Arcutis Biotherapeutics Inc (ARQT)
NASDAQ:ARQT
Want to see ARQT full AI Analyst Report?
Top Page
Arcutis Biotherapeutics
(NASDAQ:ARQT)
Select Model
Select Model
Rating:64Neutral
Price Target:
$22.50
▼(-8.28% Downside)
Action:Reiterated
Date:05/10/26
ARQT’s score is driven primarily by improving fundamentals (strong margins, better operating profile, positive free cash flow, and a low-leverage balance sheet) and a constructive earnings call with reiterated guidance and evidence of share gains. These strengths are meaningfully offset by weak technical setup (price below key moving averages with negative momentum) and valuation metrics reflecting continued net losses (negative P/E).
Positive Factors
High Gross Margin
Sustained ~91% gross margin indicates highly attractive product economics for Arcutis' topical franchises. Durable margin buffers the business against commercial and SG&A variability, funds R&D and commercialization expansion, and supports long‑run cash generation even with payer discounts.
Negative Factors
High Gross-to-Net Discounts
Sustained gross-to-net in the 50% range structurally reduces realized prices and constrains margin conversion to net income. Over multiple quarters this necessitates higher volumes to sustain profitability, increases reliance on payer contracting, and limits the cash impact of reported gross sales.
Read all positive and negative factors
Positive Factors
Negative Factors
High Gross Margin
Sustained ~91% gross margin indicates highly attractive product economics for Arcutis' topical franchises. Durable margin buffers the business against commercial and SG&A variability, funds R&D and commercialization expansion, and supports long‑run cash generation even with payer discounts.
Read all positive factors
Arcutis Biotherapeutics (ARQT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.61B
Dividend YieldN/A
Average Volume (3M)1.74M
Price to Earnings (P/E)―
Beta (1Y)0.81
Revenue Growth95.29%
EPS Growth98.21%
CountryUS
Employees342
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.02
Shares Outstanding125,083,374
10 Day Avg. Volume2,360,347
30 Day Avg. Volume1,736,441
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/Revenue6.23
Enterprise Value/Gross Profit6.85
Enterprise Value/Ebitda202.59
Forecast
1Y Price Target
$34.63Price Target Upside41.15% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)0.2
Revenue Forecast (FY)$496.90M
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:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call described strong underlying commercial momentum and meaningful clinical and pipeline progress: 65% YoY revenue growth, share gains, positive operating cash flow, pediatric submissions, and initiation of ARQ-234 Phase I. These positives are tempered by a seasonality- and weather-driven Q1 demand dip (-6% QoQ for ZORYVE), continued material gross-to-net pressure (in the 50s), near-term SG&A/R&D increases, and limited Part D coverage today. Management emphasized that recent investments (sales force expansion, PCP/pediatric build, DTC) will drive demand in H2 2026 and a larger inflection in 2027, and they maintained full-year guidance of $480M–$495M.Positive Updates
Strong Revenue Growth
Net product revenues of $105.4M in Q1 2026, up 65% year-over-year, driven primarily by increased patient demand and improved gross-to-net performance.
Negative Updates
Q1 Seasonality and Weather-Related Demand Headwind
Q1 experienced customary seasonality amplified by severe weather events, generating a larger sequential revenue decline from Q4 to Q1 than in 2025; ZORYVE prescriptions declined ~6% quarter-over-quarter while branded non-steroidal topicals collectively fell ~15%.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Revenue Growth
Net product revenues of $105.4M in Q1 2026, up 65% year-over-year, driven primarily by increased patient demand and improved gross-to-net performance.
Read all positive updates
Company Guidance
Management reiterated full‑year 2026 revenue guidance of $480–$495 million and said gross‑to‑net should remain in the 50s, improving from high‑50s early in the year to the low‑50s by year‑end; they expect quarter‑over‑quarter net sales growth in Q2. In Q1 they reported net product revenue of $105.4M (+65% YoY), gross‑to‑net in the 50s, cost of sales $9.8M, R&D $30.6M (including a $10M milestone), SG&A $74.1M, and net cash provided by operations $2.2M; cash and marketable securities were $224.3M, total debt $101.5M with a $50M draw option through mid‑2026. Commercial metrics supporting the guidance included ~21,000 weekly prescriptions (IQVIA), a Q1 Rx decline of 6% vs Q4 (vs −15% for other branded non‑steroidal topicals), ZORYVE share of branded non‑steroidal topical prescriptions 48% (up 3 pts), ~45% refills, NBRx share 48%, and Q2‑to‑date scripts through April 24 up ~13% vs Q1; management expects modest SG&A increases in H2 to fund salesforce expansions (derm expansion in the field now; PCP/pediatric team launching in Q3 with initial demand impact in Q4) and to maintain positive cash flow through 2026.Arcutis Biotherapeutics Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
83
Very Positive
Cash Flow
69
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 415.62M | 376.07M | 196.54M | 59.61M | 3.69M | 0.00 |
| Gross Profit | 377.98M | 339.38M | 177.41M | 54.62M | 2.93M | -763.00K |
| EBITDA | 12.77M | 2.48M | -109.63M | -227.43M | -294.55M | -205.59M |
| Net Income | -2.38M | -16.14M | -140.04M | -262.14M | -311.46M | -206.36M |
Balance Sheet | ||||||
| Total Assets | 460.00M | 432.97M | 348.89M | 341.37M | 449.27M | 408.15M |
| Cash, Cash Equivalents and Short-Term Investments | 224.00M | 220.98M | 227.96M | 271.86M | 409.59M | 388.60M |
| Total Debt | 13.20M | 6.27M | 110.58M | 205.92M | 202.54M | 77.56M |
| Total Liabilities | 270.36M | 243.49M | 191.35M | 252.70M | 239.69M | 110.47M |
| Stockholders Equity | 189.65M | 189.48M | 157.54M | 88.67M | 209.58M | 297.68M |
Cash Flow | ||||||
| Free Cash Flow | 26.92M | -6.31M | -112.30M | -247.49M | -281.00M | -175.62M |
| Operating Cash Flow | 26.99M | -5.63M | -112.16M | -247.06M | -257.71M | -174.63M |
| Investing Cash Flow | -53.34M | -30.25M | 28.82M | 180.23M | -87.20M | -75.95M |
| Financing Cash Flow | 7.64M | 6.97M | 66.20M | 101.32M | 301.80M | 281.95M |
Arcutis Biotherapeutics Technical Analysis
Negative
24.53
Price Trends
22.72
Negative
24.59
Negative
23.34
Negative
Market Momentum
-0.80
Positive
43.11
Neutral
47.07
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARQT, the sentiment is Negative. The current price of 24.53 is above the 20-day moving average (MA) of 21.85, above the 50-day MA of 22.72, and above the 200-day MA of 23.34, indicating a bearish trend. The MACD of -0.80 indicates Positive momentum. The RSI at 43.11 is Neutral, neither overbought nor oversold. The STOCH value of 47.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $1.75B | 12.46 | 17.19% | ― | 20.71% | -5.53% | |
64 Neutral | $2.61B | -67.46 | -1.41% | ― | 95.29% | 98.21% | |
62 Neutral | $4.13B | -18.39 | -26.79% | ― | 96.03% | 82.27% | |
58 Neutral | $2.68B | -108.13 | -14.19% | ― | 128.99% | 58.46% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | $1.60B | -3.46 | -54.32% | ― | 11.07% | 32.35% | |
47 Neutral | $2.55B | -9.69 | -36.95% | ― | ― | -68.57% |
* Healthcare Sector Average
ARQT
Arcutis Biotherapeutics
20.86
6.72
47.52%
TVTX
Travere Therapeutics
44.43
29.09
189.63%
IRON
Disc Medicine
66.82
20.94
45.64%
HRMY
Harmony Biosciences Holdings
30.15
-3.64
-10.77%
TARS
Tarsus Pharmaceuticals
62.26
20.38
48.66%
RXRX
Recursion Pharmaceuticals
3.01
-1.38
-31.44%
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.