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what it is
Arcutis sells prescription skin treatments, led by ZORYVE, for psoriasis, eczema, and dandruff-like inflammatory disease.
how it gets paid
Last year Arcutis Bio made $376M in revenue.
why it's growing
Revenue grew 91.3% last year. $247 million matters most because this stock is still being valued on sales momentum.
what just happened
Arcutis printed $247M in quarterly revenue, up 149% vs. prior year, as ZORYVE kept doing the heavy lifting.
At a glance
B+ balance sheet — decent shape, but not bulletproof
40/100 earnings predictability — expect surprises
-$1.16 fy2024 eps est
$197M fy2024 rev est
3.3% operating margin
xvary composite: 65/100 — average
What they do
Arcutis sells prescription skin treatments, led by ZORYVE, for psoriasis, eczema, and dandruff-like inflammatory disease.
Arcutis wins because ZORYVE is once-daily and steroid-free. If you are treating chronic skin disease, that matters every morning. The company did $376 million in trailing revenue with just 342 employees, which tells you one product is carrying a lot of weight.
How they make money
$376M
annual revenue · their business grew +91.3% last year
total revenue
$376M
+91.3%
The products that matter
commercial drug
zoryve (roflumilast)
$376M revenue base · 91% company growth
this is the product carrying the commercial story right now. With annual revenue at $376M and growth at 91%, zoryve is the reason the market is willing to value the company at roughly $3B.
the current engine
pipeline and follow-ons
pipeline candidates
future value needs to close the gap
the pipeline matters because the current valuation already sits far above last year revenue. In human-speak: one product got them here. Additional products may need to justify staying here.
optionality, not proof
Key numbers
91.3%
revenue growth
Sales rose 91.3% vs. prior year to $376 million. Plain English: demand is real, not theoretical.
3.3%
operating margin
Operating margin means profit after running the business. At -3.3%, Arcutis still loses money even after the sales surge.
$113M
long-term debt
Long-term debt was $113 million, or 4% of capital. So what: the balance sheet is not the main problem.
-$1.16
2024 EPS
EPS means profit per share. At -$1.16 for 2024, you are still paying for a turnaround, not a finished one.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 1 — safer than 95% of stocks
- price stability 5 / 100
- long-term debt $113M (4% of capital)
B+ — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for ARQT right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Arcutis printed $247M in quarterly revenue, up 149% vs. prior year, as ZORYVE kept doing the heavy lifting.
Revenue was the story. EPS turned positive at $0.06 on the consensus snapshot, while outside reports also described the quarter as ahead of expectations.
$247M
revenue
$0.06
eps
149%
revenue growth
the number that mattered
$247 million matters most because this stock is still being valued on sales momentum, not on a fully proven profit engine.
source: company earnings report, 2026
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What could go wrong
Arcutis's biggest threat is not weak demand. It is relying on one hot franchise while profits still sit below zero.
high
one-product dependence
Arcutis is still basically one franchise with multiple labels and forms. If ZORYVE stumbles, the hit lands almost everywhere at once.
threatens up to $376M in trailing revenue
high
profit still thin
Operating margin was -3.3% even after revenue jumped 91.3%. Translation: sales grew fast, but expenses still ate the whole meal.
a 5-point margin miss on $376M revenue is about $18.8M
med
pipeline timing risk
ARQ-234 just entered Phase 1, and the next ZORYVE expansion decisions are expected in late 2026. That is early-stage drug risk in plain English.
puts 100% of future pipeline upside at risk and leaves the stock tied to current sales
The setup is simple: if ZORYVE keeps scaling, you can live with today's losses. If growth slips, the -3.3% operating margin gets a lot uglier.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
may 19 is the next proof point
Scheduled for May 19, 2026. The key question is whether the profitability trend from Q4 2025 shows up again or fades on contact.
guidance
raised 2026 outlook now carries the burden of proof
Management raised its 2026 revenue outlook. That helps the story today. Meeting or beating it is what keeps the 91% growth narrative from looking like a peak.
volatility
risk rank 1 does not mean price stability
The balance-sheet and risk data look safer than the stock chart. Price stability is just 5 / 100, so you should expect sharp moves around any commercial update.
Analyst rankings
earnings predictability
40 / 100
earnings are harder to forecast here. In human-speak: expect surprises, and do not confuse that with a broken model.
street view
thin
the current feed does not provide a clean short-term rank or target band. Better no fake precision than bad precision.
source: institutional data
Institutional activity
institutional ownership data for ARQT is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$26
current price
n/a
target midpoint · n/a from current
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