Arcutis Biotherapeutics (NASDAQ:ARQT) Posts Earnings Results, Misses Estimates By $0.07 EPS
by Teresa Graham · The Cerbat GemArcutis Biotherapeutics (NASDAQ:ARQT – Get Free Report) announced its quarterly earnings results on Wednesday. The company reported ($0.09) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.02) by ($0.07), FiscalAI reports. Arcutis Biotherapeutics had a negative net margin of 4.29% and a negative return on equity of 10.26%. The company had revenue of $105.40 million during the quarter, compared to analysts’ expectations of $103.68 million.
Here are the key takeaways from Arcutis Biotherapeutics’ conference call:
- Net product revenues were $105.4M in Q1 (+65% YoY), prescriptions recovered to ~21,000/week and ZORYVE captured 48% of branded nonsteroidal topical share, demonstrating sustained commercial momentum.
- Regulatory progress includes an April sNDA for ZORYVE cream 0.05% in infants (3–24 months), completion of a pediatric MUSE trial for foam 0.3% (ages 2–11), and a June 29 PDUFA for cream 0.3% down to age 2—potential label expansions that broaden addressable market.
- Commercial expansion is underway: the enlarged dermatology sales force is now in the field and a targeted primary care/pediatric franchise (head hired) is being built, with field impact expected to begin in H2 2026 and into 2027.
- Arcutis achieved sustainable positive cash flow, ended Q1 with $224.3M in cash/marketable securities, maintained 2026 revenue guidance of $480–495M, and expects improving gross‑to‑net into the low 50s—supporting reinvestment while remaining cash‑flow positive.
- Pipeline progress includes initiation of a Phase I trial for ARQ‑234 (CD200R agonist) and near‑full enrollment in vitiligo and ongoing HS Phase II POC trials; these are meaningful early milestones but clinical and commercial outcomes remain uncertain.
Arcutis Biotherapeutics Price Performance
Shares of ARQT stock traded up $0.75 during trading hours on Wednesday, reaching $24.17. The company had a trading volume of 1,381,968 shares, compared to its average volume of 1,026,236. The company has a market capitalization of $3.02 billion, a price-to-earnings ratio of -172.63 and a beta of 1.58. Arcutis Biotherapeutics has a 12-month low of $12.42 and a 12-month high of $31.77. The company has a debt-to-equity ratio of 0.57, a quick ratio of 2.99 and a current ratio of 3.17. The stock has a fifty day moving average of $23.78 and a 200-day moving average of $25.78.
Wall Street Analysts Forecast Growth
A number of research analysts have recently issued reports on ARQT shares. Mizuho cut their price target on Arcutis Biotherapeutics from $37.00 to $35.00 and set an “outperform” rating on the stock in a report on Monday, March 2nd. Weiss Ratings restated a “sell (d-)” rating on shares of Arcutis Biotherapeutics in a research note on Friday, March 27th. TD Cowen boosted their target price on Arcutis Biotherapeutics from $30.00 to $35.00 and gave the stock a “buy” rating in a research note on Thursday, February 26th. Guggenheim boosted their target price on Arcutis Biotherapeutics from $34.00 to $35.00 and gave the stock a “buy” rating in a research note on Friday, February 27th. Finally, Wall Street Zen downgraded Arcutis Biotherapeutics from a “strong-buy” rating to a “buy” rating in a research note on Saturday, February 14th. Five equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Arcutis Biotherapeutics currently has an average rating of “Moderate Buy” and a consensus target price of $34.00.
View Our Latest Analysis on Arcutis Biotherapeutics
Arcutis Biotherapeutics News Summary
Here are the key news stories impacting Arcutis Biotherapeutics this week:
- Positive Sentiment: Q1 product momentum — ZORYVE net product revenue was $105.4M, up ~65% year‑over‑year and above consensus revenue; company said it maintained positive operating cash flow and highlighted continued branded non‑steroidal share gains. Arcutis Announces First Quarter 2026 Financial Results and Provides Business Update
- Positive Sentiment: Regulatory and pipeline progress — submitted an sNDA to expand ZORYVE for infants (3–24 months), completed enrollment in the ZORYVE foam pediatric MUSE trial, and started first‑in‑human studies of ARQ‑234. These catalysts support longer‑term growth expectations. Arcutis Announces First Quarter 2026 Financial Results and Provides Business Update
- Positive Sentiment: Commercial build — expanded the dermatology sales force and is building a primary care/pediatrics organization, which could broaden ZORYVE adoption. Arcutis Announces First Quarter 2026 Financial Results and Provides Business Update
- Positive Sentiment: Analyst stance — broker consensus remains a “Moderate Buy,” supporting investor sentiment around upside to the current share price. Arcutis Receives Consensus Recommendation of “Moderate Buy”
- Neutral Sentiment: Insider sales disclosed — several executives and a director sold shares recently (executed under pre‑arranged Rule 10b5‑1 plans and largely to cover taxes on vested awards), which is typical after vesting and less likely to signal negative insider sentiment. Representative SEC filing: Todd Watanabe Form 4
Insider Buying and Selling at Arcutis Biotherapeutics
In other news, insider Patrick Burnett sold 6,287 shares of the firm’s stock in a transaction on Monday, March 2nd. The stock was sold at an average price of $25.18, for a total transaction of $158,306.66. Following the completion of the transaction, the insider directly owned 121,150 shares in the company, valued at $3,050,557. This trade represents a 4.93% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Todd Watanabe sold 37,349 shares of the firm’s stock in a transaction on Monday, March 2nd. The shares were sold at an average price of $25.18, for a total value of $940,447.82. Following the completion of the sale, the insider owned 785,957 shares in the company, valued at approximately $19,790,397.26. This represents a 4.54% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 84,575 shares of company stock valued at $2,103,052. Corporate insiders own 9.40% of the company’s stock.
Institutional Investors Weigh In On Arcutis Biotherapeutics
A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Invesco Ltd. lifted its position in shares of Arcutis Biotherapeutics by 59.3% during the 4th quarter. Invesco Ltd. now owns 307,382 shares of the company’s stock valued at $8,926,000 after acquiring an additional 114,430 shares during the period. Mercer Global Advisors Inc. ADV acquired a new position in Arcutis Biotherapeutics in the 4th quarter valued at $255,000. Mackenzie Financial Corp acquired a new position in Arcutis Biotherapeutics in the 4th quarter valued at $1,374,000. NewEdge Advisors LLC raised its holdings in Arcutis Biotherapeutics by 209.0% in the 4th quarter. NewEdge Advisors LLC now owns 1,545 shares of the company’s stock valued at $45,000 after acquiring an additional 1,045 shares during the last quarter. Finally, XTX Topco Ltd grew its stake in shares of Arcutis Biotherapeutics by 557.9% during the 4th quarter. XTX Topco Ltd now owns 74,358 shares of the company’s stock valued at $2,159,000 after buying an additional 63,055 shares during the period.
About Arcutis Biotherapeutics
Arcutis Biotherapeutics is a clinical-stage biopharmaceutical company focused on developing and commercializing innovative therapies for immuno-inflammatory skin diseases. The company’s research and development efforts center on targeted treatments that address the underlying biology of conditions such as plaque psoriasis, atopic dermatitis, seborrheic dermatitis and vitiligo. Arcutis employs a precision-medicine approach to deliver topical therapies designed to improve efficacy and tolerability compared with existing treatment options.
In August 2022, Arcutis received U.S.