Tarsus Pharmaceuticals (TARS) Q4 2025 earnings summary

Executive summary

• Achieved $451.4 million in full-year 2025 net sales for XDEMVY, up over 150% year-over-year, with more than 500,000 patients served since launch and broad payer coverage.

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

• Strategic focus on expanding the pipeline with TP-04 for ocular rosacea and TP-05 for Lyme disease prevention, targeting one to two new programs per year and advancing global regulatory progress.

• Added David Pyott, former Allergan CEO, to the board to support global expansion and disciplined growth.

Financial highlights

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

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

• Gross margin remained strong at 93% for both Q4 and full-year 2025.

• Total operating expenses for 2025 were $522.3 million, mainly from commercial investments.

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

Outlook and guidance

• 2026 net product sales guidance set at $670–$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–$565 million, including $40 million in stock-based compensation; R&D expenses expected at $115–$135 million, with $20 million in stock-based compensation.

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

• Global expansion on track: Europe approval for preservative-free XDEMVY expected in 2027, China approval anticipated in 2026, and ongoing regulatory discussions in Japan.