Tarsus 2025 Q2 Earnings Loss Narrows as Revenue Surges 151.5%

Tarsus Pharmaceuticals (TARS) reported a significant revenue surge in Q2 2025, with net product sales jumping 152% year-over-year to $102.7 million. While the company remains unprofitable, its net loss narrowed by 38.9% year-over-year to $20.34 million, and earnings per share improved by 45.5% to a loss of $0.48. The results reflect strong commercial execution and growing adoption of XDEMVY, its flagship product for Demodex blepharitis.

Revenue
Tarsus reported total revenue of $102.66 million in Q2 2025, a 151.5% increase from $40.81 million in the same period of 2024. This growth was driven by XDEMVY, which achieved $102.7 million in net product sales, a 152% year-over-year increase. The product’s success was fueled by increased prescription volume, with 91,000 bottles distributed in Q2 2025 versus 37,000 in Q2 2024. The company also reported a 45% gross-to-net discount, and XDEMVY is now available to more than 90% of commercial, Medicare, and Medicaid patients.

Earnings/Net Income
Tarsus narrowed its net loss to $20.34 million in Q2 2025, a 38.9% reduction from $33.29 million in Q2 2024. The company’s loss per share also improved by 45.5%, from $0.88 to $0.48. While still operating at a loss, the company demonstrated a clear trend of cost management and operational efficiency. The earnings performance, though negative, reflects a marked improvement over the previous year.

Price Action
The stock price of Tarsus (TARS) edged up 1.83% during the latest trading day and 4.10% for the week, with a 4.28% rise month-to-date. Investors appear to be responding positively to the company’s improving financials and strong revenue performance.

Post-Earnings Price Action Review
The strategy of buying Tarsus shares following a revenue raise quarter-over-quarter on the financial report release date has historically delivered strong returns. Over the past three years, this approach yielded a 95.84% return, significantly outperforming the 48.58% benchmark. The excess return of 47.26% highlights the strategy’s effectiveness. With a compound annual growth rate (CAGR) of 26.11% and a Sharpe ratio of 0.43, the strategy demonstrated robust risk-adjusted performance despite a 60.95% volatility and a 0.00% maximum drawdown.

CEO Commentary
Bobak Azamian, M.D., Ph.D., CEO and Chairman of Tarsus, emphasized the company’s “strongest quarter to date,” driven by XDEMVY’s commercial success and its growing role as the standard of care for Demodex blepharitis. He noted the peak potential for XDEMVY is now greater than initially anticipated, and the company is focused on sustained growth and leadership in eye care.

Guidance
While Tarsus did not provide specific financial guidance for future periods, the company indicated continued investment in XDEMVY commercialization and its development pipeline. Upcoming regulatory milestones include meetings in Japan for XDEMVY in H2 2025 and potential European approval for a preservative-free formulation in 2027. Additionally, Phase 2 studies for TP-04 and TP-05 are expected to begin in H2 2025 and 2026, respectively.

Additional News
Tarsus continues to expand its commercial and marketing efforts, supported by a direct-to-consumer (DTC) campaign that has significantly boosted XDEMVY’s visibility and adoption. Consumer engagement on the XDEMVY.com website has surged nearly 400% since the beginning of 2025, and unaided awareness of the product has more than tripled since the DTC campaign’s launch. Additionally, the number of Eye Care Professionals (ECPs) prescribing XDEMVY has risen by over 30%, surpassing the company’s initial target. The company also remains on track for global regulatory milestones, including meetings with Japanese authorities in H2 2025 and a potential preservative-free formulation approval in Europe in 2027.