Arcutis Biotherapeutics (NASDAQ:ARQT) Posts Earnings Results, Misses Estimates By $0.07 EPS

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

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 Down 14.8%

ARQT stock traded down $3.57 during midday trading on Thursday, hitting $20.60. The stock had a trading volume of 4,061,958 shares, compared to its average volume of 1,357,075. The firm has a market cap of $2.58 billion, a price-to-earnings ratio of -146.89 and a beta of 1.58. The business has a 50-day moving average of $23.78 and a two-hundred day moving average of $25.78. Arcutis Biotherapeutics has a 52-week low of $12.72 and a 52-week high of $31.77. The company has a debt-to-equity ratio of 0.57, a current ratio of 3.17 and a quick ratio of 2.99.

Insider Buying and Selling

In related news, CFO Latha Vairavan sold 1,341 shares of the company’s stock in a transaction on Monday, May 4th. The stock was sold at an average price of $23.61, for a total value of $31,661.01. Following the sale, the chief financial officer directly owned 86,413 shares of the company’s stock, valued at $2,040,210.93. This represents a 1.53% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 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. Also, insider Larry Todd Edwards sold 3,687 shares of the company’s stock in a transaction on Monday, March 2nd. The stock was sold at an average price of $25.18, for a total value of $92,838.66. Following the completion of the sale, the insider directly owned 175,178 shares in the company, valued at approximately $4,410,982.04. The trade was a 2.06% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 92,831 shares of company stock valued at $2,295,499 over the last 90 days. 9.40% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Arcutis Biotherapeutics

Institutional investors have recently modified their holdings of the stock. Global Retirement Partners LLC purchased a new stake in shares of Arcutis Biotherapeutics in the fourth quarter worth $35,000. NewEdge Advisors LLC grew its stake 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 worth $45,000 after acquiring an additional 1,045 shares during the last quarter. Truvestments Capital LLC grew its stake in shares of Arcutis Biotherapeutics by 114.2% in the fourth quarter. Truvestments Capital LLC now owns 3,012 shares of the company’s stock worth $87,000 after acquiring an additional 1,606 shares during the last quarter. Cibc World Markets Corp purchased a new stake in shares of Arcutis Biotherapeutics in the fourth quarter worth $211,000. Finally, Brooklyn Investment Group purchased a new stake in shares of Arcutis Biotherapeutics in the fourth quarter worth $239,000.

Analyst Ratings Changes

A number of equities analysts recently commented on ARQT shares. Guggenheim upped their target price on Arcutis Biotherapeutics from $34.00 to $35.00 and gave the company a “buy” rating in a report on Friday, February 27th. Weiss Ratings restated a “sell (d-)” rating on shares of Arcutis Biotherapeutics in a report on Friday, March 27th. TD Cowen upped their target price on Arcutis Biotherapeutics from $30.00 to $35.00 and gave the company a “buy” rating in a report on Thursday, February 26th. HC Wainwright upped their target price on Arcutis Biotherapeutics from $30.00 to $34.00 and gave the company a “buy” rating in a report on Thursday, February 26th. Finally, Needham & Company LLC reaffirmed a “buy” rating and issued a $36.00 price target on shares of Arcutis Biotherapeutics in a research note on Thursday. Five equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $34.00.

Arcutis Biotherapeutics News Roundup

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

• Positive Sentiment: Commercial and pipeline traction — Q1 net product revenue for ZORYVE was $105.4M (+65% YoY), the company reported positive operating cash flow, filed an sNDA to expand ZORYVE to infants (3–24 months), completed pediatric trial enrollment, initiated a Phase 1a/1b for ARQ‑234, and expanded its salesforce and primary‑care buildout. These items support longer‑term sales growth and optionality. GlobeNewswire: Q1 results & business update
• Positive Sentiment: Analyst support — Needham reaffirmed a Buy rating with a $36 price target (mid‑$30s consensus remains), which can underpin sentiment if commercial momentum continues. Benzinga: Needham reaffirms Buy
• Neutral Sentiment: Mixed Q1 financials — Revenue beat estimates ($105.4M vs. ~$103.7M) but GAAP EPS missed materially (loss $0.09 vs. expected loss ~$0.02), highlighting continued margin pressure as Arcutis invests in growth. Investors will focus on margins and guidance cadence going forward. Zacks: Q1 results summary
• Neutral Sentiment: Earnings call/transcript available — Management commentary on commercialization trends, unit economics, pediatric programs and timing for regulatory updates will be key to interpret the quarter. Seeking Alpha: Q1 2026 earnings call transcript
• Negative Sentiment: Clustered insider selling — Multiple insiders (director and executives) sold shares in early May under pre‑arranged 10b5‑1 plans to cover tax obligations on vested awards. Although disclosed as routine, the volume and timing can create near‑term selling pressure and raise investor caution. InsiderTrades: Insider sales details

Arcutis Biotherapeutics Company Profile

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.