Arcutis Biotherapeutics (ARQT) AI Stock Analysis

• Market Cap: $3.27B
• Dividend Yield: N/A
• Average Volume (3M): 1.82M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.81
• Revenue Growth: 129.21%
• EPS Growth: 80.35%
• Country: US
• Employees: 342
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 0.06
• Shares Outstanding: 122,492,195
• 10 Day Avg. Volume: 1,721,124
• 30 Day Avg. Volume: 1,821,908
• PEG Ratio: 0.17
• Price to Book (P/B): 10.70
• Price to Sales (P/S): 8.57
• P/FCF Ratio: -15.00
• Enterprise Value/Market Cap: 0.74
• Enterprise Value/Revenue: 7.63
• Enterprise Value/Gross Profit: 8.49
• Enterprise Value/Ebitda: -101.34
• 1Y Price Target: $31.57
• Price Target Upside: 18.11% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 0.48
• Revenue Forecast (FY): $468.07M

• Rating: 60 Neutral
• Price Target: $29.00 ▲(8.49% Upside)

Arcutis Biotherapeutics' overall score is driven by strong earnings call results and positive technical indicators, despite challenges in financial performance and valuation. The company's strategic initiatives and pipeline expansions position it well for future growth, but current profitability and cash flow issues remain significant concerns.

Positive Factors

Revenue Growth

Strong revenue growth indicates successful market penetration and product adoption, which can lead to sustained business expansion and increased market share.

Pipeline Expansion

Expanding the pipeline with new indications can diversify revenue streams and enhance long-term growth potential by addressing unmet medical needs.

Regulatory Approval

Regulatory approval for expanded indications can increase the addressable market, boosting sales potential and reinforcing the company's competitive position.

Negative Factors

Profitability Challenges

Ongoing profitability challenges may hinder the ability to reinvest in growth initiatives and could necessitate additional financing, impacting financial stability.

Cash Flow Management

Negative cash flows indicate potential liquidity issues, which could limit operational flexibility and necessitate reliance on external funding sources.

Market Dependency

Heavy market dependency on traditional treatments could slow the adoption of new therapies, impacting sales growth and market share expansion.

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 trials for the treatment of plaque psoriasis and atopic dermatitis. The company is also developing ARQ-154, a topical foam formulation of roflumilast for the treatment of seborrheic dermatitis and scalp psoriasis; ARQ-252, a selective topical janus kinase type 1 inhibitor for hand eczema and vitiligo; and ARQ-255, a topical formulation of ARQ-252 designed to reach deeper into the skin in order to treat alopecia areata. The company was formerly known as Arcutis, Inc. and changed its name to Arcutis Biotherapeutics, Inc. in October 2019. Arcutis Biotherapeutics, Inc. was incorporated in 2016 and is headquartered in Westlake Village, California.

How the Company Makes Money

Arcutis Biotherapeutics generates revenue primarily through the commercialization of its pharmaceutical products. The company earns money through direct sales of its approved therapies, which are marketed to healthcare providers and pharmacies. Additionally, Arcutis may engage in strategic partnerships and collaborations with larger pharmaceutical companies, which can provide upfront payments, milestone payments, and royalties on product sales. These partnerships may also involve co-development agreements, allowing Arcutis to share the costs and risks associated with bringing new therapies to market. Furthermore, the company may receive funding through grants or research agreements focused on advancing its product pipeline.

Arcutis Biotherapeutics Financial Statement Overview

Summary

Arcutis Biotherapeutics shows strong revenue growth but struggles with profitability, as evidenced by negative net profit and EBIT margins. The low debt-to-equity ratio is a positive, but negative cash flows and returns on equity highlight the need for strategic improvements.

Income Statement

Arcutis Biotherapeutics shows a strong gross profit margin of approximately 90% TTM, indicating efficient cost management relative to revenue. However, the company is struggling with profitability, as evidenced by negative net profit and EBIT margins. Despite a significant revenue growth rate of 20.67% TTM, the company remains unprofitable, which is common in the biotechnology industry during the development phase.

Balance Sheet

The balance sheet reflects a low debt-to-equity ratio of 0.04 TTM, suggesting conservative leverage. However, the return on equity is negative, indicating that the company is not generating profit from its equity base. The equity ratio is relatively stable, but the company needs to improve its profitability to enhance shareholder value.

Cash Flow

The cash flow statement reveals challenges in cash generation, with negative operating and free cash flows. The free cash flow to net income ratio is above 1, indicating that cash outflows are higher than net losses, which might be due to significant R&D investments typical in biotech firms. The company needs to improve its cash flow management to sustain operations without relying heavily on external financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	317.93M	196.54M	59.61M	3.69M	0.00	0.00
Gross Profit	286.02M	177.41M	54.62M	2.93M	-763.00K	-455.00K
EBITDA	-23.95M	-109.63M	-227.43M	-294.55M	-205.59M	-135.22M
Net Income	-44.32M	-140.04M	-262.14M	-311.46M	-206.36M	-135.68M
Balance Sheet
Total Assets	370.98M	348.89M	341.37M	449.27M	408.15M	298.27M
Cash, Cash Equivalents and Short-Term Investments	191.07M	227.96M	271.86M	409.59M	388.60M	284.44M
Total Debt	6.28M	110.58M	205.92M	202.54M	77.56M	4.96M
Total Liabilities	212.90M	191.35M	252.70M	239.69M	110.47M	27.65M
Stockholders Equity	158.07M	157.54M	88.67M	209.58M	297.68M	270.62M
Cash Flow
Free Cash Flow	-38.24M	-112.30M	-247.49M	-281.00M	-175.62M	-113.35M
Operating Cash Flow	-32.56M	-112.16M	-247.06M	-257.71M	-174.63M	-113.03M
Investing Cash Flow	38.80M	28.82M	180.23M	-87.20M	-75.95M	-181.82M
Financing Cash Flow	-94.16M	66.20M	101.32M	301.80M	281.95M	298.14M

Arcutis Biotherapeutics Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 26.73
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARQT, the sentiment is Neutral. The current price of 26.73 is below the 20-day moving average (MA) of 28.47, below the 50-day MA of 28.12, and above the 200-day MA of 18.99, indicating a neutral trend. The MACD of -0.37 indicates Positive momentum. The RSI at 39.80 is Neutral, neither overbought nor oversold. The STOCH value of 19.07 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ARQT.

Arcutis Biotherapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HRMY	81 Outperform	$2.08B	11.47	25.93%	―	21.13%	50.86%
ARQT	60 Neutral	$3.27B	―	-28.17%	―	129.21%	80.35%
TARS	60 Neutral	$3.19B	-36.58	-28.35%	―	182.44%	47.21%
TVTX	56 Neutral	$2.59B	―	-410.78%	―	114.22%	77.02%
IRON	52 Neutral	$2.91B	-13.26	-34.78%	―	―	-34.96%
RXRX	52 Neutral	$2.52B	―	-91.06%	―	-32.98%	-18.46%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Arcutis Biotherapeutics Corporate Events

Arcutis Biotherapeutics Appoints Amit Munshi as New Director

On December 3, 2025, Bhaskar Chaudhuri retired from Arcutis Biotherapeutics‘ Board of Directors, transitioning to a consulting role. Concurrently, Amit Munshi was appointed as a new director and chair of the Compensation Committee, bringing extensive biopharmaceutical leadership experience to support Arcutis’ growth and commercialization efforts.

The most recent analyst rating on (ARQT) stock is a Buy with a $37.00 price target. To see the full list of analyst forecasts on Arcutis Biotherapeutics stock, see the ARQT Stock Forecast page.