Arqit Quantum (ARQQ) AI Stock Analysis

• Market Cap: $213.33M
• Dividend Yield: N/A
• Average Volume (3M): 220.29K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.84
• Revenue Growth: 80.89%
• EPS Growth: 68.29%
• Country: US
• Employees: 82
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): -1.22
• Shares Outstanding: 15,651,859
• 10 Day Avg. Volume: 188,577
• 30 Day Avg. Volume: 220,293
• PEG Ratio: 0.20
• Price to Book (P/B): 19.62
• Price to Sales (P/S): 1008.10
• P/FCF Ratio: -18.06
• Enterprise Value/Market Cap: 0.83
• Enterprise Value/Revenue: 281.74
• Enterprise Value/Gross Profit: 571.64
• Enterprise Value/Ebitda: -4.82
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -1.52
• Revenue Forecast (FY): $2.50M

• Rating: 42 Neutral
• Price Target: $13.50 ▼(-27.38% Downside)
• Action: Reiterated Date: 02/06/26
• Date: Action: Reiterated 02/06/26

The score is held down primarily by weak financial performance (losses and cash burn) and poor technical trend (price below major moving averages with negative MACD). Earnings call commentary provides some offset through improving contract momentum and partnerships, while valuation support is limited due to negative earnings and no dividend yield data.

Positive Factors

Revenue growth & backlog

Sustained double‑digit revenue growth and an executed $1.2M contract backlog provide tangible near‑term revenue visibility. For a software‑and‑services security vendor, contracted backlog and recurring recognition improve predictability and support scaled commercial conversion over the next 2–6 months.

Strategic partnerships & product expansion

Acquisition of encryption intelligence and alliances with Intel and Sparkle broaden product capability and channel access. These structural partnerships enhance technical credibility, enable integrations into cloud/telecom ecosystems, and improve go‑to‑market reach over the medium term.

Finance leadership transition

Bringing in a transaction‑savvy CFO with SaaS and PE experience strengthens financial stewardship and execution capability. Improved finance leadership can materially help capital allocation, cost discipline, and structuring of commercial deals, benefiting long‑term operational resilience.

Negative Factors

Large operating losses

A widening operating loss signals persistent negative profitability that erodes equity and limits reinvestment capacity. Until revenue scale or margins improve, sustained operating deficits will pressure cash reserves and require financing or severe cost reduction to restore durable profitability.

Negative operating & free cash flow

Ongoing cash burn reduces runway and forces reliance on external financing or equity issuance, which can dilute shareholders and constrain investment in sales engineering and product development. Improving cash conversion is essential for long‑term independence and scaling.

Limited product scale and declining license sales

Falling license volumes and modest product revenue highlight challenges scaling core offerings. Without demonstrable expansion of paid deployments across customers and devices, revenue growth may remain lumpy and unit economics weak, limiting margin expansion and long‑term commercial traction.

Arqit Quantum Business Overview & Revenue Model

Company Description

Arqit Quantum Inc. provides cybersecurity services through satellite and terrestrial platforms in the United Kingdom. It offers QuantumCloud that enables any device to download a lightweight software agent, which can create encryption keys in partnership with any other device. The company is based in London, the United Kingdom.

How the Company Makes Money

Arqit primarily makes money by selling access to its quantum-safe encryption and key management capabilities as software and related services. The company’s revenue model is principally built around (1) subscription and licensing fees for its cryptography/key distribution and key management software (often positioned as an enterprise or platform service) that customers integrate into their networks, applications, devices, or cloud environments; and (2) professional services and implementation-related revenue tied to deploying, integrating, and supporting these solutions for specific customer environments (e.g., architecture design, integration work, and ongoing support). In addition, Arqit may earn revenue through commercial agreements with channel partners, systems integrators, telecom operators, and other technology partners that embed or resell its capabilities as part of broader cybersecurity or connectivity offerings; however, if contract-specific commercial terms (e.g., revenue-share percentages, minimum commitments) are not publicly disclosed, those details are null. Material drivers of earnings typically include the ability to convert pilots into recurring production deployments, expand usage across a customer’s organization or device base (increasing subscription value), and secure long-term contracts with government, defense, and critical infrastructure customers where encryption assurance requirements are high. Specific customer-level pricing, margins by product line, and the exact contribution of each revenue stream are null if not explicitly reported in the company’s public filings.

Arqit Quantum Financial Statement Overview

Summary

Strong reported revenue growth, but overall fundamentals remain weak due to negative profitability (gross, EBIT/EBITDA, and net margins implied by losses) and ongoing cash burn (negative operating and free cash flow). Balance sheet leverage appears conservative, but negative ROE underscores continued value erosion from losses.

Income Statement

Arqit Quantum has shown significant revenue growth of 54.97% in the latest year, indicating a positive trajectory. However, the company is struggling with negative gross profit and net profit margins, reflecting operational inefficiencies and high costs relative to revenue. The EBIT and EBITDA margins are also negative, suggesting challenges in achieving profitability.

Balance Sheet

The balance sheet shows a relatively low debt-to-equity ratio, indicating conservative leverage. However, the return on equity is negative, reflecting losses that erode shareholder value. The equity ratio is moderate, suggesting a balanced capital structure but highlighting the need for improved profitability.

Cash Flow

Arqit Quantum's cash flow statement reveals negative operating and free cash flows, indicating cash burn. The free cash flow growth is slightly positive, but the operating cash flow to net income ratio is negative, highlighting cash flow challenges. The company needs to improve cash generation to support operations.

Breakdown	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	530.00K	293.00K	640.00K	7.21M	47.91K
Gross Profit	-230.00K	-1.59M	-1.65M	5.92M	-139.00K
EBITDA	-36.81M	-20.19M	-41.20M	54.92M	-270.60M
Net Income	-35.34M	-54.58M	-70.39M	65.08M	-271.73M
Balance Sheet
Total Assets	42.85M	26.72M	99.78M	123.87M	113.73M
Cash, Cash Equivalents and Short-Term Investments	36.98M	18.70M	44.45M	48.97M	86.97M
Total Debt	719.00K	990.00K	8.40M	7.83M	0.00
Total Liabilities	15.62M	14.90M	33.13M	45.32M	147.57M
Stockholders Equity	27.24M	11.82M	66.65M	78.56M	-33.84M
Cash Flow
Free Cash Flow	-29.59M	-37.45M	-48.95M	-51.35M	-33.34M
Operating Cash Flow	-29.55M	-34.13M	-32.83M	-26.92M	-24.03M
Investing Cash Flow	683.00K	-2.40M	-16.08M	-24.43M	-9.31M
Financing Cash Flow	47.13M	11.19M	44.85M	22.37M	120.11M

Arqit Quantum Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 18.59
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARQQ, the sentiment is Negative. The current price of 18.59 is above the 20-day moving average (MA) of 15.53, below the 50-day MA of 19.55, and below the 200-day MA of 30.38, indicating a bearish trend. The MACD of -1.48 indicates Negative momentum. The RSI at 31.89 is Neutral, neither overbought nor oversold. The STOCH value of 10.38 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ARQQ.

Arqit Quantum Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
IONQ	53 Neutral	$11.87B	5.51	-28.03%	―	113.07%	-555.52%
QUBT	52 Neutral	$1.63B	-90.38	-2.42%	―	41.51%	-111.74%
LAES	50 Neutral	$556.55M	-5.06	-45.62%	―	-44.30%	16.42%
RGTI	49 Neutral	$5.20B	-31.73	-51.53%	―	-36.98%	-238.63%
QBTS	48 Neutral	$6.10B	-23.66	-58.58%	―	156.20%	-218.56%
ARQQ	42 Neutral	$213.33M	-8.15	-163.57%	―	80.89%	68.29%

Arqit Quantum Corporate Events

Arqit Quantum Announces Board Resignation and CFO Transition

On March 2, 2026, Arqit Quantum Inc. announced that board member Nicola Barbiero resigned from its Board of Directors and all related committees to pursue other commitments, with the company emphasizing that his departure did not stem from any disagreement with management or strategy. The company also disclosed that Chief Financial Officer Nick Pointon plans to step down in May 2026 and will be succeeded by Rob Russell, a seasoned finance executive with investment banking, private equity and SaaS scale-up experience, signaling a managed leadership transition that aims to strengthen Arqit’s financial stewardship and operational execution.

Russell, who qualified as a Chartered Management Accountant at UBS Investment Bank and most recently served as CFOO of UK enterprise SaaS provider Virtualstock, has already begun working part time at Arqit to ensure continuity ahead of assuming the CFO role. His track record, which includes helping steer Virtualstock’s 2025 exit to U.S.-based Logicbroker, indicates that Arqit is seeking to bolster its finance function with transaction-savvy leadership at a time when governance continuity and execution credibility are key considerations for investors and other stakeholders.

The most recent analyst rating on (ARQQ) stock is a Sell with a $14.50 price target. To see the full list of analyst forecasts on Arqit Quantum stock, see the ARQQ Stock Forecast page.

Arqit Quantum Reaches $7 Million Settlement in U.S. Securities Class Action

On January 9, 2026, Arqit Quantum Inc. reached a $7 million settlement agreement with plaintiffs in a previously disclosed putative securities class action in the U.S. District Court for the Eastern District of New York, subject to court approval, aiming to resolve the federal case brought against the company and certain directors. If the federal settlement is approved, Arqit plans to seek dismissal of a parallel putative class action pending in New York State Court, which has been stayed because it falls entirely within the federal settlement classes, a step that would reduce legal uncertainty and potential litigation costs for the company and its shareholders.

The most recent analyst rating on (ARQQ) stock is a Hold with a $23.50 price target. To see the full list of analyst forecasts on Arqit Quantum stock, see the ARQQ Stock Forecast page.