Arcutis Biotherapeutics (NASDAQ:ARQT) Releases Quarterly Earnings Results, Misses Expectations By $0.07 EPS

Arcutis Biotherapeutics (NASDAQ:ARQT) posted its quarterly earnings data on Wednesday. The company reported ($0.09) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.02) by ($0.07), FiscalAI reports. Arcutis Biotherapeutics had a negative net margin of 4.29% and a negative return on equity of 10.26%. The firm had revenue of $105.40 million during the quarter, compared to analysts’ expectations of $103.68 million.

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

• Net product revenues were $105.4M in Q1 (+65% YoY), prescriptions recovered to ~21,000/week and ZORYVE captured 48% of branded nonsteroidal topical share, demonstrating sustained commercial momentum.
• Regulatory progress includes an April sNDA for ZORYVE cream 0.05% in infants (3–24 months), completion of a pediatric MUSE trial for foam 0.3% (ages 2–11), and a June 29 PDUFA for cream 0.3% down to age 2—potential label expansions that broaden addressable market.
• Commercial expansion is underway: the enlarged dermatology sales force is now in the field and a targeted primary care/pediatric franchise (head hired) is being built, with field impact expected to begin in H2 2026 and into 2027.
• Arcutis achieved sustainable positive cash flow, ended Q1 with $224.3M in cash/marketable securities, maintained 2026 revenue guidance of $480–495M, and expects improving gross‑to‑net into the low 50s—supporting reinvestment while remaining cash‑flow positive.
• Pipeline progress includes initiation of a Phase I trial for ARQ‑234 (CD200R agonist) and near‑full enrollment in vitiligo and ongoing HS Phase II POC trials; these are meaningful early milestones but clinical and commercial outcomes remain uncertain.

Arcutis Biotherapeutics Stock Performance

NASDAQ ARQT traded up $0.75 during trading hours on Wednesday, hitting $24.17. The company had a trading volume of 1,381,968 shares, compared to its average volume of 1,329,167. The company has a debt-to-equity ratio of 0.57, a quick ratio of 2.99 and a current ratio of 3.17. Arcutis Biotherapeutics has a 1-year low of $12.42 and a 1-year high of $31.77. The company has a market cap of $3.02 billion, a PE ratio of -172.63 and a beta of 1.58. The business has a 50 day moving average of $23.78 and a 200-day moving average of $25.78.

Insider Buying and Selling

In other Arcutis Biotherapeutics news, insider Larry Todd Edwards sold 3,687 shares of the company’s stock in a transaction on Monday, March 2nd. The shares were sold at an average price of $25.18, for a total value of $92,838.66. Following the completion of the transaction, the insider owned 175,178 shares in the company, valued at $4,410,982.04. This represents a 2.06% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Howard G. Welgus sold 10,000 shares of the company’s stock in a transaction on Wednesday, April 1st. The shares were sold at an average price of $23.88, for a total transaction of $238,800.00. Following the completion of the transaction, the director owned 39,744 shares of the company’s stock, valued at $949,086.72. This represents a 20.10% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 84,575 shares of company stock valued at $2,103,052 over the last ninety days. Company insiders own 9.40% of the company’s stock.

Institutional Investors Weigh In On Arcutis Biotherapeutics

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Invesco Ltd. raised its holdings in shares of Arcutis Biotherapeutics by 59.3% in the fourth quarter. Invesco Ltd. now owns 307,382 shares of the company’s stock valued at $8,926,000 after buying an additional 114,430 shares during the last quarter. Mercer Global Advisors Inc. ADV purchased a new stake in shares of Arcutis Biotherapeutics in the fourth quarter valued at about $255,000. Mackenzie Financial Corp purchased a new stake in shares of Arcutis Biotherapeutics in the fourth quarter valued at about $1,374,000. NewEdge Advisors LLC raised its holdings in shares of Arcutis Biotherapeutics by 209.0% in the fourth quarter. NewEdge Advisors LLC now owns 1,545 shares of the company’s stock valued at $45,000 after buying an additional 1,045 shares during the last quarter. Finally, XTX Topco Ltd raised its holdings in shares of Arcutis Biotherapeutics by 557.9% in the fourth quarter. XTX Topco Ltd now owns 74,358 shares of the company’s stock valued at $2,159,000 after buying an additional 63,055 shares during the last quarter.

Analyst Ratings Changes

A number of analysts have recently weighed in on the company. TD Cowen upped their price objective on Arcutis Biotherapeutics from $30.00 to $35.00 and gave the stock a “buy” rating in a research report on Thursday, February 26th. Wall Street Zen lowered Arcutis Biotherapeutics from a “strong-buy” rating to a “buy” rating in a research report on Saturday, February 14th. HC Wainwright upped their price objective on Arcutis Biotherapeutics from $30.00 to $34.00 and gave the stock a “buy” rating in a research report on Thursday, February 26th. Needham & Company LLC upped their price objective on Arcutis Biotherapeutics from $31.00 to $36.00 and gave the stock a “buy” rating in a research report on Thursday, February 26th. Finally, Guggenheim upped their price objective on Arcutis Biotherapeutics from $34.00 to $35.00 and gave the stock a “buy” rating in a research report on Friday, February 27th. Five analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $34.00.

Arcutis Biotherapeutics News Summary

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

• Positive Sentiment: Q1 product momentum — ZORYVE net product revenue was $105.4M, up ~65% year‑over‑year and above consensus revenue; company said it maintained positive operating cash flow and highlighted continued branded non‑steroidal share gains. Arcutis Announces First Quarter 2026 Financial Results and Provides Business Update
• Positive Sentiment: Regulatory and pipeline progress — submitted an sNDA to expand ZORYVE for infants (3–24 months), completed enrollment in the ZORYVE foam pediatric MUSE trial, and started first‑in‑human studies of ARQ‑234. These catalysts support longer‑term growth expectations. Arcutis Announces First Quarter 2026 Financial Results and Provides Business Update
• Positive Sentiment: Commercial build — expanded the dermatology sales force and is building a primary care/pediatrics organization, which could broaden ZORYVE adoption. Arcutis Announces First Quarter 2026 Financial Results and Provides Business Update
• Positive Sentiment: Analyst stance — broker consensus remains a “Moderate Buy,” supporting investor sentiment around upside to the current share price. Arcutis Receives Consensus Recommendation of “Moderate Buy”
• Neutral Sentiment: Insider sales disclosed — several executives and a director sold shares recently (executed under pre‑arranged Rule 10b5‑1 plans and largely to cover taxes on vested awards), which is typical after vesting and less likely to signal negative insider sentiment. Representative SEC filing: Todd Watanabe Form 4

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.