The company maintains a robust gross margin profile consistently above 90%, though operating margins remain highly unstable, swinging from a positive 14.2% in 2025Q4 to -8.6% in 2026Q1.
| Sales/Revenue | 415.62M | 376.07M | 196.54M | 59.61M | 3.69M | 0 | 0 | 0 | 0 | 0 |
| Revenue Growth % | 95.29% | 91.34% | 229.74% | 1517.09% | - | - | - | - | - | - |
| Cost of Goods Sold | 37.65M | 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 | 377.98M | 339.38M | 177.41M | 54.62M | 2.93M | -763K | -455K | -195K | 0 | 0 |
| Gross Margin % | 90.94% | 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 | 374.76M | 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 | 284.63M | 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 | 90.14M | 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 | 173K | 0 | 0 | 0 | 0 |
| Operating Income | 3.21M | -12.23M | -128.4M | -241.1M | -301.63M | -206.53M | -136.65M | -43.13M | -19.73M | -4.11M |
| Operating Margin % | 0.77% | -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 | 5.6M | -6.86M | -125.8M | -239.22M | -300.37M | -205.77M | -136.19M | -42.94M | 0 | 0 |
| EBITDA Margin % | 1.35% | -1.82% | -64.01% | -401.34% | -8149.05% | - | - | - | - | - |
| EBITDA Growth % | 104.83% | 94.55% | 47.41% | 20.36% | -45.98% | -51.09% | -217.19% | - | - | - |
| D&A (Non-Cash Add-back) | 2.39M | 5.37M | 2.6M | 1.88M | 1.25M | 763K | 455K | 195K | 19.73M | 4.11M |
| EBIT | 9.82M | -2.89M | -112.22M | -229.31M | -295.81M | -206.36M | -135.68M | -42M | -19.25M | -4.98M |
| Net Interest Income | -9.1M | -12.08M | -27.17M | -29.71M | -15.65M | 173K | 967K | 1.14M | 0 | 0 |
| Interest Income | 2.27M | 0 | 0 | 0 | 0 | 173K | 967K | 1.14M | 0 | 0 |
| Interest Expense | 4.73M | 12.08M | 27.17M | 29.71M | 15.65M | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -4.6M | -2.74M | -10.99M | -17.93M | -9.83M | 173K | 967K | 1.14M | 480K | -872K |
| Pretax Income | -1.39M | -14.97M | -139.39M | -259.03M | -311.46M | -206.36M | -135.68M | -42M | -19.25M | -4.98M |
| Pretax Margin % | -0.33% | -3.98% | -70.92% | -434.57% | -8449.76% | - | - | - | - | - |
| Income Tax | 985K | 1.17M | 647K | 3.11M | 0 | 0 | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | -70.81% | -7.82% | -0.46% | -1.2% | 0% | 0% | 0% | 0% | 0% | 0% |
| Net Income | -2.38M | -16.14M | -140.04M | -262.14M | -311.46M | -206.36M | -135.68M | -42M | -19.25M | -4.98M |
| Net Margin % | -0.57% | -4.29% | -71.25% | -439.79% | -8449.76% | - | - | - | - | - |
| Net Income Growth % | 98.17% | 88.47% | 46.58% | 15.83% | -50.93% | -52.09% | -223.07% | -118.1% | -286.8% | - |
| Net Income (Continuing) | -2.38M | -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) | -0.02 | -0.13 | -1.16 | -3.78 | -5.66 | -4.17 | -3.80 | -1.10 | -0.53 | -4.71 |
| EPS Growth % | 96.71% | 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 | 129.37M | 127.23M | 120.96M | 69.31M | 55.03M | 49.41M | 35.67M | 38.09M | 36.24M | 1.06M |
| Basic Shares Outstanding | 129.37M | 127.23M | 120.96M | 69.31M | 55.03M | 49.41M | 35.67M | 38.09M | 36.24M | 1.06M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - |
Liquidity and dilution risk
As reported in financial statements, Arcutis experienced significant revenue fluctuations, with year-over-year growth peaking at 164.1% in 2025Q2 before decelerating to 60.1% by 2026Q1, reflecting the inherent lumpiness of commercial-stage pharmaceutical launches and the challenges of maintaining consistent prescription volume growth across diverse dermatological indications.
The revenue trajectory suggests that while the ZORYVE franchise has successfully penetrated the market, the growth rate remains highly sensitive to channel inventory stocking and the timing of new indication launches. Investors should monitor whether the recent deceleration indicates a saturation of early-adopter prescribers or merely a transition to a more sustainable, refill-driven growth phase.
Based on the company's reported figures, Arcutis maintains a robust gross margin profile consistently exceeding 90%, which highlights the significant pricing power and low variable production costs inherent in its specialized topical formulation technology compared to broader pharmaceutical peers operating in more commoditized segments.
This high gross margin provides a substantial buffer that could theoretically support long-term profitability once the company achieves sufficient scale to absorb its fixed operating expenses. However, the sustainability of these margins warrants further investigation, as future PBM negotiations and potential rebate requirements could exert downward pressure on net realized pricing.
According to recent SEC filings, Arcutis has struggled to demonstrate consistent operating leverage, as SG&A expenses frequently track closely with revenue, resulting in operating margins that swung from -162.3% in 2024Q2 to a positive 14.2% in 2025Q4 before reverting to negative territory in 2026Q1.
The inability to decouple SG&A growth from revenue suggests that the company remains in a high-intensity commercialization phase, requiring continuous investment in sales force detailing to maintain market share. This pattern implies that the path to sustained operating profitability is likely dependent on achieving a critical mass of recurring prescriptions that reduces the marginal cost of customer acquisition.
Data from the income statement indicates that Arcutis's reliance on aggressive SG&A spending to drive top-line growth may be unsustainable, particularly given the thin cash position of $42.9M, which raises concerns about the company's ability to fund ongoing operations without further dilutive financing events.
Short-term volatility in net income suggests that the current business model is highly vulnerable to any disruption in formulary access or a slowdown in new-to-brand prescription growth. Investors should be wary of the potential for management to prioritize market share expansion at the expense of long-term shareholder value through excessive equity dilution.
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.