Arcutis Biotherapeutics (ARQT)
NASDAQ:ARQT
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Arcutis Biotherapeutics
(NASDAQ:ARQT)
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Rating:63Neutral
Price Target:
$25.00
▲(1.92% Upside)
Action:ReiteratedDate:02/26/26
The score is driven primarily by strong financial progress (rapid revenue scaling, high gross margins, improved balance sheet) and a constructive earnings call (raised 2026 guidance and improving cash flow trends). Offsetting factors are still-weak cash flow consistency, loss-making valuation (negative P/E), and only neutral technical momentum.
Positive Factors
Rapid Revenue Scaling
Sustained, large percentage revenue growth reflects durable commercial adoption of ZORYVE across indications and a meaningful revenue base. A growing top line supports operating leverage, funds reinvestment, and reduces execution risk as the company scales into broader channels over the next 2–6 months.
Negative Factors
Inconsistent Cash Generation
Despite Q4 improvement, annual cash generation remains inconsistent and free cash flow showed sharp deterioration, indicating the business has not yet reliably self-funded. If commercial investments accelerate, intermittent negative cash flow could require external financing or slow reinvestment cadence.
Read all positive and negative factors
Positive Factors
Negative Factors
Rapid Revenue Scaling
Sustained, large percentage revenue growth reflects durable commercial adoption of ZORYVE across indications and a meaningful revenue base. A growing top line supports operating leverage, funds reinvestment, and reduces execution risk as the company scales into broader channels over the next 2–6 months.
Read all positive factors
Arcutis Biotherapeutics (ARQT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.94B
Dividend YieldN/A
Average Volume (3M)1.19M
Price to Earnings (P/E)53.5
Beta (1Y)0.88
Revenue Growth91.34%
EPS Growth88.80%
CountryUS
Employees342
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.13
Shares Outstanding125,073,250
10 Day Avg. Volume1,032,835
30 Day Avg. Volume1,192,947
Financial Highlights & Ratios
PEG Ratio2.58
Price to Book (P/B)19.50
Price to Sales (P/S)9.82
P/FCF Ratio-585.47
Enterprise Value/Market Cap0.99
Enterprise Value/Revenue7.71
Enterprise Value/Gross Profit8.55
Enterprise Value/Ebitda1.10K
Forecast
1Y Price Target
$34.75Price Target Upside41.66% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)0.33
Revenue Forecast (FY)$498.06M
Arcutis Biotherapeutics Business Overview & Revenue Model
Company Description
Arcutis Biotherapeutics, Inc., a biopharmaceutical company, focuses on developing and commercializing treatments for dermatological diseases. Its lead product candidate is ARQ-151, a topical roflumilast cream that has completed Phase III clinical ...
How the Company Makes Money
Arcutis makes money primarily by selling its prescription dermatology products in the United States through its commercial organization. Revenue is generated from net product sales (gross sales to wholesalers/specialty pharmacies and other custome...
Arcutis Biotherapeutics Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 19, 2026
Earnings Call Sentiment Positive
The call conveyed a largely positive operational and commercial picture: very strong top-line growth (123% YoY for FY2025), record Q4 results, robust prescription momentum, expanded approvals and encouraging pediatric Phase II data, improved profitability and positive cash flow, and raised 2026 guidance. Offsetting risks include higher SG&A/R&D investment leading to elevated operating expenses, quarter-to-quarter seasonal and gross-to-net variability (notably a Q1 headwind), limited Medicare Part D coverage with non-preferred tier placement, and execution/timing risk as the company scales its sales force and primary care efforts. Overall, the company appears to be scaling successfully while mindful of near-term investment-driven expense and access nuances.Positive Updates
Strong Revenue Growth (Full Year)
Net product revenues for full year 2025 were $372.1 million, a 123% increase versus 2024, driven primarily by ZORYVE demand across indications.
Negative Updates
Higher Operating Expenses
SG&A increased to $79.0 million in Q4 2025 (37% increase YoY) and to $274.6 million for full year 2025 (20% increase YoY) due to commercialization investments; R&D expected to increase in 2026 as pipeline programs advance.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Revenue Growth (Full Year)
Net product revenues for full year 2025 were $372.1 million, a 123% increase versus 2024, driven primarily by ZORYVE demand across indications.
Read all positive updates
Company Guidance
Arcutis raised its 2026 net product revenue guidance to $480–$495 million (up $25M at both ends from the prior $455–$470M range) driven by strong Q4 momentum (Q4 net product revenues $127.5M, +84% YoY, +29% sequential; FY2025 net product revenues $372.1M, +123% YoY; rolling 4‑week weekly scripts ≈22,000) and reaffirmed it will be cash‑flow positive on a quarterly basis through 2026; management expects gross‑to‑net to remain in the 50s (peaking in the high‑50s in Q1 due to deductible resets and a ~$2.5M/≈2% channel inventory unwind), noted ~45% share of branded nonsteroidal topical Rx volume for ZORYVE, ~1/3 Medicare Part D coverage, >80% commercial access and >50% Medicaid access, and said it will invest in a ~20% dermatology sales‑force expansion to ~160 reps plus a ~30‑rep primary care/pediatric pilot (impact expected in H2 2026), while ending 2025 with $221.3M cash & marketable securities, $26.2M positive operating cash flow in Q4, $108M total debt and an optional $100M facility through mid‑2026.Arcutis Biotherapeutics Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
78
Positive
Cash Flow
45
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 376.07M | 196.54M | 59.61M | 3.69M | 0.00 |
| Gross Profit | 339.38M | 177.41M | 54.62M | 2.93M | -763.00K |
| EBITDA | 2.48M | -109.63M | -227.43M | -294.55M | -205.59M |
| Net Income | -16.14M | -140.04M | -262.14M | -311.46M | -206.36M |
Balance Sheet | |||||
| Total Assets | 432.97M | 348.89M | 341.37M | 449.27M | 408.15M |
| Cash, Cash Equivalents and Short-Term Investments | 220.98M | 227.96M | 271.86M | 409.59M | 388.60M |
| Total Debt | 6.27M | 110.58M | 205.92M | 202.54M | 77.56M |
| Total Liabilities | 243.49M | 191.35M | 252.70M | 239.69M | 110.47M |
| Stockholders Equity | 189.48M | 157.54M | 88.67M | 209.58M | 297.68M |
Cash Flow | |||||
| Free Cash Flow | -6.31M | -112.30M | -247.49M | -281.00M | -175.62M |
| Operating Cash Flow | -5.63M | -112.16M | -247.06M | -257.71M | -174.63M |
| Investing Cash Flow | -30.25M | 28.82M | 180.23M | -87.20M | -75.95M |
| Financing Cash Flow | 6.97M | 66.20M | 101.32M | 301.80M | 281.95M |
Arcutis Biotherapeutics Technical Analysis
Positive
24.53
Price Trends
24.54
Negative
26.46
Negative
22.41
Positive
Market Momentum
0.15
Negative
53.84
Neutral
58.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARQT, the sentiment is Positive. The current price of 24.53 is above the 20-day moving average (MA) of 23.41, below the 50-day MA of 24.54, and above the 200-day MA of 22.41, indicating a neutral trend. The MACD of 0.15 indicates Negative momentum. The RSI at 53.84 is Neutral, neither overbought nor oversold. The STOCH value of 58.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ARQT.
Arcutis Biotherapeutics Risk Analysis
Arcutis Biotherapeutics disclosed 72 risk factors in its most recent earnings report. Arcutis Biotherapeutics reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Arcutis Biotherapeutics Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $1.89B | 23.98 | 19.84% | ― | 21.51% | 8.01% | |
63 Neutral | $2.94B | 53.53 | -10.26% | ― | 91.34% | 88.80% | |
62 Neutral | $4.15B | -18.39 | -79.16% | ― | 110.46% | 86.22% | |
62 Neutral | $2.75B | -104.60 | -19.63% | ― | 146.71% | 48.11% | |
52 Neutral | $1.86B | -4.98 | -63.98% | ― | 26.92% | 10.74% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
43 Neutral | $2.58B | -11.58 | -32.80% | ― | ― | -50.17% |
* Healthcare Sector Average
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Arcutis Biotherapeutics
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.