Arcutis Biotherapeutics (ARQT) Q3 2026 earnings summary

Executive summary

• Q3 net product sales rose 45% YoY to $143.9M and 11% QoQ, driven by demand growth across ZORYVE products.

• FY 2026 net product sales guidance increased to $535M-$545M; Q3 operating cash flow was positive at $18.9M.

• Nine-month revenue reached $379.2M, up 55% YoY; net income was $12.5M versus a $33.5M loss in 9M 2025.

Financial highlights

• Q3 total revenue was $143.9M versus $99.2M; operating income was $9.4M versus $8.5M.

• Q3 net income was $8.8M versus $7.4M; basic and diluted EPS were $0.07 and $0.06, respectively.

• Q3 cost of sales was $12.5M, R&D was $22.4M and SG&A was $99.6M; operating expenses totaled $134.5M.

• Nine-month operating income was $16.8M versus an operating loss of $30.6M; operating cash flow was $33.8M versus cash used of $31.8M.

Outlook and guidance

• FY 2026 net product sales guidance rose from $525M-$540M to $535M-$545M.

• Q4 demand-driven QoQ net sales growth is expected; gross-to-net discounts were expected to remain stable, with minimal pricing-driven growth.

• ZORYVE cream 0.05% infant AD sNDA has an FDA target action date of February 23, 2027; potential approval is anticipated in Q1 2027.

• Phase 2 vitiligo topline results and an advancement decision are expected by end-2026; HS results and a decision are expected in Q1 2027.

• R&D and SG&A are expected to increase with ARQ-234 development, label expansions, commercialization and marketing; material operational leverage is expected in late 2027 into 2028.