Tarsus Pharmaceuticals (TARS) Q4 2025 earnings summary

Executive summary

• Achieved full-year 2025 net sales of $451.4 million for XDEMVY, up over 150% year-over-year, serving over 500,000 patients since launch and establishing a new standard in eye care.

• XDEMVY is now profitable and positioned as a breakthrough medicine with peak U.S. sales potential projected to exceed $2 billion.

• Pipeline expansion includes TP-04 for ocular rosacea and TP-05 for Lyme disease prevention, both entering or planning Phase II trials.

• Added David Pyott, former Allergan CEO, to the board to support global expansion and disciplined growth.

Financial highlights

• Q4 2025 net product sales reached $151.7 million, up 128% year-over-year, with a gross to net discount of 44%.

• Full-year 2025 net product sales totaled $451.4 million, a 150% increase from the prior year, at a gross to net discount of 45%.

• Gross margin remained strong at 93% for both Q4 and full-year 2025.

• Operating expenses for 2025 were $522.3 million, mainly due to commercial investments.

• Ended 2025 with $418 million in cash, cash equivalents, and marketable securities.

Outlook and guidance

• 2026 net product sales guidance is $670 million–$700 million, representing over 50% annual growth at the midpoint.

• Gross margins expected to remain strong at approximately 93% in 2026.

• SG&A expenses projected at $545 million–$565 million, with R&D at $115 million–$135 million for 2026.

• Q1 2026 revenues expected to be flat or slightly below Q4 2025 due to seasonality, with growth accelerating in Q2 and Q4.

• Global expansion on track: Europe approval for preservative-free XDEMVY expected in 2027, China approval anticipated in 2026, and ongoing regulatory discussions in Japan.