Tarsus Pharmaceuticals, Inc. (TARS) AI Stock Analysis

Tarsus Pharmaceuticals, Inc., headquartered in Irvine, California, is a clinical-stage biopharmaceutical company dedicated to advancing novel therapeutic candidates for ophthalmic conditions. Its primary focus is addressing unmet medical needs in eye care, led by TP-03, a therapeutic in Phase III clinical trials for blepharitis caused by Demodex mite infestation and meibomian gland disease. The company is also advancing TP-04 for rosacea and TP-05 for Lyme disease prophylaxis and community malaria reduction. Additionally, Tarsus develops lotilaner to treat diseases across diverse therapeutic categories, including dermatological conditions.

Tarsus grew revenue from $57.0M in FY2021 to $451.4M in FY2025, representing a 5-year revenue CAGR of 68.3%. After revenue fell 54.7% in FY2022 to $25.8M and 32.4% in FY2023 to $17.4M, the company experienced substantial expansion, with revenue increasing 948.6% in FY2024 to $183.0M and 146.7% in FY2025. Gross margin has remained high, reaching 93.2% in FY2025. Operating margin improved from -820.5% in FY2023 to -15.7% in FY2025, while net losses narrowed to -$66.4M. For the trailing twelve months ended June 30, 2026, revenue totaled $606.3M with quarterly revenue growing 69.4% year-over-year.

As of June 30, 2026, Tarsus held $449.7M in cash and short-term investments against $88.7M in total debt, resulting in net cash of $361.0M. The company maintains solid liquidity with a current ratio of 3.20 and a debt-to-equity ratio of 0.26 on $346.7M of shareholders' equity. Operating cash flow improved to -$12.5M in FY2025 compared to -$83.0M in FY2024, yielding free cash flow of -$22.3M after capital expenditures of $9.9M. The share count increased 110.3% over five years.

With a market cap of $3.19B and enterprise value of $3.10B, Tarsus trades at a forward P/E of 68.0x, above the 17.3x forward P/E median of its US-listed Healthcare peers. Its price-to-sales multiple sits at 5.3x compared to the peer median of 4.1x. Over the past year, the stock returned -9.2%, underperforming the S&P 500 (SPY) return of 16.8%. Over a 5-year period, however, the stock has gained 138.7% versus 83.0% for the S&P 500.

Wall Street sentiment is positive, with 9 Strong Buy ratings and 1 Buy rating. The mean price target of $99.80 represents a 46.6% upside from the October 16, 2026 closing price of $68.07. Consensus estimates project FY2026 revenue of $727.5M with an EPS of -$4.88, followed by FY2027 revenue of $920.0M and an EPS of -$0.50. Tarsus beat EPS estimates in 2 of the last 4 quarters, with its next earnings date scheduled for November 3, 2026.

This page is an AI-written research summary of Tarsus Pharmaceuticals, Inc. (TARS). 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.

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