Latest Ratios: P/E Ratio -202.9x · EV/EBITDA N/A · ROE -9.3%. (2017–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $3.3B | $3.7B | $1.7B | $224M | $814M | $1.0B | $1.0B | — | — | — |
| Enterprise Value | $3.3B | $3.7B | $1.7B | $341M | $963M | $1.0B | $943M | — | — | — |
| P/E Ratio → | -202.92 | — | — | — | — | — | — | — | — | — |
| P/S Ratio | 8.77 | 9.82 | 8.57 | 3.76 | 220.96 | — | — | — | — | — |
| P/B Ratio | 17.71 | 19.50 | 10.70 | 2.52 | 3.89 | 3.44 | 3.71 | — | — | — |
| P/FCF | — | — | — | — | — | — | — | — | — | — |
| P/OCF | — | — | — | — | — | — | — | — | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 9.73 | 8.77 | 5.73 | 261.36 | — | — | — | — | — |
| EV / EBITDA | — | — | — | — | — | — | — | — | — | — |
| EV / EBIT | — | — | — | — | — | — | — | — | — | — |
| EV / FCF | — | — | — | — | — | — | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 90.2% | 90.2% | 90.3% | 91.6% | 79.5% | — | — | — | — | — |
| Operating Margin | -3.3% | -3.3% | -65.3% | -404.5% | -8183.0% | — | — | — | — | — |
| Net Profit Margin | -4.3% | -4.3% | -71.3% | -439.8% | -8449.8% | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -9.3% | -9.3% | -113.8% | -175.8% | -122.8% | -72.6% | -72.9% | -108.4% | — | — |
| ROA | -4.1% | -4.1% | -40.6% | -66.3% | -72.6% | -58.4% | -67.0% | -53.1% | -70.1% | -130.3% |
| ROIC | -5.2% | -5.2% | -47.8% | -64.0% | -71.2% | -63.5% | -82.3% | — | — | — |
| ROCE | -4.3% | -4.3% | -45.6% | -68.3% | -76.7% | -63.5% | -72.4% | -57.4% | -76.6% | -131.3% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.03 | 0.03 | 0.70 | 2.32 | 0.97 | 0.26 | 0.02 | 0.00 | — | — |
| Debt / EBITDA | — | — | — | — | — | — | — | — | — | — |
| Net Debt / Equity | — | -0.19 | 0.25 | 1.33 | 0.71 | -0.07 | -0.22 | -0.62 | — | — |
| Net Debt / EBITDA | — | — | — | — | — | — | — | — | — | — |
| Debt / FCF | — | — | — | — | — | — | — | — | — | — |
| Interest Coverage | -0.24 | -0.24 | -4.13 | -7.72 | -18.90 | — | — | — | — | — |
Net cash position: cash ($43M) exceeds total debt ($6M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 3.17 | 3.17 | 4.15 | 7.08 | 11.57 | 12.09 | 12.96 | 20.33 | 19.12 | 5.52 |
| Quick Ratio | 2.99 | 2.99 | 3.97 | 6.80 | 11.37 | 12.09 | 12.96 | 20.33 | 19.12 | 5.52 |
| Cash Ratio | 1.70 | 1.70 | 2.81 | 5.83 | 10.83 | 11.66 | 12.58 | 19.34 | 19.06 | 4.94 |
| Asset Turnover | — | 0.87 | 0.56 | 0.17 | 0.01 | — | — | — | — | — |
| Inventory Turnover | 1.62 | 1.62 | 1.32 | 0.38 | 0.10 | — | — | — | — | — |
| Days Sales Outstanding | — | 141.92 | 135.69 | 158.03 | 837.54 | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | — | — | — | — | — | — | — | — |
| FCF Yield | — | — | — | — | — | — | — | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — | — | — |
| Shares Outstanding | — | $127M | $121M | $69M | $55M | $49M | $36M | $38M | $36M | $1M |
Includes 30+ ratios · 9 years · Updated daily
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10-year return with dividends reinvested.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying ARQT stock.
Arcutis Biotherapeutics, Inc.'s current P/E ratio is -202.9x. This places it at the 50th percentile of its historical range.
Arcutis Biotherapeutics, Inc.'s return on equity (ROE) is -9.3%. The historical average is -96.5%.
Based on historical data, Arcutis Biotherapeutics, Inc. is trading at a P/E of -202.9x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Arcutis Biotherapeutics, Inc. has 90.2% gross margin and -3.3% operating margin.
Key Metrics
Top Statement Risk
Cash runway and dilution risk
Metrics are mathematically derived from official filings.
Operating Leverage Emerges at Inflection
According to the latest quarterly data, ARQT's operating margin swung from -37.3% in Q1 2025 to +12.7% in Q2 2026, while gross margin held above 90%, signaling a potential profitability inflection.
The dramatic improvement in operating margin, from -37.3% in Q1 2025 to +12.7% in Q2 2026, appears to be driven by revenue scaling against a relatively fixed SG&A base, as gross margin remained stable around 91%. This suggests that the company is absorbing its commercial infrastructure costs as prescription volumes grow. However, the sustainability of this margin expansion warrants monitoring, as the Q2 2026 net margin of 11.6% may be influenced by one-time items or timing of expenses, and the prior quarters' deep losses indicate the fragility of the recent profitability.
Return on Capital Turns Positive
ROIC improved from -13.7% in Q2 2024 to +4.3% in Q2 2026, as per the ratio data, marking a significant turnaround, though the positive return is still modest relative to the cost of capital.
The shift in ROIC from -13.7% in Q2 2024 to +4.3% in Q2 2026 reflects the company's transition from heavy investment phase to early commercialization. The improvement is driven by margin expansion rather than asset efficiency, as asset turnover remains low at 0.27. This suggests that the company is still asset-light but requires substantial revenue growth to generate returns that exceed its cost of capital. Investors should monitor whether ROIC can sustain above the cost of capital as the company scales, given the recent debt increase.
Working Capital Drags Cash Conversion
Based on the quarterly data, ARQT's cash conversion cycle lengthened to 319 days in Q2 2026 from 198 days in Q4 2025, driven by a spike in days inventory outstanding to 317 days.
The cash conversion cycle deteriorated significantly in Q2 2026, reaching 319 days, primarily due to a jump in DIO to 317 days from 177 days in Q4 2025. This suggests that inventory levels have built up, possibly in anticipation of demand or due to channel stocking, which ties up cash. DSO also remains elevated at 105 days, indicating that the company is extending credit to payers or wholesalers. The negative working capital impact is evident in the cash flow statement, where working capital changes were -$16.2M in Q2 2026, offsetting operating income. This inefficiency may be a temporary launch-phase phenomenon, but it warrants monitoring as it could pressure liquidity.
Debt Surge Raises Coverage Concerns
As reported in the balance sheet data, ARQT's debt-to-equity ratio jumped to 0.52 in Q2 2026 from 0.03 in Q4 2025, while interest coverage improved to 4.87x, but the debt load remains a new risk.
The company took on significant debt in Q2 2026, with total debt rising to $114.1M, lifting the D/E ratio to 0.52. Despite this, interest coverage improved to 4.87x from negative levels in prior quarters, reflecting the positive operating income. However, the debt increase appears to be a strategic move to fund operations given the thin cash balance of $42.9M. The D/EBITDA ratio of 6.72x is elevated, suggesting that EBITDA is still low relative to debt, and the company may face refinancing risk if it cannot sustain profitability. Investors should monitor the terms of this debt and the company's ability to service it as it scales.
Liquidity Adequate but Cash Buffer Thin
ARQT's current ratio stands at 2.92 in Q2 2026, according to the ratio data, but cash of $34.1M covers only about 1.5 quarters of operating expenses, indicating a tight liquidity position.
The current ratio of 2.92 suggests adequate short-term liquidity, but the quick ratio of 2.67 indicates that inventory is not a major component. However, the absolute cash balance is low relative to the company's operating burn, even though Q2 2026 generated positive operating cash flow. The company's ability to withstand a severe stress scenario, such as a revenue shortfall or delayed collections, appears limited given the thin cash cushion. This suggests that the company may need to raise additional capital or draw on its debt facility to maintain liquidity, which could lead to dilution or increased leverage.
P/E Misleading for Early-Stage Biotech
The most commonly misapplied ratio for ARQT is the P/E multiple, which is negative on a TTM basis and forward P/E of 69.63, as per the valuation data, obscuring the company's true earnings power.
For a company transitioning from losses to profitability, the P/E ratio is not meaningful because it is based on trailing earnings that are distorted by one-time items and the early stage of commercialization. The forward P/E of 69.63 implies that the market expects significant earnings growth, but this may be overly optimistic given the competitive landscape and the need for sustained margin expansion. A more appropriate metric would be EV/Sales or EV/EBITDA, which better capture the value of a high-growth, asset-light business with a 91% gross margin. Investors should focus on revenue growth and operating leverage rather than P/E, as the latter can be misleading when earnings are just turning positive.