Arcutis Biotherapeutics, Inc. (ARQT)

Key figures

The last twelve months reported, with the latest price and balance sheet.

Revenue, last twelve months

$464.0M

Revenue growth

76.1%

Net income, last twelve months

$28.5M

Earnings per share

$0.21

Gross margin

91.1%

Operating margin

7.4%

Net margin

6.1%

Free cash flow

$39.2M

Return on equity

12.9%

Market value

$3.9B

Price to earnings

149.7x

Cash

$34.1M

Debt

$108.9M

Debt to equity

0.49

Shares outstanding

125.6M

Financial statements

Revenue, profit and cash flow by fiscal year, each year linked to its annual report.

By quarter

What the company said with its results

From the second quarter of 2026 results, filed 5 August 2026.

• Product revenue up 59% year over year. Product revenue, net was $129.9 million, up 59% from $81.5 million a year earlier and up 23% from the first quarter. Management attributed the year-over-year increase to unit demand and gross-to-net improvements.
• Sequential rise tied to demand and pricing. The 23% sequential increase was attributed to growing demand across products and improved gross-to-net pricing.
• Six-month net income positive. Six-month net income was $3.7 million, compared with a net loss of $40.9 million in the first half of 2025. Six-month product revenue was $235.3 million against $145.4 million.
• Quarterly net income reported. Net income was $15.0 million, or $0.11 per basic and diluted share, against a net loss of $15.9 million, or $0.13 per share, in the second quarter of 2025.
• Operating income against prior-year loss. Income from operations was $16.4 million for the quarter, against a loss of $14.6 million a year earlier. Figures are in thousands in the statements.
• Foam 0.3% was largest product line. ZORYVE foam 0.3% revenue was $67.4 million, the largest of the four ZORYVE product lines reported for the quarter.
• Cream 0.3% and 0.15% revenue. ZORYVE cream 0.3% recorded $35.3 million and cream 0.15% recorded $24.2 million in revenue for the quarter.
• Cream 0.05% revenue reported separately. ZORYVE cream 0.05% recorded $2.9 million of revenue for the quarter, shown as a separate line in the release.
• Cost of sales rose with volume. Cost of sales was $10.9 million, against $7.5 million a year earlier, which management linked to increasing ZORYVE sales.
• Selling costs up on sales force. SG&A was $82.1 million against $69.2 million a year earlier. Management attributed the increase mainly to personnel costs from the dermatology sales force expansion.
• R&D flat, ARQ-234 spend higher. R&D expense was $20.4 million against $19.5 million a year earlier. Higher ARQ-234 development and medical affairs spend was described as roughly consistent overall.
• ARQ-234 first-in-human study enrolling. The Phase 1a/1b study of ARQ-234, a CD200 receptor checkpoint agonist fusion protein, continues enrolling healthy volunteers and adults with moderate to severe atopic dermatitis.
• Hidradenitis suppurativa study still enrolling. The Phase 2 study of ZORYVE foam 0.3% in hidradenitis suppurativa continues to enroll patients. Timing of results and decision is in the guidance section.
• Pediatric atopic dermatitis spend lower. Development costs for roflumilast in pediatric atopic dermatitis decreased, partly offsetting the higher ARQ-234 and medical affairs costs within R&D.

Revenue by segment

As the company reports it in the segment note of its annual report.

By product, FY2025

Company events

The newest 8-K filings of 72 held.

Every filing

The newest filings with the SEC of 176 held.

Insider trades

Form 4 trades by officers, directors and 10% owners, last 12 months.

Planned insider sales

Form 144 notices, filed when the sell order goes to the broker.

Large holders

Schedule 13D and 13G filings by holders of more than 5% of the voting shares.

Trades by members of the House

From each member's periodic transaction report.

Short interest

Shares sold short and not yet bought back, on each FINRA settlement date.

Funds that hold it

From each fund's latest Form 13F.

308 funds held it at 30 Jun 2026: 131 added and 100 trimmed in the quarter. The largest:

Peers

Companies in the same industry.

• Eli Lilly & Co. (LLY): revenue $79.7B, market value $1.21T
• Johnson & Johnson (JNJ): revenue $99.3B, market value $652.9B
• AbbVie Inc. (ABBV): revenue $64.4B, market value $506.1B
• Merck & Co., Inc. (MRK): revenue $66.6B, market value $348.1B
• Novartis AG (NVS): revenue $54.5B, market value $297.8B
• AstraZeneca PLC (AZN): revenue $58.7B, market value $263.1B
• Abbott Laboratories (ABT): revenue $46.6B, market value $177.7B
• Novo Nordisk A/S (NVO): revenue $46.8B, market value $171.0B
• Pfizer Inc. (PFE): revenue $63.7B, market value $168.0B
• Vertex Pharmaceuticals Inc. (VRTX): revenue $12.6B, market value $134.2B

What the company does

Arcutis Biotherapeutics is a commercial-stage biopharmaceutical company that develops and sells treatments for dermatological diseases. Its marketed products carry the ZORYVE name and contain roflumilast, a PDE4 inhibitor, in cream and foam forms. The company sells ZORYVE itself in the United States and Canada and has licensed topical roflumilast to partners in Japan, Greater China and Southeast Asia. It had 354 full-time employees as of 31 December 2025 and manages its business as one reportable segment.

What it sells

ZORYVE cream 0.3% was launched in August 2022 for plaque psoriasis and is available in the United States and Canada for people 6 years and older, with no limit on location or duration of use. ZORYVE cream 0.15% treats mild to moderate atopic dermatitis in people 6 and older. ZORYVE cream 0.05% treats the same condition in children 2 to 5 years of age in the United States. ZORYVE foam 0.3% is approved for seborrheic dermatitis in people 9 and older and for plaque psoriasis of the scalp and body in people 12 and older. All are once-daily, steroid-free products. The foam is the same formulation as the cream apart from reduced oil content and a propellant in the can.

The conditions it treats

The filing says psoriasis occurs in about 3% of the United States population, or approximately 9 million patients, and that about 90% of cases are plaque psoriasis. Atopic dermatitis affects approximately 26 million people in the United States, and seborrheic dermatitis is estimated to occur in more than 10 million. The company estimates that about 17.0 million patients in the United States are actively treated with prescription topical therapies for these three conditions. Of these, approximately 8.4 million are treated in dermatology offices and approximately 8.6 million outside dermatology, mostly by primary care providers and pediatricians. Topical corticosteroids are the usual first-line therapy, and the filing describes their side effects as the reason they are used only briefly.

How it reaches patients

In the United States the company runs its own commercial organization, including marketing, market access and a specialty sales force aimed at dermatologists and allergists. From late September 2024 it also used a promotion agreement with Kowa Pharmaceuticals America to reach primary care practitioners and pediatricians. That agreement was terminated effective 23 January 2026, and Kowa stopped all sales and promotion of ZORYVE. The company says it plans to take over sales in those settings with a small, targeted team. In Canada it has set up its own commercialization infrastructure.

Who makes the products

It buys its clinical and commercial supply from third-party contract manufacturing organizations, which handle drug substance, drug product, testing, labelling, packaging and storage. It also has secondary suppliers for its commercial products.

Licences, partners and patents

The company holds an exclusive worldwide licence from AstraZeneca AB, signed in July 2018, for topical roflumilast in human dermatological uses. It pays AstraZeneca a low to high single-digit percentage royalty on net sales. It has licensed topical roflumilast to Hangzhou Zhongmei Huadong Pharmaceutical for Greater China and Southeast Asia (August 2023) and to Sato Pharmaceutical for Japan (February 2024). In both cases the partner develops and sells the product at its own expense, and the company receives royalties on its net sales.

As of 31 December 2025 the company owned or exclusively licensed 29 issued United States patents and 59 issued foreign patents, plus 21 pending United States applications and 187 pending foreign applications. The company says these give it exclusivity in the United States for its cream formulation through 2037 and its foam formulation through 2042.

Pipeline

The FDA accepted a supplemental application to extend ZORYVE cream 0.3% to children down to age 2, with a target action date of 29 June 2026. Phase 2 trials are under way in hidradenitis suppurativa and vitiligo. ARQ-234, a CD200R checkpoint agonist fusion protein, came with the September 2022 acquisition of Ducentis BioTherapeutics. The company submitted an application to begin human trials in July 2025 and says it anticipates starting a Phase 1 study in the first quarter of 2026. It has stopped development of ARQ-255, a topical formulation of ivarmacitinib licensed from Jiangsu Hengrui Medicine.

Who it competes with

In psoriasis the filing names injected biologics such as Skyrizi from AbbVie and Bimzelex from UCB, oral Otezla from Amgen, and the topical VTAMA from Organon. In atopic dermatitis it names Eucrisa from Pfizer, Opzelura from Incyte, VTAMA, and biologics such as Dupixent from Sanofi and Regeneron. It also lists generic steroids and a potential generic version of ZORYVE cream. The company notes that many competitors have greater financial, technical and human resources.

*From Arcutis's annual report on Form 10-K for the year ended 31 December 2025. [The filing](https://www.sec.gov/Archives/edgar/data/1787306/000178730626000018/arqt-20251231.htm)*

From the company's 10-K.