Forensic Analysis · Healthcare / Pharmaceuticals / Biotech · as of Jun 27, 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
Distress
Financial health
-3.7
Altman Z-score
Watch
Earnings quality
4
Forensic signals
-1.4%
ROE
$3.4B
Market cap
Arcutis Biotherapeutics, Inc. earns a F (Poor — capital at risk) forensic quality grade, and its Altman Z-score is -3.7, placing it in the Distress zone. 4 forensic signals were flagged in its latest SEC filings, led by accruals ratio.
What the filings flag
+27.7%Accruals ratio.Net operating assets grew +27.7% relative to their average in FY2025 — the accrual component of earnings. Accruals are building sharply — a large slice of profit sits in operating assets, not cash; Richardson/Sloan link high accruals to weaker future returns as they reverse. The cash-flow cross-check agrees: reported earnings ran in line with operating cash by -5% of net operating assets.
-4%Return on invested capital.Return on invested capital is -4% and rising from -67% — well below its ~10% cost of capital, so reinvested dollars may be destroying value, not building it.
+43.7%/yrShare-count dilution.Diluted share count changed +131% over the last 3 years to FY2025 (+43.7%/yr). The count is GROWING — existing holders are being diluted. That's ~43.7% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2022 has been diluted ~131%.
142d DSOReceivables vs revenue.Days sales outstanding moved from 136 to 142 days FY2024→FY2025 (receivables +100% vs revenue +91%). Receivables are creeping up relative to sales — watch the trend.
Key fundamentals
Net Margin-4.3%
Debt / Equity0.58x
Free Cash Flow$-6.3M
Latest Revenue$376.1M
Return on Equity-8.5%
Revenue Growth YoY+91.3%
Go deeper — free with an account
The forensic grade and screens above are free — no account needed. An account adds the full interactive deep-dive on Arcutis Biotherapeutics, Inc.:
🔒The written investment read — what the numbers mean, in plain English
🔒Ask anything about ARQT's filings — AI Q&A across the 10-K, 10-Qs & 8-Ks
🔒Interactive valuation — reverse-DCF sliders, Monte Carlo & scenario stress
🔒Calibrated 12-month price forecast, with the math shown