What were the key takeaways from Arcutis’s earnings call?

What were the key takeaways from Arcutis's earnings call?

What is Arcutis's latest dividend and current dividend yield?

What is the market's earnings forecast for Arcutis next quarter?

Did Arcutis beat or miss consensus estimates last quarter?

What guidance did Arcutis's management provide for the next earnings period?

What is Arcutis's gross profit margin?

What factors drove the changes in Arcutis's revenue and profit?

- **Revenue Surge**: Q3 2025 net product revenue up 122% YoY to $99.2 million, driven by ZORYVE Foam launch and reduced copay usage.
- **Market Shift**: ZORYVE gaining 3% share of topical prescriptions, targeting 15-20% as clinicians reduce steroid use due to systemic risks.
- **Pipeline Catalyst**: ARQ-234 phase 1 start in 2026 for atopic dermatitis, leveraging CD200R agonism for immune homeostasis.
- **Cash Flow Milestone**: Achieved breakeven in Q4 2025, enabling $455-470 million 2026 net product revenue guidance.

**【CEO Summary Section】**
- **Revenue Growth**: Q3 2025 net product revenue reached $99.2 million, up 122% YoY and 22% sequentially, driven by ZORYVE Foam 0.3% launch and reduced copay program usage.
- **Prescription Momentum**: Total ZORYVE prescriptions increased 13% QoQ, with weekly scripts exceeding 17,000. ZORYVE Foam revenue grew 25% QoQ.
- **Strategic Focus**: Three pillars - grow ZORYVE, expand into new indications, and build pipeline with ARQ-234 for atopic dermatitis.
- **Cash Flow Breakeven**: Achieved in Q4 2025, enabling reinvestment in growth and pipeline.

**【CFO Financial Commentary】**
- **Financial Highlights**: GAAP net income $7.4 million (vs. $41.5M loss YoY), R&D expenses $19.6 million, SG&A $62.4 million (6% YoY increase due to commercialization).
- **Cost Efficiency**: Operating expenses grew slower than revenue, driving net income. 2026 net product revenue guidance: $455-470 million.
- **Liquidity**: $91 million cash, $108.5 million debt, with flexibility to withdraw additional funds.

**【Q&A Highlights】**
- **Steroid Conversion**: Clinicians shifting to ZORYVE due to systemic steroid risks; ZORYVE share of topical prescriptions ~3%, targeting 15-20%.
- **ARQ-234 Differentiation**: CD200R agonist with extended half-life, targeting moderate-severe AD; phase 1 start in 2026.
- **Lifecycle Management**: Exploring vitiligo, hidradenitis suppurativa; phase 2a studies underway.
- **Pipeline Strategy**: Focus on dermatology, leveraging ZORYVE's safety/tolerability profile for new indications.


Arcutis Biotherapeutics Inc (ARQT) Q3 2025 Earnings Call Transcript

- **Revenue milestone**: $81.5M Q2 revenue, up 28% QoQ, fueled by ZORYVE foam psoriasis approval and steroid conversion.
- **Pediatric AD breakthrough**: 39% of 2-5 year olds achieved EASI-75 in 4 weeks, with 8-month disease control in long-term study.
- **Cash flow progress**: $191M cash, slight Q2 operating positivity, on track for 2026 breakeven.
- **Strategic focus**: ZORYVE life cycle management (5+ indications in 3 years) and pediatric expansion, with disciplined capital allocation.

**【CEO Summary Section】**
- Q2 2025 net product revenue reached $81.5 million, up 28% quarter-over-quarter and 164% year-over-year, driven by ZORYVE adoption across all formulations.
- FDA approved ZORYVE foam 0.3% for scalp and body psoriasis in May, targeting over half of plaque psoriasis patients with scalp involvement.
- Projected cash flow breakeven by 2026, with disciplined capital allocation focusing on ZORYVE life cycle management and pipeline expansion.

**【Commercial & R&D Updates】**
- ZORYVE prescription volume hit 200,000+ in Q2, up 13% QoQ and 117% YoY, with 18,000+ prescribers contributing to growth.
- Pediatric atopic dermatitis (AD) trials show promise: 39% of 2-5 year olds achieved EASI-75 in 4 weeks, with long-term data showing 8-month disease control.
- Halted ARQ-255 development due to insufficient efficacy in alopecia areata, reallocating resources to higher-potential programs.

**【CFO Financial Commentary】**
- Gross profit margin improved to 91%, with cost of sales at $7.5 million (19% of revenue) reflecting scale benefits.
- R&D expenses stable at $19.5 million, SG&A up 19% YoY to $69.2 million due to commercial expansion.
- Cash position of $191.1 million with slight Q2 operating cash flow positivity, targeting reduced cash burn in 2025.

**【Q&A Highlights】**
- Q3 growth expected to moderate 10-15% due to seasonal factors, but 2025 guidance remains intact.
- Kowa partnership driving primary care penetration, with dedicated pharmacy improving fulfillment efficiency.
- Medicare Part D coverage challenges persist, but >80% of prescriptions are reimbursed through other channels.
- Exploring external opportunities with $100 million debt facility, prioritizing dermatology assets with clinical validation.

Arcutis Biotherapeutics, Inc. (ARQT) Q2 2025 Earnings Call Transcript

- **Revenue Superformance**: Q1 2025 revenue up 196% YoY to $63.8M, with only 2% QoQ decline vs typical 20%+ drops for branded topicals. 
- **Prescription Growth**: 10% QoQ script growth to 17,000 weekly, driven by non-steroidal shift. 
- **Key Catalysts**: Scalp psoriasis foam approval (May 22), AD expansion (Oct 2025), and $1.7B+ steroid market conversion opportunity. 
- **Financial Health**: $198.7M cash, targeting 2026 cash breakeven, with minimal tariff risk. 
- **Market Leadership**: 41% share of branded non-steroidal market, 80% prescription reimbursement rate.

**【CEO Summary Section】**
- Q1 2025 revenue reached $63.8 million, up 196% YoY, with only a 2% QoQ decline despite typical Q1 headwinds (deductible resets, insurance changes). 
- ZORYVE prescription volume hit 17,000 weekly scripts (4-week average), up 10% QoQ. 
- Key upcoming catalysts: May 22 foam approval for scalp/body psoriasis, Oct 2025 AD label expansion to 2-5 year olds. 
- 94% of target patients still on topical steroids, creating $1.7B+ market opportunity. 
- Intellectual property strengthened with patent litigation stay extension.

**【CCO Commercial Update】**
- ZORYVE gross-to-net (GtN) remained stable at ~50%, with 80% of prescriptions reimbursed. 
- Primary care adoption via Kowa partnership shows early momentum, though requires extensive education. 
- Portfolio effect: Clinicians prescribing across multiple indications write 10x more scripts (31 vs 3 per prescriber). 
- 41% share of branded non-steroidal market, up from 36% last quarter.

**【CMO Pipeline Progress】**
- ZORYVE foam scalp/body psoriasis Phase III data: 33% scalp IGA success, 48% body IGA success. 
- ARQ-255 (topical JAK for alopecia) Phase Ib readout expected mid-2025. 
- FDA guidelines increasingly caution against long-term steroid use, driving shift to non-steroidals.

**【CFO Financials】**
- Q1 2025 net product revenue: $63.8M (excl. $4.1M Q4 2024 adjustment). 
- R&D expenses: $17.5M (-24% YoY). 
- SG&A: $64M (+17% YoY, +11% QoQ due to launch spend). 
- Cash burn: $30M vs $20M in Q4 2024, targeting cash breakeven in 2026. 
- $198.7M cash on hand, $107.6M debt with $100M undrawn revolver.

**【Q&A Highlights】**
- Seasonality: Modest summer impact but offset by foam launch and portfolio growth. 
- Scalp psoriasis foam: Expected to add ~$100M annual revenue, no cannibalization of cream. 
- PCP adoption: Kowa making steady progress, ~10% of total scripts now from primary care. 
- Tariffs: Minimal impact (~1% of COGS) due to US manufacturing.


Arcutis Biotherapeutics (ARQT)-6 May 25-2025 Q1 Earnings call transcript

- **Revenue Surge**: Q4 2024 ZORYVE sales at $69 million (471% YoY), full-year $167 million. 2025 target: $280-285 million.
- **Market Dominance**: 334% YoY script growth, 0.5 million ZORYVE scripts vs 16 million steroid scripts annually.
- **Strategic Leverage**: Scalp psoriasis PDUFA in May, Kowa co-promotion, and 2026 cash breakeven.
- **Gross Margin Stability**: 50-55% gross-to-net, minimal Q1 2025 impact despite deductible resets.
- **Pipeline Momentum**: ARQ-255 Phase Ib data expected H1 2025, pediatric AD expansion Q4 2025.


**【CEO Summary Section】**
- **Q4 2024 Revenue**: $71 million, with $69 million from ZORYVE franchise (471% YoY growth). Full-year revenue: $197 million, ZORYVE sales: $167 million.
- **2025 Growth Drivers**: Scalp/body psoriasis PDUFA date in May, pediatric AD expansion, Kowa co-promotion, and shift from topical steroids.
- **Market Opportunity**: 16 million annual topical steroid prescriptions in dermatology, ZORYVE holds 0.5 million scripts (334% YoY growth).
- **Gross-to-Net**: Steady-state at 50-55%, Q1 2025 may see temporary dip due to deductible resets.

**【CFO Financial Commentary】**
- **Q4 2024 Net Product Revenue**: $69.4 million (413% YoY growth). Full-year: $166.5 million (471% YoY growth).
- **R&D Expenses**: $14.5 million (39% YoY decline). SG&A: $57.6 million (18% YoY increase).
- **Cash Position**: $228.6 million as of Dec 31, 2024. Cash burn in Q4: < $1 million. Target: Cash flow breakeven in 2026.

**【Q&A Key Highlights】**
- **Sales Force Expansion**: Added 30+ reps in Q3 2024, driving 44% QoQ script growth. Current size optimized for dermatology market.
- **Kowa Contribution**: Minimal in 2024, expected to ramp in 2025. Commissions included in SG&A.
- **IP Confidence**: Strong portfolio defense strategy; Markman hearing scheduled for April 2025.
- **Psoriasis Foam Launch**: Scalp/body indication expansion, no cannibalization risk with cream. Target: 2 tubes/year per patient.
- **2025 Guidance**: Consensus $280-285 million, aligns with management expectations. Q1 may see temporary revenue impact from deductible resets.


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