Liquidity is under significant pressure as the company continues to burn cash, reporting a negative free cash flow of $25.3 million in the most recent quarter.
| Cash from Operations | -65.62M | -29.55M | -34.13M | -32.83M | -26.92M | -24.03M | -1.33M | 3.83M |
| Operating CF Margin % | - | -5576.04% | -11647.1% | -5128.91% | -373.21% | -50166.5% | - | - |
| Operating CF Growth % | -47.02% | 13.4% | -3.96% | -21.95% | -11.99% | -1700.36% | -134.84% | - |
| Net Income | -75.28M | -37.53M | -58.01M | -70.53M | 65.08M | -271.73M | -1.14M | 1.04M |
| Depreciation & Amortization | 2.62M | 760K | 3.53M | 2.63M | 1.29M | 53K | 5K | 308 |
| Stock-Based Compensation | -1.41M | 5.68M | -2.91M | 14.12M | 21.74M | 166K | 122K | 15.19K |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 278.93M | 833K | 61.62K |
| Other Non-Cash Items | -4.7M | 8.26M | 24.83M | 7.8M | -103.83M | -24.03M | 300K | -4.36M |
| Working Capital Changes | -1.58M | -6.72M | -1.58M | 13.15M | -12.36M | -7.42M | -1.46M | 3.58M |
| Change in Receivables | 3.37M | -715K | 3.37M | 21.14M | -17.95M | -6.13M | -1.46M | -57.61K |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -4.95M | -6.01M | -4.95M | -7.98M | 5.59M | -1.29M | 0 | 3.63M |
| Cash from Investing | -2.01M | 683K | -2.4M | -16.08M | -24.43M | -9.31M | -4.57M | -3.62M |
| Capital Expenditures | -3.68M | -549K | -3.33M | -16.12M | -24.43M | -9.31M | -4.57M | -3.62M |
| CapEx % of Revenue | 257.63% | 103.58% | 1135.84% | 2519.22% | 338.77% | 19422.06% | - | - |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | 1.67M | 1.23M | 930K | 41K | -22.06M | -9.08M | -4.54M | -4.82M |
| Cash from Financing | 75.62M | 47.13M | 11.19M | 44.85M | 22.37M | 120.11M | 1.68M | 3.71M |
| Debt Issued (Net) | -3.05M | -250K | -3.05M | -1.31M | -657K | 13.07M | 1.68M | 0 |
| Equity Issued (Net) | 59.97M | 47.18M | 13.08M | 45.08M | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 18.71M | 201K | 1.16M | 1.09M | 22.83M | 107.04M | 0 | 4.94M |
| Net Change in Cash | 1.46M | 18.27M | -25.75M | -4.51M | -38M | 86.77M | -4.03M | 5.22M |
| Free Cash Flow | -69M | -29.59M | -37.45M | -48.95M | -51.35M | -33.34M | -5.91M | 209.36K |
| FCF Margin % | -4832.07% | -5582.26% | -12782.94% | -7648.13% | -711.98% | -69588.57% | - | - |
| FCF Growth % | 2.79% | 21.01% | 23.48% | 4.67% | -54.01% | -464.6% | -2920.51% | - |
| FCF per Share | -4.16 | -2.15 | -7.40 | -9.31 | -10.53 | -12.20 | -2.49 | 0.09 |
| FCF Conversion (FCF/Net Income) | 0.92x | 0.84x | 0.63x | 0.47x | -0.41x | 0.09x | 2.35x | 3.69x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Binary commercialization failure risk
According to historical cash flow data, Arqit's operating cash flow consistently trails net income, with the most recent quarter showing an OCF/NI ratio of 0.76, which underscores the company's struggle to convert accounting losses into a sustainable cash-generating engine for its core software operations.
The recurring gap between net income and operating cash flow suggests that non-cash items and accruals are masking the true extent of the company's cash consumption. Investors should monitor this divergence closely, as it indicates that the business model is not yet generating the quality of earnings required to support its high-cost operating structure.
As reported in financial statements, Arqit's free cash flow remains deeply negative, with a recent quarterly burn of $25.3 million, reflecting a persistent inability to achieve positive cash margins while the company continues to fund its research-heavy development phase through existing capital reserves.
The consistent negative FCF trajectory suggests that the company is currently in a capital-intensive phase with no clear path to self-funding. This trend warrants further investigation into how long the current cash runway can sustain operations before additional dilutive financing becomes a necessity.
Based on Arqit's reported figures, capital expenditure as a percentage of revenue has fluctuated wildly, reaching as high as 241.9% in past periods, which indicates that the company's investment in infrastructure is not yet aligned with its nascent and highly volatile revenue generation capabilities.
The erratic nature of these capital outlays suggests that the company is still experimenting with its infrastructure requirements rather than scaling a proven, low-cost software model. This lack of capital discipline may imply that the company is struggling to define its long-term asset replacement and growth needs.
Data from recent filings reveals that stock-based compensation and other non-cash adjustments have historically created significant noise in the cash flow statement, with SBC reaching $20.6 million in 2022Q4, which complicates the assessment of the company's true operational cash burn and underlying financial health.
These non-cash adjustments appear to obscure the actual cash cost of talent acquisition and retention, making it difficult to gauge the true economic cost of the company's R&D efforts. Investors should be wary of relying solely on headline cash flow figures, as they may not fully capture the dilutive impact of these compensation practices.
Quick answers to the most common questions about buying ARQQ stock.
Arqit Quantum Inc. (ARQQ) generated $-29.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Arqit Quantum Inc. (ARQQ) reported negative free cash flow of $29.6M in 2025, indicating capital requirements exceeded cash from operations.
Arqit Quantum Inc. (ARQQ) spent $0.5M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.