Forensic Analysis · Healthcare / Pharmaceuticals / Biotech · as of Aug 11, 2026
Arcutis Biotherapeutics, Inc. (ARQT)
A forensic read on Arcutis Biotherapeutics, Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
F · Poor — capital at risk
Forensic grade
Safe
Financial health
8.1
Distress distance
Watch
Earnings quality
5
Forensic signals
116.2
P / E (ttm)
-8.5%
ROE
$3.2B
Market cap
0.00%
Dividend yield
91.3%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Arcutis Biotherapeutics, Inc. earns an F (Poor — capital at risk) forensic quality grade, and its balance-sheet distress test reads 8.1, placing it in the Safe zone. 5 forensic signals were flagged in its latest SEC filings, led by accruals ratio (% of noa).
What the filings flag
+27.7%
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets grew +27.7% relative to their own average in FY2025 — scaled by NOA itself, not total assets (see the Forensic Screens card's differently-scaled Sloan Accrual Ratio for that read). Accruals are building sharply — a large slice of profit sits in operating assets, not cash; Richardson/Sloan link high accruals to weaker future returns as they reverse. The build is led by receivables up +100% against revenue +91% and inventory up +56% against +92% in cost of sales. The cash-flow cross-check is more mixed: reported earnings ran in line with operating cash by 5% of net operating assets, diverging from the balance-sheet accrual read.
-3.7%
FY2025
Return on invested capital.Return on invested capital is -3.7% in the latest fiscal year and rising from -67% — well below its ~10% cost of capital, so reinvested dollars may be destroying value, not building it.
106d DSO
FY2024→FY2025
Receivables vs revenue.Days sales outstanding moved from 92 to 106 days FY2024→FY2025 (receivables +100% vs revenue +91%). Receivables are creeping up relative to sales. Across FY2023–FY2025 the day count ran 105 → 92 → 106 days, so the latest reading sits on top of a record that was flat or falling before it — one year's move, not a direction the business has been travelling in.
n/m (stock split)
FY2022–FY2025
Share count (stock split).Diluted share count changed +131% over the last 3 years to FY2025, but that includes a large one-time change around FY2024 consistent with a stock split or reverse split, not gradual buybacks or issuance — a split changes the count with NO effect on any holder's proportional ownership, so the raw +32.2%/yr figure isn't a real buyback/dilution read here.
Key fundamentals
Latest Revenue$376.1M
Revenue Growth YoY+91.3%
Revenue CAGR (3yr)+367.1%
Net Margin-4.3%
Free Cash Flow-$6.3M
Return on Equity-8.5%
Debt / Equity0.58x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Arcutis Biotherapeutics, Inc.'s actual 10-K/10-Q/8-K filings?
Data from SEC EDGAR public filings · metrics as of Aug 11, 2026. Forensic signals flag probability, not certainty.
11% of rev
FY2025
Stock-based comp load.Stock-based compensation ran 11% of revenue in FY2025 — about $0.32 per diluted share. The cost of it is not in the cash flow — no cash left the business — it is in the count, and there it has run at about 14.2% a year and is falling.
Arcutis Biotherapeutics, Inc. (ARQT) Stock — Forensic Analysis, Red Flags & Rating | Stockonomy · Stockonomy