Tarsus Pharmaceuticals (NASDAQ:TARS) Issues Quarterly Earnings Results, Misses Estimates By $0.24 EPS

Tarsus Pharmaceuticals (NASDAQ:TARS) released its earnings results on Thursday. The company reported ($0.43) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.19) by ($0.24), FiscalAI reports. Tarsus Pharmaceuticals had a negative net margin of 7.67% and a negative return on equity of 13.57%. The business had revenue of $173.91 million during the quarter, compared to the consensus estimate of $169.65 million.

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

• XDEMVY sales reached $173.9 million in Q2, up approximately 69% year over year and 20% sequentially. Full-year 2026 net product sales guidance increased to $685 million-$705 million, with gross margins expected near 93%.
• XDEMVY adoption continues to broaden, with the number of ECPs prescribing on a yearly cadence doubling over the past year and retreatment rates reaching the high teens, potentially stabilizing around 20%. Consumer efforts also lifted unaided Demodex blepharitis awareness to roughly 30%.
• Tarsus agreed to acquire Alkeus Pharmaceuticals and its late-stage Stargardt disease therapy, ALK-001, for $450 million upfront—$270 million in cash and $180 million in stock—plus up to $350 million in regulatory and commercial milestones. The company cited encouraging visual-function, retinal-atrophy, and long-term tolerability data from more than 400 treated patients.
• ALK-001’s NORTHSTAR Phase III study is enrolling approximately 230 patients ages 8 to 45, with topline results expected in the second half of 2029; Tarsus is also evaluating a second Phase III trial. Management believes the therapy could represent a billion-dollar-plus opportunity, but approval and commercialization remain several years away.
• Full-year R&D expense guidance rose to $190 million-$210 million, partly reflecting the $75 million upfront payment for the prior iRenix acquisition, while additional Alkeus-related costs are excluded. Management still sees potential profitability in 2027, though the expanded pipeline and future sales-force investment could delay that timeline by one or two quarters.

Tarsus Pharmaceuticals Stock Performance

NASDAQ:TARS traded down $0.54 on Friday, hitting $64.79. The company’s stock had a trading volume of 983,151 shares, compared to its average volume of 1,076,469. Tarsus Pharmaceuticals has a one year low of $47.21 and a one year high of $85.25. The firm has a market capitalization of $2.79 billion, a P/E ratio of -59.44 and a beta of 0.53. The stock has a fifty day moving average of $61.39 and a two-hundred day moving average of $64.94. The company has a current ratio of 3.74, a quick ratio of 3.71 and a debt-to-equity ratio of 0.21.

Insiders Place Their Bets

In other Tarsus Pharmaceuticals news, Director Katherine Goodrich sold 2,954 shares of the firm’s stock in a transaction on Monday, June 15th. The stock was sold at an average price of $62.08, for a total transaction of $183,384.32. Following the completion of the sale, the director owned 2,233 shares of the company’s stock, valued at $138,624.64. This trade represents a 56.95% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director William J. Phd Link sold 12,500 shares of the firm’s stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $62.12, for a total transaction of $776,500.00. Following the sale, the director owned 106,786 shares of the company’s stock, valued at $6,633,546.32. This trade represents a 10.48% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 39,850 shares of company stock valued at $2,452,821 over the last 90 days. 9.64% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Royal Bank of Canada grew its position in Tarsus Pharmaceuticals by 23.7% during the fourth quarter. Royal Bank of Canada now owns 4,208 shares of the company’s stock worth $344,000 after buying an additional 805 shares in the last quarter. Public Employees Retirement Association of Colorado acquired a new position in Tarsus Pharmaceuticals in the 4th quarter valued at $367,000. Xponance LLC acquired a new position in Tarsus Pharmaceuticals in the 4th quarter valued at $252,000. Simplex Trading LLC lifted its position in shares of Tarsus Pharmaceuticals by 37.3% during the 4th quarter. Simplex Trading LLC now owns 3,013 shares of the company’s stock valued at $247,000 after acquiring an additional 819 shares during the period. Finally, CIBC Bancorp USA Inc. bought a new stake in shares of Tarsus Pharmaceuticals during the 3rd quarter valued at $248,000. 90.01% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of research firms have recently commented on TARS. HC Wainwright restated a “buy” rating and set a $88.00 price objective on shares of Tarsus Pharmaceuticals in a research note on Thursday, July 9th. Guggenheim dropped their target price on Tarsus Pharmaceuticals from $90.00 to $89.00 and set a “buy” rating on the stock in a report on Tuesday, July 21st. Mizuho reduced their price target on Tarsus Pharmaceuticals from $100.00 to $98.00 and set an “outperform” rating for the company in a research report on Friday, July 31st. Wall Street Zen downgraded Tarsus Pharmaceuticals from a “buy” rating to a “hold” rating in a research note on Sunday, July 12th. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Tarsus Pharmaceuticals in a research report on Friday, July 17th. Two investment analysts have rated the stock with a Strong Buy rating, four have given a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $90.17.

Tarsus Pharmaceuticals News Summary

Here are the key news stories impacting Tarsus Pharmaceuticals this week:

• Positive Sentiment: XDEMVY sales continued to accelerate. Second-quarter net product sales reached $173.9 million, up more than 69% year over year and ahead of analysts’ expectations of approximately $169.7 million. The company projected 2026 XDEMVY net sales of $685 million to $705 million, supporting the investment case for its approved Demodex blepharitis treatment. Tarsus second-quarter results
• Positive Sentiment: Tarsus is expanding into a potentially significant retinal-disease market. The company agreed to acquire Alkeus Pharmaceuticals and its Phase 3-stage oral candidate gildeuretinol (ALK-001), which targets Stargardt disease. The transaction gives Tarsus a potential blockbuster opportunity in a disease with no FDA-approved therapy and broadens its pipeline beyond XDEMVY. Alkeus acquisition
• Neutral Sentiment: Analyst expectations remain above the current trading level. Recent price targets cited by Quiver Quantitative range from $88 to $105, with a $90 median target, although these targets may not yet fully reflect the Alkeus transaction or updated execution risks.
• Negative Sentiment: The quarterly loss was materially worse than expected. Tarsus reported a loss of $0.43 per share versus consensus estimates for a loss of roughly $0.19 to $0.21, despite revenue exceeding forecasts. The company remains unprofitable, which can increase sensitivity to spending and deal-related costs. Tarsus Q2 earnings report
• Negative Sentiment: The Alkeus deal and financing create near-term execution and dilution concerns. The acquisition has a potential value of up to $800 million, including $450 million in upfront consideration, while Tarsus separately announced a $125 million private placement. Investors may be concerned about capital needs, share dilution and the clinical and regulatory risks of ALK-001. Tarsus Alkeus acquisition announcement Tarsus private placement

About Tarsus Pharmaceuticals

Tarsus Pharmaceuticals, Inc is a clinical‐stage biopharmaceutical company focused on developing novel therapies for diseases of the eye and ocular surface. The company’s research platform centers on neuro‐effector modulation to address underlying disease mechanisms rather than solely treating symptoms. Tarsus’s lead candidate, OC-01 (varenicline solution), is an intranasal formulation in Phase 3 development for the treatment of dry eye disease, a condition affecting millions worldwide and associated with significant patient discomfort and reduced quality of life.

In addition to its dry eye program, Tarsus is advancing preclinical and early‐stage programs targeting other ophthalmic indications, including allergic conjunctivitis and retinal disorders.