Tarsus Pharmaceuticals (TARS) Q1 2025 earnings summary

Executive summary

• XDEMVY net product sales reached $78.3 million in Q1 2025, up 217% year-over-year and 18% sequentially, with approximately 72,000 bottles dispensed and over 15,000 eye care providers prescribing.

• Raised $134.8 million in a public equity offering, ending Q1 2025 with $407.9 million in cash, cash equivalents, and marketable securities.

• Expanded sales force, broad commercial, Medicare, and Medicaid coverage, and robust DTC campaigns drove increased prescribing frequency and patient engagement.

• Pipeline progress includes TP-04 for ocular rosacea (Phase 2 trial planned for H2 2025) and TP-05 for Lyme disease prevention (Phase 2b trial in 2026).

• XDEMVY is positioned as a category leader in anterior segment medicines, supported by a proven commercial strategy and robust pipeline.

Financial highlights

• Net product sales for XDEMVY were $78.3 million in Q1 2025, with a gross-to-net discount of 47% and gross margin of approximately 93%.

• Operating expenses rose to $104.6 million, mainly due to increased DTC and marketing spend.

• Net loss for Q1 2025 was $25.1 million, improved from $35.7 million in Q1 2024; EPS $(0.64) vs. $(1.01) prior year.

• Cash, cash equivalents, and marketable securities totaled $407.9 million as of March 31, 2025.

• Net cash used in operating activities was $20.7 million in Q1 2025, with $136.6 million provided by financing activities.

Outlook and guidance

• Q2 2025 bottles dispensed expected to increase to 85,000–90,000, with a gross-to-net discount of 45%–47%.

• Anticipates more modest revenue growth in Q3 due to seasonality, with stronger growth returning in Q4.

• Full-year 2025 DTC costs projected at $70–$80 million, with potential for further increases if campaign effectiveness continues.

• R&D expenses to rise in H2 2025 with the start of the TP-04 Phase 2 trial, expected to cost $7–$10 million split over 2025–2026.

• Current cash and investments are expected to fund operations for at least the next twelve months; additional capital may be required depending on revenue, expenses, and market conditions.