Arqit Quantum Inc. (ARQQ)
NASDAQ:ARQQ
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Arqit Quantum
(NASDAQ:ARQQ)
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Rating:46Neutral
Price Target:
$13.00
▼(-30.07% Downside)
Action:ReiteratedDate:03/27/26
The score is held down primarily by weak financial performance (losses, negative margins, and cash burn) and bearish technicals (below key moving averages with negative MACD). Earnings call commentary provides some offset via improving revenue traction and contracted backlog, while valuation offers limited support given losses and no dividend.
Positive Factors
Revenue Growth & Backlog
Sustained double‑digit percentage revenue growth and a $1.2M contracted backlog provide multi‑period visibility for a subscription/licensing business. For a software security vendor, executed contracts signal traction converting R&D into recurring revenue streams and underpin scalable future topline expansion.
Negative Factors
Operating Loss & Cash Burn
Large, persistent operating losses and negative operating/free cash flow weaken the firm's ability to self‑fund growth. Over months this necessitates fundraising or cost cutting, which can dilute shareholders, constrain commercialization investments, and pressure management priorities away from long‑term product adoption.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth & Backlog
Sustained double‑digit percentage revenue growth and a $1.2M contracted backlog provide multi‑period visibility for a subscription/licensing business. For a software security vendor, executed contracts signal traction converting R&D into recurring revenue streams and underpin scalable future topline expansion.
Read all positive factors
Arqit Quantum (ARQQ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$196.12M
Dividend YieldN/A
Average Volume (3M)173.19K
Price to Earnings (P/E)―
Beta (1Y)2.78
Revenue Growth80.89%
EPS Growth68.29%
CountryUS
Employees82
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-1.22
Shares Outstanding15,651,859
10 Day Avg. Volume157,644
30 Day Avg. Volume173,189
Financial Highlights & Ratios
PEG Ratio0.20
Price to Book (P/B)19.62
Price to Sales (P/S)1008.10
P/FCF Ratio-18.06
Enterprise Value/Market Cap0.93
Enterprise Value/Revenue289.06
Enterprise Value/Gross Profit586.49
Enterprise Value/Ebitda-4.94
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-1.52
Revenue Forecast (FY)$2.50M
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 part...
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 cryp...
Arqit Quantum Earnings Call Summary
Earnings Call Date:Dec 09, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 27, 2026
Earnings Call Sentiment Neutral
Arqit Quantum Inc. demonstrated strong momentum in fiscal year 2025 with significant revenue growth and strategic partnerships. However, the company faced challenges with operating losses and modest revenue figures from key products. The market's increasing awareness and action towards quantum cybersecurity solutions provide a positive outlook.Positive Updates
Revenue Growth and Market Momentum
Arqit Quantum Inc. experienced significant revenue growth in fiscal year 2025, generating $530,000 compared to $293,000 in fiscal year 2024. The company ended the fiscal year with executed contracts representing $1,200,000 in potential revenue for fiscal year 2026.
Negative Updates
Operating Loss and Increased Expenses
The company reported an operating loss of $38,500,000 for fiscal year 2025, up from $26,900,000 in fiscal year 2024, primarily due to increased administrative expenses and a class action lawsuit settlement.
Read all updates
Q4-2025 Updates
Positive
Negative
Revenue Growth and Market Momentum
Arqit Quantum Inc. experienced significant revenue growth in fiscal year 2025, generating $530,000 compared to $293,000 in fiscal year 2024. The company ended the fiscal year with executed contracts representing $1,200,000 in potential revenue for fiscal year 2026.
Read all positive updates
Company Guidance
The call provided substantial guidance on Arqit Quantum Inc.'s performance and strategy for fiscal year 2025, highlighting a significant increase in revenue from $293,000 in 2024 to $530,000 in 2025. The company ended the fiscal year with $1.2 million in revenue contracts to be recognized in 2026, indicating strong momentum. Key metrics include a rise in contracted backlog and notable customer engagements, particularly in the telecom and defense sectors, where they secured new contracts with companies like Sparkle and engaged in defense-related projects. Arqit Quantum also expanded its product portfolio by acquiring Amplify's encryption intelligence tools and collaborating with Intel on confidential computing solutions. Operating expenses were $34.7 million, with an operating loss of $38.5 million, due in part to an exceptional item related to a class action lawsuit settlement. The company remains optimistic about fiscal year 2026, focusing on the growing market for quantum-safe solutions and the migration to post-quantum encryption postures.Arqit Quantum Financial Statement Overview
Summary
Income Statement
30
Negative
Balance Sheet
40
Negative
Cash Flow
35
Negative
| 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
Neutral
18.59
Price Trends
15.22
Negative
20.55
Negative
28.87
Negative
Market Momentum
-0.70
Negative
49.94
Neutral
55.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARQQ, the sentiment is Neutral. The current price of 18.59 is above the 20-day moving average (MA) of 13.25, above the 50-day MA of 15.22, and below the 200-day MA of 28.87, indicating a neutral trend. The MACD of -0.70 indicates Negative momentum. The RSI at 49.94 is Neutral, neither overbought nor oversold. The STOCH value of 55.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ARQQ.
Arqit Quantum Risk Analysis
Arqit Quantum disclosed 36 risk factors in its most recent earnings report. Arqit Quantum 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
Arqit Quantum Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
55 Neutral | $10.56B | 5.51 | -28.03% | ― | 113.07% | -555.52% | |
52 Neutral | $1.59B | -90.38 | -2.42% | ― | 41.51% | -111.74% | |
51 Neutral | $4.88B | -31.73 | -51.53% | ― | -36.98% | -238.63% | |
49 Neutral | $5.27B | -23.66 | -58.58% | ― | 156.20% | -218.56% | |
47 Neutral | $483.57M | -14.93 | -11.80% | ― | -44.30% | 16.42% | |
46 Neutral | $196.12M | -15.12 | -163.57% | ― | 80.89% | 68.29% |
* Technology Sector Average
ARQQ
Arqit Quantum
13.24
-1.18
-8.18%
QUBT
Quantum Computing
7.27
0.86
13.42%
IONQ
IonQ
29.76
5.19
21.12%
QBTS
D-Wave Quantum
14.65
8.21
127.48%
RGTI
Rigetti Computing
15.13
6.88
83.39%
LAES
SEALSQ Corp
2.14
-0.29
-11.93%
Arqit Quantum Corporate Events
Arqit Quantum Posts Sharp Preliminary Revenue Growth for First Half of Fiscal 2026
Apr 13, 2026
Arqit Quantum Inc., a London-based specialist in quantum-safe encryption software for governments and enterprises, offers Encryption Intelligence to identify cryptographic vulnerabilities and NetworkSecure™ to protect data in transit with po...
Arqit Quantum Announces Board Resignation and CFO Transition
Mar 4, 2026
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 dis...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.