Arcutis Biotherapeutics Inc. reported fourth‑quarter 2025 results that surpassed analyst expectations, delivering net product revenue of $129.5 million—an 81% year‑over‑year increase from $71.4 million in Q4 2024. The company posted a net income of $17.4 million, or $0.14 per basic share, turning a $10.8 million loss in the same quarter a year earlier into a profitable period.
Full‑year 2025 revenue reached $376.1 million, up 91% from $196.5 million in 2024. The growth was driven largely by ZORYVE, the company’s flagship non‑steroidal topical therapy, which generated $127.5 million in net product revenue for the quarter. Strong unit demand for ZORYVE’s foam and cream formulations, coupled with a conversion of steroid‑dependent patients to the steroid‑free platform, underpinned the revenue expansion. Gross‑to‑net improvement, driven by pricing power and a favorable mix of high‑margin products, helped lift profitability.
Operating margins improved as the company maintained a high gross margin of 90.3% in 2024 and continued to benefit from a favorable gross‑to‑net ratio. Research and development expenses rose modestly to $77.1 million from $76.4 million in 2024, reflecting ongoing investment in the pipeline while keeping cost growth in check. Cash and cash equivalents stood at $221.3 million at year‑end, providing a solid liquidity position to support commercialization and future development.
Management raised its 2026 net product revenue guidance to $480 million–$495 million, up from the prior $455 million–$470 million range. The upward revision signals confidence in sustained demand for ZORYVE and the company’s ability to scale its single‑molecule platform across multiple indications. The guidance reflects expectations of continued growth in both commercial and government markets, as well as the anticipated impact of the INTEGUMENT‑INFANT Phase 2 trial results for ZORYVE cream in infants.
Frank Watanabe, president and chief executive officer, said, “In 2025, Arcutis continued its strong performance trend, with more than 90% year‑over‑year growth in net product revenue, reflecting strong demand for ZORYVE, successful execution across multiple product launches that leveraged ZORYVE's differentiated profile, and early penetration into the large topical steroid market.” Todd Edwards, chief commercial officer, added, “We saw growth across the portfolio, with increased demand, particularly for Zarif foam due to its dual indications. We anticipate continued growth across all SKUs in 2026, driven by their differentiated profiles and long‑term disease control capabilities.” He also noted, “We do not anticipate any material erosion of our gross‑to‑net resulting from actions to increase access in 2026. We achieved significant improved access in 2025, with over 80% of commercially insured patients having access to Zarif.”
Investors responded favorably to the results, citing the earnings beat, the raised guidance, and the positive clinical data from the infant trial as key drivers of confidence in Arcutis’s growth trajectory.
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