Arqit Quantum Inc. (ARQQ)
NASDAQ:ARQQ
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Arqit Quantum
(NASDAQ:ARQQ)
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Rating:52Neutral
Price Target:
$24.50
▲(31.79% Upside)
Action:Reiterated
Date:06/19/26
The score is primarily constrained by weak financial performance (ongoing losses and cash burn) and a valuation profile driven by losses and no dividend. Technicals are a near-term positive with strong momentum, but overbought indicators add risk. The earnings call adds moderate support due to improving contract traction and stated liquidity runway, tempered by rapidly rising expenses and early-stage revenue scale.
Positive Factors
Rapid revenue growth and commercial traction
Sustained high percentage revenue growth across consecutive periods indicates emerging product-market fit and an ability to convert pilot engagements into recognized contracts. Durable subscription or contract wins create a foundation for recurring revenue expansion as sales cycles complete and upsizes recur.
Negative Factors
Large and growing operating losses
Rapidly increasing operating losses driven by higher administrative spend indicate the company is not yet scaling operating leverage. Persistent negative operating results can erode equity, force frequent financing, and lengthen the runway to sustainable profitability absent meaningful revenue scale or cost control.
Read all positive and negative factors
Positive Factors
Negative Factors
Rapid revenue growth and commercial traction
Sustained high percentage revenue growth across consecutive periods indicates emerging product-market fit and an ability to convert pilot engagements into recognized contracts. Durable subscription or contract wins create a foundation for recurring revenue expansion as sales cycles complete and upsizes recur.
Read all positive factors
Arqit Quantum (ARQQ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$424.27M
Dividend YieldN/A
Average Volume (3M)1.06M
Price to Earnings (P/E)―
Beta (1Y)3.17
Revenue Growth350.62%
EPS Growth-69.92%
CountryUS
Employees82
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-3.18
Shares Outstanding17,402,410
10 Day Avg. Volume1,737,725
30 Day Avg. Volume1,063,219
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 Cap0.77
Enterprise Value/Revenue301.15
Enterprise Value/Gross Profit3.24K
Enterprise Value/Ebitda-6.51
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. is a London, UK-based company that provides cutting-edge cybersecurity solutions, leveraging both satellite and ground-based infrastructure to protect its clients. A core component of its service portfolio is QuantumCloud, an in...
How the Company Makes Money
Arqit primarily makes money by licensing and selling subscriptions to its quantum-safe cybersecurity software and related services. Revenue is typically generated through recurring software fees (e.g., subscription or term-based licenses) for acce...
Arqit Quantum Earnings Call Summary
Earnings Call Date:May 21, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Dec 16, 2026
Earnings Call Sentiment Neutral
The call presents meaningful commercial momentum: rapid percentage revenue growth, multiple new contracts, product rollout wins (encryption intelligence), and expanding strategic partnerships and customer deployments (Sparkle, COLT, Equinix presence). Liquidity improved with cash on hand and in-the-money warrants, giving management confidence in runway. However, the company remains in an early revenue phase with modest absolute sales, large and growing operating losses driven by higher administrative costs and a substantial increase in share-based compensation. Adoption in key markets (government/defense/telco) involves long sales cycles, and near-term funding partly depends on warrant exercises. Overall the positives around product-market fit and partnerships are balanced by significant near-term financial burdens and execution/timing risks.Positive Updates
Strong Revenue Growth (YoY)
Revenue for H1 FY2026 was $623k versus $67k in the comparable period last year, an increase of approximately 830%, representing the second consecutive reporting period of growth and multiple new contract wins.
Negative Updates
Large and Growing Operating Loss
Operating loss for H1 FY2026 was $33.7M versus $20.0M in the prior period, an increase of approximately 68.5%, driven by higher administrative expenses despite revenue growth.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Revenue Growth (YoY)
Revenue for H1 FY2026 was $623k versus $67k in the comparable period last year, an increase of approximately 830%, representing the second consecutive reporting period of growth and multiple new contract wins.
Read all positive updates
Company Guidance
Management reiterated guidance that momentum will continue into H2 FY2026 with additional contract wins, renewals and upsizings expected and revenue opportunities to come through partnerships and a marketing campaign targeting ~450 organizations; they cited H1 FY2026 revenue of $623k (vs $67k H1 FY2025), 11 contracts executed in the period (3 telecom, 8 government/defense/enterprise versus ~6–7 in the prior period), and said further wins are likely during the balance of the year. Key cost and profitability metrics: administrative expenses $33.9M (up from $20.2M) including $12.7M of share‑based compensation (vs $0.872M), operating loss $33.7M (vs $20.0M) and loss before tax $33.1M (vs $19.5M). Liquidity was reported at $28.9M cash at 31‑Mar‑2026 and $35.9M as of 20‑May‑2026 (management said this provides >14 months runway), plus in‑the‑money warrants that could provide ~$13.5M if exercised (one tranche noted as 5.4M shares and other warrants expiring through 2028). They pointed to commercial traction—first encryption intelligence contract signed May 18, a partner deal signed May 19, a ~90% upsized partner contract on May 1, Sparkle’s Quantum Safe Interconnect across 20 Equinix IBX data centers—and reiterated expectations for further revenue and contract progress in H2.Arqit Quantum Financial Statement Overview
Summary
Income Statement
30
Negative
Balance Sheet
40
Negative
Cash Flow
35
Negative
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.09M | 530.00K | 293.00K | 640.00K | 7.21M | 47.91K |
| Gross Profit | 101.00K | -230.00K | -1.59M | -1.65M | 5.92M | -139.00K |
| EBITDA | -50.26M | -36.81M | -20.19M | -41.20M | 54.92M | -270.60M |
| Net Income | -51.21M | -35.34M | -54.58M | -70.39M | 65.08M | -271.73M |
Balance Sheet | ||||||
| Total Assets | 36.24M | 42.85M | 26.72M | 99.78M | 123.87M | 113.73M |
| Cash, Cash Equivalents and Short-Term Investments | 28.86M | 36.98M | 18.70M | 44.45M | 48.97M | 86.97M |
| Total Debt | 2.17M | 719.00K | 990.00K | 8.40M | 7.83M | 0.00 |
| Total Liabilities | 7.73M | 15.62M | 14.90M | 33.13M | 45.32M | 147.57M |
| Stockholders Equity | 28.50M | 27.24M | 11.82M | 66.65M | 78.56M | -33.84M |
Cash Flow | ||||||
| Free Cash Flow | -41.70M | -29.59M | -37.45M | -48.95M | -51.35M | -33.34M |
| Operating Cash Flow | -41.67M | -29.55M | -34.13M | -32.83M | -26.92M | -24.03M |
| Investing Cash Flow | -327.00K | 683.00K | -2.40M | -16.08M | -24.43M | -9.31M |
| Financing Cash Flow | 46.31M | 47.13M | 11.19M | 44.85M | 22.37M | 120.11M |
Arqit Quantum Technical Analysis
Positive
18.59
Price Trends
15.10
Positive
15.53
Positive
24.33
Positive
Market Momentum
1.49
Negative
76.01
Negative
90.48
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARQQ, the sentiment is Positive. The current price of 18.59 is above the 20-day moving average (MA) of 16.24, above the 50-day MA of 15.10, and below the 200-day MA of 24.33, indicating a bullish trend. The MACD of 1.49 indicates Negative momentum. The RSI at 76.01 is Negative, neither overbought nor oversold. The STOCH value of 90.48 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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% | |
60 Neutral | $21.11B | 73.23 | 9.08% | ― | 334.58% | ― | |
58 Neutral | $2.43B | -44.02 | -3.55% | ― | 1025.71% | 42.03% | |
56 Neutral | $7.10B | -31.42 | -43.94% | ― | 8.75% | -4.39% | |
54 Neutral | $718.45M | -12.32 | -11.80% | ― | 79.31% | 57.71% | |
53 Neutral | $9.15B | -24.65 | -44.05% | ― | -41.75% | -87.41% | |
52 Neutral | $424.27M | -7.89 | -183.74% | ― | 350.62% | -69.92% |
* Technology Sector Average
ARQQ
Arqit Quantum
24.38
-14.20
-36.81%
QUBT
Quantum Computing
10.76
-6.74
-38.51%
IONQ
IonQ
56.55
15.41
37.46%
QBTS
D-Wave Quantum
24.69
9.75
65.26%
RGTI
Rigetti Computing
21.36
10.57
97.96%
LAES
SEALSQ Corp
3.12
-0.50
-13.81%
Arqit Quantum Corporate Events
Arqit Quantum Resolves All U.S. Securities Class Actions With $7 Million Settlement
Jun 17, 2026
On June 1, 2026, a U.S. federal court in the Eastern District of New York approved a $7 million settlement agreement between Arqit Quantum and plaintiffs in a previously disclosed putative securities class action. Following that approval, a separa...
Arqit Quantum Posts Strong H1 2026 Revenue Growth and Expands Post‑Quantum Security Footprint
May 21, 2026
On 21 May 2026, Arqit Quantum reported first-half fiscal 2026 revenue of $623,000 to 31 March 2026, a sharp increase from $67,000 a year earlier and $463,000 in the second half of 2025, driven by eleven contracts across telecom, government, defenc...
Arqit Quantum Adds Experienced Independent Director to Audit Committee
May 1, 2026
On May 1, 2026, Arqit Quantum appointed Cristina Levis as a Class I independent director and member of its Audit Committee, strengthening the board’s financial and governance expertise. Levis brings a track record spanning European financial...
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...
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.