📊 ARQT Key Takeaways
Is Arcutis Biotherapeutics, Inc. (ARQT) a Good Investment?
Arcutis faces significant fundamental challenges despite modest revenue growth, with persistent operating losses (-3.3% margin) and negative free cash flow (-6.3M) indicating the company is burning cash to fund operations. The negative interest coverage ratio (-1.6x) suggests inability to service debt from operations, while modest revenue growth of 1.1% YoY fails to demonstrate meaningful commercial traction in a capital-intensive pharmaceutical sector.
Arcutis Biotherapeutics shows a meaningful improvement in earnings and cash burn, with net loss narrowing sharply and free cash flow close to breakeven. The balance sheet remains reasonably supported by strong liquidity, but profitability is still negative, revenue growth is modest, and weak interest coverage limits the margin for error.
Why Buy Arcutis Biotherapeutics, Inc. Stock? ARQT Key Strengths
- Strong liquidity position with 3.17x current ratio and 42.9M in cash providing near-term runway
- Improved net loss trajectory with 88.5% YoY improvement in net income suggesting operational leverage emerging
- Moderate debt-to-equity ratio of 0.58x indicates conservative capital structure relative to sector peers
- Net income and diluted EPS improved substantially year over year, indicating better operating discipline and scaling
- Liquidity is solid, with current and quick ratios near 3x, supporting near-term funding flexibility
- Free cash flow deficit is relatively small, suggesting the business is approaching cash flow breakeven
ARQT Stock Risks: Arcutis Biotherapeutics, Inc. Investment Risks
- Negative operating cash flow of -5.6M and negative FCF of -6.3M demonstrates the company is consuming capital faster than generating it from core operations
- Operating losses at -12.2M with -3.3% operating margin indicate core business is unprofitable and scaling challenges persist
- Inability to cover interest expenses from operations (interest coverage -1.6x) creates refinancing risk and limits financial flexibility
- Anemic 1.1% YoY revenue growth insufficient to offset operating losses and suggests weak market adoption or limited product pipeline success
- Revenue growth of just 1.1% raises questions about the durability and quality of future expansion
- Operating and net margins remain negative, so the company has not yet demonstrated sustained profitability
- Negative interest coverage and meaningful long-term debt create financing risk if operating performance weakens
Key Metrics to Watch
- Operating cash flow trajectory - critical indicator of whether company can reach cash flow breakeven
- Revenue growth acceleration - need to see >15% YoY growth to justify pharmaceutical sector investment thesis
- Path to operating profitability - monitor if operating margin can improve toward 0% within 12-24 months
- Cash burn rate and runway - with 42.9M cash and -5.6M operating cash outflow, company has ~7-8 quarters of runway requiring financing or profitability
- Sustained product revenue growth and operating margin improvement
- Operating cash flow consistency relative to debt servicing needs
Arcutis Biotherapeutics, Inc. (ARQT) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 3.17x current ratio provides a solid financial cushion.
ARQT Profit Margin, ROE & Profitability Analysis
ARQT vs Healthcare Sector: How Arcutis Biotherapeutics, Inc. Compares
How Arcutis Biotherapeutics, Inc. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Arcutis Biotherapeutics, Inc. Stock Overvalued? ARQT Valuation Analysis 2026
Based on fundamental analysis, Arcutis Biotherapeutics, Inc. shows some fundamental concerns relative to the Healthcare sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Arcutis Biotherapeutics, Inc. Balance Sheet: ARQT Debt, Cash & Liquidity
ARQT Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Arcutis Biotherapeutics, Inc.'s revenue has grown significantly by 9,994% over the 5-year period, indicating strong business expansion. The most recent EPS of $-3.78 indicates the company is currently unprofitable.
ARQT Revenue Growth, EPS Growth & YoY Performance
ARQT Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $44.8M | $7.4M | $0.06 |
| Q2 2025 | $30.9M | -$15.9M | $-0.13 |
| Q1 2025 | $21.6M | -$25.1M | $-0.20 |
| Q3 2024 | $8.1M | -$35.4M | $-0.33 |
| Q2 2024 | $4.8M | -$35.4M | $-0.42 |
| Q1 2024 | $2.8M | -$35.4M | $-0.32 |
| Q3 2023 | $725.0K | -$44.8M | $-0.73 |
| Q2 2023 | N/A | -$64.3M | $-1.16 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Arcutis Biotherapeutics, Inc. Dividends, Buybacks & Capital Allocation
ARQT SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Arcutis Biotherapeutics, Inc. (CIK: 0001787306)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Apr 3, 2026 | 4 | xslF345X06/wk-form4_1775252777.xml | View → |
| Mar 4, 2026 | 4 | xslF345X05/wk-form4_1772659056.xml | View → |
| Mar 4, 2026 | 4 | xslF345X05/wk-form4_1772658986.xml | View → |
| Mar 3, 2026 | 4 | xslF345X05/wk-form4_1772588580.xml | View → |
| Mar 3, 2026 | 4 | xslF345X05/wk-form4_1772588561.xml | View → |
❓ Frequently Asked Questions about ARQT
What is the AI rating for ARQT?
Arcutis Biotherapeutics, Inc. (ARQT) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ARQT's key strengths?
Claude: Strong liquidity position with 3.17x current ratio and 42.9M in cash providing near-term runway. Improved net loss trajectory with 88.5% YoY improvement in net income suggesting operational leverage emerging. ChatGPT: Net income and diluted EPS improved substantially year over year, indicating better operating discipline and scaling. Liquidity is solid, with current and quick ratios near 3x, supporting near-term funding flexibility.
What are the risks of investing in ARQT?
Claude: Negative operating cash flow of -5.6M and negative FCF of -6.3M demonstrates the company is consuming capital faster than generating it from core operations. Operating losses at -12.2M with -3.3% operating margin indicate core business is unprofitable and scaling challenges persist. ChatGPT: Revenue growth of just 1.1% raises questions about the durability and quality of future expansion. Operating and net margins remain negative, so the company has not yet demonstrated sustained profitability.
What is ARQT's revenue and growth?
Arcutis Biotherapeutics, Inc. reported revenue of $376.1M.
Does ARQT pay dividends?
Arcutis Biotherapeutics, Inc. does not currently pay dividends.
Where can I find ARQT SEC filings?
Official SEC filings for Arcutis Biotherapeutics, Inc. (CIK: 0001787306) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ARQT's EPS?
Arcutis Biotherapeutics, Inc. has a diluted EPS of $-0.13.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is ARQT a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Arcutis Biotherapeutics, Inc. has a SELL rating with 76% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is ARQT stock overvalued or undervalued?
Valuation metrics for ARQT: ROE of -8.5% (sector avg: 15%), net margin of -4.3% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy ARQT stock in 2026?
Our dual AI analysis gives Arcutis Biotherapeutics, Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ARQT's free cash flow?
Arcutis Biotherapeutics, Inc.'s operating cash flow is $-5.6M, with capital expenditures of $686.0K. FCF margin is -1.7%.
How does ARQT compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin -4.3% (avg: 12%), ROE -8.5% (avg: 15%), current ratio 3.17 (avg: 2).