Stocks/ARMP

ARMP

Armata Pharmaceuticals, Inc.
Healthcare·Biotechnology
$8.17
$300M market cap
Claude Rating
3/10SELL
Revenue
$4.1M
Free Cash Flow
$-24.5M
Rev Growth
+60.7%
FCF Margin
-594.4%
P/FCF
--
EV/FCF
--
Fwd EV/EBITDA
--
Fair Value
$4.50
Upside
-44.9%

Armata Pharmaceuticals, Inc., a clinical-stage biotechnology company, focuses on the development of targeted bacteriophage therapeutics for antibiotic-resistant infections worldwide. It develops its products using its proprietary bacteriophage-based technology. The company's product candidates include AP-SA02 for the treatment of Staphylococcus aureus bacteremia; AP-PA02 for Pseudomonas aeruginosa; and AP-PA03 for the treatment of pneumonia. It has a partnership agreement with Merck & Co. for de

2-Year Price History

$8.36+207.4%
$2.0$4.0$6.0$8.0$10$12volMay 24Sep 24Jan 25May 25Sep 25Jan 26May 26

Quarterly Financials & Projections

Quarterly Waterfall ($ M)
PeriodRevEBITDAOpInNIOCFFCFCapExCashDebtSharesROICIntCovEV/EBITDA
Est2027-Q32.5-35.0---50.0---31.3-0.3-205.5----------
Est2027-Q22.0-34.0---48.0---31.0-0.2-174.3----------
Est2027-Q11.5-30.0---40.5---27.0-0.2-143.3----------
Est2026-Q42.0-32.0---44.0---29.0-0.2-116.3----------
Est2026-Q32.0-30.0---42.0---27.0-0.2-87.3----------
Est2026-Q21.5-27.0---36.0---24.0-0.2-60.3----------
Est2026-Q11.0-22.0---28.0---20.0-0.2-36.3----------
Act2026-Q10.8-8.3-8.8-115.4-5.8-5.8-0.14.8373.736.5-9.4%-1.5x--
Est2025-Q41.5-24.0---30.0---21.0-0.2-16.3----------
Act2025-Q40.0-119.1-13.8-124.3-6.7-6.7-0.18.7288.036.3-19.2%-24.6x--
Act2025-Q31.2-22.0-7.8-26.7-4.3-4.5-0.214.8177.736.2-17.5%-5.0x--
Act2025-Q22.2-12.1-6.8-16.3-7.2-7.4-0.24.3144.036.2-19.0%-3.2x--
Act2025-Q10.5-2.6-8.2-6.5-7.6-7.7-0.111.7134.736.2-23.9%-0.7x14.3x
Act2024-Q41.26.3-10.52.6-7.9-7.9-0.19.3126.559.1-31.3%1.9x--
Act2024-Q33.0-2.3-9.8-5.5-8.9-9.2-0.317.1140.336.2-26.8%-0.8x--
Act2024-Q20.012.0-11.99.0-10.2-11.5-1.426.4146.158.3-30.4%4.4x--
Act2024-Q11.0-22.9-10.2-25.0-10.6-10.8-0.337.9167.936.1-24.4%-12.6x--
Act2023-Q41.5-18.1-9.6-19.9-8.1-10.5-2.413.5120.436.1-31.8%-12.5x--
Act2023-Q31.2-29.8-10.3-31.2-9.7-13.2-3.524.0113.636.1-36.4%-25.3x--
Act2023-Q21.0-3.4-9.6-3.6-12.1-12.3-0.212.568.336.1-56.4%----
Act2023-Q10.8-11.1-11.4-14.5-17.6-19.6-2.025.177.336.1-58.7%----
Act2022-Q41.1-10.1-10.3-10.3-10.5-10.0-0.514.948.836.1-84.6%----
Act2022-Q31.3-8.4-8.6-8.6-10.3-11.6-1.325.439.536.0-80.2%----
Act2022-Q21.9-9.0-9.2-9.2-8.2-9.3-1.137.038.936.0-73.2%----
Act2022-Q11.2-8.6-8.8-8.8-3.5-3.8-0.246.438.429.0-60.1%----

AI Analysis

LLM Evaluations

Claude3/10SELLFV: $4.50

Armata has genuinely exciting science — AP-SA02's Phase 2a data showing 71% faster infection clearance in S. aureus bacteremia is remarkable, and QIDP designation provides meaningful regulatory and commercial advantages. However, the financial structure is catastrophic for minority equity holders. The company has $14.8M cash (6 months runway), $185M in liabilities, a $377M accumulated deficit, and is borrowing at a 41.6% effective rate from its controlling shareholder Innoviva, which holds convertible instruments covering 42M shares against 36M outstanding — over 100% dilution. Even if the Phase 3 succeeds (a massive 'if' requiring 2+ more years and ~$100M+ in additional capital), minority shareholders will own a tiny residual slice after Innoviva's conversion rights are exercised. The market cap of $417M implies enormous Phase 3 success probability that is inconsistent with the financial reality. This is a situation where the science may win but common equity loses.

Catalyst Phase 3 trial initiation in H2 2026 could generate enthusiasm; positive interim data or a partnership/licensing deal could dramatically re-rate the stock upward. Any third-party validation (big pharma partnership) would be transformative.
Risk The single biggest risk is that Innoviva's debt conversion and continued predatory lending will dilute minority shareholders to near-zero even in a success scenario. The 100%+ share overhang from reserved convertible shares means current equity holders are buying a deeply subordinated claim on any future value.
Trend
DETERIORATING
Mgmt
4/10
Quarter
4/10
Exp. Move
-3.0%

Valuation & Metrics

Market Stats

Price$8.17
Market Cap$300M
Enterprise Value$669M
P/S Ratio72.8x
P/FCF--
EV/FCF--
FCF Margin (TTM)-594.4%
FCF Yield-8.2%
Dividend Yield (TTM)--
Annual Dilution1.0%
CurrencyUSD

TTM Financial Snapshot

Revenue$4.1M
Net Income$-282.6M
Free Cash Flow$-24.5M

Revenue Growth (YoY)+60.7%
EBITDA Margin-3921.6%
Net Margin-6864.6%
FCF Margin-594.4%
CapEx % of Revenue12.3%
SBC % of Revenue70.5%
ROIC-16.3%
WC Change % Rev-3.2%
Interest Coverage-8.7x

DCF Fair Value Estimate

$-8.56
-204.8% upside
Fair Enterprise Value$-3.1B
− Net Debt$369M
= Fair Equity$-313M
Revenue Growth30.0% → 8.0%
FCF Margin-594.4% → 20.0%
Discount Rate18.0%
Terminal EV/FCF25.0x

Forward Outlook & Risk

Short Interest

Short % of Float2.0%
Short Shares0.2M
Days to Cover2.9
Change (vs Prior)-5.8%
Short % Float History
2.00%+1.90pp
0.0%0.5%1.0%1.5%2.0%2.5%04-3007-1509-1511-1401-1504-30

Options

Call IV (ATM)177%
Put IV (ATM)246%
ATM Spread59.5%
Call $OI (near money)$5K
Put $OI (near money)$6K
ATM ExpiryJuly 17, 2026 (56D)
ATM Strike$7.5
Major Expirations2
Near-money chain · July 17, 2026
StrikeCall Bid/AskCall OIPut Bid/AskPut OI
$2.50$3.50/$8.000--/$4.100
$5.00$1.00/$6.000--/$4.300
$7.50$0.10/$5.000$0.05/$5.000
$10.00$0.05/$4.900$0.10/$5.000
$12.50$0.05/$4.400$2.10/$6.500
$15.00--/$4.300$4.50/$9.000
$17.50--/$4.200$7.00/$11.500
Snapshot: 2026-05-22

Forward Projections & Estimates

NTM Revenue Growth+45.7%
Forward FCF Margin-1533.3%
Forward EBITDA Margin-1716.7%
Forward P/FCF--
Forward EV/FCF--
Forward Int. Coverage-4.4x
Model Risk Score10/10
Bankruptcy Odds35%
Est. Borrow Rate45.0%
Terminal EV/FCF25.0x
LT Growth15.0%
LT FCF Margin20.0%

Employees

Headcount60
Revenue / Employee$68,617
Gross Profit / Employee$48,733
2022: 72 → 2023: 66 → 2024: 60 → 2025: 61 (-5% CAGR)

Cash Runway

2.3months
CRITICAL

Institutional Ownership

Headline & net flow

NET BUYING

In Q1 2026 so far (quarter still filing), institutions are net buyers — bought 24.4% of float, sold 0.7%. 1 filer moved >1% of shares (1 buying, 0 selling).

Net flow · Q1 2026still filing
+23.6% of float (net)
Bought 24.4% · Sold 0.7%
45 filers reported (last quarter: 36)

Ownership composition

Active
10.6%(+10.5% YoY)
35 filers
hedge / family / endowment
Retail funds
Fidelity, Schwab, 401(k)
Passive
0.9%(+0.6% YoY)
4 filers
Vanguard, iShares, SPDR
Market makers
0.3%(+0.3% YoY)
3 filers
Citadel, Susquehanna
Insiders
1.6%
Form 4 — latest per insider
0%25%50%75%100%2022-062023-032023-122024-092025-062026-03
ActiveRetail fundsPassiveMarket makersRetail direct

Top holders

Fund$ valueCost basisΔ QoQΔ YoYα lifeFund AUM
Madison Asset Management, LLC$21.6M$10.24+$21.6M+$21.6M-0.5%$8.06B
MILLENNIUM MANAGEMENT LLC$2.6M$9.81+$2.4M+$2.6M-0.5%$127.40B
683 Capital Management, LLC$1.4M$6.28−$29K+$1.4M-2.2%$1.02B
GEODE CAPITAL MANAGEMENT, LLCPassive$1.2M$3.67+$48K+$89K+2.3%$1.61T
EDGEWOOD MANAGEMENT LLC$1.0M$4.89+$0+$0-1.1%$15.50B
Dauntless Investment Group, LLC$928K$9.97+$865K+$928K+4.8%$35.6M
SEI INVESTMENTS CO$760K$10.24+$760K+$760K-0.4%$108.06B
BlackRock, Inc.Passive$666K$4.81−$79K+$429K-0.2%$5.69T
SUSQUEHANNA INTERNATIONAL GROUP, LLPMM$663K$5.62+$414K+$380K-0.6%$77.14B
Informed Momentum Co LLC$624K$10.24+$624K+$624K+7.8%$865M
GOLDMAN SACHS GROUP INC$624K$6.16+$162K+$624K-0.2%$760.93B
STATE STREET CORPPassive$520K$3.68+$0+$108K-0.2%$2.89T
BRIDGEWAY CAPITAL MANAGEMENT, LLC$458K$1.24+$0+$0-2.3%$4.93B
SeaCrest Wealth Management, LLC$425K$4.65+$5K+$67K+0.1%$934M
RENAISSANCE TECHNOLOGIES LLC$394K$5.43−$307K−$1K+1.2%$63.91B
GSB Wealth Management, LLC$307K$1.90+$0+$307K-0.5%$443M
JANE STREET GROUP, LLCMM$287K$4.40+$111K+$287K-0.1%$92.10B
Qube Research & Technologies Ltd$273K$5.05+$34K+$273K+0.3%$70.36B
NORTHERN TRUST CORPPassive$252K$5.19+$0+$55K-0.2%$755.34B
Hudson Bay Capital Management LP$180K$10.24+$180K+$180K+1.9%$15.12B
Cost basis is a volume-weighted estimate from accumulation periods within our 13F history; holders who built their position before our window started will show a stale basis. % above the cost basis is the unrealized gain at the current price.

Trading behavior

Smart-money alpha (lifetime, %/qtr)BULLISH
Holders
-0.25%
avg per quarter
Holders (ex-self)
-0.25%
excl. this stock
Buyers (this Q)
-0.11%
18 buyers · $0.03B in
Sellers (this Q)
-2.17%
6 sellers · $-0.00B out
alpha coverage: 100% of $ has a lifetime-alpha record
Holder behavior on this stocksource: stock
On big dips (−10%+)
+7.7%
how holders react when this stock falls
On quiet Qs
-0.8%
−10% to +10% baseline
On rallies (+10%+)
-0.9%
how they react when this stock rises
Holders' portfolio flow this Q
-2.5%
outflows — trims may be forced
Sellers' portfolio flow this Q
+2.5%
Sellers grew AUM elsewhere — opinionated cut of this stock.
▸ Compare to holder-profile behavior (across all their stocks)
Holder dip (any stock)
-5.5%
Holder mid (any stock)
-4.7%
Holder rally (any stock)
-4.9%

Top Holders Over Time

5-year share-count history (top 10 holders by peak, incl. exited) + price

0736K1.5M2.2M2.9M$1.14$3.42$5.69$7.96$102021-062022-062023-062024-062025-062026-03
hover the chart for per-quarter detailprice (right axis)
Madison Asset Management, LLC2.1MBANK OF AMERICA CORP /DE/12KMILLENNIUM MANAGEMENT LLC258K683 Capital Management, LLC137KEDGEWOOD MANAGEMENT LLC100KDauntless Investment Group, LLC91KSEI INVESTMENTS CO74KInformed Momentum Co LLC61KGOLDMAN SACHS GROUP INC61KBRIDGEWAY CAPITAL MANAGEMENT, LLC45K

Analyst Coverage

Analyst Coverage
Price Targets
Last Quarter (1 analysts)$15.008360.0%
Last Year (2 analysts)$12.004690.0%
Current Price$8.17

Corporate

Executive Compensation (2023-2025)

Direct Pay$7.9M
Incentive & Other$6.3M
Total Compensation$14.2M
% of Revenue105.3%

Order Flow (FINRA, ~3w lag)

33.2%retail+0.3pp
11.6%dark-1.4pp
week of 2026-04-13
0%20%40%60%80%24-1125-0225-0525-0825-1126-0226-04retail (non-ATS)dark (ATS)
Off-exchange volume from FINRA. Retail = non-ATS (wholesaler PFOF + broker internalization). Dark = ATS (dark-pool crossing networks, institutional). Lit-exchange = remainder.

Filing Risk Analysis

Filing Risk Scores

Armata Pharmaceuticals: A Related-Party Debt Trap Approached by a Dilution Event Horizon

Overall Risk
9/10
Fraud
3/10
Dilution
10/10
Insolvency
10/10
Earnings Overstated
2/10
Hidden Liabilities
6/10
Legal
3/10
Audit Warnings
10/10
Hidden Upside
2/10
Contextually Acceptable
2/10

Counter-Thesis

Counter-Thesis & Recent News

📰 Recent News

In February 2026, the FDA granted Qualified Infectious Disease Product (QIDP) designation to Armata's lead candidate, AP-SA02, for treating S. aureus bacteremia, providing five years of additional market exclusivity. Following a successful End-of-Phase 2 meeting in January 2026, the company announced plans to initiate a pivotal Phase 3 superiority study in H2 2026. This follows positive Phase 2a 'diSArm' data presented at IDWeek 2025, which showed a significant reduction in infection resolution time (2.7 days vs. 9.3 days for placebo). (Sources: PR Newswire, ClinicalTrialsArena)

🐻 Bear Case

The primary bear thesis rests on Armata's precarious financial position, characterized by a -61% YoY revenue decline and deeply negative operating margins (-670.9%). Critics argue that the company is a 'binary bet' on clinical success in a field (bacteriophages) that has historically struggled with regulatory hurdles. Furthermore, bears point to the company's reliance on continuous dilutive funding or debt from its majority shareholder, Innoviva, to sustain high R&D burn through a lengthy Phase 3 trial. (Sources: Ticker Nerd, Public.com)

🚩 Red Flags

Financial health metrics are concerning, with a current ratio of 0.1x and persistent net losses ($18.9M in the most recent fiscal year). Additionally, some analysts have raised concerns regarding the small sample sizes in earlier trials, which may lead to statistical insignificance or 'efficacy drift' when scaled to larger Phase 3 populations. Institutional ownership remains low at approximately 3.6%, suggesting a lack of broad-based conviction among major funds. (Sources: Nasdaq/Fintel, Macroaxis)

⚔️ Competitive Threats

Armata faces competition from traditional 'best available therapy' (BAT) antibiotics, which remain the standard of care despite rising resistance. While Armata is the first bacteriophage company to advance a candidate to Phase 3, it competes for hospital formulary space and funding against other novel anti-infective platforms and potential synthetic phage competitors that may offer lower manufacturing costs. (Sources: FirstWord Pharma, GlobalData)

💬 Customer Sentiment

Sentiment among the medical community (the ultimate 'customers') is increasingly bullish following the IDWeek 2025 presentation. Key Opinion Leaders (KOLs) have highlighted the 'superiority' design of the upcoming Phase 3 trial as a major differentiator. Clinical trial data suggests high patient and provider satisfaction due to the rapid 71% improvement in time-to-clearance of bloodstream infections and a favorable safety profile with minimal drug-related adverse events. (Sources: StockTitan, ClinicalTrialsArena)