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- **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

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

ARQT

ARQT fundamentals

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