Arcutis Biotherapeutics, Inc. (ARQT) AI Stock Analysis

Arcutis Biotherapeutics, Inc. is a biopharmaceutical firm that develops and commercializes treatments for dermatological diseases. Founded in 2016 and based in Westlake Village, California, the company addresses unmet needs in dermatology. Its lead product candidate is ARQ-151, a topical cream formulation of roflumilast that completed Phase III trials for plaque psoriasis and atopic dermatitis. Its development pipeline also features ARQ-154 topical foam for seborrheic dermatitis and scalp psoriasis, ARQ-252 for hand eczema and vitiligo, ARQ-255 for alopecia areata, and ARQ-234 for moderate-to-severe atopic dermatitis.

Arcutis demonstrated rapid top-line expansion as revenue grew from $3.7M in FY2022 to $59.6M in FY2023, $196.5M in FY2024, and $376.1M in FY2025, producing a 3-year revenue CAGR of 367.3%. Annual net losses decreased from -$311.5M in FY2022 and -$262.1M in FY2023 to -$140.0M in FY2024 and -$16.1M in FY2025. Gross margin stood at 90.2% in FY2025, while operating margin improved to -3.3% from -8183.0% in FY2022. For the trailing twelve months, revenue reached $464.0M with an operating margin of 12.7% and a profit margin of 6.2%. In the latest quarter ended June 30, 2026, quarterly revenue grew 59.3% year-over-year.

As of June 30, 2026, Arcutis reported $238.6M in cash and short-term investments against total debt of $114.1M, resulting in net cash of $124.4M. Total assets stood at $488.5M and shareholders' equity was $220.6M, supporting a current ratio of 2.92 and a debt-to-equity ratio of 0.52. Operating cash flow improved from -$257.7M in FY2022 to -$5.6M in FY2025, alongside free cash flow of -$6.3M. Capital expenditures were $686,000 in FY2025, while the 5-year share count change was 170.7%.

Arcutis has a market cap of $3.62B and an enterprise value of $3.19B. The stock trades at a trailing P/E of 131.0x and a forward P/E of 26.4x, above the median of its US-listed Healthcare peers of 24.6x and 17.3x, respectively. Its price-to-sales multiple is 7.8x versus the peer median of 4.1x, and its EV-to-EBITDA is 70.2x against the peer median of 12.0x. Over the past year, the stock returned 37.8%, beating the S&P 500 return of 16.8%, though its 5-year return of 29.4% trails the S&P 500 return of 83.0%.

Analyst coverage consists of 5 Strong Buy, 2 Buy, and 1 Hold ratings, with no Sell or Strong Sell ratings. The mean price target is $38.38, indicating 33.2% upside from the last close of $28.82. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $537.8M and EPS of $0.43, representing 432.1% EPS growth. Arcutis beat EPS estimates in 3 of the last 4 quarters, and its next earnings date is October 27, 2026.

This page is an AI-written research summary of Arcutis Biotherapeutics, Inc. (ARQT). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: ARQT income statement, ARQT balance sheet, ARQT key metrics, ARQT analyst forecast, ARQT chart. See the ARQT stock overview for the latest quote and news.