Arcutis Biotherapeutics (NASDAQ:ARQT) Releases Quarterly Earnings Results, Beats Expectations By $0.10 EPS

Arcutis Biotherapeutics (NASDAQ:ARQT) posted its quarterly earnings data on Wednesday. The company reported $0.13 EPS for the quarter, topping the consensus estimate of $0.03 by $0.10, Zacks reports. Arcutis Biotherapeutics had a negative return on equity of 29.69% and a negative net margin of 13.94%.The firm had revenue of $129.50 million during the quarter, compared to analyst estimates of $110.79 million.

Here are the key takeaways from Arcutis Biotherapeutics’ conference call:

• Strong commercial and financial momentum: 2025 net product revenues were $372.1M (up 123% YoY), Q4 revenue was $127.5M, the company turned positive cash flow in Q4, ended the year with $221.3M in cash/marketable securities, and raised 2026 net product revenue guidance to $480–$495M while reaffirming quarterly positive cash flow for 2026.
• Commercial expansion underway: Arcutis is increasing its dermatology salesforce ~20% to ~160 reps and building an internal primary care/pediatrics team (~30 reps) to drive adoption beyond high-decile dermatologists, with management expecting impacts to begin in H2 2026 and the investments to be accretive in year one.
• Clinical and regulatory progress: Positive INTEGUMENT-INFANT Phase 2 topline data (58% EASI?75 at Week 4) will support a planned sNDA in Q2 for infants, a PDUFA for cream 0.3% in ages 2–5 psoriasis is set for June 29, and the company is advancing POC trials in vitiligo and HS and preparing Phase 1 dosing for ARQ?234.
• Market access gains with caveats: ZORYVE now holds ~45% of branded non?steroidal topical volume and gained Medicare Part D coverage for ~1/3 of beneficiaries, improving access, but Medicare assigned ZORYVE to a non?preferred tier (higher OOP) which may temper uptake and contributes to a gross?to?net profile management focus.
• Rising expenses and near?term seasonality risk: SG&A and R&D spending are increasing to fund commercialization and pipeline (Q4 SG&A $79M; full?year SG&A +20%), management expects Q1 seasonality and higher gross?to?net in the high?50s, and quarter?to?quarter operating results may fluctuate despite full?year positive cash flow guidance.

Arcutis Biotherapeutics Price Performance

ARQT stock opened at $27.01 on Thursday. The company has a market capitalization of $3.31 billion, a PE ratio of -75.03 and a beta of 1.70. The company’s fifty day moving average price is $27.24 and its 200-day moving average price is $23.68. Arcutis Biotherapeutics has a one year low of $11.86 and a one year high of $31.77. The company has a debt-to-equity ratio of 0.68, a quick ratio of 3.28 and a current ratio of 3.50.

Analyst Ratings Changes

ARQT has been the subject of a number of analyst reports. Needham & Company LLC upped their price target on Arcutis Biotherapeutics from $30.00 to $31.00 and gave the stock a “buy” rating in a research report on Monday, January 26th. Mizuho increased their target price on shares of Arcutis Biotherapeutics from $32.00 to $37.00 and gave the stock an “outperform” rating in a report on Friday, November 28th. Zacks Research cut shares of Arcutis Biotherapeutics from a “strong-buy” rating to a “hold” rating in a research note on Monday, December 29th. Wall Street Zen downgraded shares of Arcutis Biotherapeutics from a “strong-buy” rating to a “buy” rating in a report on Saturday, February 14th. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of Arcutis Biotherapeutics in a research note on Monday, December 29th. Six analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $29.20.

Insiders Place Their Bets

In other news, insider Patrick Burnett sold 9,794 shares of the firm’s stock in a transaction dated Wednesday, February 4th. The stock was sold at an average price of $25.81, for a total transaction of $252,783.14. Following the completion of the transaction, the insider owned 80,651 shares in the company, valued at $2,081,602.31. This trade represents a 10.83% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider Larry Todd Edwards sold 2,052 shares of the stock in a transaction that occurred on Monday, February 2nd. The shares were sold at an average price of $25.50, for a total value of $52,326.00. Following the transaction, the insider directly owned 148,865 shares of the company’s stock, valued at approximately $3,796,057.50. The trade was a 1.36% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 124,656 shares of company stock worth $3,312,365. 9.40% of the stock is owned by corporate insiders.

Institutional Trading of Arcutis Biotherapeutics

Several hedge funds and other institutional investors have recently bought and sold shares of ARQT. AQR Capital Management LLC boosted its holdings in shares of Arcutis Biotherapeutics by 21.4% in the first quarter. AQR Capital Management LLC now owns 248,196 shares of the company’s stock valued at $3,882,000 after purchasing an additional 43,716 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in shares of Arcutis Biotherapeutics by 3.0% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 71,417 shares of the company’s stock worth $1,118,000 after buying an additional 2,063 shares in the last quarter. Creative Planning increased its stake in shares of Arcutis Biotherapeutics by 8.2% during the second quarter. Creative Planning now owns 19,575 shares of the company’s stock valued at $274,000 after buying an additional 1,477 shares during the period. JPMorgan Chase & Co. lifted its stake in Arcutis Biotherapeutics by 1.0% in the second quarter. JPMorgan Chase & Co. now owns 548,789 shares of the company’s stock worth $7,694,000 after acquiring an additional 5,407 shares during the period. Finally, Russell Investments Group Ltd. lifted its stake in Arcutis Biotherapeutics by 4,562.5% in the second quarter. Russell Investments Group Ltd. now owns 11,190 shares of the company’s stock worth $157,000 after acquiring an additional 10,950 shares during the period.

Key Headlines Impacting Arcutis Biotherapeutics

Here are the key news stories impacting Arcutis Biotherapeutics this week:

• Positive Sentiment: Q4 results and guidance raise — Arcutis reported strong Q4 product revenue (ZORYVE net product revenue $127.5M, +84% YoY; full?year ZORYVE $372.1M, +123% YoY) and raised full?year 2026 net product sales guidance to $480M–$495M, a clear growth signal to the market. Arcutis Announces Fourth Quarter and Full Year 2025 Financial Results
• Positive Sentiment: Earnings beat — ARQT beat consensus earnings and revenue metrics (reported EPS ~ $0.13 vs. estimates near $0.02–$0.03), which helped lift the stock; multiple outlets flagged the earnings surprise. Zacks: ARQT Surpasses Q4 Estimates Investing.com: Surges on Earnings Beat
• Positive Sentiment: Operational and regulatory catalysts — management reported positive Q4 operating cash flow and expects to sustain positive cash flow quarterly; positive topline INTEGUMENT?INFANT Phase 2 results with an sNDA planned for Q2 2026 create an upcoming regulatory catalyst. Company Press Release
• Positive Sentiment: Commercial expansion & marketing — Arcutis expanded its dermatology sales force and launched targeted PCP/pediatric commercialization efforts; a consumer awareness push featuring PGA pro Max Homa aims to broaden demand for ZORYVE in seborrheic dermatitis. Max Homa Campaign
• Neutral Sentiment: Analyst reception — brokerages issued a consensus “Moderate Buy,” supporting sentiment but not a formal price target upgrade. Analyst Consensus
• Negative Sentiment: Profitability & GAAP metrics — despite product revenue growth, GAAP results still show negative net margin and negative ROE; investors should watch whether operating leverage and SG&A investments allow the company to convert revenue growth into sustained profitability. Quarterly Report / Deck

About Arcutis Biotherapeutics

Arcutis Biotherapeutics is a clinical-stage biopharmaceutical company focused on developing and commercializing innovative therapies for immuno-inflammatory skin diseases. The company’s research and development efforts center on targeted treatments that address the underlying biology of conditions such as plaque psoriasis, atopic dermatitis, seborrheic dermatitis and vitiligo. Arcutis employs a precision-medicine approach to deliver topical therapies designed to improve efficacy and tolerability compared with existing treatment options.

In August 2022, Arcutis received U.S.