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Tarsus Pharmaceuticals
(NASDAQ:TARS)
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Rating:61Neutral
Price Target:
$65.00
▲(10.81% Upside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by improving financial performance (rapid revenue scale, very strong gross margins, and positive TTM operating/free cash flow) and a generally positive earnings call (raised guidance and strong XDEMVY momentum). Offsetting these, the company is still not consistently profitable, valuation is unattractive/less meaningful due to negative earnings, and technical indicators are mixed with limited upside momentum versus longer-term moving averages.
Positive Factors
Strong commercial growth
Sustained, high-single-digit quarterly growth and nearly $1B cumulative XDEMVY sales show durable commercial adoption across prescribers and patients. A growing installed base and rising physician prescribing cadence support multi-quarter revenue predictability and reduce single-quarter variability risk.
Negative Factors
Ongoing net losses and negative returns
Despite revenue scale and margin strength, Tarsus reports negative net and operating margins and negative ROE, meaning earnings quality has not yet converted into shareholder returns. Sustained profitability is required to fully realize equity value and validate cash-flow improvements over the coming 2–6 months.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong commercial growth
Sustained, high-single-digit quarterly growth and nearly $1B cumulative XDEMVY sales show durable commercial adoption across prescribers and patients. A growing installed base and rising physician prescribing cadence support multi-quarter revenue predictability and reduce single-quarter variability risk.
Read all positive factors
Tarsus Pharmaceuticals (TARS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.54B
Dividend YieldN/A
Average Volume (3M)1.22M
Price to Earnings (P/E)―
Beta (1Y)0.09
Revenue Growth128.99%
EPS Growth58.46%
CountryUS
Employees370
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-1.09
Shares Outstanding43,023,960
10 Day Avg. Volume1,253,369
30 Day Avg. Volume1,215,310
Financial Highlights & Ratios
PEG Ratio1.07
Price to Book (P/B)9.96
Price to Sales (P/S)7.58
P/FCF Ratio-153.35
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$93.71Price Target Upside59.76% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)-1.38
Revenue Forecast (FY)$704.01M
Tarsus Pharmaceuticals Business Overview & Revenue Model
Company Description
Tarsus Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical firm dedicated to advancing and commercializing innovative therapies, primarily focusing on ocular conditions. Its leading investigational drug, TP-03, a novel treatment currently ...
How the Company Makes Money
Tarsus makes money primarily by selling its prescription product XDEMVY in the United States. Revenue is generated from product sales that flow through the pharmaceutical distribution and dispensing channel (e.g., wholesalers and pharmacies), with...
Tarsus Pharmaceuticals Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Positive
The call communicated strong commercial execution and robust growth driven by XDEMVY (record quarterly sales, improved full-year guidance, high margins, strong physician and patient engagement) while also announcing a transformative but costly acquisition of Alkeus to enter retina. The ALK-001 program brings promising long-term upside (solid clinical data, favorable tolerability, Phase III underway) but also increases near-term R&D and transaction-related cash commitments, extends the timeline to value realization (topline 2H 2029), and introduces competitive and payer uncertainties. Overall, operational momentum and financial flexibility support growth and strategic investment, but the company will incur higher expenses and execution risk ahead of the eventual retina readouts.Positive Updates
Record XDEMVY Quarterly Sales
Q2 XDEMVY net product sales of $173.9M, +69% year-over-year and ~20% quarter-over-quarter; nearly $1B in cumulative net product sales to date and >700,000 patients treated.
Negative Updates
Material Increase in R&D Guidance
Full-year R&D expense guidance increased to $190M–$210M from $115M–$135M, reflecting a $75M upfront consideration for iRenix; this raises near-term operating spend materially.
Read all updates
Q2-2026 Updates
Positive
Negative
Record XDEMVY Quarterly Sales
Q2 XDEMVY net product sales of $173.9M, +69% year-over-year and ~20% quarter-over-quarter; nearly $1B in cumulative net product sales to date and >700,000 patients treated.
Read all positive updates
Company Guidance
Tarsus raised 2026 XDEMVY net product sales guidance to $685–705 million (prior $670–700M) after reporting Q2 XDEMVY sales of $173.9M (~$174M), up >69% year‑over‑year and ~20% quarter‑over‑quarter; gross margins are expected to remain ~93%; full‑year SG&A is guided to $545–565M and R&D to $190–210M (up from $115–135M, reflecting a $75M upfront for iRenix), with the R&D range excluding the pending Alkeus acquisition. The company ended Q2 with $449.7M in cash, cash equivalents and marketable securities, has secured a $125M private placement for the Alkeus financing, and disclosed Alkeus economics of $450M upfront ( $270M cash + $180M stock), up to $350M in milestones and low single‑digit tiered royalties; management noted normal seasonality (tempered summer, stronger Q4), retreatment rates in the high teens (~20% steady state), >700,000 patients treated, and nearly $1B cumulative XDEMVY sales to date toward a >$2B potential peak.Tarsus Pharmaceuticals Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
63
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 606.33M | 451.36M | 182.95M | 17.45M | 25.82M | 57.03M |
| Gross Profit | 549.30M | 420.68M | 170.13M | 15.85M | 24.86M | 54.95M |
| EBITDA | -42.44M | -53.61M | -106.48M | -131.67M | -59.70M | -13.46M |
| Net Income | -46.48M | -66.42M | -115.55M | -135.89M | -62.09M | -13.83M |
Balance Sheet | ||||||
| Total Assets | 611.14M | 562.16M | 376.99M | 265.49M | 227.86M | 178.91M |
| Cash, Cash Equivalents and Short-Term Investments | 449.69M | 417.27M | 291.38M | 227.44M | 217.03M | 171.81M |
| Total Debt | 0.00 | 93.64M | 72.45M | 30.22M | 20.21M | 1.89M |
| Total Liabilities | 264.41M | 218.73M | 152.46M | 68.50M | 34.96M | 12.18M |
| Stockholders Equity | 346.73M | 343.43M | 224.53M | 196.99M | 192.90M | 166.73M |
Cash Flow | ||||||
| Free Cash Flow | 56.00M | -22.31M | -84.59M | -123.00M | -49.54M | 3.16M |
| Operating Cash Flow | 74.16M | -12.45M | -83.03M | -117.49M | -49.03M | 3.75M |
| Investing Cash Flow | 23.85M | -42.12M | -199.19M | 140.60M | -144.63M | -586.00K |
| Financing Cash Flow | 9.38M | 143.39M | 154.66M | 130.18M | 93.99M | 21.00K |
Tarsus Pharmaceuticals Technical Analysis
Positive
58.66
Price Trends
61.02
Positive
63.45
Negative
68.49
Negative
Market Momentum
-0.35
Negative
52.64
Neutral
72.47
Neutral
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 58.66 is below the 20-day moving average (MA) of 59.05, below the 50-day MA of 61.02, and below the 200-day MA of 68.49, indicating a neutral trend. The MACD of -0.35 indicates Negative momentum. The RSI at 52.64 is Neutral, neither overbought nor oversold. The STOCH value of 72.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TARS.
Tarsus Pharmaceuticals Risk Analysis
Tarsus Pharmaceuticals disclosed 80 risk factors in its most recent earnings report. Tarsus Pharmaceuticals 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
Tarsus Pharmaceuticals Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $3.36B | -1,398.96 | 15.05% | ― | 95.29% | 98.21% | |
61 Neutral | $2.54B | -51.79 | -14.19% | ― | 128.99% | 58.46% | |
52 Neutral | $2.96B | -11.67 | -37.17% | ― | ― | -47.00% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | $1.59B | -2.50 | -50.41% | ― | 11.07% | 32.35% | |
48 Neutral | $3.65B | -7.99 | -52.20% | ― | ― | -7.88% | |
44 Neutral | $2.63B | -39.88 | -7.70% | ― | 157.97% | 86.11% |
* Healthcare Sector Average
TARS
Tarsus Pharmaceuticals
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Tarsus Pharmaceuticals Corporate Events
Business Operations and StrategyM&A Transactions
Tarsus Pharmaceuticals Acquires Alkeus to Expand Retina Pipeline
Positive
Aug 6, 2026
On July 31, 2026, Tarsus Pharmaceuticals agreed to acquire privately held Alkeus Pharmaceuticals, a retinal disease-focused biotech developing gildeuretinol (ALK-001), a Phase 3 oral therapy targeting the underlying biology of Stargardt disease, w...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Tarsus Pharmaceuticals Raises $125M in PIPE Financing
Positive
Aug 6, 2026
On August 5, 2026, Tarsus Pharmaceuticals entered into a securities purchase agreement with a syndicate of existing and new healthcare-focused investors for an oversubscribed private investment in public equity financing valued at about $125 milli...
Business Operations and StrategyExecutive/Board Changes
Tarsus Pharmaceuticals Announces Chief Commercial Officer Transition
Neutral
Jul 13, 2026
On July 13, 2026, Tarsus Pharmaceuticals, Inc. announced that Chief Commercial Officer Aziz Mottiwala will depart the company on July 15, 2026. He is leaving to become Chief Executive Officer of a public medical device company, marking a notable c...
Business Operations and StrategyM&A Transactions
Tarsus Pharmaceuticals Acquires iRenix to Expand Retinal Care
Positive
Jul 8, 2026
On July 6, 2026, Tarsus Pharmaceuticals completed the acquisition of privately held iRenix Medical, merging it into a wholly owned subsidiary in a transaction with approximately $75 million in upfront cash and stock consideration and up to $490 mi...
Executive/Board ChangesShareholder Meetings
Tarsus Pharmaceuticals Stockholders Approve Governance and Oversight
Positive
Jun 29, 2026
On June 25, 2026, Tarsus Pharmaceuticals held its Annual Meeting of Stockholders, with 38,237,214 shares represented, constituting a quorum out of 43,023,959 eligible shares. Stockholders elected four Class III directors—Wendy Yarno, Andrew ...
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.