Revenue remains highly volatile and insufficient to cover operating costs, evidenced by a recent quarterly net loss of $33.0 million and a negative operating margin of -49.6%.
Arqit Quantum Inc. (ARQQ) annual income statement — 7-year revenue, gross profit & net income history
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 |
|---|
| Sales/Revenue | 1.43M | 530K | 293K | 640K | 7.21M | 47.91K | 0 | 0 |
| Revenue Growth % | 150.07% | 80.89% | -54.22% | -91.13% | 14953.22% | - | - | - |
| Cost of Goods Sold | 1.74M | 760K | 1.88M | 2.29M | 1.29M | 187K | 159K | 308 |
| COGS % of Revenue | - | 143.4% | 643% | 357.66% | 17.91% | 390.32% | - | - |
| Gross Profit | -307K | -230K | -1.59M | -1.65M | 5.92M | -139K | -159K | -308 |
| Gross Margin % | -21.5% | -43.4% | -543% | -257.66% | 82.09% | -290.13% | - | - |
| Gross Profit Growth % | - | 85.54% | 3.52% | -127.85% | 4358.99% | 12.58% | -51523.38% | - |
| Operating Expenses | 78.27M | 34.94M | 23.1M | 82.8M | 70.98M | 172.61M | 650K | 827.44K |
| OpEx % of Revenue | - | 6592.64% | 7883.62% | 12936.72% | 984.15% | 360277.6% | - | - |
| Selling, General & Admin | 79.64M | 34.94M | 31.86M | 61.33M | 55.4M | 13.7M | 2.78M | 827.44K |
| SG&A % of Revenue | - | 6592.64% | 10874.4% | 9582.97% | 768.11% | 28586.93% | - | - |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | -7.04M | 21.46M | 14.83M | 2.64M | -1.96M | 0 |
| Operating Income | -78.57M | -35.17M | -24.69M | -54.51M | -52.1M | -172.56M | -809K | -828K |
| Operating Margin % | -5502.38% | -6636.04% | -8426.62% | -8516.88% | -722.38% | -360177.42% | - | - |
| Operating Income Growth % | - | -42.45% | 54.7% | -4.63% | 69.81% | -21230.16% | 2.29% | - |
| EBITDA | -75.16M | -34.41M | -21.13M | -51.87M | -50.81M | -172.51M | -804K | -827.69K |
| EBITDA Margin % | -5263.38% | -6492.64% | -7210.58% | -8105.31% | -704.46% | -360067.73% | - | - |
| EBITDA Growth % | -117.22% | -62.88% | 59.27% | -2.1% | 70.55% | -21356.27% | 2.86% | - |
| D&A (Non-Cash Add-back) | 3.41M | 760K | 3.56M | 2.63M | 1.29M | 52.55K | 5K | 308 |
| EBIT | -72.18M | -37.57M | -23.75M | -43.83M | 53.63M | -270.65M | -5K | 872.31K |
| Net Interest Income | 1.69M | 1.18M | 707K | -243K | -221K | -1.08M | -328K | 421.79K |
| Interest Income | 1.33M | 1.23M | 930K | 41K | 0 | 0 | 0 | 510.25K |
| Interest Expense | 318K | 48K | 223K | 284K | 221K | 1.08M | 393K | 88.47K |
| Other Income/Expense | 30K | -2.44M | 713K | 10.39M | 105.51M | -99.17M | -328K | 1.61M |
| Pretax Income | -78.54M | -37.62M | -23.98M | -44.11M | 53.41M | -271.73M | -1.14M | 783.85K |
| Pretax Margin % | -5500.28% | -7097.36% | -8183.28% | -6892.66% | 740.54% | -567165.52% | - | - |
| Income Tax | -2.19M | -2.19M | 0 | -141K | 0 | 0 | -569K | -254K |
| Effective Tax Rate % | 2.78% | 5.81% | 0% | 0.32% | 0% | 0% | 50.04% | -32.4% |
| Net Income | -75.28M | -35.34M | -54.58M | -70.39M | 65.08M | -271.73M | -568K | 1.04M |
| Net Margin % | -5271.99% | -6668.49% | -18628.33% | -10998.91% | 902.32% | -567165.52% | - | - |
| Net Income Growth % | 8.51% | 35.25% | 22.46% | -208.17% | 123.95% | -47739.61% | -154.72% | - |
| Net Income (Continuing) | -76.36M | -35.43M | -23.98M | -43.97M | 53.41M | -271.73M | -568K | 1.04M |
| Discontinued Operations | 1.07M | 87K | -30.6M | -26.42M | 11.67M | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -4.54 | -2.56 | -10.79 | -13.39 | 13.34 | -99.42 | -0.24 | 0.58 |
| EPS Growth % | 45.13% | 76.27% | 19.42% | -200.37% | 113.42% | -41325% | -141.38% | - |
| EPS (Basic) | - | -2.56 | -10.79 | -13.39 | 13.43 | -99.42 | -0.24 | 0.58 |
| Diluted Shares Outstanding | 16.58M | 13.79M | 5.06M | 5.26M | 4.88M | 2.73M | 2.37M | 2.37M |
| Basic Shares Outstanding | 16.58M | 13.79M | 5.06M | 5.26M | 4.88M | 2.73M | 2.37M | 2.37M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying ARQQ stock.
For fiscal year 2025, Arqit Quantum Inc. (ARQQ) reported total revenue of $0.5M.
Arqit Quantum Inc. (ARQQ) reported a net loss of $35.3M for the fiscal year ending 2025.
Arqit Quantum Inc. (ARQQ) reported an operating income of $-35.2M, resulting in an operating profit margin of -6636.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Arqit Quantum Inc. (ARQQ) generated $-0.2M in gross profit for the year, representing a gross profit margin of -43.4%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Binary commercialization failure risk
Revenue Lacks Meaningful Commercial Scale
According to the latest quarterly filings, Arqit's revenue remains highly volatile and negligible at $623,000, suggesting that the company has yet to transition from experimental pilot projects into a sustainable, recurring revenue model capable of supporting its current public market valuation and operational overhead.
The erratic nature of top-line growth, characterized by significant quarter-over-quarter fluctuations, indicates a lack of predictable demand for its quantum-safe encryption software. Investors should monitor whether these early-stage engagements can evolve into multi-year enterprise contracts, as current figures suggest the business remains in a pre-commercial phase.
Structural Margin Volatility Remains High
As reported in financial statements, Arqit's gross margins have oscillated between extreme highs and negative territory, with the most recent period showing a -6.7% margin, highlighting the company's inability to achieve consistent unit economics while delivering its proprietary software solutions to a limited customer base.
The inconsistency in gross margins suggests that the cost of service delivery is not yet optimized, likely due to the bespoke nature of current implementations. Without a shift toward a standardized SaaS delivery model, the company may continue to struggle with negative gross profitability as it attempts to scale.
Operating Expenses Outpace Revenue Generation
Based on reported figures, Arqit's SG&A expenses of $30.9 million in the most recent quarter dwarf its $623,000 in revenue, indicating a massive disconnect between the company's corporate cost structure and its current ability to monetize its intellectual property in the competitive cybersecurity market.
The heavy reliance on high fixed operating costs to maintain a public listing and support specialized engineering talent creates a significant drag on the bottom line. This cost structure appears unsustainable without a rapid and substantial increase in commercial adoption to absorb the existing overhead.
Sustainability of Current Business Model
Data from recent income statements suggests that Arqit's reliance on non-recurring, project-based revenue streams may be insufficient to cover its ongoing cash burn, raising concerns about the company's long-term viability if it fails to secure a broader, more stable customer base in the near term.
Short-sellers would likely focus on the persistent gap between operating expenses and revenue, which suggests that the company is effectively subsidizing its operations through capital raises rather than organic cash flow. The lack of a clear path to profitability warrants extreme caution regarding the company's future liquidity and capital requirements.