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Arcutis Biotherapeutics
(NASDAQ:ARQT)
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Rating:66Neutral
Price Target:
$28.00
▲(11.38% Upside)
Action:Reiterated
Date:09/17/26
The score is driven primarily by improving fundamentals (profitability and positive free cash flow) and a strong earnings update (raised revenue guidance and continued commercial momentum). These positives are partially offset by a demanding valuation (high P/E with no dividend support) and mixed technicals (negative MACD despite neutral momentum readings).
Positive Factors
ZORYVE commercial momentum
Rapid prescription and revenue growth indicates expanding adoption of the ZORYVE franchise across its dermatology indications and formulations. This commercial momentum, reinforced by higher full-year guidance, can support durable operating scale and strengthen Arcutis’ position in branded topical dermatology.
Negative Factors
Gross-to-net pressure
Persistent gross-to-net deductions reduce the revenue retained from each prescription and limit the benefit of volume growth. If reimbursement pressure remains elevated, Arcutis may need continued commercial investment to produce equivalent net revenue and margin expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
ZORYVE commercial momentum
Rapid prescription and revenue growth indicates expanding adoption of the ZORYVE franchise across its dermatology indications and formulations. This commercial momentum, reinforced by higher full-year guidance, can support durable operating scale and strengthen Arcutis’ position in branded topical dermatology.
Read all positive factors
Arcutis Biotherapeutics (ARQT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.34B
Dividend YieldN/A
Average Volume (3M)2.91M
Price to Earnings (P/E)120.4
Beta (1Y)0.74
Revenue Growth76.11%
EPS GrowthN/A
CountryUS
Employees354
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)0.22
Shares Outstanding125,691,960
10 Day Avg. Volume2,276,351
30 Day Avg. Volume2,907,677
Financial Highlights & Ratios
PEG Ratio2.52
Price to Book (P/B)19.50
Price to Sales (P/S)9.82
P/FCF Ratio-585.47
Enterprise Value/Market Cap1.03
Enterprise Value/Revenue7.41
Enterprise Value/Gross Profit8.13
Enterprise Value/Ebitda79.18
Forecast
1Y Price Target
$37.00Price Target Upside47.18% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)0.5
Revenue Forecast (FY)$537.34M
Arcutis Biotherapeutics Business Overview & Revenue Model
Company Description
Arcutis Biotherapeutics, Inc. is a biopharmaceutical firm dedicated to developing and marketing therapies for a range of skin-related diseases. The company's flagship investigational compound, ARQ-151, a roflumilast cream administered topically, h...
How the Company Makes Money
Arcutis primarily makes money by selling its prescription dermatology product ZORYVE through the U.S. pharmaceutical market. Revenue is generated from net product sales to wholesalers and specialty pharmacies, which then distribute to retail pharm...
Arcutis Biotherapeutics Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call communicated robust commercial momentum and multiple strategic wins — sizable revenue growth (+59% YoY), a return to quarterly profitability, raised full-year guidance, recent pediatric approval and an accepted sNDA — while simultaneously investing heavily in commercial expansion, patient access initiatives, and a broad pipeline. Near-term challenges include elevated SG&A from the salesforce build, gross-to-net still in the 50s with only moderate near-term improvement, early-stage readout risk on several programs, and some uncertainty around telehealth conversion dynamics. On balance, positive operational and financial momentum outweigh the manageable risks.Positive Updates
Strong Revenue Growth
Net product revenues of $129.9M in Q2 2026, up 59% year-over-year and up 23% sequentially versus Q1 2026.
Negative Updates
Higher SG&A and Operating Costs
SG&A rose to $82.1M in Q2 2026 from $69.2M in Q2 2025, a +19% increase driven primarily by personnel costs and salesforce expansion; cost of sales increased to $10.9M from $7.5M year-over-year (~+45%).
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Revenue Growth
Net product revenues of $129.9M in Q2 2026, up 59% year-over-year and up 23% sequentially versus Q1 2026.
Read all positive updates
Company Guidance
Arcutis raised full‑year 2026 net revenue guidance to $525–$540 million (up from $480–$495M), citing strong Q2 performance: net product revenues of $129.9M (+59% YoY, +23% QoQ), >280,000 prescriptions in the quarter, and a gross‑to‑net rate stable in the 50s (expected to moderate to the low‑50s by year‑end). The company reported Q2 cost of sales $10.9M, R&D $20.4M, SG&A $82.1M, net income $15.0M (vs. a $15.9M loss YoY), cash and marketable securities of $238.9M, total debt $101.9M, and positive operating cash flow of $12.6M (expected to remain positive through year‑end). Management expects continued quarter‑over‑quarter net sales growth in Q3 and Q4 driven by prescription momentum, salesforce expansion, DTC and telehealth initiatives, and modest incremental gross‑to‑net improvement.Arcutis Biotherapeutics Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
71
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 463.98M | 376.07M | 196.54M | 59.61M | 3.69M | 0.00 |
| Gross Profit | 422.88M | 339.38M | 177.41M | 54.62M | 2.93M | -763.00K |
| EBITDA | 43.43M | 1.78M | -109.63M | -228.56M | -294.87M | -205.90M |
| Net Income | 28.52M | -16.14M | -140.04M | -262.14M | -311.46M | -206.36M |
Balance Sheet | ||||||
| Total Assets | 488.54M | 432.97M | 348.89M | 341.37M | 449.27M | 408.15M |
| Cash, Cash Equivalents and Short-Term Investments | 238.55M | 220.98M | 227.96M | 271.86M | 409.59M | 388.60M |
| Total Debt | 114.14M | 6.27M | 110.58M | 205.92M | 202.54M | 77.56M |
| Total Liabilities | 267.96M | 243.49M | 191.35M | 252.70M | 239.69M | 110.47M |
| Stockholders Equity | 220.58M | 189.48M | 157.54M | 88.67M | 209.58M | 297.68M |
Cash Flow | ||||||
| Free Cash Flow | 39.15M | -6.31M | -112.30M | -247.49M | -281.00M | -175.62M |
| Operating Cash Flow | 39.31M | -5.63M | -112.16M | -247.06M | -257.71M | -174.63M |
| Investing Cash Flow | -85.98M | -30.25M | 28.82M | 180.23M | -87.20M | -75.95M |
| Financing Cash Flow | 8.26M | 6.97M | 66.20M | 101.32M | 301.80M | 281.95M |
Arcutis Biotherapeutics Technical Analysis
Positive
25.14
Price Trends
25.39
Positive
25.29
Positive
25.11
Positive
Market Momentum
-0.04
Positive
56.20
Neutral
39.17
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARQT, the sentiment is Positive. The current price of 25.14 is below the 20-day moving average (MA) of 25.72, below the 50-day MA of 25.39, and above the 200-day MA of 25.11, indicating a bullish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 56.20 is Neutral, neither overbought nor oversold. The STOCH value of 39.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ARQT.
Arcutis Biotherapeutics Risk Analysis
Arcutis Biotherapeutics disclosed 72 risk factors in its most recent earnings report. Arcutis Biotherapeutics 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
Arcutis Biotherapeutics Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $3.34B | 120.38 | 15.05% | ― | 76.11% | ― | |
58 Neutral | $2.00B | -28.73 | -47.84% | ― | ― | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | $920.85M | -2.81 | -82.68% | ― | ― | -37.48% | |
50 Neutral | $5.47B | -61.17 | -37.51% | ― | ― | ― | |
45 Neutral | $563.77M | -6.60 | -61.65% | ― | -51.05% | 57.25% | |
44 Neutral | $955.83M | -1.88 | -102.97% | ― | -63.11% | 15.36% |
* Healthcare Sector Average
ARQT
Arcutis Biotherapeutics
26.58
5.86
28.28%
PVLA
Palvella Therapeutics
138.77
62.55
82.07%
ACRS
Aclaris Therapeutics
3.83
1.92
100.52%
MLTX
MoonLake Immunotherapeutics
10.82
0.16
1.50%
ALMS
Alumis Inc.
7.16
2.55
55.31%
MANE
Veradermics, Incorporated
130.90
93.15
246.75%
Arcutis Biotherapeutics Corporate Events
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Arcutis Biotherapeutics Announces Key Commercial Leadership Changes
Positive
Aug 5, 2026
Arcutis Biotherapeutics reported strong second-quarter 2026 results, underscoring the momentum of its ZORYVE franchise in immuno-dermatology. Net product revenues climbed to $129.9 million, up 59% year over year and 23% sequentially, supported by ...
Business Operations and StrategyExecutive/Board Changes
Arcutis Biotherapeutics Adds Veteran Director to Board
Positive
Jul 17, 2026
On July 15, 2026, Arcutis Biotherapeutics’ board expanded from nine to ten directors and appointed Christopher “Chris” Peetz as an independent Class III director, with a term running to the 2029 annual meeting. The move, announce...
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.