak, with TTM operating cash flow at about -$27.0M and free cash flow about -$27.4M, indicating ongoing cash burn to fund operations. Free cash flow burn has not stabilized (TTM free cash flow growth is negative), which increases financing dependence. A relative positive is that free cash flow broadly tracks the reported net loss (i.e., losses are not being masked by aggressive non-cash accounting), but cash burn remains substantial.

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: 10.63
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 10.63 is above the 20-day moving average (MA) of 8.24, above the 50-day MA of 7.06, and above the 200-day MA of 4.28, indicating a bullish trend. The MACD of 0.92 indicates Negative momentum. The RSI at 69.40 is Neutral, neither overbought nor oversold. The STOCH value of 86.93 is Negative, 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	$137.72M	3.72	24.38%	―	―	814.20%
ADAG	53 Neutral	$157.89M	-4.90	-63.41%	―	-87.59%	11.53%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ELUT	48 Neutral	$46.54M	-1.19	―	―	-14.92%	72.81%
INKT	48 Neutral	$53.84M	-3.79	―	―	―	21.48%
ARMP	46 Neutral	$431.79M	-8.03	―	―	-7.55%	-13.09%
VERU	46 Neutral	$41.89M	-2.13	-60.25%	―	-100.00%	55.10%

Armata Pharmaceuticals Corporate Events

Armata Extends Innoviva Credit, Warrants and Voting Pact

On January 23, 2026, Armata Pharmaceuticals amended four existing credit agreements with Innoviva Strategic Opportunities LLC, extending the maturity date on each facility to June 1, 2027, thereby lengthening its debt profile and reinforcing access to financing from a key shareholder-affiliated lender. On the same date, the company also extended the expiration of four large warrant positions held by Innoviva’s subsidiary to January 26, 2031 and amended its voting agreement with Innoviva to run until the earlier of January 26, 2031 or U.S. Food and Drug Administration approval of any Armata product candidate, moves that further solidify Innoviva’s long-term financial and governance alignment with the company.

The most recent analyst rating on (ARMP) stock is a Hold with a $6.50 price target. To see the full list of analyst forecasts on Armata Pharmaceuticals stock, see the ARMP Stock Forecast page.

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.