ARQTArcutis Biotherapeutics, Inc.
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (1.2×).
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash.
Margins have held roughly steady, a stable cost structure.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
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.
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 −77% · 12 months to Q2 2026
- Cash conversion
- 1.18×
Cash conversion · operating cash flow covers the operating profit after tax
- 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 is operating cash flow over operating profit after tax.