Arcutis Biotherapeutics (ARQT) Q1 2026 earnings summary

Executive summary

• Net product revenues reached $105.4 million in Q1 2026, up 65% year-over-year, driven by strong ZORYVE demand, expanded indications, and improved payer contracting, despite Q1 seasonality and severe weather impacts.

• ZORYVE continued to gain market share, holding 48% of branded nonsteroidal topical prescriptions, with robust prescription growth and strong performance across multiple indications and geographies.

• Expanded dermatology sales force is complete, and a new primary care/pediatric team is being built to drive further growth.

• Advanced pipeline with supplemental NDA for ZORYVE cream 0.05% in infants, completed MUSE trial enrollment for ZORYVE foam in pediatric psoriasis, and initiated Phase 1 trial for ARQ-234.

• Net loss narrowed to $11.3 million from $25.1 million year-over-year, reflecting higher sales and improved operating leverage.

Financial highlights

• Net product revenues were $105.4 million in Q1 2026, a 65% increase from Q1 2025, with ZORYVE foam and cream 0.15% showing triple-digit growth.

• Cost of sales increased to $9.8 million from $8.8 million year-over-year.

• R&D expenses rose to $30.6 million, mainly due to a $10 million milestone for ARQ-234 trial initiation.

• SG&A expenses increased 16% to $74.1 million, reflecting commercialization investments and higher personnel costs.

• Positive cash flow maintained, with $2.2 million net cash from operations and $224.3 million in cash and marketable securities at quarter-end.

Outlook and guidance

• Revenue guidance for full-year 2026 maintained at $480–$495 million.

• Expectation of quarter-over-quarter net sales growth in Q2 and robust demand growth for the remainder of 2026.

• SG&A expected to rise modestly in the second half of the year due to sales force expansion.

• Anticipate meaningful operating leverage and cash flow growth in 2027 and beyond as investment needs moderate.

• Existing capital resources of $224.3 million projected to fund operations for at least 12 months from the reporting date.