Rankings Software, cloud & internet Arqit

Arqit

Software, cloud & internet · United StatesRank 808 of 829Prices 2 Nov 2026Model 1.4

15070100

The model found several serious problems. That does not mean the stock will fall.

Biggest deductions

Multiples vs own history and peers−33
Margin−12
Cash flow and dilution−8

Strengths

Net cash+2

How the score is built

From 100 to 24, step by step: points off for the business, the price and the cracks, back for documented strengths, then three data adjustments.

100Start

24Score

Hover or select a step to see what drove it. Steps with findings open them below.

Key numbers

As of 2 Nov 2026. Analyst targets tend to be optimistic; read upside as a hint, not a forecast.

Price: 14.25 USD
Median analyst target: –
Upside to median: –
Analysts: none
Target range: –
52-week change: −67%
P/E (trailing): n/a
Forward P/E: n/a
PEG: n/a

Findings

Every deduction and every plus, with its source. Open a step to read them.

Business

Is the company getting stronger, not just bigger? · 3 findings−24 of −30

Margin
Operating result is −$50.1m TTM on revenue of $1.1m (operating margin −4,617%); administrative costs rose from 20.2 to $33.9m in the first half. The company has had losses every year since the SPAC listing in 2021. The loss counts here and not again under ROIC.
stockanalysis.com
−12
Quality of growth
Revenue in the second half of 2026 fell to about $355-380k from $463k the year before, because a significant contract in the Middle East stopped generating revenue. The full year lands at just under $1m, still far below $7.2m in 2022.
sec.gov
−7
Moat
Quantum-safe encryption is being standardized as open algorithms (NIST's ML-KEM etc. from August 2024), which the large tech and cloud companies build directly into their products. Arqit's proprietary key agreement therefore competes with free standards, and the original satellite plan has been abandoned.
nist.gov
−5

Price

Today's multiples against the company's own history and its peers. · 1 finding−33 of −35

Multiples vs own history and peers
P/S 263 and EV/Sales 238 TTM vs EV/Sales 85–102 in 2022–24 (only the bubble in 2025 was higher: 1,073); P/B 10.0 vs 1.5–3.3 in 2023–24. The market value is $286m for just under $1m in revenue, far more expensive than IonQ (EV/Sales approx. 63).
stockanalysis.com
−33

Cracks

Cash flow, customers, debt, insiders, guidance and what sits behind the headline numbers. · 4 findings−15 of −35

Cash flow and dilution
FCF -$42.8m TTM. In January 2026 an ATM program of up to $125m (Cantor and H.C. Wainwright) was registered, about 44% of market cap. The share count rose 172% in fiscal 2025 and 16% in the latest year, and cash grew from $28.9m to about $51m in half a year despite the loss.
sec.gov
−8
Customer concentration
Few and small contracts (11 in the first half); the loss of revenue from one contract in the Middle East was enough to make half-year revenue fall.
sec.gov
−3
Governance and management
A shareholder lawsuit (from the SPAC era) was settled with external legal costs in 2026, and the CFO was replaced in May 2026.
finviz.com
−2
Macro and sentiment
The stock is −68% over 52 weeks with beta 2.8, and 14.7% of shares are sold short (7 days to cover).
stockanalysis.com
−2

Plus

Only documented strengths. · 1 finding+2 of +15

Net cash
About $51m in cash at 30/9 2026 and only $2.2m of debt, about 17% of market cap and about 18 months of runway at current burn.
sec.gov
+2

Caveats

What the score does not capture, or where the data is weak.

British quantum-safe encryption (symmetric key agreement as software), fiscal year to 30/9. Stockanalysis' figures stop at 31/3 2026; the figures for full-year 2026 are preliminary and unaudited (6-K 8/10). Loss-making: operating margin −4,617%, so P/E and PEG are meaningless. No analyst coverage on stockanalysis (forecast 404), so formula points for upside and revisions may be missing. The share count (16.6m) is from March; cash rose to about $51m as of 30/9 despite burn of about $2.6m a month, which suggests share sales via ATM or warrants (not confirmed). Insider trades and the value of the NATO contract are not investigated/disclosed.