Tarsus Pharmaceuticals, Inc. (TARS)
NASDAQ:TARS
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Tarsus Pharmaceuticals
(NASDAQ:TARS)
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Rating:58Neutral
Price Target:
$67.00
▼(-0.36% Downside)
Action:Reiterated
Date:05/14/26
The score is driven primarily by improving but still mixed financial performance (strong growth and very high gross margins offset by ongoing losses and negative free cash flow). Technicals are currently soft, while the earnings call provided a meaningful positive offset via reiterated guidance and strong commercial momentum; valuation remains pressured due to negative earnings.
Positive Factors
High gross margins
Sustained ~90%+ product gross margins indicate very strong product-level economics for XDEMVY. High gross margins provide durable pricing power and margin expansion potential, enabling reinvestment into commercial rollout and R&D while absorbing SG&A and distribution deductions.
Negative Factors
Negative operating & free cash flow
Persistent negative operating and free cash flow means the business still requires external funding to support commercial expansion and pipeline work. Although cash burn has improved, continued negative cash generation constrains financial flexibility and can pressure investment pacing or require dilution.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins
Sustained ~90%+ product gross margins indicate very strong product-level economics for XDEMVY. High gross margins provide durable pricing power and margin expansion potential, enabling reinvestment into commercial rollout and R&D while absorbing SG&A and distribution deductions.
Read all positive factors
Tarsus Pharmaceuticals (TARS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.58B
Dividend YieldN/A
Average Volume (3M)696.99K
Price to Earnings (P/E)―
Beta (1Y)0.16
Revenue Growth128.99%
EPS Growth58.46%
CountryUS
Employees323
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-1.14
Shares Outstanding43,023,960
10 Day Avg. Volume731,089
30 Day Avg. Volume696,989
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 Cap0.99
Enterprise Value/Revenue4.76
Enterprise Value/Gross Profit5.27
Enterprise Value/Ebitda-65.15
Forecast
1Y Price Target
$95.17Price Target Upside41.53% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)-0.62
Revenue Forecast (FY)$696.32M
Tarsus Pharmaceuticals Business Overview & Revenue Model
Company Description
Tarsus Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on the development and commercialization of novel therapeutic candidates for ophthalmic conditions. Its lead product candidate is TP-03, a novel therapeutic that is ...
How the Company Makes Money
Tarsus primarily makes money by selling its FDA-approved prescription product, XDEMVY, in the United States. Revenue is generated from product sales into the pharmaceutical distribution channel (e.g., sales to wholesalers/specialty distributors) a...
Tarsus Pharmaceuticals Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call highlighted robust commercial momentum for XTENVI with a strong Q1 showing (>$145M, >85% YoY growth), growing prescriber adoption, improving DTC engagement (+~40% QoQ high-value activity), pipeline progress with two Phase II programs initiated and reiterated full-year guidance. Headwinds were largely expected and manageable: seasonal/deductible effects and weather impact in Q1, retreatment rates still progressing toward steady-state (~20%), limited near-term international royalties, and the one-time nature of a China milestone. Management emphasized continued execution, targeted commercial investments (Key Account Leaders), and confidence in achieving guidance and future growth drivers.Positive Updates
Strong XTENVI Sales Growth
XTENVI net product sales of $145.4 million in Q1 2026, up more than 85% year-over-year, reflecting expanding ECP utilization and consistent patient outcomes.
Negative Updates
Seasonality and Q1 Headwinds
Q1 performance was impacted by typical seasonal dynamics such as deductible resets and higher out-of-pocket costs, plus severe winter weather (notably in the Northeast), which tempered demand versus underlying trends.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong XTENVI Sales Growth
XTENVI net product sales of $145.4 million in Q1 2026, up more than 85% year-over-year, reflecting expanding ECP utilization and consistent patient outcomes.
Read all positive updates
Company Guidance
The company reiterated full‑year 2026 guidance of $670–700 million in net product sales, SG&A of $545–565 million (including ~ $40 million of stock‑based compensation), R&D of $115–135 million (including ~ $20 million of stock‑based compensation), and gross margins of ~93%, while expecting year’s growth cadence to be strong in Q2, more modest in Q3, and robust in Q4; Q1 XTENVI net product sales were $145.4 million (>85% YoY) with license & collaboration revenue of $16.7 million (including a $15 million Grand Pharma milestone and ~$1.7 million China withholding tax), retreatment rates rising to the mid‑to‑high teens toward a ~20% steady state, nearly half of 15,000 target ECPs prescribing at least weekly (up ~10% vs Q4 2025), DTC high‑value engagement up ~40% QoQ, planned deployment of ~17–20 key account leaders starting in Q3, an expected exit‑year gross‑to‑net in the ~43–45% range, and pipeline milestones including a ~700‑patient Phase II CALLIOPE for TPO5 and Phase II CORE for TPO4 with top‑line data anticipated in 2027, all supporting a long‑term $2 billion peak sales aspiration.Tarsus Pharmaceuticals Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
72
Positive
Cash Flow
46
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 535.08M | 451.36M | 182.95M | 17.45M | 25.82M | 57.03M |
| Gross Profit | 483.93M | 420.68M | 170.13M | 15.85M | 24.86M | 54.95M |
| EBITDA | -39.11M | -53.61M | -106.48M | -131.67M | -59.70M | -13.46M |
| Net Income | -48.27M | -66.42M | -115.55M | -135.89M | -62.09M | -13.83M |
Balance Sheet | ||||||
| Total Assets | 581.13M | 562.16M | 376.99M | 265.49M | 227.86M | 178.91M |
| Cash, Cash Equivalents and Short-Term Investments | 388.73M | 417.27M | 291.38M | 227.44M | 217.03M | 171.81M |
| Total Debt | 88.68M | 93.64M | 72.45M | 30.22M | 20.21M | 1.89M |
| Total Liabilities | 232.18M | 218.73M | 152.46M | 68.50M | 34.96M | 12.18M |
| Stockholders Equity | 348.95M | 343.43M | 224.53M | 196.99M | 192.90M | 166.73M |
Cash Flow | ||||||
| Free Cash Flow | -31.54M | -22.31M | -84.59M | -123.00M | -49.54M | 3.16M |
| Operating Cash Flow | -16.45M | -12.45M | -83.03M | -117.49M | -49.03M | 3.75M |
| Investing Cash Flow | -65.73M | -42.12M | -199.19M | 140.60M | -144.63M | -586.00K |
| Financing Cash Flow | 8.03M | 143.39M | 154.66M | 130.18M | 93.99M | 21.00K |
Tarsus Pharmaceuticals Technical Analysis
Negative
67.24
Price Trends
65.35
Negative
67.85
Negative
67.91
Negative
Market Momentum
-1.25
Positive
39.77
Neutral
12.56
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TARS, the sentiment is Negative. The current price of 67.24 is above the 20-day moving average (MA) of 62.70, above the 50-day MA of 65.35, and below the 200-day MA of 67.91, indicating a bearish trend. The MACD of -1.25 indicates Positive momentum. The RSI at 39.77 is Neutral, neither overbought nor oversold. The STOCH value of 12.56 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
64 Neutral | $2.65B | -1,167.33 | -1.41% | ― | 95.29% | 98.21% | |
62 Neutral | $3.28B | -52.08 | -5.89% | ― | 157.97% | 86.11% | |
58 Neutral | $2.58B | -52.99 | -14.19% | ― | 128.99% | 58.46% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | $1.68B | -3.25 | -54.32% | ― | 11.07% | 32.35% | |
48 Neutral | $3.21B | -7.70 | -52.20% | ― | ― | -7.88% | |
47 Neutral | $2.66B | -11.28 | -36.95% | ― | ― | -68.57% |
* Healthcare Sector Average
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Tarsus Pharmaceuticals Corporate Events
Business Operations and StrategyExecutive/Board Changes
Tarsus Pharmaceuticals Adds Industry Veteran to Board
Positive
Feb 18, 2026
On February 18, 2026, Tarsus Pharmaceuticals expanded its board from seven to eight members and appointed veteran biopharmaceutical executive David E. I. Pyott, former chairman and CEO of Allergan, as a Class III director, effective immediately. P...
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.