Tarsus Pharmaceuticals (TARS) AI Stock Analysis

• Market Cap: $2.39B
• Dividend Yield: N/A
• Average Volume (3M): 673.22K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.64
• Revenue Growth: 254.45%
• EPS Growth: 48.06%
• Country: US
• Employees: 323
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.48
• Shares Outstanding: 42,214,108
• 10 Day Avg. Volume: 734,725
• 30 Day Avg. Volume: 673,223
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.59
• Enterprise Value/Revenue: 4.76
• Enterprise Value/Gross Profit: 5.10
• Enterprise Value/Ebitda: -16.56
• 1Y Price Target: $68.86
• Price Target Upside: 17.01% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 54 Neutral
• Price Target: $54.00 ▼(-8.24% Downside)

Tarsus Pharmaceuticals' overall stock score is primarily influenced by its strong revenue growth and positive market momentum, as highlighted in the earnings call. However, significant profitability challenges and a negative valuation score due to ongoing losses weigh heavily on the overall score. The technical analysis suggests bullish momentum, but overbought conditions could lead to a pullback. The absence of corporate events in the analysis means the focus remains on financial performance and earnings call insights.

Positive Factors

Earnings

Tarsus reported Xdemvy revenue of $102.7 million in the second quarter, significantly beating both the estimate of $98.4 million and consensus of $96.3 million.

Market Penetration

Prescriber base has expanded beyond the initial target with now more than 20,000 prescribing Xdemvy, providing a strong foundation of script volume moving forward.

Product Demand

XDEMVY generated $78.3M in net product sales, reflecting 217% year-over-year growth and quarterly 18% growth from the previous quarter.

Negative Factors

Market Sentiment

The high short interest could signal skepticism among investors about the company's future performance.

Short Interest

Short interest is relatively high at 21.5% of the float, which may indicate that some investors are betting against the stock.

Tarsus Pharmaceuticals Business Overview & Revenue Model

Company Description

Tarsus Pharmaceuticals, Inc. (TARS) is a biopharmaceutical company focused on the development and commercialization of novel therapeutic candidates to address unmet needs in ophthalmology and other therapeutic categories. The company is pioneering treatments for Demodex blepharitis, a common eyelid condition, with its lead product candidate, TP-03, which is designed to target and eradicate Demodex mites. Tarsus leverages its expertise in innovative chemistry and clinical development to create solutions that improve patient outcomes and address gaps in existing treatment options.

How the Company Makes Money

Tarsus Pharmaceuticals generates revenue primarily through the development and commercialization of its therapeutic candidates. The company aims to earn money by bringing its lead product candidate, TP-03, to market, targeting the treatment of Demodex blepharitis. Revenue streams are expected to include sales of the approved product, potential milestone payments, royalties, and licensing fees from strategic partnerships and collaborations with other pharmaceutical companies. Tarsus may also engage in out-licensing its technology or products for other indications, thereby creating additional revenue opportunities. The company's success is heavily dependent on securing regulatory approvals, successfully launching its products, and establishing effective marketing and distribution channels.

Tarsus Pharmaceuticals Financial Statement Overview

Summary

Tarsus Pharmaceuticals shows strong revenue growth and a solid equity base, but struggles with profitability and cash flow generation. The absence of debt is positive, yet consistent losses and negative cash flows pose significant risks.

Income Statement

Tarsus Pharmaceuticals' revenue shows substantial growth over the years, especially between 2023 and 2024. However, the company consistently reports a negative net income, indicating ongoing challenges with profitability. The gross profit margin is relatively high, signaling efficient production, but negative EBIT and EBITDA margins reflect high operational and administrative costs. The net profit margin remains negative, highlighting ongoing financial struggles.

Balance Sheet

The company's balance sheet shows a strong equity base with no debt in the latest year, which is positive for financial stability. However, the equity ratio has been declining, indicating an increase in liabilities relative to assets. Return on equity is negative due to continuous net losses, suggesting poor profitability despite a robust capital structure.

Cash Flow

Tarsus Pharmaceuticals has experienced negative operating and free cash flow, reflecting challenges in generating cash from operations. Free cash flow has grown negatively over the period, indicating increased financial strain. The company's reliance on financing activities to support cash flow is evident, which could pose risks if capital markets become less favorable.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	295.52M	182.95M	17.45M	25.82M	57.03M	0.00
Gross Profit	275.90M	170.13M	15.85M	24.86M	54.95M	-246.00K
EBITDA	-84.97M	-106.48M	-131.67M	-59.11M	-13.17M	-26.56M
Net Income	-91.99M	-115.55M	-135.89M	-62.09M	-13.83M	-26.81M
Balance Sheet
Total Assets	494.99M	376.99M	265.49M	227.86M	178.91M	171.97M
Cash, Cash Equivalents and Short-Term Investments	381.14M	291.38M	227.44M	217.03M	171.81M	168.13M
Total Debt	72.45M	72.45M	31.73M	20.16M	1.89M	831.00K
Total Liabilities	162.38M	152.46M	68.50M	34.96M	12.18M	5.99M
Stockholders Equity	332.61M	224.53M	196.99M	192.90M	166.73M	165.98M
Cash Flow
Free Cash Flow	-87.82M	-84.59M	-123.00M	-49.54M	3.16M	-21.59M
Operating Cash Flow	-80.87M	-83.03M	-117.49M	-49.03M	3.75M	-21.14M
Investing Cash Flow	-143.09M	-199.19M	140.60M	-144.63M	-586.00K	-456.00K
Financing Cash Flow	142.08M	154.66M	130.18M	93.99M	21.00K	131.77M

Tarsus Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 58.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TARS, the sentiment is Positive. The current price of 58.85 is above the 20-day moving average (MA) of 49.78, above the 50-day MA of 44.50, and above the 200-day MA of 47.45, indicating a bullish trend. The MACD of 4.08 indicates Negative momentum. The RSI at 79.66 is Negative, neither overbought nor oversold. The STOCH value of 91.99 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TARS.

Tarsus Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LGND	67 Neutral	$3.13B	48.01	-9.46%	―	40.54%	-264.26%
MIRM	58 Neutral	$3.61B	―	-24.19%	―	62.33%	48.34%
TARS	54 Neutral	$2.39B	―	-31.46%	―	254.45%	48.06%
Sector *	51 Neutral	$7.83B	-0.15	-40.10%	2.29%	21.46%	-2.01%
APGE	49 Neutral	$2.20B	―	-34.12%	―	―	-79.09%
AAPG	43 Neutral	$4.07B	―	-161.90%	―	-56.78%	-191.46%
BHVN	40 Underperform	$1.58B	―	-295.94%	―	―	16.36%

Tarsus Pharmaceuticals Corporate Events

Tarsus Pharmaceuticals Holds Annual Stockholders Meeting

On June 12, 2025, Tarsus Pharmaceuticals, Inc. held its Annual Meeting of Stockholders where several key proposals were voted upon. The stockholders elected two Class II directors, approved executive compensation on a non-binding basis, decided on an annual frequency for future compensation votes, and ratified Ernst & Young LLP as the independent auditor for the fiscal year ending December 31, 2025.

The most recent analyst rating on (TARS) stock is a Buy with a $73.00 price target. To see the full list of analyst forecasts on Tarsus Pharmaceuticals stock, see the TARS Stock Forecast page.