Tarsus Pharmaceuticals (TARS) AI Stock Analysis

• Market Cap: $1.73B
• Dividend Yield: N/A
• Average Volume (3M): 615.25K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.72
• Revenue Growth: 449.03%
• EPS Growth: 42.86%
• Country: US
• Employees: 323
• Sector: Healthcare
• Sector Strength: 48
• Industry: Biotechnology
• EPS (TTM): -0.64
• Shares Outstanding: 42,014,236
• 10 Day Avg. Volume: 635,810
• 30 Day Avg. Volume: 615,248
• PEG Ratio: -0.02
• Price to Book (P/B): 1.87
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -7.29
• Enterprise Value/Market Cap: 0.18
• Enterprise Value/Revenue: 0.49
• Enterprise Value/Gross Profit: 1.42
• Enterprise Value/Ebitda: -0.65
• 1Y Price Target: $79.00
• Price Target Upside: 94.34% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 49 Neutral
• Price Target: $41.00 ▲(0.86%Upside)

Tarsus Pharmaceuticals' overall stock score reflects a mix of strong sales growth and strategic initiatives against the backdrop of financial challenges. The earnings call was a bright spot, showcasing positive developments, but technical and valuation metrics highlight ongoing risks.

Positive Factors

Financial Performance

Tarsus Pharmaceuticals reported Q1 2025 revenues of $78.3M compared to $24.7M in the same period in 2024, indicating significant growth.

Market Coverage

The company has broad commercial coverage with Medicare and Medicaid reimbursement and more than 90% of covered lives, addressing prescriber apprehension regarding coverage pushback.

Product Adoption

The ease of diagnosis and outstanding efficacy and safety profile of Xdemvy contributed to its rapid adoption among eye care professionals.

Negative Factors

Market Challenges

Management expressed confidence in continued growth in the Xdemvy launch despite upcoming summer headwinds.

Market Competition

XDEMVY represents the first and only FDA approved therapy to treat Demodex blepharitis, affecting upwards of 25 million Americans.

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 in Phase III for the treatment of blepharitis caused by the infestation of Demodex mites, as well as to treat meibomian gland disease. The company is also developing TP-04 for the treatment of rosacea; and TP-05 for Lyme prophylaxis and community malaria reduction. In addition, the company develops lotilaner to address diseases across therapeutic categories in human medicine, including eye care, dermatology, and other diseases. Tarsus Pharmaceuticals, Inc. was incorporated in 2016 and is headquartered in Irvine, California.

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 robust revenue growth and a strong equity base, but struggles with profitability and cash flow generation. Despite the absence of debt, consistent losses and negative cash flows present 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
233.67M	182.95M	17.45M	25.82M	57.03M	0.00
	Gross Profit
217.29M	170.13M	15.85M	24.86M	54.95M	-246.00K
	EBIT
-109.17M	-120.57M	-143.16M	-62.71M	-12.16M	-27.00M
	EBITDA
-98.27M	-106.48M	-131.67M	-59.11M	-13.17M	-26.56M
	Net Income Common Stockholders
-104.94M	-115.55M	-135.89M	-62.09M	-13.83M	-26.81M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
407.92M	291.38M	227.44M	217.03M	171.81M	168.13M
	Total Assets
500.75M	376.99M	265.49M	227.86M	178.91M	171.97M
	Total Debt
0.00	72.45M	31.73M	20.16M	1.89M	831.00K
	Net Debt
-103.42M	-22.37M	-193.22M	-51.51M	-169.44M	-167.30M
	Total Liabilities
158.29M	152.46M	68.50M	34.96M	12.18M	5.99M
	Stockholders Equity
342.46M	224.53M	196.99M	192.90M	166.73M	165.98M
Cash Flow		Free Cash Flow
-72.87M	-84.59M	-123.00M	-49.54M	3.16M	-21.59M
	Operating Cash Flow
-65.89M	-83.03M	-117.49M	-49.03M	3.75M	-21.14M
	Investing Cash Flow
-131.91M	-199.19M	140.60M	-144.63M	-586.00K	-456.00K
	Financing Cash Flow
182.45M	154.66M	130.18M	93.99M	21.00K	131.77M

Tarsus Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 40.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 40.65 is below the 20-day moving average (MA) of 42.21, below the 50-day MA of 45.15, and below the 200-day MA of 45.27, indicating a bearish trend. The MACD of -1.27 indicates Positive momentum. The RSI at 40.27 is Neutral, neither overbought nor oversold. The STOCH value of 19.30 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TARS.

Tarsus Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MIRM	57 Neutral	$2.52B	―	-33.06%	―	69.31%	57.12%
LGND	55 Neutral	$2.21B	48.01	-16.56%	―	53.40%	-230.86%
Sector *	53 Neutral	$5.24B	3.32	-44.36%	6.63%	16.78%	-0.12%
TARS	49 Neutral	$1.73B	―	-33.98%	―	449.03%	42.86%
APGE	49 Neutral	$2.45B	―	-27.85%	―	―	-94.92%
AAPG	47 Neutral	$3.09B	―	-253.16%	―	331.22%	59.40%
BHVN	40 Underperform	$1.47B	―	-316.82%	―	―	-65.63%

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.