Tarsus Pharmaceuticals (TARS) Q4 2025 earnings summary

Executive summary

• Achieved full-year 2025 net sales of $451.4 million for XDEMVY, up over 150% year-over-year, with more than 500,000 patients served since launch and establishing a new standard in eye care.

• XDEMVY is now profitable, positioned as a breakthrough medicine with US peak sales potential raised to over $2 billion, supported by strong prescriber and patient demand.

• Pipeline expansion includes TP-04 for ocular rosacea and TP-05 for Lyme disease prevention, both entering or planning Phase II trials, with global regulatory progress.

• International expansion progressing, with TP-03 regulatory milestones expected in Europe (2027), Japan, and China (2026).

• Welcomed David Pyott, former Allergan CEO, to the board, strengthening leadership for global expansion.

Financial highlights

• Q4 2025 net product sales reached $151.7 million, up 128% year-over-year, at a 44% gross to net discount.

• Full-year 2025 net product sales totaled $451.4 million, a 150% increase from the prior year, at a 45% gross to net discount.

• Operating expenses for 2025 were $522.3 million, mainly due to commercial investments.

• Ended 2025 with $418 million in cash, cash equivalents, and marketable securities.

• Net loss for Q4 2025 was $8.4 million, improved from $23.1 million in Q4 2024; full-year net loss was $66.4 million, improved from $115.6 million in 2024.

Outlook and guidance

• 2026 net product sales guidance set at $670 million–$700 million, representing over 50% annual growth at the midpoint.

• Gross margins expected to remain strong at approximately 93%.

• SG&A expenses projected at $545 million–$565 million, with R&D at $115 million–$135 million.

• Q1 2026 revenues expected to be flat or slightly below Q4 2025 due to seasonality, with growth accelerating in Q2 and Q4.

• Phase 2 trial for TP-05 in Lyme disease prevention expected to start in Q2 2026.