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Arcutis Biotherapeutics
(NASDAQ:ARQT)
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Rating:68Neutral
Price Target:
$28.00
▲(14.15% Upside)
Action:Reiterated
Date:06/10/26
The score is primarily supported by improving fundamentals (high margins, strong growth, positive TTM free cash flow, and low leverage) and a constructive earnings outlook with reiterated 2026 guidance and improving script trends. This is tempered by weak technical positioning (below key moving averages with negative MACD) and limited valuation support due to ongoing lack of consistent profitability and no dividend.
Positive Factors
High gross margin (~91%)
Sustained ~91% gross margin reflects durable product economics for topical therapies, enabling strong contribution margin per prescription. High gross margins give flexibility to absorb SG&A/R&D investments, support reinvestment in commercialization and pipeline while preserving cash generation over the medium term.
Negative Factors
Substantial gross-to-net pressure (50s)
Persistent gross-to-net discounts in the low-to-high 50s materially reduce realized prices and require higher unit volumes to sustain net revenue growth. This structural payer pressure can compress margins and cash flow unless formulary positioning and Part D coverage improve across plans over an extended multi-quarter timeline.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margin (~91%)
Sustained ~91% gross margin reflects durable product economics for topical therapies, enabling strong contribution margin per prescription. High gross margins give flexibility to absorb SG&A/R&D investments, support reinvestment in commercialization and pipeline while preserving cash generation over the medium term.
Read all positive factors
Arcutis Biotherapeutics (ARQT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.23B
Dividend YieldN/A
Average Volume (3M)2.20M
Price to Earnings (P/E)―
Beta (1Y)0.77
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. Volume1,996,345
30 Day Avg. Volume2,196,904
Financial Highlights & Ratios
PEG Ratio2.52
Price to Book (P/B)19.50
Price to Sales (P/S)9.82
P/FCF Ratio-585.47
Enterprise Value/Market Cap1.01
Enterprise Value/Revenue7.84
Enterprise Value/Gross Profit8.62
Enterprise Value/Ebitda216.80
Forecast
1Y Price Target
$34.83Price Target Upside42.00% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)0.2
Revenue Forecast (FY)$497.10M
Arcutis Biotherapeutics Business Overview & Revenue Model
Company Description
Arcutis Biotherapeutics, Inc. is a biopharmaceutical firm dedicated to developing and marketing therapies for a range of skin-related diseases. The company's flagship investigational compound, ARQ-151, a roflumilast cream administered topically, h...
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 | 15.03M | 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
Positive
24.53
Price Trends
23.20
Positive
23.78
Positive
24.47
Positive
Market Momentum
1.01
Positive
59.96
Neutral
16.64
Positive
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 below the 20-day moving average (MA) of 25.31, above the 50-day MA of 23.20, and above the 200-day MA of 24.47, indicating a bullish trend. The MACD of 1.01 indicates Positive momentum. The RSI at 59.96 is Neutral, neither overbought nor oversold. The STOCH value of 16.64 is Positive, 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $2.16B | 14.69 | 17.19% | ― | 20.71% | -5.53% | |
68 Neutral | $3.23B | -1,357.81 | -1.41% | ― | 95.29% | 98.21% | |
61 Neutral | $2.82B | -58.82 | -14.19% | ― | 128.99% | 58.46% | |
59 Neutral | $5.29B | -117.31 | -26.79% | ― | 96.03% | 82.27% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | $2.02B | -3.30 | -54.32% | ― | 11.07% | 32.35% | |
50 Neutral | $2.91B | -11.60 | -36.95% | ― | ― | -68.57% |
* Healthcare Sector Average
ARQT
Arcutis Biotherapeutics
26.07
12.68
94.70%
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TARS
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RXRX
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3.96
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-19.68%
Arcutis Biotherapeutics Corporate Events
Executive/Board ChangesShareholder Meetings
Arcutis Stockholders Approve Proposals at 2026 Meeting
Positive
Jun 9, 2026
On June 5, 2026, Arcutis Biotherapeutics, Inc. held its 2026 Annual Meeting of Stockholders, where shareholders approved all three proposals on the agenda, including the election of three Class III directors to serve until the 2029 annual meeting ...
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.