Arcutis Biotherapeutics Inc (NASDAQ:ARQT) Beats Q2 2025 Revenue Estimates and Posts Narrower Loss Than Expected

Arcutis Biotherapeutics Inc (NASDAQ:ARQT) Reports Q2 2025 Earnings: Revenue Surpasses Estimates, Narrower Loss Than Expected

Arcutis Biotherapeutics Inc (NASDAQ:ARQT) posted its second-quarter 2025 financial results, delivering revenue and earnings per share (EPS) figures that exceeded analyst expectations. The company reported $81.5 million in net product revenue, a 164% year-over-year increase, significantly outpacing the consensus estimate of $74.97 million. Meanwhile, the net loss per share came in at $0.13, better than the anticipated $0.17 loss.

Key Financial Highlights vs. Estimates

• Revenue: $81.5M (actual) vs. $74.97M (estimated) – 8.7% beat
• EPS: -$0.13 (actual) vs. -$0.17 (estimated) – 23.5% narrower loss

The strong revenue growth was driven by robust demand for the company’s flagship product, ZORYVE®, which saw prescriptions surpass 1 million since launch. The product’s expansion into new indications, including FDA approval for scalp and body plaque psoriasis, contributed to the sales momentum.

Market Reaction

Following the earnings release, ARQT shares rose 2.73% in after-hours trading, reflecting investor optimism about the company’s performance and growth trajectory. Over the past month, the stock has gained 11.37%, suggesting sustained confidence ahead of the earnings announcement.

Business and Pipeline Updates

The earnings report also highlighted several key developments:

• ZORYVE Expansion: The FDA approved ZORYVE foam for scalp and body psoriasis, with sales commencing in June 2025.
• Pediatric Focus: A Phase 2 study for ZORYVE cream in infants (3 months to 2 years) with atopic dermatitis has been initiated, with a PDUFA date set for October 2025 for children aged 2-5.
• Pipeline Progress: The company submitted an Investigational New Drug (IND) application for ARQ-234, a potential biologic treatment for atopic dermatitis.
• Discontinued Program: Development of ARQ-255 for alopecia areata was halted due to insufficient efficacy.

Financial Position

Arcutis ended the quarter with $191.1 million in cash and equivalents, down from $228.6 million at the end of 2024. The decline was partly due to a $10 million milestone payment to AstraZeneca. Despite the reduced cash position, the company generated $0.3 million in operating cash flow, an improvement from previous quarters.

Looking Ahead

Analysts project full-year 2025 revenue at $318.06 million, with Q3 estimates at $82.68 million. The company did not provide explicit guidance, but management expressed confidence in continued demand growth for ZORYVE and progress in expanding its label.

For a deeper dive into Arcutis’ earnings and future estimates, review the detailed breakdown here.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research or consult a financial advisor before making any investment decisions.