Arcutis Biotherapeutics, Inc.
- Open
- 27.55
- Day high
- 28.83
- Day low
- 27.43
- Prev close
- 27.74
- Volume
- 1.2M
- Mkt cap
- $3.6B
- P/E (TTM)
- —
- EPS (TTM)
- —
- P/B
- 18.8
- P/S
- 8.6
- Yield
- —
- Per share
- —
- ▼Insiders net selling -$857K over the last 3 months (0 open-market buys, 12 sales)
- 🏛Institutions accumulating (13F)
Arcutis Biotherapeutics, Inc. (ARQT) is a Healthcare company listed on NASDAQ. The stock is up 94% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 12 sales (SEC Form 4).
Arcutis Biotherapeutics, Inc. (ARQT) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 2 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
ARQT earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 6, 2026 | $-0.02 | $-0.09 | -350.0% | $105M | +1.7% |
| Feb 25, 2026 | $0.03 | $0.13 | +333.3% | $130M | +27.4% |
| Aug 6, 2025 | $-0.18 | $-0.13 | +27.8% | $82M | +1.1% |
| Aug 14, 2024 | $-0.48 | $-0.42 | +12.5% | $31M | +6.1% |
| Feb 27, 2024 | $-0.65 | $-0.72 | -10.8% | $14M | +19.3% |
| Nov 3, 2023 | $-0.90 | $-0.73 | +18.9% | $38M | +229.4% |
| Feb 28, 2023 | $-1.37 | $-1.18 | +13.9% | $3M | +34.4% |
| Aug 4, 2022 | $-1.38 | $-1.31 | +5.1% | — | — |
| May 5, 2022 | $-1.42 | $-1.27 | +10.6% | — | — |
| Feb 22, 2022 | $-1.41 | $-1.42 | -0.7% | — | — |
| Nov 4, 2021 | $-1.09 | $-1.14 | -4.6% | — | — |
| Aug 5, 2021 | $-0.91 | $-0.84 | +7.7% | — | — |
ARQT insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jul 17, 2026 | Peetz Christopherdirector | Grant | 21,486 | $27.78 |
| Jul 17, 2026 | Peetz Christopherdirector | Grant | 13,010 | $27.78 |
| Jul 17, 2026 | Welgus Howard G.director | Option | 822 | $6.52 |
| Jul 17, 2026 | Welgus Howard G.director | Option | 1,019 | $7.51 |
| Jul 17, 2026 | Welgus Howard G.director | Option | 2,255 | $8.63 |
| Jul 17, 2026 | Welgus Howard G.director | Sell | 4,730 | $26.91 |
| Jul 17, 2026 | Peetz Christopherdirector | Grant | 4,315 | — |
| Jun 17, 2026 | LIN SUE-JEANdirector | Sell | 4,946 | $24.38 |
| Jun 17, 2026 | Welgus Howard G.director | Option | 822 | $6.52 |
| Jun 17, 2026 | Welgus Howard G.director | Sell | 4,096 | $24.41 |
| Jun 17, 2026 | Welgus Howard G.director | Option | 2,255 | $8.63 |
| Jun 17, 2026 | Welgus Howard G.director | Sell | 635 | $25.67 |
| Jun 17, 2026 | Welgus Howard G.director | Option | 1,019 | $7.51 |
| Jun 9, 2026 | Munshi Amitdirector | Grant | 16,667 | $21.23 |
| Jun 9, 2026 | Munshi Amitdirector | Grant | 5,778 | — |
Source: ARQT SEC Form 4 filings, latest Jul 17, 2026. For informational purposes only — not investment advice.
See the full ARQT insider & 13F page →Arcutis Biotherapeutics, Inc. company profile
Overview
Arcutis Biotherapeutics, Inc. (NASDAQ:ARQT) is a commercial-stage biopharmaceutical company founded in 2016 and headquartered in Westlake Village, California. The company went public in January 2020 and focuses on developing and commercializing innovative treatments for dermatological diseases. Arcutis has successfully transitioned from a clinical-stage company to a commercial enterprise, with its flagship product ZORYVE generating significant revenue growth since its initial launch for plaque psoriasis in 2022.
Business
Arcutis operates in the dermatology therapeutics sector, specifically focusing on topical treatments for inflammatory skin conditions. The company's core business revolves around developing and commercializing prescription medications that treat chronic skin diseases affecting millions of patients worldwide. The company's primary product is ZORYVE, which contains the active ingredient roflumilast, a phosphodiesterase 4 (PDE4) inhibitor. To understand what this means: PDE4 is an enzyme that breaks down cyclic adenosine monophosphate (cAMP), a molecule that helps regulate inflammation in cells. By inhibiting PDE4, roflumilast increases cAMP levels, which reduces inflammatory responses in the skin. This mechanism offers a non-steroidal alternative to traditional topical corticosteroids, which have been the standard treatment for decades but come with significant side effects from long-term use. ZORYVE is currently available in two formulations and approved for three distinct indications: 1. ZORYVE Cream (0.3%) for plaque psoriasis - Psoriasis is an autoimmune condition causing thick, scaly patches on the skin that affects approximately 7.5 million Americans. This represents roughly 85% of the company's current revenue. 2. ZORYVE Foam for seborrheic dermatitis - A common inflammatory skin condition causing scaly, itchy patches primarily on the scalp and face, affecting about 5% of the population. This accounts for approximately 15% of current revenues. 3. ZORYVE Cream (0.15%) for atopic dermatitis - Also known as eczema, this chronic condition causes inflamed, itchy skin and affects over 31 million Americans, particularly children. The company is also developing additional pipeline products including ARQ-252 (a topical JAK inhibitor for hand eczema and vitiligo), ARQ-255 (a deeper-penetrating formulation for alopecia areata), and ARQ-234 (a CD200 receptor agonist for atopic dermatitis).
Revenue model
Arcutis generates revenue primarily through prescription drug sales to patients via pharmacies, operating under a traditional pharmaceutical business model. The company sells ZORYVE products to wholesalers and specialty pharmacies, who then distribute to retail pharmacies where patients fill their prescriptions. The company's revenue model involves several key components. Gross-to-net adjustments represent a significant factor, currently running in the low 50% range, meaning the company receives approximately 50 cents for every dollar of list price due to insurance rebates, pharmacy discounts, and patient assistance programs. This is typical for specialty pharmaceuticals but represents a substantial reduction from list prices. Paying customers are primarily patients with commercial insurance, Medicare, and Medicaid coverage. The company has secured coverage with major pharmacy benefit managers (PBMs) and is expanding access through government payer programs. Approximately 80% of prescriptions across the ZORYVE portfolio are currently reimbursed by insurance. Several factors influence the company's profit margins. Positive margin drivers include the shift from topical steroids to non-steroidal alternatives as physicians recognize superior safety profiles, expanding insurance coverage reducing patient out-of-pocket costs, and the company's partnership with Kowa Pharmaceuticals for primary care market access. The large addressable market of 17 million patients currently using topical steroids represents significant growth potential. Margin pressures come from competitive pricing dynamics in the dermatology market, ongoing gross-to-net headwinds as payers negotiate rebates, and the substantial sales and marketing investments required to educate physicians and drive adoption. The company also faces manufacturing and supply chain costs, plus ongoing research and development expenses for pipeline products. Additionally, patent expiration risks could eventually allow generic competition, though the company has extended patent protection through 2037 for key formulations.
Competitive moat
Arcutis possesses a moderate competitive moat built primarily around intellectual property, regulatory barriers, and first-mover advantages in specific therapeutic areas. The company's patent portfolio extends protection for key ZORYVE formulations through 2037, providing meaningful exclusivity periods that prevent generic competition. The company benefits from regulatory moats inherent in pharmaceutical development, where competitors must conduct expensive clinical trials and navigate FDA approval processes that can take years and cost hundreds of millions of dollars. ZORYVE's unique PDE4 inhibitor mechanism offers differentiation from traditional topical steroids, creating a clinical advantage that competitors cannot easily replicate without developing their own novel compounds. Market positioning advantages include being the first non-steroidal topical treatment approved for seborrheic dermatitis in decades, giving the company significant first-mover benefits in an underserved market. The established relationships with dermatologists and growing brand recognition create switching costs as physicians become comfortable prescribing ZORYVE products. However, the moat faces several competitive threats. Large pharmaceutical companies with greater resources could develop competing PDE4 inhibitors or alternative non-steroidal mechanisms. The dermatology market remains dominated by generic topical steroids that are significantly cheaper, creating ongoing pricing pressure. Additionally, the company competes against well-established players like Pfizer and other major pharmaceutical companies with deeper pockets for marketing and development. The moat's strength is also limited by the company's dependence on a single mechanism of action (PDE4 inhibition) across its product portfolio, creating concentration risk. While the regulatory barriers are substantial, they are not permanent, and patent cliffs will eventually expose the company to generic competition. The competitive landscape could shift rapidly if larger players decide to prioritize dermatology or if new therapeutic approaches emerge.
Risks & safety
Arcutis presents a moderate margin of safety with mixed financial health indicators typical of a commercial-stage biotech company. **Cash Position and Burn:** - Cash and short-term investments: $53.1 million as of Q1 2025 - Quarterly cash burn trending downward from $45 million to approximately $31 million - Company projects achieving cash breakeven in 2026 - Current cash runway appears tight, potentially requiring additional financing before breakeven **Debt and Solvency:** - Debt-to-equity ratio of 0.78, indicating moderate leverage - Current ratio of 3.55 suggests adequate short-term liquidity - Total liabilities of $201.4 million against $344.1 million in total assets - Renegotiated debt terms with extended maturity provides some breathing room **Valuation Metrics:** - Price-to-book ratio of 13.8 appears elevated for current profitability - Negative EBITDA of -$24.5 million in Q1 2025, though improving from prior periods - Revenue growth of 196% year-over-year demonstrates strong commercial traction - EV/EBITDA not meaningful due to negative EBITDA **Other Considerations:** - Strong revenue momentum with $65.8 million in Q1 2025 provides confidence in commercial execution - Expanding product portfolio with upcoming approvals reduces single-product risk - Partnership with Kowa provides additional market access without significant capital investment
Recent development
Arcutis has undergone significant strategic evolution over the past few years, transitioning from a clinical-stage company to a successful commercial enterprise. The company's most significant achievement was the successful launch and expansion of the ZORYVE franchise, which has grown from initial approval for plaque psoriasis in 2022 to a multi-indication portfolio generating nearly $200 million in annual revenue by 2024. Product portfolio expansion has been a key strategic focus, with the company securing FDA approvals for ZORYVE foam in seborrheic dermatitis and ZORYVE cream for atopic dermatitis. The company is awaiting FDA approval for scalp and body psoriasis indication with a PDUFA date of May 22, 2025, and expects approval for pediatric atopic dermatitis patients aged 2-5 years in Q4 2025. The partnership with Kowa Pharmaceuticals represents a significant strategic pivot to expand market reach beyond dermatology specialists into primary care and pediatric markets. This co-promotion agreement, initiated in 2024, provides access to a broader prescriber base without requiring substantial additional sales force investment from Arcutis. Market access improvements have been central to the company's commercial strategy, with successful negotiations securing coverage from major pharmacy benefit managers and expanding into government payer segments. The company has achieved Medicaid coverage in states representing approximately 50% of Medicaid beneficiaries and continues pursuing Medicare Part D access. Pipeline development has been strategically focused, with the company advancing ARQ-255 for alopecia areata (Phase 1b readout expected mid-2025) and preparing to file an IND for ARQ-234 in atopic dermatitis. The company has also made strategic decisions to pause some early-stage programs to concentrate resources on core commercial products and high-potential pipeline assets. The company's commercial execution strategy has emphasized sustainable growth over aggressive short-term tactics, avoiding temporary pricing offers or buy-downs that could undermine long-term physician relationships and payer negotiations.
ARQT company profile · for informational purposes only — not investment advice.
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