Arcutis Biotherapeutics (NASDAQ:ARQT) Issues Quarterly Earnings Results, Misses Expectations By $0.12 EPS

Arcutis Biotherapeutics (NASDAQ:ARQT) posted its quarterly earnings data on Wednesday. The company reported $0.06 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.18 by ($0.12), FiscalAI reports. Arcutis Biotherapeutics had a net margin of 6.15% and a return on equity of 15.05%. The business had revenue of $143.92 million for the quarter, compared to the consensus estimate of $142.59 million.

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

• Revenue growth remained strong: Third-quarter net product revenue was $143.9 million, up 45% year over year and 11% sequentially. ZORYVE demand exceeded 300,000 prescriptions, with growth across all indications and formulations.
• 2026 revenue guidance was raised to $535 million-$545 million from $525 million-$540 million, reflecting Q3 strength and management’s outlook for continued demand growth.
• SG&A expense rose 60% year over year to $99.6 million, driven by advertising and sales-force expansion; the company expects spending to remain elevated in Q4 as it invests for future growth. Arcutis reported $8.8 million in net income and $18.9 million in positive operating cash flow for the quarter.
• Several pipeline catalysts are approaching, including a Q4 2026 readout from the vitiligo proof-of-concept trial, expected HS results in Q1 2027, and a February 23, 2027 PDUFA date for ZORYVE in infants with atopic dermatitis. These programs remain subject to clinical results and, where applicable, regulatory decisions.

Arcutis Biotherapeutics Stock Up 6.4%

ARQT opened at $34.05 on Thursday. The stock has a market cap of $4.28 billion, a PE ratio of 152.38 and a beta of 1.66. The company has a quick ratio of 2.67, a current ratio of 2.92 and a debt-to-equity ratio of 0.46. Arcutis Biotherapeutics has a 52 week low of $19.30 and a 52 week high of $34.80. The business’s fifty day simple moving average is $27.11 and its 200 day simple moving average is $25.37.

Arcutis Biotherapeutics News Roundup

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

• Positive Sentiment: Third-quarter revenue was $143.92 million, slightly above analysts’ $142.59 million estimate. Arcutis third-quarter results and business update
• Neutral Sentiment: Several executives reported share sales, including a 40,000-share sale by EVP Masaru Matsuda under a pre-arranged trading plan. The reported transactions were tied to tax withholding on vested equity awards, which makes them less clearly bearish, though the larger sale may attract attention. SEC insider filing
• Negative Sentiment: Quarterly earnings were $0.06 per share, below consensus estimates of approximately $0.17–$0.18 and unchanged from the year-earlier quarter. The earnings miss could temper the positive reaction to revenue growth. Zacks third-quarter earnings report

Insider Buying and Selling at Arcutis Biotherapeutics

In other news, Director Terrie Curran sold 38,200 shares of Arcutis Biotherapeutics stock in a transaction dated Thursday, August 27th. The stock was sold at an average price of $25.03, for a total value of $956,146.00. Following the transaction, the director owned 23,526 shares in the company, valued at approximately $588,855.78. The trade was a 61.89% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Masaru Matsuda sold 40,000 shares of the business’s stock in a transaction that occurred on Wednesday, November 4th. The shares were sold at an average price of $34.32, for a total value of $1,372,800.00. Following the completion of the sale, the executive vice president owned 111,289 shares of the company’s stock, valued at $3,819,438.48. The trade was a 26.44% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders sold 123,932 shares of company stock valued at $3,553,077. 9.40% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In

Several research firms have weighed in on ARQT. Cantor Fitzgerald initiated coverage on Arcutis Biotherapeutics in a report on Thursday, October 15th. They issued an “overweight” rating and a $48.00 price target on the stock. TD Cowen reissued a “buy” rating on shares of Arcutis Biotherapeutics in a report on Thursday. Wall Street Zen lowered Arcutis Biotherapeutics from a “strong-buy” rating to a “buy” rating in a report on Saturday, October 10th. Guggenheim upped their price objective on shares of Arcutis Biotherapeutics from $38.00 to $44.00 and gave the stock a “buy” rating in a research report on Monday, October 19th. Finally, Weiss Ratings raised shares of Arcutis Biotherapeutics from a “hold (c-)” rating to a “hold (c)” rating in a research note on Thursday, October 29th. Eight equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat, Arcutis Biotherapeutics has an average rating of “Moderate Buy” and an average price target of $39.12.

Arcutis Biotherapeutics Company Profile

Arcutis Biotherapeutics, Inc is a commercial-stage biopharmaceutical company focused on developing and delivering treatments for dermatologic conditions. The company’s portfolio is centered on therapies designed to address inflammatory skin diseases, with an emphasis on nonsteroidal topical medicines that may help patients manage chronic conditions.

Arcutis’s lead product is ZORYVE (roflumilast), a topical phosphodiesterase-4 inhibitor. ZORYVE has received U.S. Food and Drug Administration approvals for multiple dermatological uses, including plaque psoriasis, seborrheic dermatitis and atopic dermatitis, in different cream and foam formulations.