Arcutis Biotherapeutics (ARQT) Q1 2026 earnings summary

Executive summary

• Net product revenues reached $105.4 million in Q1 2026, up 65% year-over-year, driven by strong ZORYVE demand, expanded indications, and improved payer contracting, despite seasonality and severe weather impacts.

• ZORYVE continued to gain market share, holding 48% of branded nonsteroidal topical prescriptions and outperforming the overall topical market and branded non-steroidals.

• Net loss narrowed to $11.3 million from $25.1 million year-over-year, reflecting higher sales and improved operating leverage.

• Strategic investments in sales force expansion, direct-to-consumer campaigns, and pipeline development are positioning for growth inflection in 2027 and beyond.

• Advanced pipeline with new clinical trials and regulatory submissions, including sNDA for ZORYVE cream 0.05% in infants and initiation of Phase 1 trial for ARQ-234.

Financial highlights

• Product revenue, net, rose 65% year-over-year to $105.4 million, with ZORYVE foam and cream 0.15% showing triple-digit growth.

• Cost of sales increased to $9.8 million from $8.8 million in Q1 2025, reflecting higher sales volume.

• R&D expenses rose to $30.6 million, mainly due to a $10 million milestone for ARQ-234 trial initiation.

• SG&A expenses increased 16% year-over-year to $74.1 million, reflecting commercialization investments.

• Net loss per share improved to $(0.09) from $(0.20) year-over-year.

Outlook and guidance

• Revenue guidance for full-year 2026 maintained at $480–$495 million.

• Expectation of robust quarter-over-quarter net sales growth for the remainder of 2026, driven by demand and gross-to-net improvements.

• Anticipate operating leverage and cash flow generation to increase meaningfully in 2027 as investment needs moderate.

• Results from ongoing Phase 2 studies for ZORYVE foam in vitiligo and hidradenitis suppurativa expected in Q4 2026 and Q1 2027.

• Existing capital resources of $224.3 million are projected to fund operations for at least 12 months from the reporting date.