Arqit Quantum (ARQQ): Reassessing an Expensive Valuation After New 2025 Results and 2026 Outlook

Arqit Quantum (ARQQ) just dropped full year 2025 earnings and a fresh 2026 revenue outlook, giving investors a clearer snapshot of how this quantum cybersecurity story is progressing and what management expects next.

See our latest analysis for Arqit Quantum.

The earnings release comes after a choppy stretch for the stock, with a 1 day share price return of 6.5 percent, a 90 day share price return of negative 42.7 percent, and a 3 year total shareholder return of negative 77.2 percent, suggesting sentiment and momentum are still fragile despite today’s bounce.

If this kind of speculative quantum cybersecurity story interests you, it could be worth comparing Arqit with other innovative names using Simply Wall St’s high growth tech and AI stocks.

With revenue still tiny, losses heavy, but a huge implied upside to analyst targets, the real question now is whether Arqit Quantum’s recent reset leaves undervalued optionality on the table or if the market is already pricing in future growth.

Price to book of 13.8x, is it justified?

Arqit Quantum last closed at 23.93 dollars, and at that price the shares trade at a steep 13.8 times book value versus peers.

The price to book multiple compares the market value of the company’s equity to the net assets on its balance sheet. It is a common yardstick for young, loss making software companies where earnings are not yet meaningful.

In Arqit’s case, the data points to the market assigning a premium valuation multiple, with the stock described as expensive relative both to a direct peer set at 11.7 times book and to the broader US software industry on just 3.4 times.

That gap is striking because it implies investors are paying several turns more than the industry average for each dollar of net assets, even as the company remains unprofitable, has less than a year of cash runway, has recently diluted shareholders, and is funding itself entirely with higher risk sources of capital.

Given this backdrop, the current price to book multiple looks demanding rather than conservative, particularly for a business still generating under 1 million dollars of annual revenue and forecast to remain loss making for at least the next three years.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price to book of 13.8x (OVERVALUED)

However, persistent heavy losses and a cash runway under a year mean that any funding misstep or execution slip could quickly erode that premium valuation.

Find out about the key risks to this Arqit Quantum narrative.

Build Your Own Arqit Quantum Narrative

If you see the numbers differently or would rather dig into the details yourself, you can build a personalized view in just a few minutes with Do it your way.

A great starting point for your Arqit Quantum research is our analysis highlighting 1 key reward and 6 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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