Revenue volatility remains acute, highlighted by a 97.9% year-over-year decline in 2026Q1 and an operating margin that plummeted to -48.8% as R&D costs continue to outpace top-line generation.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 |
|---|
| Sales/Revenue | 45.35M | 67.22M | 138.39M | 157.75M | 205.75M | 12.36M | 9.54M | 20.79M | 15.75M | 13M | 20.38M | 6.14M | 0 | 0 | 0 | 0 |
| Revenue Growth % | -66.45% | -51.43% | -12.27% | -23.33% | 1564.82% | 29.56% | -54.12% | 31.97% | 21.2% | -36.23% | 232.06% | - | - | - | - | - |
| Cost of Goods Sold | 4M | 3.02M | 0 | 0 | 0 | 0 | 55.95M | 0 | 16.98M | 410K | 294K | 51K | 0 | 0 | 0 | 0 |
| COGS % of Revenue | - | 4.5% | - | - | - | - | 586.5% | - | 107.8% | 3.15% | 1.44% | 0.83% | - | - | - | - |
| Gross Profit | 41.35M | 64.2M | 138.39M | 157.75M | 205.75M | 12.36M | -46.41M | 20.79M | -1.23M | 12.59M | 20.09M | 6.09M | 0 | 0 | 0 | 0 |
| Gross Margin % | 91.18% | 95.5% | 100% | 100% | 100% | 100% | -486.5% | 100% | -7.8% | 96.85% | 98.56% | 99.17% | - | - | - | - |
| Gross Profit Growth % | - | -53.61% | -12.27% | -23.33% | 1564.82% | 126.63% | -323.23% | 1791.54% | -109.76% | -37.34% | 230.01% | - | - | - | - | - |
| Operating Expenses | 130.57M | 139.15M | 234.06M | 235.95M | 193.58M | 215.21M | 25.12M | 46.3M | 37.56M | 23.49M | 25.17M | 19.7M | 33.08M | 10.29M | 1.5M | 3.91M |
| OpEx % of Revenue | - | 207.01% | 169.13% | 149.58% | 94.08% | 1741.33% | 263.31% | 222.72% | 238.46% | 180.72% | 123.48% | 320.92% | - | - | - | - |
| Selling, General & Admin | 43.57M | 46.08M | 52.82M | 52.87M | 46.07M | 41.45M | 25.12M | 12.66M | 20.58M | 7.57M | 5.36M | 4.99M | 5.84M | 3.22M | 683K | 2.08M |
| SG&A % of Revenue | - | 68.55% | 38.17% | 33.52% | 22.39% | 335.39% | 263.31% | 60.91% | 130.65% | 58.26% | 26.28% | 81.33% | - | - | - | - |
| Research & Development | 98.25M | 112.21M | 195.16M | 192.13M | 147.75M | 173.76M | 57.85M | 33.64M | 16.98M | 15.92M | 18.39M | 13.46M | 25.11M | 7.07M | 818K | 1.82M |
| R&D % of Revenue | - | 166.93% | 141.02% | 121.8% | 71.81% | 1405.94% | 606.42% | 161.82% | 107.8% | 122.47% | 90.23% | 219.31% | - | - | - | - |
| Other Operating Expenses | -3M | -19.14M | -13.92M | -9.05M | -244K | 0 | -57.85M | 0 | 0 | -348K | 1.42M | 1.25M | 2.13M | 0 | 0 | 0 |
| Operating Income | -89.22M | -74.95M | -95.67M | -78.2M | 12.18M | -202.85M | -71.52M | -25.51M | -21.81M | -10.49M | -25.17M | -19.7M | -33.08M | -10.29M | -1.5M | -3.91M |
| Operating Margin % | -196.72% | -111.51% | -69.13% | -49.58% | 5.92% | -1641.33% | -749.81% | -122.72% | -138.46% | -80.72% | -123.48% | -320.92% | - | - | - | - |
| Operating Income Growth % | - | 21.65% | -22.33% | -742.24% | 106% | -183.61% | -180.34% | -16.97% | -107.88% | 58.31% | -27.76% | 40.45% | -221.46% | -585.54% | 61.57% | - |
| EBITDA | -86.33M | -71.93M | -92.13M | -75.25M | 13.7M | -201.66M | -70.64M | -24.83M | -21.23M | -10.08M | -24.87M | -19.65M | -33.05M | -10.28M | -1.49M | -3.9M |
| EBITDA Margin % | -190.36% | -107.01% | -66.57% | -47.7% | 6.66% | -1631.68% | -740.56% | -119.43% | -134.76% | -77.57% | -122.03% | -320.09% | - | - | - | - |
| EBITDA Growth % | -9.78% | 21.92% | -22.43% | -649.1% | 106.8% | -185.47% | -184.51% | -16.96% | -110.56% | 59.47% | -26.6% | 40.55% | -221.41% | -588.22% | 61.69% | - |
| D&A (Non-Cash Add-back) | 2.88M | 3.02M | 3.54M | 2.96M | 1.53M | 1.19M | 882K | 684K | 582K | 410K | 294K | 51K | 31K | 8K | 7K | 6K |
| EBIT | -75.67M | -74.95M | -80.94M | -27.12M | 12.18M | -202.85M | -71.52M | -25.14M | -21.3M | -10.75M | -1.24M | -1.65M | -32.84M | -10.28M | -1.51M | -3.93M |
| Net Interest Income | 9.27M | 10.1M | 15.2M | 16.59M | -420K | -1.92M | -361K | -446K | 328K | -61K | -286K | -250K | 237K | -175K | -78K | -23K |
| Interest Income | 9.27M | 10.1M | 15.2M | 17.36M | 2.58M | 753K | 470K | 408K | 514K | 89K | 9K | 1K | 239K | 22K | 2K | 21K |
| Interest Expense | 0 | 0 | 0 | 767K | 3M | 2.67M | 831K | 854K | 186K | 150K | 295K | 251K | 2K | 197K | 80K | 44K |
| Other Income/Expense | 10.54M | 9.17M | 14.72M | 50.31M | -1.53M | -822K | -624K | -478K | 26K | -409K | -536K | 11K | 227K | -197K | -78K | -23K |
| Pretax Income | -78.67M | -65.78M | -80.94M | -27.89M | 10.64M | -203.67M | -72.15M | -25.99M | -21.79M | -10.9M | -24.53M | -19.4M | -32.85M | -10.49M | -1.58M | -3.93M |
| Pretax Margin % | -173.47% | -97.86% | -58.49% | -17.68% | 5.17% | -1647.98% | -756.35% | -125.02% | -138.29% | -83.87% | -120.35% | -316.03% | - | - | - | - |
| Income Tax | 0 | 0 | -4K | 1.83M | 1.29M | 0 | 0 | 0 | 212K | 1K | 73K | 51K | -17K | 61K | 0 | 21K |
| Effective Tax Rate % | 0% | 0% | 0% | -6.58% | 12.17% | 0% | 0% | 0% | -0.97% | -0.01% | -0.3% | -0.26% | 0.05% | -0.58% | 0% | -0.53% |
| Net Income | -78.67M | -65.78M | -80.94M | -29.73M | 9.35M | -203.67M | -72.15M | -25.99M | -21.79M | -10.9M | -24.6M | -19.45M | -32.83M | -10.55M | -1.58M | -3.93M |
| Net Margin % | -173.47% | -97.86% | -58.49% | -18.84% | 4.54% | -1647.98% | -756.35% | -125.02% | -138.29% | -83.87% | -120.71% | -316.86% | - | - | - | - |
| Net Income Growth % | -15.35% | 18.73% | -172.3% | -417.95% | 104.59% | -182.3% | -177.59% | -19.31% | -99.83% | 55.69% | -26.5% | 40.77% | -211.28% | -568.02% | 59.81% | - |
| Net Income (Continuing) | -78.67M | -65.78M | -80.94M | -29.73M | 9.35M | -203.67M | -72.15M | -25.99M | -21.79M | -10.9M | -1.57M | -1.9M | -32.83M | -10.55M | -1.58M | -3.93M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -2.77 | -2.40 | -3.00 | -1.12 | 0.35 | -7.74 | -3.55 | -2.13 | -2.16 | -3.53 | -6.25 | -6.29 | -16.81 | -7.25 | -0.99 | -2.47 |
| EPS Growth % | -11.86% | 20% | -167.86% | -420% | 104.52% | -118.03% | -66.67% | 1.39% | 38.81% | 43.52% | 0.64% | 62.58% | -131.86% | -632.32% | 59.92% | - |
| EPS (Basic) | - | -2.40 | -3.00 | -1.12 | 0.35 | -7.74 | -3.55 | -2.13 | -2.16 | -3.53 | -6.25 | -6.29 | -16.81 | -7.25 | -0.99 | -2.47 |
| Diluted Shares Outstanding | 28.42M | 27.39M | 27M | 26.63M | 27.09M | 26.32M | 20.3M | 12.07M | 10.07M | 3.09M | 3.94M | 3.09M | 1.95M | 1.45M | 1.59M | 1.59M |
| Basic Shares Outstanding | 28.42M | 27.39M | 27M | 26.63M | 26.45M | 26.32M | 20.3M | 12.07M | 10.07M | 3.09M | 3.94M | 3.09M | 1.95M | 1.45M | 1.59M | 1.59M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Clinical Milestone Revenue Volatility
As reported in financial statements, ARCT experienced a severe revenue contraction of 97.9% in 2026Q1, highlighting the inherent instability of a business model reliant on episodic milestone payments rather than recurring product sales, which complicates the assessment of long-term growth durability for the company's LUNAR platform.
The dramatic fluctuations in top-line performance suggest that revenue is tied to specific clinical trial events rather than consistent commercial demand. Investors should monitor whether the company can transition from project-based collaboration income to a more predictable revenue stream as its pipeline matures.
Based on reported figures, ARCT maintained gross margins near 100% for most of the observed period, reflecting the service-heavy nature of its licensing model, though the 2026Q1 dip to -7.9% suggests potential cost-of-sales volatility as the company moves closer to actual product manufacturing and distribution.
While the high gross margin is characteristic of a pure-play intellectual property firm, it may not be representative of future profitability once commercialization costs are fully integrated. The recent margin compression warrants further investigation into whether this represents a structural shift in the cost of delivering clinical services.
According to recent SEC filings, ARCT's operating income remains deeply negative, with R&D expenses consistently exceeding revenue, indicating that the company has yet to achieve the necessary scale to leverage its fixed cost base effectively against its current, highly variable revenue generation profile.
The persistent operating losses suggest that management is prioritizing aggressive pipeline expansion over near-term profitability. This strategy appears to be a deliberate trade-off, but it leaves the company vulnerable to liquidity constraints if clinical milestones are delayed or if partnership interest wanes.
As indicated by the financial data, ARCT consistently records significant stock-based compensation expenses, often exceeding $5M per quarter, which serves to dilute shareholders and masks the true cash-based operating burn rate required to sustain the company's ongoing clinical development and research initiatives.
The reliance on equity-based incentives for talent retention is common in biotech but complicates the assessment of true economic profitability. Investors should adjust for these non-cash charges when evaluating the company's underlying operational efficiency and the sustainability of its current cash burn trajectory.
Based on the provided income statement data, the primary risk to the narrative is the potential for prolonged revenue gaps, as the company's reliance on sporadic milestone payments may prove insufficient to cover the high fixed R&D costs required to maintain its competitive technological edge.
Short-term observers may focus on the lack of a commercialized product as a fundamental flaw in the current valuation. If the company fails to secure new partnerships or if existing clinical programs face regulatory setbacks, the current revenue model may be unable to support the existing cost structure.
Quick answers to the most common questions about buying ARCT stock.
For fiscal year 2025, Arcturus Therapeutics Holdings Inc. (ARCT) reported total revenue of $67.2M.
Arcturus Therapeutics Holdings Inc. (ARCT) reported a net loss of $65.8M for the fiscal year ending 2025.
Arcturus Therapeutics Holdings Inc. (ARCT) reported an operating income of $-75.0M, resulting in an operating profit margin of -111.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Arcturus Therapeutics Holdings Inc. (ARCT) generated $64.2M in gross profit for the year, representing a gross profit margin of 95.5%. This demonstrates the company's core pricing power and production efficiency.