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Tarsus Pharmaceuticals
(NASDAQ:TARS)
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Rating:65Neutral
Price Target:
$76.00
▲(6.37% Upside)
Action:Reiterated
Date:09/11/26
The score is driven primarily by improving fundamentals (rapid revenue scaling, exceptionally strong gross margins, and a swing to positive operating and free cash flow) and supportive price momentum (price above key moving averages with positive MACD). These positives are tempered by weak valuation signals due to negative earnings (P/E < 0) and continued profitability/ROE pressure, plus elevated near-term expense and execution risk highlighted in the earnings call despite raised sales guidance.
Positive Factors
XDEMVY Revenue Growth
Rapid XDEMVY growth and higher full-year guidance indicate expanding prescription demand and effective commercialization of the lead product. More than 700,000 patients treated and nearly $1 billion in cumulative sales support durable adoption, creating a stronger base for continued revenue scaling.
Negative Factors
Ongoing Operating Losses
Tarsus has not yet converted its strong product-level economics into consistent company-wide profitability. Negative operating and net margins mean ongoing commercial, research, and corporate spending still exceeds earnings, leaving execution on expense discipline and revenue durability central to the path toward sustainable profits.
Read all positive and negative factors
Positive Factors
Negative Factors
XDEMVY Revenue Growth
Rapid XDEMVY growth and higher full-year guidance indicate expanding prescription demand and effective commercialization of the lead product. More than 700,000 patients treated and nearly $1 billion in cumulative sales support durable adoption, creating a stronger base for continued revenue scaling.
Read all positive factors
Tarsus Pharmaceuticals (TARS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.48B
Dividend YieldN/A
Average Volume (3M)859.59K
Price to Earnings (P/E)―
Beta (1Y)0.24
Revenue Growth105.17%
EPS Growth53.58%
CountryUS
Employees370
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-1.09
Shares Outstanding49,303,413
10 Day Avg. Volume1,162,711
30 Day Avg. Volume859,591
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 Cap0.68
Enterprise Value/Revenue3.91
Enterprise Value/Gross Profit4.31
Enterprise Value/Ebitda-67.19
Forecast
1Y Price Target
$100.88Price Target Upside41.18% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)-2.11
Revenue Forecast (FY)$722.09M
Tarsus Pharmaceuticals Business Overview & Revenue Model
Company Description
Tarsus Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical firm dedicated to advancing and commercializing innovative therapies, primarily focusing on ocular conditions. Its leading investigational drug, TP-03, a novel treatment currently ...
How the Company Makes Money
Tarsus makes money primarily by commercializing prescription pharmaceutical products, with current revenue centered on U.S. sales of XDEMVY (lotilaner ophthalmic solution) for Demodex blepharitis. Revenue is generated when XDEMVY is purchased thro...
Tarsus Pharmaceuticals Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Positive
The call communicated strong commercial execution and robust growth driven by XDEMVY (record quarterly sales, improved full-year guidance, high margins, strong physician and patient engagement) while also announcing a transformative but costly acquisition of Alkeus to enter retina. The ALK-001 program brings promising long-term upside (solid clinical data, favorable tolerability, Phase III underway) but also increases near-term R&D and transaction-related cash commitments, extends the timeline to value realization (topline 2H 2029), and introduces competitive and payer uncertainties. Overall, operational momentum and financial flexibility support growth and strategic investment, but the company will incur higher expenses and execution risk ahead of the eventual retina readouts.Positive Updates
Record XDEMVY Quarterly Sales
Q2 XDEMVY net product sales of $173.9M, +69% year-over-year and ~20% quarter-over-quarter; nearly $1B in cumulative net product sales to date and >700,000 patients treated.
Negative Updates
Material Increase in R&D Guidance
Full-year R&D expense guidance increased to $190M–$210M from $115M–$135M, reflecting a $75M upfront consideration for iRenix; this raises near-term operating spend materially.
Read all updates
Q2-2026 Updates
Positive
Negative
Record XDEMVY Quarterly Sales
Q2 XDEMVY net product sales of $173.9M, +69% year-over-year and ~20% quarter-over-quarter; nearly $1B in cumulative net product sales to date and >700,000 patients treated.
Read all positive updates
Company Guidance
Tarsus raised 2026 XDEMVY net product sales guidance to $685–705 million (prior $670–700M) after reporting Q2 XDEMVY sales of $173.9M (~$174M), up >69% year‑over‑year and ~20% quarter‑over‑quarter; gross margins are expected to remain ~93%; full‑year SG&A is guided to $545–565M and R&D to $190–210M (up from $115–135M, reflecting a $75M upfront for iRenix), with the R&D range excluding the pending Alkeus acquisition. The company ended Q2 with $449.7M in cash, cash equivalents and marketable securities, has secured a $125M private placement for the Alkeus financing, and disclosed Alkeus economics of $450M upfront ( $270M cash + $180M stock), up to $350M in milestones and low single‑digit tiered royalties; management noted normal seasonality (tempered summer, stronger Q4), retreatment rates in the high teens (~20% steady state), >700,000 patients treated, and nearly $1B cumulative XDEMVY sales to date toward a >$2B potential peak.Tarsus Pharmaceuticals Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
63
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 606.33M | 451.36M | 182.95M | 17.45M | 25.82M | 57.03M |
| Gross Profit | 549.30M | 420.68M | 170.13M | 15.85M | 24.86M | 54.95M |
| EBITDA | -35.27M | -53.61M | -106.48M | -131.67M | -59.70M | -13.46M |
| Net Income | -46.48M | -66.42M | -115.55M | -135.89M | -62.09M | -13.83M |
Balance Sheet | ||||||
| Total Assets | 611.14M | 562.16M | 376.99M | 265.49M | 227.86M | 178.91M |
| Cash, Cash Equivalents and Short-Term Investments | 449.69M | 417.27M | 291.38M | 227.44M | 217.03M | 171.81M |
| Total Debt | 88.66M | 93.64M | 72.45M | 30.22M | 20.21M | 1.89M |
| Total Liabilities | 264.41M | 218.73M | 152.46M | 68.50M | 34.96M | 12.18M |
| Stockholders Equity | 346.73M | 343.43M | 224.53M | 196.99M | 192.90M | 166.73M |
Cash Flow | ||||||
| Free Cash Flow | 61.55M | -22.31M | -84.59M | -123.00M | -49.54M | 3.16M |
| Operating Cash Flow | 79.70M | -12.45M | -83.03M | -117.49M | -49.03M | 3.75M |
| Investing Cash Flow | 23.85M | -42.12M | -199.19M | 140.60M | -144.63M | -586.00K |
| Financing Cash Flow | 9.61M | 143.39M | 154.66M | 130.18M | 93.99M | 21.00K |
Tarsus Pharmaceuticals Technical Analysis
Positive
71.45
Price Trends
75.05
Negative
68.42
Positive
67.93
Positive
Market Momentum
-1.34
Positive
47.41
Neutral
37.58
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TARS, the sentiment is Positive. The current price of 71.45 is below the 20-day moving average (MA) of 73.17, below the 50-day MA of 75.05, and above the 200-day MA of 67.93, indicating a neutral trend. The MACD of -1.34 indicates Positive momentum. The RSI at 47.41 is Neutral, neither overbought nor oversold. The STOCH value of 37.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $4.01B | 144.34 | 15.05% | ― | 76.11% | ― | |
65 Neutral | $3.48B | -64.68 | -13.53% | ― | 105.17% | 53.58% | |
55 Neutral | $2.54B | -6.52 | -61.35% | ― | 23220.33% | 13.06% | |
52 Neutral | $5.84B | -20.94 | -273.23% | ― | ― | -10.60% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
42 Neutral | $1.42B | -4.56 | -59.87% | ― | -8.14% | -10.60% |
* Healthcare Sector Average
TARS
Tarsus Pharmaceuticals
72.08
3.76
5.50%
VRDN
Viridian Therapeutics
22.82
0.75
3.40%
OCUL
Ocular Therapeutix
6.61
-4.83
-42.22%
KOD
Kodiak Sciences
85.78
68.67
401.34%
ARQT
Arcutis Biotherapeutics
32.20
12.12
60.36%
SGP
SpyGlass Pharma
28.22
1.82
6.89%
Tarsus Pharmaceuticals Corporate Events
Business Operations and StrategyM&A Transactions
Tarsus Pharmaceuticals Completes Alkeus Retinal Therapy Acquisition
Positive
Sep 10, 2026
On Sept. 4, 2026, Tarsus Pharmaceuticals completed its acquisition of Alkeus Pharmaceuticals, a privately held biotechnology firm focused on retinal diseases, in a cash-and-stock deal. Alkeus has become a wholly owned subsidiary, with Tarsus payin...
Business Operations and StrategyM&A Transactions
Tarsus Pharmaceuticals Acquires Alkeus to Expand Retina Pipeline
Positive
Aug 6, 2026
On July 31, 2026, Tarsus Pharmaceuticals agreed to acquire privately held Alkeus Pharmaceuticals, a retinal disease-focused biotech developing gildeuretinol (ALK-001), a Phase 3 oral therapy targeting the underlying biology of Stargardt disease, w...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Tarsus Pharmaceuticals Raises $125M in PIPE Financing
Positive
Aug 6, 2026
On August 5, 2026, Tarsus Pharmaceuticals entered into a securities purchase agreement with a syndicate of existing and new healthcare-focused investors for an oversubscribed private investment in public equity financing valued at about $125 milli...
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.