Tarsus Pharmaceuticals (NASDAQ:TARS) Issues Quarterly Earnings Results, Misses Estimates By $12.94 EPS

Tarsus Pharmaceuticals (NASDAQ:TARS) posted its quarterly earnings results on Tuesday. The company reported ($14.40) earnings per share (EPS) for the quarter, missing the consensus estimate of ($1.46) by ($12.94), FiscalAI reports. The firm had revenue of $194.57 million for the quarter, compared to analysts’ expectations of $187.83 million. Tarsus Pharmaceuticals had a negative return on equity of 13.53% and a negative net margin of 7.67%.

Here are the key takeaways from Tarsus Pharmaceuticals’ conference call:

• XDEMVY sales reached a record $194.6 million in Q3, up nearly 64% year over year despite seasonal headwinds. Growth was supported by higher patient demand, broader ECP prescribing, and retreatments representing approximately 20% of prescriptions.
• Tarsus raised its 2026 XDEMVY net sales outlook to $715 million-$730 million and increased full-year DTC spending to approximately $95 million, citing strong returns and a 75% increase in high-value patient website actions.
• Management reiterated confidence that XDEMVY can exceed $2 billion in peak annual sales, supported by an estimated 25 million Americans with Demodex blepharitis and increasing ECP adoption. The company also expects retreatment rates to settle in the low-20% range.
• Tarsus expects continued pipeline progress, including TP-04 and TP-05 data in the first half of 2027, an IRX-101 Phase III start in the first half of 2027, and gildeuretinol Stargardt data in the second half of 2029. Regulatory filings for TP-03 in Europe and Japan have been deferred due to uncertainty surrounding most-favored-nation regulations.

Tarsus Pharmaceuticals Price Performance

Shares of NASDAQ TARS traded down $0.68 during midday trading on Tuesday, hitting $72.64. The company had a trading volume of 752,103 shares, compared to its average volume of 769,028. The firm has a market capitalization of $3.58 billion, a price-to-earnings ratio of -66.64 and a beta of 0.44. Tarsus Pharmaceuticals has a twelve month low of $53.89 and a twelve month high of $91.53. The business has a 50-day simple moving average of $75.17 and a two-hundred day simple moving average of $67.88. The company has a quick ratio of 3.17, a current ratio of 3.20 and a debt-to-equity ratio of 0.21.

Insiders Place Their Bets

In other news, CEO Bobak R. Azamian sold 10,000 shares of Tarsus Pharmaceuticals stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $90.56, for a total transaction of $905,600.00. Following the completion of the sale, the chief executive officer directly owned 827,991 shares in the company, valued at approximately $74,982,864.96. This trade represents a 1.19% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Elizabeth Lin sold 10,773 shares of the business’s stock in a transaction that occurred on Friday, September 4th. The stock was sold at an average price of $87.50, for a total value of $942,637.50. Following the sale, the insider directly owned 2,547 shares in the company, valued at $222,862.50. This trade represents a 80.88% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 48,031 shares of company stock worth $4,004,227. 9.64% of the stock is owned by company insiders.

Wall Street Analyst Weigh In

A number of brokerages have weighed in on TARS. Oppenheimer lifted their price objective on Tarsus Pharmaceuticals from $97.00 to $100.00 and gave the company an “outperform” rating in a report on Wednesday, August 12th. HC Wainwright reissued a “buy” rating and set a $88.00 target price on shares of Tarsus Pharmaceuticals in a research note on Thursday, July 9th. Mizuho reduced their price target on Tarsus Pharmaceuticals from $100.00 to $98.00 and set an “outperform” rating for the company in a report on Friday, July 31st. Zacks Research upgraded Tarsus Pharmaceuticals from a “strong sell” rating to a “hold” rating in a research note on Tuesday, October 13th. Finally, The Goldman Sachs Group assumed coverage on Tarsus Pharmaceuticals in a report on Thursday, September 24th. They set a “buy” rating and a $116.00 price objective on the stock. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $100.86.

Tarsus Pharmaceuticals Company Profile

Tarsus Pharmaceuticals, Inc is a commercial-stage ophthalmic pharmaceutical company focused on developing and marketing treatments for eye diseases with significant unmet medical needs. The company’s portfolio is centered on therapies designed to address conditions affecting the ocular surface and eyelids.

Tarsus’ lead product is XDEMVY (lotilaner ophthalmic solution) 0.25%, an eye drop approved by the U.S. Food and Drug Administration in 2023 for the treatment of Demodex blepharitis, an inflammatory eyelid condition associated with an infestation of Demodex mites.