Is the business good?
How good a business is ARQT?
Arcutis Biotherapeutics, Inc. earns 30% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
30%
Return on invested capital · cost of capital 9.0% · 21 points above what the capital costs: growth creates value
- Operating margin
- 7.4%
Operating margin · Biotechnology median −72% · 12 months to Q2 2026
- Cash conversion
- 1.37×
Cash conversion · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- +7.0%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2022 | −8183% |
| FY2023 | −404% |
| FY2024 | −65% |
| FY2025 | −3.3% |
Details›
- Gross margin12 months to Q2 2026
- 91%
- Operating margin12 months to Q2 2026
- 7.4%
- Net margin12 months to Q2 2026
- 6.2%
- Free cash flow margin
- 8.4%
- R&D as % of revenue
- 20%
- Revenue, trailing twelve months
- $464M
- Free cash flow, trailing twelve months
- $39M
- Net income, trailing twelve months
- $29M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 30%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.