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ARCT Stock Analysis - Arcturus Therapeutics Holdings Inc. AI Rating

ARCT Nasdaq Pharmaceutical Preparations DE CIK: 0001768224
Analysis Date: Mar 20, 2026 | Data as of: 2025-12-31
AI Rating
SELL
85% Confidence

Investment Thesis

Arcturus Therapeutics is a pre-revenue pharmaceutical company burning significant cash despite maintaining a strong balance sheet with $230.9M in cash. The company is unprofitable with negative operating margins of -93% and deteriorating cash flows, requiring careful monitoring of cash runway and clinical trial progress to justify continued investment.

ARCT Strengths

  • + Substantial cash position of $230.9M provides runway for development activities
  • + Strong balance sheet with low debt-to-equity ratio of 0.07x and excellent liquidity (current ratio 6.64x)
  • + Improving net loss trajectory year-over-year despite revenue decline, suggesting cost control efforts

ARCT Risks

  • ! Severe revenue decline of 46.1% YoY indicates significant commercial challenges or product disappointments
  • ! Massive negative operating cash flow of -$74.3M annually with negative FCF margin of -90.8% unsustainable long-term
  • ! Operating margin of -93% and net margin of -80.2% demonstrate the company remains deeply unprofitable with no clear path to profitability

Key Metrics to Watch

ARCT Financial Metrics

Revenue
$82.0M
Net Income
$-65.8M
EPS (Diluted)
$-2.40
Free Cash Flow
$-74.5M
Total Assets
$271.1M
Cash Position
$230.9M

ARCT Profitability Ratios

Gross Margin N/A
Operating Margin -93.0%
Net Margin -80.2%
ROE -30.7%
ROA -24.3%
FCF Margin -90.8%

ARCT Balance Sheet & Liquidity

Current Ratio
6.64x
Quick Ratio
6.64x
Debt/Equity
0.07x
Debt/Assets
21.1%
Interest Coverage
N/A
Long-term Debt
$15.0M

ARCT 5-Year Financial Trend

ARCT 5-year financial data: Year 2021: Revenue $20.8M, Net Income -$26.0M, EPS N/A. Year 2022: Revenue $206.0M, Net Income -$203.7M, EPS $-7.74. Year 2023: Revenue $206.0M, Net Income -$203.7M, EPS $-7.74. Year 2024: Revenue $206.0M, Net Income $9.3M, EPS $0.35. Year 2025: Revenue $166.8M, Net Income -$29.7M, EPS $-1.12.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Arcturus Therapeutics Holdings Inc.'s revenue has grown significantly by 702% over the 5-year period, indicating strong business expansion. The most recent EPS of $-1.12 indicates the company is currently unprofitable.

ARCT Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-90.8%
Free cash flow / Revenue

ARCT Quarterly Performance

Quarterly financial performance data for Arcturus Therapeutics Holdings Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2025 $17.2M -$6.9M $-0.26
Q2 2025 $28.3M -$9.2M $-0.34
Q1 2025 $29.4M -$14.1M $-0.52
Q3 2024 $41.7M -$6.9M $-0.26
Q2 2024 $10.5M -$1.8M $-0.07
Q1 2024 $38.0M -$26.8M $-1.00
Q3 2023 $13.4M -$16.2M $-0.61
Q2 2023 $10.5M -$1.8M $-0.07

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

ARCT Capital Allocation

Operating Cash Flow
-$74.3M
Cash generated from operations
Capital Expenditures
$230.0K
Investment in assets
Dividends
None
No dividend program

ARCT SEC Filings

Access official SEC EDGAR filings for Arcturus Therapeutics Holdings Inc. (CIK: 0001768224)

Disclaimer: This analysis is generated by Claude AI based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Mar 20, 2026 | Data as of: 2025-12-31 | Powered by Claude AI