Arcutis Biotherapeutics (ARQT) Q4 2025 earnings summary

Executive summary

• Achieved robust growth in 2025, with net product revenues reaching $372.1 million, up 123% year-over-year, driven by ZORYVE's strong adoption, label expansions, and capturing ~45% share of the branded non-steroidal topical segment.

• Q4 2025 net product revenue was $127.5 million, up 84% year-over-year and 29% sequentially from Q3.

• Expanded ZORYVE's label with two new FDA approvals: foam for scalp/body psoriasis (12+) and cream for atopic dermatitis in children (2–5 years), plus sNDA submissions for further pediatric use.

• Expanded dermatology salesforce by 20% and launched a targeted primary care/pediatric sales team to drive further growth.

• Completed enrollment and reported positive top-line results for the INTEGUMENT-INFANT phase 2 trial in infants with atopic dermatitis, supporting further label expansion.

Financial highlights

• Full-year 2025 net product revenues reached $372.1 million, a 123% increase from 2024; Q4 net income was $17.4 million, compared to a net loss of $10.8 million in Q4 2024.

• Full-year 2025 net loss narrowed to $16.1 million from $140 million in 2024, reflecting strong revenue growth outpacing expense increases.

• Achieved positive cash flow in Q4 2025, with $221.3 million in cash and marketable securities at year-end and $26.2 million positive cash flow from operations.

• Gross margin improved due to higher sales volume; cost of sales for 2025 was $36.7 million versus $19.1 million in 2024.

• SG&A expenses increased 20% year-over-year to $274.6 million in 2025, reflecting investments in commercialization.

Outlook and guidance

• Raised 2026 full-year net product revenue guidance to $480–495 million, up from prior $455–470 million.

• Expect positive cash flow on a quarterly basis throughout 2026, despite increased investments in salesforce and pipeline.

• Anticipate typical Q1 seasonality with lower revenues due to deductible resets, but expect sequential growth through the year, with salesforce expansion impact in H2.