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Arcutis Biotherapeutics
(NASDAQ:ARQT)
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Rating:71Outperform
Price Target:
$30.00
▲(9.69% Upside)
Action:Upgraded
Date:08/06/26
ARQT scores well on fundamentals and recent operating momentum, supported by a clear TTM profitability/cash-flow inflection and a very constructive earnings call with raised revenue guidance and strong prescription-driven growth. The score is tempered by mixed technical momentum and weak/limited valuation support due to an extreme negative P/E and no dividend yield data.
Positive Factors
ZORYVE commercial momentum
Strong prescription growth and rising product revenue indicate expanding adoption of ZORYVE across dermatology indications. Sustained demand can support a broader commercial base and improve operating leverage as the franchise scales.
Negative Factors
Gross-to-net pressure
Persistently high gross-to-net deductions reduce the revenue retained from prescription volume and constrain margin expansion. Limited near-term improvement means stronger demand may not translate proportionally into durable net sales or profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
ZORYVE commercial momentum
Strong prescription growth and rising product revenue indicate expanding adoption of ZORYVE across dermatology indications. Sustained demand can support a broader commercial base and improve operating leverage as the franchise scales.
Read all positive factors
Arcutis Biotherapeutics (ARQT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.33B
Dividend YieldN/A
Average Volume (3M)1.61M
Price to Earnings (P/E)114.8
Beta (1Y)0.73
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. Volume1,201,154
30 Day Avg. Volume1,611,591
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$36.57Price Target Upside33.72% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)0.22
Revenue Forecast (FY)$500.06M
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 | 44.13M | 2.48M | -109.63M | -227.43M | -294.55M | -205.59M |
| 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
Negative
27.35
Price Trends
26.67
Negative
24.60
Positive
25.61
Negative
Market Momentum
-0.23
Positive
43.00
Neutral
46.84
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARQT, the sentiment is Negative. The current price of 27.35 is above the 20-day moving average (MA) of 26.58, above the 50-day MA of 26.67, and above the 200-day MA of 25.61, indicating a bearish trend. The MACD of -0.23 indicates Positive momentum. The RSI at 43.00 is Neutral, neither overbought nor oversold. The STOCH value of 46.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | $2.33B | 12.16 | 20.06% | ― | 24.25% | -0.83% | |
71 Outperform | $3.33B | 114.81 | 15.05% | ― | 76.11% | ― | |
61 Neutral | $3.22B | -65.59 | -13.53% | ― | 105.17% | 53.58% | |
58 Neutral | $6.22B | -143.24 | -55.79% | ― | 77.12% | 64.40% | |
52 Neutral | $3.08B | -11.95 | -37.17% | ― | ― | -47.00% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | $1.88B | -3.21 | -50.41% | ― | -15.08% | 41.98% |
* Healthcare Sector Average
ARQT
Arcutis Biotherapeutics
25.35
9.56
60.54%
TVTX
Travere Therapeutics
64.46
46.67
262.34%
IRON
Disc Medicine
78.84
19.09
31.95%
HRMY
Harmony Biosciences Holdings
38.07
0.78
2.09%
TARS
Tarsus Pharmaceuticals
71.49
14.93
26.40%
RXRX
Recursion Pharmaceuticals
3.34
-1.44
-30.13%
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...
Executive/Board ChangesShareholder Meetings
Arcutis Stockholders Approve Proposals at 2026 Meeting
Positive
Jun 9, 2026
On June 5, 2026, Arcutis Biotherapeutics, Inc. held its 2026 Annual Meeting of Stockholders, where shareholders approved all three proposals on the agenda, including the election of three Class III directors to serve until the 2029 annual meeting ...
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.