Revenue accelerated 59.3% year-over-year to $129.9M in Q2 2026, with gross margin at 91.6% and operating margin swinging to positive 12.7%, marking the first profitable quarter.
Arcutis Biotherapeutics, Inc. (ARQT) annual income statement — 9-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 |
|---|
| Sales/Revenue | 508.68M | 376.07M | 196.54M | 59.61M | 3.69M | 0 | 0 | 0 | 0 | 0 |
| Revenue Growth % | 60% | 91.34% | 229.74% | 1517.09% | - | - | - | - | - | - |
| Cost of Goods Sold | 44.87M | 36.7M | 19.13M | 4.99M | 754K | 763K | 455K | 195K | 0 | 0 |
| COGS % of Revenue | - | 9.76% | 9.73% | 8.37% | 20.46% | - | - | - | - | - |
| Gross Profit | 463.81M | 339.38M | 177.41M | 54.62M | 2.93M | -763K | -455K | -195K | 0 | 0 |
| Gross Margin % | 91.18% | 90.24% | 90.27% | 91.63% | 79.54% | - | - | - | - | - |
| Gross Profit Growth % | - | 91.29% | 224.82% | 1762.86% | 484.27% | -67.69% | -133.33% | - | - | - |
| Operating Expenses | 428.65M | 351.6M | 305.81M | 295.72M | 304.56M | 205.77M | 136.19M | 42.94M | 19.73M | 4.11M |
| OpEx % of Revenue | - | 93.49% | 155.6% | 496.12% | 8262.59% | - | - | - | - | - |
| Selling, General & Admin | 334.79M | 274.55M | 229.39M | 185.15M | 122.12M | 60.97M | 20.88M | 6.42M | 1.79M | 695K |
| SG&A % of Revenue | - | 73.01% | 116.71% | 310.61% | 3313.18% | - | - | - | - | - |
| Research & Development | 93.86M | 77.05M | 76.42M | 110.58M | 182.44M | 145.56M | 115.31M | 36.52M | 17.94M | 3.41M |
| R&D % of Revenue | - | 20.49% | 38.88% | 185.51% | 4949.4% | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 35.16M | -12.23M | -128.4M | -241.1M | -301.63M | -206.53M | -136.65M | -43.13M | -19.73M | -4.11M |
| Operating Margin % | 6.91% | -3.25% | -65.33% | -404.49% | -8183.04% | - | - | - | - | - |
| Operating Income Growth % | - | 90.48% | 46.75% | 20.07% | -46.05% | -51.14% | -216.81% | -118.56% | -380.64% | - |
| EBITDA | 37.41M | -7.56M | -125.8M | -240.35M | -300.69M | -206.07M | -136.52M | -42.94M | 0 | 0 |
| EBITDA Margin % | 7.35% | -2.01% | -64.01% | -403.23% | -8157.7% | - | - | - | - | - |
| EBITDA Growth % | 211.58% | 93.99% | 47.66% | 20.07% | -45.91% | -50.95% | -217.96% | - | - | - |
| D&A (Non-Cash Add-back) | 2.25M | 4.67M | 2.6M | 750K | 934K | 454K | 122K | 195K | 19.73M | 4.11M |
| EBIT | 42.57M | -2.89M | -112.22M | -229.31M | -295.81M | -206.36M | -135.68M | -42M | -19.25M | -4.98M |
| Net Interest Income | -6.58M | -12.08M | -27.17M | -29.71M | -15.65M | 173K | 967K | 1.14M | 0 | 0 |
| Interest Income | 7.15M | 0 | 0 | 0 | 0 | 173K | 967K | 1.14M | 0 | 0 |
| Interest Expense | 13.73M | 12.08M | 27.17M | 29.71M | 15.65M | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -4.36M | -2.74M | -10.99M | -17.93M | -9.83M | 173K | 967K | 1.14M | 480K | -872K |
| Pretax Income | 30.8M | -14.97M | -139.39M | -259.03M | -311.46M | -206.36M | -135.68M | -42M | -19.25M | -4.98M |
| Pretax Margin % | 6.06% | -3.98% | -70.92% | -434.57% | -8449.76% | - | - | - | - | - |
| Income Tax | 894K | 1.17M | 647K | 3.11M | 0 | 0 | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | 2.9% | -7.82% | -0.46% | -1.2% | 0% | 0% | 0% | 0% | 0% | 0% |
| Net Income | 29.91M | -16.14M | -140.04M | -262.14M | -311.46M | -206.36M | -135.68M | -42M | -19.25M | -4.98M |
| Net Margin % | 5.88% | -4.29% | -71.25% | -439.79% | -8449.76% | - | - | - | - | - |
| Net Income Growth % | 167.48% | 88.47% | 46.58% | 15.83% | -50.93% | -52.09% | -223.07% | -118.1% | -286.8% | - |
| Net Income (Continuing) | 29.91M | -16.14M | -140.04M | -262.14M | -311.46M | -206.36M | -135.68M | -42M | -19.25M | -4.98M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.22 | -0.13 | -1.16 | -3.78 | -5.66 | -4.17 | -3.80 | -1.10 | -0.53 | -4.71 |
| EPS Growth % | 158.53% | 88.79% | 69.31% | 33.22% | -35.73% | -9.74% | -245.45% | -107.55% | 88.75% | - |
| EPS (Basic) | - | -0.13 | -1.16 | -3.78 | -5.66 | -4.17 | -3.80 | -1.10 | -0.53 | -4.71 |
| Diluted Shares Outstanding | 136.84M | 127.23M | 120.96M | 69.31M | 55.03M | 49.41M | 35.67M | 38.09M | 36.24M | 1.06M |
| Basic Shares Outstanding | 131.01M | 127.23M | 120.96M | 69.31M | 55.03M | 49.41M | 35.67M | 38.09M | 36.24M | 1.06M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying ARQT stock.
For fiscal year 2025, Arcutis Biotherapeutics, Inc. (ARQT) reported total revenue of $376.1M.
Arcutis Biotherapeutics, Inc. (ARQT) reported a net loss of $16.1M for the fiscal year ending 2025.
Arcutis Biotherapeutics, Inc. (ARQT) reported an operating income of $-12.2M, resulting in an operating profit margin of -3.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Arcutis Biotherapeutics, Inc. (ARQT) generated $339.4M in gross profit for the year, representing a gross profit margin of 90.2%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Cash runway and dilution risk
Metrics are mathematically derived from official filings.
Revenue Momentum Accelerates Sharply
Arcutis's revenue surged 59.3% year-over-year to $129.9M in Q2 2026, according to the latest income statement, marking a clear acceleration from prior quarters and signaling robust commercial traction for ZORYVE.
The sequential growth from $105.4M in Q1 2026 to $129.9M in Q2 2026, coupled with a 59.3% YoY increase, indicates that the ZORYVE franchise is scaling rapidly. This acceleration is likely driven by expanded formulary access and the recent launch of the foam formulation for seborrheic dermatitis, which opens a new patient population. The sustainability of this growth will depend on continued prescriber adoption and payer coverage, but the current trajectory suggests strong demand.
Gross Margin Stability Supports Scalability
Gross margin remained high at 91.6% in Q2 2026, as per the income statement, reflecting the low variable cost of producing topical formulations and providing a solid foundation for operating leverage.
The consistent gross margin above 90% across the last ten quarters indicates that manufacturing costs are not a constraint. This high margin is a structural advantage, allowing the company to invest heavily in sales and marketing while still approaching profitability. However, investors should monitor potential rebate increases or pricing pressure from PBMs, which could compress net revenue per unit and erode gross margin over time.
Operating Leverage Emerges as Fixed Costs Absorbed
Operating income swung to a positive $16.4M in Q2 2026 from a loss of $14.6M in the year-ago quarter, as reported in the income statement, demonstrating that revenue growth is now outpacing fixed SG&A costs.
The operating margin improved from -17.9% in Q2 2025 to +12.7% in Q2 2026, a dramatic shift that suggests the company has reached a critical scale where incremental revenue flows through to the bottom line. SG&A expenses increased only modestly from $69.2M to $82.1M, while revenue grew by $48.4M, indicating that the sales force is becoming more productive. This operating leverage is a key driver of the path to sustained profitability, though it remains to be seen if this efficiency can be maintained as the company expands into additional indications.
EPS Beat Raises Quality Questions
Arcutis reported diluted EPS of $0.11 in Q2 2026 versus a consensus estimate of -$0.06, according to the income statement, but stock-based compensation of $12.8M still represents a significant non-cash expense.
The EPS beat is notable, but the quality of earnings warrants scrutiny. SBC of $12.8M is roughly 10% of revenue, which is high and may indicate that a portion of the reported profitability is non-cash. Additionally, the positive net income of $15.0M includes the impact of SBC, so cash-based profitability is lower. Investors should adjust for SBC to assess the true cash-generating ability of the business, especially given the low cash balance of $42.9M.
SG&A Dominates Cost Structure
SG&A expenses of $82.1M in Q2 2026, as per the income statement, represent the largest cost line item, exceeding R&D by fourfold, reflecting the heavy investment in commercial infrastructure.
The cost structure is typical of a commercial-stage biotech, with SG&A absorbing the majority of revenue. R&D spending of $20.4M is relatively stable, indicating a focus on label expansions rather than early-stage research. The efficiency of SG&A will be critical: if the company can maintain revenue growth while keeping SG&A growth in check, operating margins will expand. However, any slowdown in revenue growth could quickly reverse the recent profitability gains, given the high fixed-cost base.
Q2 2026 Marks Profitability Inflection
The second quarter of 2026 was a pivotal period, with Arcutis achieving its first positive operating income of $16.4M, as reported in the income statement, after years of losses, signaling a potential turning point.
This inflection was driven by a combination of strong revenue growth (59.3% YoY) and disciplined cost management, particularly in R&D, which declined from $30.6M in Q1 2026 to $20.4M in Q2 2026. The positive operating income suggests that the company has reached a scale where its commercial infrastructure is generating sufficient gross profit to cover fixed costs. The durability of this inflection will depend on whether the company can sustain this growth trajectory and manage competitive pressures, but it represents a significant milestone in the company's evolution.
What Could Invalidate the Base Case
Despite the strong Q2 2026 beat, the sustainability of profitability is questionable given the thin cash balance of $42.9M and the reliance on stock-based compensation, as per the income statement.
Short-sellers might argue that the positive operating income is not yet durable, as it depends on continued high growth and controlled SG&A. The company's cash position is low relative to its quarterly operating losses in prior periods, and the need for a capital raise could dilute shareholders. Additionally, the high gross margin could be pressured by payer rebates, and the competitive landscape with JAK inhibitors may limit pricing power. Investors should monitor whether the company can maintain positive operating income without one-time benefits and whether cash flow from operations turns positive.