Arcutis 2025 Q2 Earnings Strong Revenue Growth Amid Narrowed Losses

Arcutis reported its Q2 2025 earnings on August 6, 2025, with revenue surging 164.1% year-over-year and losses significantly narrowing. The company did not provide specific guidance for the upcoming period but signaled continued expansion of its flagship product, ZORYVE.

Arcutis (ARQT) reported total revenue of $81.50 million for the second quarter of 2025, representing a significant increase of 164.1% compared to $30.86 million in the same period of 2024. This substantial growth was driven by strong demand for the company’s key product, ZORYVE.

The company improved its net income performance, narrowing losses to $0.13 per share in Q2 2025, compared to a loss of $0.42 per share in Q2 2024. On a net income basis, Arcutis reported a loss of $15.89 million, a 69.6% reduction from the $52.33 million net loss in the prior-year period. While the company still posted a loss, this represents a meaningful improvement in its financial performance, though it has recorded losses in each of the past four corresponding quarters.

The stock of Arcutis has shown strong price performance in recent periods, with gains of 2.06% in the latest trading day, 5.35% over the past week, and 14.71% month-to-date. However, post-earnings trading strategies have underperformed, with a 30-day holding period resulting in a CAGR of -19.54%, an excess return of -95.31%, and a maximum drawdown of 83.95%. These figures suggest a high-risk investment profile following the earnings release.

The post-earnings price action review highlights that a strategy of buying shares following the revenue raise and holding for 30 days has historically underperformed significantly. This approach delivered a negative CAGR of -19.54%, an excess return of -95.31%, and a maximum drawdown of 83.95%. With a Sharpe ratio of -0.23, the strategy exhibited a high-risk, high-volatility profile, performing notably worse than the 48.58% benchmark return.

Frank Watanabe, President and CEO of Arcutis, emphasized the strong net product revenue of $81.5 million for ZORYVE, driven by robust demand and the recent approval of ZORYVE foam for scalp and body psoriasis. He outlined the company’s strategic focus on expanding ZORYVE’s indications, including the potential Q4 approval for 2 to 5-year-olds and the initiation of an infant atopic dermatitis study. The CEO expressed confidence in the product’s favorable clinical profile and growing adoption among physicians and patients across four indications.

The company is advancing ZORYVE’s indication expansion for atopic dermatitis in younger patients, with a PDUFA date set for October 13, 2025, for the sNDA for children aged 2 to 5 years. A Phase 2 study for infants aged 3 months to 2 years is also set to begin. Additionally, Arcutis is pursuing potential new indications for ZORYVE through recently initiated Phase 2 trials and is developing ARQ-234, a novel fusion protein for atopic dermatitis, for which the IND was submitted in July 2025.

On August 7, 2025, Arcutis released a report titled “Arcutis Q2 2025 slides: Revenue soars 164% YoY as portfolio…” highlighting the company’s strong revenue growth in the second quarter of 2025. This report reiterated the 164.1% year-over-year revenue increase, driven by robust demand for ZORYVE. While no additional financial metrics were disclosed in the report, it underscored the company’s ongoing strategic expansion and product development efforts.