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

Tarsus Pharmaceuticals (NASDAQ:TARS) released its 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. Tarsus Pharmaceuticals had a negative return on equity of 13.53% and a negative net margin of 7.67%. The company had revenue of $194.57 million during the quarter, compared to analyst estimates of $187.83 million.

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 Trading Down 0.9%

NASDAQ TARS opened at $72.64 on Wednesday. Tarsus Pharmaceuticals has a one year low of $53.89 and a one year high of $91.53. The company’s 50 day moving average price is $75.17 and its 200 day moving average price is $67.87. The company has a debt-to-equity ratio of 0.21, a quick ratio of 3.17 and a current ratio of 3.20. The firm has a market capitalization of $3.58 billion, a price-to-earnings ratio of -66.64 and a beta of 0.34.

Wall Street Analyst Weigh In

Several brokerages recently commented on TARS. Mizuho dropped their price target on shares of Tarsus Pharmaceuticals from $100.00 to $98.00 and set an “outperform” rating for the company in a research report on Friday, July 31st. The Goldman Sachs Group began coverage on shares of Tarsus Pharmaceuticals in a report on Thursday, September 24th. They issued a “buy” rating and a $116.00 price target on the stock. Guggenheim dropped their price objective on Tarsus Pharmaceuticals from $90.00 to $89.00 and set a “buy” rating for the company in a report on Tuesday, July 21st. Barclays began coverage on Tarsus Pharmaceuticals in a report on Wednesday, September 16th. They set an “overweight” rating and a $110.00 price objective for the company. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Tarsus Pharmaceuticals in a research report on Thursday, October 15th. One equities research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $103.43.

Key Headlines Impacting Tarsus Pharmaceuticals

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

• Positive Sentiment: Q3 revenue rose about 64% year over year to $194.6 million, exceeding analyst estimates of $187.8 million. XDEMVY surpassed one million bottles dispensed and $1 billion in cumulative sales since launch. Tarsus Reports Third Quarter 2026 Financial Results
• Positive Sentiment: Management expects XDEMVY sales of $715 million to $730 million in 2026, signaling continued confidence in the drug’s commercial opportunity. Tarsus expects $715M-$730M 2026 XDEMVY sales
• Positive Sentiment: Tarsus’s quarterly loss per share was $0.78, narrower than the $1.43 loss analysts expected, though the loss was larger than a year earlier. Tarsus Pharmaceuticals Reports Q3 Loss, Tops Revenue Estimates
• Negative Sentiment: The company is deferring regulatory filings in Europe and Japan, which could push back its international expansion and potential contribution to sales. Tarsus expects $715M-$730M 2026 XDEMVY sales while deferring Europe and Japan filings

Insider Activity

In other Tarsus Pharmaceuticals news, Director William J. Phd Link sold 12,500 shares of the firm’s stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $78.38, for a total value of $979,750.00. Following the transaction, the director directly owned 94,487 shares of the company’s stock, valued at $7,405,891.06. This trade represents a 11.68% decrease in their ownership of the stock. The transaction 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, CEO Bobak R. Azamian sold 10,000 shares of the firm’s stock in a transaction dated Friday, September 4th. The shares were sold at an average price of $90.56, for a total value of $905,600.00. Following the completion of the transaction, the chief executive officer directly owned 827,991 shares in the company, valued at $74,982,864.96. This trade represents a 1.19% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 48,031 shares of company stock valued at $4,004,227. Company insiders own 9.64% of the company’s stock.

About Tarsus Pharmaceuticals

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.