Arcutis Biotherapeutics (ARQT) AI Stock Analysis

• Market Cap: $2.94B
• Dividend Yield: N/A
• Average Volume (3M): 2.50M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.77
• 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: 3,474,069
• 30 Day Avg. Volume: 2,496,441
• 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: 0.83
• Enterprise Value/Revenue: 7.63
• Enterprise Value/Gross Profit: 8.49
• Enterprise Value/Ebitda: -101.34
• 1Y Price Target: $27.33
• Price Target Upside: 8.88% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: $26.00 ▲(3.59% Upside)

Arcutis Biotherapeutics' overall score is driven by strong earnings call results and technical indicators, despite challenges in financial performance and valuation. The company's strategic initiatives and revenue growth are promising, but profitability and cash flow management remain areas for improvement.

Positive Factors

Strong Revenue Growth

The significant revenue growth indicates strong market demand and successful product adoption, which can drive long-term business expansion and financial stability.

Pipeline Expansion

Expanding the pipeline with new indications can enhance the company's competitive position and provide additional revenue streams, supporting sustained growth.

Strong Market Position

Capturing a significant market share demonstrates competitive strength and brand recognition, which are crucial for maintaining and expanding market leadership.

Negative Factors

Profitability Challenges

Despite revenue growth, ongoing profitability issues could hinder reinvestment in R&D and limit financial flexibility, affecting long-term sustainability.

Cash Flow Management

Negative cash flows indicate reliance on external financing, which can be risky if market conditions change, potentially impacting operational stability.

Dependency on Topical Steroids

High dependency on topical steroids suggests challenges in shifting market behavior, which could limit the adoption of innovative therapies and affect growth.

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	387.06M	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: Positive
• Last Price: 25.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 25.1 is above the 20-day moving average (MA) of 22.23, above the 50-day MA of 19.63, and above the 200-day MA of 15.64, indicating a bullish trend. The MACD of 1.56 indicates Negative momentum. The RSI at 67.46 is Neutral, neither overbought nor oversold. The STOCH value of 65.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ARQT.

Arcutis Biotherapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HRMY	83 Outperform	$1.81B	9.74	25.93%	―	21.13%	50.86%
TARS	60 Neutral	$3.04B	―	-28.35%	―	182.44%	47.21%
ARQT	59 Neutral	$2.94B	―	-28.17%	―	129.21%	80.35%
TVTX	54 Neutral	$3.05B	―	-410.78%	―	114.22%	77.02%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
IRON	43 Neutral	$3.30B	―	-26.36%	―	―	-22.19%
RXRX	41 Neutral	$2.16B	―	-86.34%	―	30.14%	-10.08%

Arcutis Biotherapeutics Corporate Events

Arcutis Biotherapeutics Reports Strong Q3 Earnings Call

Arcutis Biotherapeutics Inc. recently held an earnings call that reflected a strong positive momentum for the company. The call highlighted significant revenue growth, a shift to positive net income, and an accelerated timeline for achieving cash flow breakeven. Despite challenges in changing market behavior away from topical steroids, Arcutis’s strategic initiatives and pipeline expansions position it well for future growth.

Arcutis Biotherapeutics’ Earnings Call: Growth Amid Challenges

Arcutis Biotherapeutics Inc’s recent earnings call painted a picture of robust growth and strategic advancements, tempered by certain challenges. The company celebrated significant revenue growth and multiple FDA approvals for its flagship product, ZORYVE, indicating strong commercial execution and a promising pipeline. However, the overall sentiment was moderated by the halted development of ARQ-255 and difficulties in securing Medicare Part D coverage.

Arcutis Biotherapeutics Reports Strong Q2 2025 Growth

Arcutis Biotherapeutics, Inc. is a commercial-stage biopharmaceutical company specializing in the development of innovative treatments for immune-mediated dermatological conditions. The company is known for its focus on creating advanced topical therapies for inflammatory skin diseases.