Arcutis Biotherapeutics (ARQT) Is Up 14.4% After Narrowing Losses in Q2 Earnings Report Has Sentiment Shifted?

• Arcutis Biotherapeutics reported second quarter 2025 earnings showing revenue of US$81.5 million and a net loss of US$15.89 million, both improved from the prior year.
• Results highlight substantial operational progress, with strong revenue growth and a significant reduction in loss per share compared to the same period last year.
• We'll examine how these operational improvements and narrowing losses reshape Arcutis Biotherapeutics' longer-term investment outlook.

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Arcutis Biotherapeutics Investment Narrative Recap

To be a shareholder in Arcutis Biotherapeutics, you need to believe in the long-term potential of ZORYVE’s expanding presence across dermatology segments, particularly as a differentiated, non-steroidal therapy. The latest earnings update, showing rapid revenue growth and shrinking losses, reinforces optimism around upcoming launches and label expansions, but does not meaningfully reduce the near-term risk of revenue concentration; ZORYVE’s ongoing commercial uptake remains the critical catalyst, while potential setbacks in payer coverage or competitive responses still pose the largest challenge.

Among recent developments, the FDA’s late-May approval of ZORYVE topical foam for scalp and body plaque psoriasis stands out as directly connected to this quarter’s strong revenue lift. This milestone broadens Arcutis’ reach into a sizable patient population and amplifies the significance of future sales milestones as investors consider the pace and sustainability of top-line growth.

Yet, despite this progress, investors must pay close attention to the impact of concentrated dependence on ZORYVE, especially if future pricing or reimbursement shifts begin to…

Read the full narrative on Arcutis Biotherapeutics (it's free!)

Arcutis Biotherapeutics is projected to reach $676.8 million in revenue and $237.0 million in earnings by 2028. This outlook depends on a 37.0% annual revenue growth rate and a $330.3 million increase in earnings from the current level of -$93.3 million.

Uncover how Arcutis Biotherapeutics' forecasts yield a $21.86 fair value, a 29% upside to its current price.

Exploring Other Perspectives

Six community members at Simply Wall St estimate Arcutis’ fair value anywhere from US$18.04 to US$54.07 per share. With momentum behind ZORYVE’s launch, investor opinions about the company’s pace of growth and margin resilience could shape very different return expectations.

Explore 6 other fair value estimates on Arcutis Biotherapeutics - why the stock might be worth over 3x more than the current price!

Build Your Own Arcutis Biotherapeutics Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Arcutis Biotherapeutics research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Arcutis Biotherapeutics research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Arcutis Biotherapeutics' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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