Arqit Quantum (ARQQ) AI Stock Analysis

• Market Cap: $351.54M
• Dividend Yield: N/A
• Average Volume (3M): 409.46K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.88
• 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: 394,036
• 30 Day Avg. Volume: 409,457
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $60.00
• Price Target Upside: 118.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): -1.65
• Revenue Forecast (FY): $6.01M

• Rating: 41 Neutral
• Price Target: $23.00 ▼(-16.30% Downside)

Arqit Quantum's overall score is driven by financial performance challenges, including negative profitability and cash flow issues. Technical indicators suggest a bearish trend, and valuation metrics reflect ongoing losses. Despite positive strategic developments, these factors weigh heavily on the stock's outlook.

Positive Factors

Revenue Growth

Arqit Quantum's significant revenue growth indicates strong market demand and successful expansion efforts, enhancing long-term business prospects.

Strategic Partnerships

Collaborations with industry leaders like Intel and Sparkle position Arqit Quantum to leverage new technologies and expand its market reach, supporting sustainable growth.

Product Expansion

The launch of SKA Central Controller enhances Arqit's product portfolio, offering scalable, quantum-safe solutions that address evolving cybersecurity needs.

Negative Factors

Operating Losses

Significant operating losses highlight ongoing financial challenges, potentially impacting Arqit's ability to invest in growth and innovation.

Cash Flow Challenges

Negative cash flows indicate cash burn, which can strain resources and limit Arqit's capacity to sustain operations without additional financing.

Profitability Issues

Persistent profitability issues suggest operational inefficiencies, which could hinder Arqit's long-term financial health and competitive positioning.

Arqit Quantum Business Overview & Revenue Model

Company Description

Arqit Quantum (ARQQ) is a technology company specializing in quantum encryption and cybersecurity solutions. Founded to address the growing concerns around data security in the quantum computing era, Arqit provides a unique quantum key distribution service that enables secure communication by generating and distributing encryption keys using quantum principles. The company operates primarily in the cybersecurity sector, targeting industries such as finance, government, and telecommunications, where data protection is paramount.

How the Company Makes Money

Arqit Quantum generates revenue through its subscription-based model for its quantum encryption services, where clients pay for access to its quantum key distribution platform. The company also engages in partnerships with government agencies and large enterprises, providing tailored solutions and consulting services. Additionally, Arqit may generate revenue through licensing its technology to other firms and participating in joint ventures that leverage its quantum encryption capabilities. The strategic alliances with industry leaders and government contracts significantly contribute to its earnings, enabling scalability and expanding its market reach.

Arqit Quantum Financial Statement Overview

Summary

Arqit Quantum shows strong revenue growth but faces significant profitability and cash flow challenges. The company needs to improve operational efficiency and cash generation to enhance financial stability.

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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	631.00K	530.00K	293.00K	640.00K	7.21M	47.91K
Gross Profit	311.00K	-230.00K	-1.59M	-1.65M	5.92M	-139.00K
EBITDA	-36.90M	-36.81M	-20.19M	-41.20M	54.92M	-270.60M
Net Income	-35.34M	-35.34M	-54.58M	-70.39M	65.08M	-271.73M
Balance Sheet
Total Assets	42.85M	42.85M	26.72M	99.78M	123.87M	113.73M
Cash, Cash Equivalents and Short-Term Investments	36.98M	36.98M	18.70M	44.45M	48.97M	86.97M
Total Debt	719.00K	719.00K	990.00K	8.40M	7.83M	0.00
Total Liabilities	15.62M	15.62M	14.90M	33.13M	45.32M	147.57M
Stockholders Equity	27.24M	27.24M	11.82M	66.65M	78.56M	-33.84M
Cash Flow
Free Cash Flow	-28.92M	-29.59M	-37.45M	-48.95M	-51.35M	-33.34M
Operating Cash Flow	-28.89M	-29.55M	-34.13M	-32.83M	-26.92M	-24.03M
Investing Cash Flow	17.00K	683.00K	-2.40M	-16.08M	-24.43M	-9.31M
Financing Cash Flow	47.13M	47.13M	11.19M	44.85M	22.37M	120.11M

Arqit Quantum Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 27.48
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 27.48 is above the 20-day moving average (MA) of 27.20, below the 50-day MA of 34.38, and below the 200-day MA of 29.28, indicating a bearish trend. The MACD of -2.18 indicates Positive momentum. The RSI at 38.19 is Neutral, neither overbought nor oversold. The STOCH value of 11.13 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%
QBTS	54 Neutral	$8.33B	-18.42	-122.03%	―	156.20%	-218.56%
IONQ	51 Neutral	$16.24B	-8.67	-108.23%	―	113.07%	-555.52%
LAES	50 Neutral	$713.71M	-8.69	-45.62%	―	-44.30%	16.42%
QUBT	47 Neutral	$2.29B	-17.10	-14.49%	―	41.51%	-111.74%
ARQQ	41 Neutral	$351.54M	-9.72	-181.44%	―	80.89%	68.29%
RGTI	41 Neutral	$7.42B	-17.55	-141.90%	―	-36.98%	-238.63%

Arqit Quantum Corporate Events

Arqit Quantum Reports Fiscal Year 2025 Financial Results and Strategic Growth Plans

On December 9, 2025, Arqit Quantum Inc. announced its financial results for the fiscal year ending September 30, 2025. The company reported a revenue of $530,000, with significant growth in the second half of the year. Arqit secured seven contracts, including multi-year agreements with telecom operators and government entities, and anticipates $1.2 million in revenue for fiscal year 2026. The acquisition of Ampliphae’s product portfolio has strengthened Arqit’s offerings, enhancing its position in the quantum encryption market. The company is optimistic about growth prospects, driven by new contracts and increased customer engagement.

Arqit Quantum Settles Class Action Lawsuit for $7 Million

On October 20, 2025, Arqit Quantum Inc. announced a settlement agreement in a class action lawsuit filed against the company and certain directors in the United States District Court for the Eastern District of New York. The settlement, pending court approval, is valued at $7 million and aims to resolve the Federal Action, which will also lead to the dismissal of a related lawsuit in the Supreme Court of the State of New York. This settlement marks a significant step in resolving legal challenges facing Arqit Quantum, potentially stabilizing its operations and reassuring stakeholders.

Arqit Quantum Reports Preliminary Fiscal Year 2025 Results

On October 9, 2025, Arqit Quantum Inc. announced its preliminary unaudited financial results for the second half and full fiscal year ending September 30, 2025. The company reported expected revenues of approximately $460,000 to $470,000 for the second half and $525,000 to $535,000 for the full year, with cash reserves of $36.9 million. The growth in revenue was attributed to new contracts and the commencement of a multi-year enterprise license contract in the EMEA region. Arqit also disclosed ongoing settlement discussions related to a class action lawsuit in the United States.