One-glance verdict
Not enough data
Fair value unavailable
Not enough cash-flow history to value this one with our method.
Fundamentals snapshot
Arcutis Biotherapeutics, Inc.
ARQT · NMS · Healthcare · Biotechnology
Current price
$26.58
52-week range
$19.30 - $31.77
Market cap
$3.34B
Balance sheet
Healthy
-1.01x Concerning
Net cash $124.42M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
1 Risk
2 rewards · 1 risks
- Reward Revenue grew 23.4% last year.
- Reward Returns 15.9% on equity, ahead of 66% of its peers.
- Risk Insider ownership is only 1.8% (peer median: 2.1%).
What this company does
Arcutis Biotherapeutics, Inc.
Arcutis Biotherapeutics is a company that makes medicines for skin conditions like psoriasis. Their main product, ZORYVE, is a cream that helps treat these issues, and it's where they make most of their money. This matters because success with ZORYVE means they can keep developing new treatments for people with skin problems.
How the company got here
Arcutis Biotherapeutics was founded in 2016 with a mission to develop innovative treatments for chronic inflammatory skin diseases. The company recognized a gap in the market, particularly in pediatric dermatology, where larger pharmaceutical companies had shown less interest. Arcutis focused on developing non-steroidal topical therapies, aiming to provide effective and safe alternatives to existing treatments that often have limitations for long-term use. The company's name was changed from Arcutis, Inc. to Arcutis Biotherapeutics, Inc. in October 2019, reflecting its evolution and focus on biopharmaceutical development. Arcutis has since grown into a commercial-stage company with approved products and a pipeline of investigational treatments.
What it actually does
Arcutis Biotherapeutics is a biopharmaceutical company that develops and commercializes treatments for skin conditions, primarily those driven by inflammation. They focus on creating topical medications, meaning treatments applied directly to the skin. Their goal is to offer new options for patients with chronic skin diseases that are both effective and can be used over the long term, addressing limitations of current therapies like topical steroids. The company's work involves extensive research and clinical trials to bring these new treatments to market.
ZORYVE (roflumilast) cream and foam
Arcutis' main product line is ZORYVE, which comes in both cream and foam formulations. These are topical treatments that work by inhibiting an enzyme in the skin called phosphodiesterase-4 (PDE4). By blocking PDE4, ZORYVE helps to reduce inflammation in the skin. ZORYVE cream is approved for treating plaque psoriasis (a condition causing thick, dry, itchy, and scaly patches of skin) and atopic dermatitis (commonly known as eczema, which causes itchy, red, and inflamed skin). ZORYVE foam is used to treat seborrheic dermatitis (a condition causing red, itchy, and flaky skin, often on the scalp) and also plaque psoriasis. The company is also seeking approval for ZORYVE cream in younger age groups, including infants, for atopic dermatitis.
ARQ-234
ARQ-234 is an investigational treatment that Arcutis is developing. It is a type of therapy known as a fusion protein, designed to target a specific receptor on immune cells called CD200 receptor (CD200R). By activating this receptor, ARQ-234 aims to help restore a healthy balance to the immune system's response in the skin, rather than just suppressing inflammation. This approach is being studied for its potential to treat conditions like atopic dermatitis, with the goal of providing a durable response even after treatment stops. Arcutis is currently conducting clinical trials to evaluate the safety and effectiveness of ARQ-234.
What management is betting on now
Arcutis' management is focused on expanding the reach and impact of its ZORYVE franchise across a wider range of dermatological conditions and patient populations. This includes pursuing new indications and age groups for ZORYVE, such as its application for infants with atopic dermatitis. They are also investing in the development of ARQ-234, a novel biologic therapy, to further diversify their pipeline and address unmet needs in immune-mediated skin diseases. The company's strategy emphasizes creating long-term value by developing differentiated therapies that offer significant advantages over existing treatments, aiming for broad market access and patient adoption.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$-34.83M
FY2024 Q4
$-748.00K
FY2025 Q1
$-30.99M
FY2025 Q2
$246.00K
FY2025 Q3
$-1.75M
FY2025 Q4
$26.18M
FY2026 Q1
$2.24M
FY2026 Q2
$12.48M
Revenue
$129.86M
Net income
$15.01M
Diluted EPS
0.11
Operating cash flow
$12.64M
Free cash flow
$12.48M
Fetching…
Sources
Revenue
$105.40M
Net income
$-11.29M
Diluted EPS
-0.09
Operating cash flow
$2.24M
Free cash flow
$2.24M
Fetching…
Sources
Revenue
$129.50M
Net income
$17.39M
Diluted EPS
0.14
Operating cash flow
$26.18M
Free cash flow
$26.18M
Fetching…
Sources
Revenue
$99.22M
Net income
$7.41M
Diluted EPS
0.06
Operating cash flow
$-1.75M
Free cash flow
$-1.75M
Fetching…
Sources
Revenue
$81.50M
Net income
$-15.89M
Diluted EPS
-0.13
Operating cash flow
$324.00K
Free cash flow
$246.00K
Fetching…
Sources
Revenue
$65.85M
Net income
$-25.06M
Diluted EPS
-0.20
Operating cash flow
$-30.38M
Free cash flow
$-30.99M
Fetching…
Sources
Revenue
$71.36M
Net income
$-10.79M
Diluted EPS
-0.09
Operating cash flow
$-748.00K
Free cash flow
$-748.00K
Fetching…
Sources
Revenue
$44.76M
Net income
$-41.54M
Diluted EPS
-0.33
Operating cash flow
$-34.69M
Free cash flow
$-34.83M
Fetching…
Sources
Is it cheap or expensive?
Fair value — vs current price $26.58
We couldn't calculate a fair value right now.
Is it drowning in debt?
Healthy
Net cash $124.4M - more cash than debt. Interest coverage -1.0x.
Net debt
$-124.42M
Interest coverage
-1.01x
Arcutis Biotherapeutics, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
ARQT
BASELINE
Arcutis Biotherapeutics, Inc.
Total debt $114.14M Interest coverage -1.01x This is the baseline the peer rows are being compared against.
Total debt $224.69M Interest coverage -25.81x Neither company has much profit cushion over interest right now.
Total debt $2.71B Interest coverage 84.52x This peer still has a real interest-payment cushion, while ARQT does not.
Total debt $38.27M Interest coverage 553.04x This peer still has a real interest-payment cushion, while ARQT does not.
Total debt $107.15M Interest coverage -36.96x Neither company has much profit cushion over interest right now.
Total debt $4.20B Interest coverage 37.57x This peer still has a real interest-payment cushion, while ARQT does not.
What you should know
The case for and against ARQT
2 Rewards
1 Risk
Rewards
-
Revenue grew 23.4% last year.
-
Returns 15.9% on equity, ahead of 66% of its peers.
Risks
-
Insider ownership is only 1.8% (peer median: 2.1%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
120.82x
Forward P/E
19.54x
P/B
15.14x
P/S
7.20x
EV/EBITDA
88.11x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
91.1%
Operating margin
12.7%
Net margin
6.1%
ROE
15.9%
ROA
5.1%
Health
Liquidity and balance-sheet strength
Debt / equity
0.52x
Current ratio
2.92x
Quick ratio
2.46x
Total debt
$114.14M
Total cash
$238.55M
Growth
How the business has been compounding
Revenue TTM
$463.98M
Revenue 5Y CAGR
367.3%
EPS TTM
0.22
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$39.31M
Free CF TTM
$-6.31M
FCF margin
-1.4%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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