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

Tarsus Pharmaceuticals (NASDAQ:TARS) posted its earnings results on Thursday. The company reported ($0.43) EPS 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 firm had revenue of $173.91 million for the quarter, compared to the consensus estimate of $169.68 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 Trading Down 0.8%

Shares of Tarsus Pharmaceuticals stock traded down $0.54 on Friday, reaching $64.79. The company had a trading volume of 983,151 shares, compared to its average volume of 1,076,469. The firm has a market cap of $2.79 billion, a price-to-earnings ratio of -59.44 and a beta of 0.53. The company has a debt-to-equity ratio of 0.21, a current ratio of 3.74 and a quick ratio of 3.71. The firm’s 50-day moving average price is $61.39 and its two-hundred day moving average price is $64.94. Tarsus Pharmaceuticals has a 1 year low of $47.21 and a 1 year high of $85.25.

Analyst Ratings Changes

Several brokerages recently weighed in on TARS. Oppenheimer initiated coverage on shares of Tarsus Pharmaceuticals in a research report on Friday, April 24th. They issued an “outperform” rating and a $98.00 price target on the stock. Mizuho lowered their price objective 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. Weiss Ratings reissued a “sell (d-)” rating on shares of Tarsus Pharmaceuticals in a research note on Friday, July 17th. HC Wainwright restated a “buy” rating and issued a $88.00 target price on shares of Tarsus Pharmaceuticals in a report on Thursday, July 9th. Finally, Guggenheim decreased their target price on shares of Tarsus Pharmaceuticals from $90.00 to $89.00 and set a “buy” rating on the stock in a research report on Tuesday, July 21st. Two equities research analysts have rated the stock with a Strong Buy rating, four have issued a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $90.17.

Trending Headlines about Tarsus Pharmaceuticals

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

Insider Buying and Selling

In related news, Director William J. Phd Link sold 12,500 shares of the stock in a transaction 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 in the company, valued at approximately $6,633,546.32. This represents a 10.48% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible 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 on Wednesday, June 17th. The stock was sold at an average price of $61.55, for a total value of $615,500.00. Following the completion of the sale, the chief executive officer owned 847,991 shares of the company’s stock, valued at approximately $52,193,846.05. This represents a 1.17% 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 quarter, insiders sold 39,850 shares of company stock worth $2,452,821. 9.64% of the stock is owned by company insiders.

Institutional Investors Weigh In On Tarsus Pharmaceuticals

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Truvestments Capital LLC lifted its holdings in shares of Tarsus Pharmaceuticals by 106.1% in the 4th quarter. Truvestments Capital LLC now owns 909 shares of the company’s stock worth $74,000 after acquiring an additional 468 shares during the last quarter. Mackenzie Financial Corp bought a new position in Tarsus Pharmaceuticals during the 4th quarter valued at about $202,000. CIBC Private Wealth Group LLC bought a new position in Tarsus Pharmaceuticals during the 4th quarter valued at about $205,000. Cibc World Markets Corp purchased a new stake in Tarsus Pharmaceuticals in the 4th quarter worth about $212,000. Finally, Osaic Holdings Inc. raised its position in Tarsus Pharmaceuticals by 779.1% in the 2nd quarter. Osaic Holdings Inc. now owns 2,778 shares of the company’s stock worth $113,000 after purchasing an additional 2,462 shares during the period. Hedge funds and other institutional investors own 90.01% of the company’s stock.

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.