Tarsus Pharmaceuticals, Inc. (TARS) Earnings

Management highlights

Bobak R. Azamian noted that XTENVI had strong first - quarter results with continued momentum in its launch, and key metrics such as the number of prescribers, depth of prescribing, etc., were growing substantially. They initiated the CALLIOPE Phase II trial of TPO5 for Lyme disease prevention and the CORE study for TPO4 in ocular rosacea. Aziz Mottiwala highlighted that XTENVI's performance was driven by increasing depth of prescribing, expansion of the patient funnel, and ongoing evidence generation. Jeffrey S. Farrow discussed the financial performance, full - year guidance, and pipeline progress including the TPO5 and TPO4 trials.

Guidance

Reiterates the full - year 2026 guidance of net product sales ranging from $670 million to $700 million, SG&A expenses from $545 million to $565 million including approximately $40 million in stock - based compensation, R&D expenses from $115 million to $135 million including approximately $20 million in stock - based compensation, and gross margins of approximately 93%. Quarterly growth is expected to follow patterns consistent with prior experience and broader sector dynamics, with strong growth in the second quarter, more modest growth in the third quarter, and robust growth in the fourth quarter.

Segment performance

In the first quarter of 2026, XTENVI delivered more than $145 million in net product sales, an increase of more than 85% year over year. License fees and collaboration revenues were $16.7 million in the quarter, including a one - time $15 million regulatory milestone from Grand Pharma and approximately $1.7 million related to China withholding tax.

Risks & headwinds

No specific risks were discussed in detail in the provided transcript.

Analyst Q&A

• Q: Hi, thanks for taking our questions. We have two. On the second quarter, I was surprised that you did not give bottle guidance, but when I look at consensus, which is $168 million, it should imply around 145 thousand to 150 thousand dispensed bottles. That is about 13% or 14% quarter - over - quarter growth and similar to the Q2 bounce that we saw in 2025. How do you feel about those numbers, and does our math make sense? And then second, Glaukos has a Phase II readout later this year for DB. They are delivering physostigmine, which is approved for glaucoma. You have mentioned before that you have looked at all these different assets, so I am curious what you think about the potential tolerability issues there since the drug actually constricts pupils. From your own due diligence, are vision changes or blurry vision a liability with that asset?

  A: Hi, Dennis—this is Jeff, and I will take the first part of the question and then turn it over to Bobak for the second part. As we have moved into full - year guidance, we have stepped away from the quarterly updates in terms of bottles dispensed and gross - to - net, absent some material change where we do not believe we are going to be able to meet that guidance. Our expectation is to continue to provide updates on the guidance that we provided earlier. We still believe in the full - year guidance, both on the revenue side and the SG&A side. To your question on growth between Q1 and Q2, just a reminder that 2025 was the second full year of launch and we were starting from a smaller base at that point in terms of total bottles, so we should not expect 30% growth similar to what we saw between Q1 and Q2 last year. Take into account the fact that we are starting on a bigger base now and make your adjustments accordingly.;

• Q: Hi, this is Emma for Greg. Thanks for taking our questions and congrats on the quarter. Maybe two from us. First, how much of the current growth is coming from the extension use cases under the Demodex blepharitis umbrella? Specifically, we are interested in the cataract surgery patient population. And then second, given the reaffirmed guidance of $670 million to $700 million, can you walk us through some of the assumptions and drivers required to achieve that guidance, including prescription growth, gross - to - net normalization, and overall run rate through the balance of the year?

  A: When we think about the market and how the product is performing, one of the great things we highlighted in the prepared comments and what we are hearing clearly from physicians is the continued expansion of use throughout the patient population. We started early on with some of the most obvious cases—dry eye, cataract surgery, contact lens intolerance. We are definitely seeing a lot of utilization across all of those segments, and we have really shifted our strategy now to not only go after those segments but to go more broadly. There are 25 million Americans out there and they are coming into the funnel. We think about not just cataract and dry eye; we think about, as we mentioned, patients that have hordeolum or chalazia, for example, and even other cases. The way to think about this is physicians are using this across every segment we have highlighted, and they continue to expand to new segments—that is where our evidence generation strategy will fuel growth. In terms of some key drivers, I would highlight that coming off of this quarter, we saw progression in every metric we track commercially—depth, and all of our consumer metrics—which sets us up nicely for the rest of the year. We have our key account leaders deploying; they will start to make an impact in the third quarter and in the back half of the year, and we have some exciting things on our direct - to - consumer initiatives as well. A lot more drivers to come, and I will let Jeff speak to the mechanics in terms of the guidance.