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Arcutis Outlines Strategy for Driving Sustainable Growth and Announces Third Quarter 2025 Financial Results

Key Takeaway: Arcutis Biotherapeutics has outlined its strategy for sustainable growth and reported strong financial results for Q3 2025, with revenues increasing significantly from the previous year. The company continues to lead in medical dermatology with its ZORYVE product line, which has shown commercial momentum. However, R&D expenses have remained stable, and cash reserves have decreased compared to the end of 2024.
Price reaction · baseline $19.64 (2025-10-27 close) · hit pre-market · 2 other ARQT headline(s) in the window, move may be shared
day 0 close
+27%
day 1
+28.8%
day 3 · peak
+28.9%

Market Sentiment Analysis

POSITIVE FACTORS

  • Arcutis reported a significant increase in product revenues year-over-year.
  • The company is positioned as a leader in medical dermatology with innovative treatments.
  • Management outlined a clear strategy for sustainable long-term growth.

CONCERNS & RISKS

  • R&D expenses remained consistent, indicating potential limitations in pipeline expansion.
  • The company experienced a decrease in cash reserves compared to the previous year.

BiopharmaWatch Analysis

From our catalyst data and publicly available data · not financial advice
Best trade, last catalyst
+48%
120-day peak, hindsight
Typical move
7.6%
average across 14 past catalysts
Lead asset
ARQ-151- 0.3%
Phase 1 · Plaque Psoriasis

Full Press Release Details

WESTLAKE VILLAGE, Calif., Oct. 28, 2025 (GLOBE NEWSWIRE) -- Arcutis Biotherapeutics, Inc. (Nasdaq: ARQT), a commercial-stage biopharmaceutical company focused on developing meaningful innovations in immuno-dermatology, today outlined its strategy to achieve sustainable growth and reported financial results for the quarter ended September 30, 2025. Arcutis will review both topics at its Investor Day, which begins today at 10:30 a.m. Eastern Time (ET).
“Over the past nine years, we have built Arcutis into an undisputed leader in medical dermatology. With ZORYVE, we have developed a portfolio of revolutionary topical treatments that are reshaping the treatment of chronic inflammatory skin diseases and demonstrating sustainable commercial momentum across all strengths and indications,” said Frank Watanabe, president and chief executive officer. “This success provides a tremendous foundation for sustained, long-term growth—offering the opportunity to reinvest in the ZORYVE franchise, systematically evaluate new opportunities, and expand our pipeline with new molecules that leverage our deep expertise in dermatology, as well as our best-in-class development and commercialization capabilities.”
In today's Investor Day presentation, Arcutis management will discuss how the Company intends to:

Third Quarter 2025 Financial Results and Business Updates

Commercial Highlights

ZORYVE- a highly potent and selective phosphodiesterase-4 (PDE4) inhibitor in once-daily cream and foam formulations, approved in the United States for the treatment of plaque psoriasis, atopic dermatitis, and seborrheic dermatitis.

Clinical and Regulatory Developments

Corporate Updates

Third Quarter 2025 Summary Financial Results

Product revenuesfor the quarter ended September 30, 2025 were $99.2 million compared to $44.8 million for the corresponding period in 2024. Revenues for the quarter were $30.5 million for ZORYVE cream 0.3%, $18.9 million for ZORYVE cream 0.15%, and $49.8 million for ZORYVE topical foam 0.3%. The year-over-year increase was primarily due to increased unit demand. GTN rates remained favorable for ZORYVE, driven by a high percentage of prescriptions being reimbursed.
Cost of salesfor the quarter ended September 30, 2025 was $8.7 million compared to $5.5 million for the corresponding period in 2024, due to increasing ZORYVE sales.
Research and development (R&D) expensesfor the quarter ended September 30, 2025 were $19.6 million compared to $19.5 million for the corresponding period in 2024. Expenses remained consistent year over year, as increased development costs for roflumilast in pediatric atopic dermatitis were largely offset by a decrease in development costs for ARQ-255 and preclinical expenses.
Selling, general, and administrative (SG&A) expensesfor the quarter ended September 30, 2025 were $62.4 million compared to $58.8 million for the corresponding period in 2024. The year-over-year increase was primarily driven by increased sales and marketing and personnel-related expenses due to the Company's continued commercialization efforts for ZORYVE.
Net incomewas $7.4 million, or $0.06 per basic and diluted earnings per share, for the quarter ended September 30, 2025 compared to a net loss of $41.5 million, or $0.33 per basic and diluted loss per share, for the corresponding period in 2024.
Cash, cash equivalents, restricted cash, and marketable securitieswere $191.4 million as of September 30, 2025, compared to $228.6 million as of December 31, 2024. Net cash used in operating activities was $1.8 million during the third quarter.

Financial Guidance

Conference Call and WebcastArcutis management will host a virtual Investor Day today at 10:30 a.m. ET to discuss its strategy for sustained long-term growth, as well as financial results for the third quarter. The webcast for this event can be accessed at the “Events” section of the Company’s website. The replay of the webcast will be available on the Arcutis website following the event.
About ArcutisArcutis Biotherapeutics, Inc. (Nasdaq: ARQT) is a commercial-stage medical dermatology company that champions meaningful innovation to address the urgent needs of individuals living with immune-mediated dermatological diseases and conditions. With a commitment to solving the most persistent patient challenges in dermatology, Arcutis has a growing portfolio of advanced targeted topicals approved to treat three major inflammatory skin diseases. Arcutis’ unique dermatology development platform coupled with our dermatology expertise allows us to develop differentiated therapies against biologically validated targets, and has produced a robust pipeline for a range of inflammatory dermatological conditions. For more information, visitwww.arcutis.comor follow Arcutis onLinkedIn,Facebook,InstagramandX
Forward Looking StatementsThis press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. For example, statements contained in this press release regarding matters that are not historical facts are forward-looking statements. These statements are based on the Company's current beliefs and expectations. Such forward-looking statements include, but are not limited to, statements regarding the potential to address large markets with significant unmet need; the development, approval, and potential commercialization of product candidates and expanded indications; the potential commercial success and growth of ZORYVE in plaque psoriasis, seborrheic dermatitis, and atopic dermatitis, including peak sales, market access and reimbursement, product demand growth and developments regarding GTN; and the timing of regulatory filings and potential approvals. These statements involve substantial known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from the information expressed or implied by these forward-looking statements and you should not place undue reliance on our forward-looking statements. Risks and uncertainties that may cause our actual results to differ include risks inherent in the clinical development process and regulatory approval process, the timing of regulatory filings, the timing, expenses, and success of our commercialization efforts, including uncertainty of future commercial sales and related items that can impact net sales, and our ability to defend our intellectual property. For a further description of the risks and uncertainties applicable to our business, see the “Risk Factors” section of our Form 10-K filed with U.S. Securities and Exchange Commission (SEC) on February 25, 2025, as well as any subsequent filings with the SEC. Any forward-looking statements that the company makes in this press release are made pursuant to the Private Securities Litigation Reform Act of 1995, as amended, and speak only as of the date of this press release. Except as required by law, we undertake no obligation to revise or update information herein to reflect events or circumstances in the future, even if new information becomes available.

MediaAmanda Sheldon, Head of Corporate Communicationsmedia@arcutis.com

InvestorsBrian Schoelkopf, Head of Investor Relationsir@arcutis.com

ARCUTIS BIOTHERAPEUTICS, INC.Condensed Consolidated Balance Sheets(In thousands)(unaudited)
September 30, December 31,
2025 2024
ASSETS
Current assets:
Cash and cash equivalents $ 47,120 $ 71,335
Restricted cash 308 617
Marketable securities 143,948 156,620
Trade receivable, net 115,116 73,066
Inventories 22,419 14,526
Prepaid expenses and other current assets 20,313 19,656
Total current assets 349,224 335,820
Property and equipment, net 1,215 1,041
Intangible assets, net 15,375 9,479
Operating lease right-of-use asset 4,567 1,953
Other assets 596 596
Total assets $ 370,977 $ 348,889
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable $ 5,795 $ 14,220
Current portion of long-term debt, net 1,000
Accrued and other current liabilities 92,975 66,793
Total current liabilities 99,770 81,013
Operating lease liability, noncurrent 5,276 2,562
Long-term debt, net 107,498 107,203
Other long-term liabilities 360 570
Total liabilities 212,904 191,348
Stockholders’ equity:
Common stock 12 12
Additional paid-in capital 1,313,602 1,279,479
Accumulated other comprehensive loss (62 ) (7 )
Accumulated deficit (1,155,479 ) (1,121,943 )
Total stockholders’ equity 158,073 157,541
Total liabilities and stockholders’ equity $ 370,977 $ 348,889
ARCUTIS BIOTHERAPEUTICS, INC.Condensed Consolidated Statements of Operations(In thousands, except per share data)(unaudited)
Three Months Ended September 30, Nine Months Ended September 30,
2025 2024 2025 2024
Revenues:
Product revenue, net $ 99,219 $ 44,755 $ 244,569 $ 97,182
Other revenue 2,000 28,000
Total revenues 99,219 44,755 246,569 125,182
Operating expenses:
Cost of sales 8,685 5,503 25,007 12,223
Research and development 19,604 19,501 56,600 61,940
Selling, general, and administrative 62,404 58,817 195,576 171,784
Total operating expenses 90,693 83,821 277,183 245,947
Income (loss) from operations 8,526 (39,066 ) (30,614 ) (120,765 )
Other income (expense):
Other income, net 2,035 4,182 6,861 13,455
Interest expense (3,071 ) (6,653 ) (9,082 ) (21,617 )
Income (loss) before income taxes 7,490 (41,537 ) (32,835 ) (128,927 )
Provision for income taxes 80 701 324
Net income (loss) $ 7,410 $ (41,537 ) $ (33,536 ) $ (129,251 )
Earnings (loss) per share:
Basic $ 0.06 $ (0.33 ) $ (0.26 ) $ (1.08 )
Diluted $ 0.06 $ (0.33 ) $ (0.26 ) $ (1.08 )
Weighted-average shares used in computing earnings (loss) per share:
Basic 127,623 124,302 126,891 119,628
Diluted 132,885 124,302 126,891 119,628

Frequently Asked Questions

What were Arcutis' Q3 2025 product revenues?

Arcutis reported product revenues of $99.2 million for Q3 2025.

What is ZORYVE used to treat?

ZORYVE is approved for treating plaque psoriasis, atopic dermatitis, and seborrheic dermatitis.

How did Arcutis' net income change in Q3 2025?

Arcutis reported a net income of $7.4 million in Q3 2025, compared to a net loss in Q3 2024.

What is the focus of Arcutis Biotherapeutics?

Arcutis focuses on developing innovations in immuno-dermatology.

When was Arcutis' Investor Day held?

Arcutis' Investor Day was held on October 28, 2025.

Last updated: Oct 28, 2025