Is Arcutis Biotherapeutics's Surging ZORYVE Revenue and FDA Win Shifting the Outlook for ARQT?

• Arcutis Biotherapeutics recently reported second quarter 2025 results, highlighting a jump in revenue to US$81.5 million and a reduction in net loss compared to the previous year, alongside strong sales for its ZORYVE franchise and a new FDA approval for ZORYVE foam 0.3% for plaque psoriasis.
• Analyst consensus noted that further pipeline progress and broadening indications for ZORYVE may help diversify revenue sources, but business concentration risk and future competition remain key considerations for the company.
• We'll look at how Arcutis's robust ZORYVE revenue and recent FDA approval may strengthen the company's long-term growth outlook.

The end of cancer? These 26 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's.

Arcutis Biotherapeutics Investment Narrative Recap

To be a shareholder in Arcutis Biotherapeutics, you need to believe in the continued growth and diversification of the ZORYVE franchise and the company's ability to expand into new dermatology indications. The recent earnings report, with a significant rise in revenue to US$81.5 million and reduced net loss, reinforces ZORYVE's momentum, supporting its role as the short-term growth catalyst. However, business concentration risk around dependence on ZORYVE, and the threat of future competition, remain critical concerns with no material change this quarter.

A key announcement this quarter was the FDA approval of ZORYVE foam 0.3% for plaque psoriasis of the scalp and body. This milestone brings important incremental demand to the ZORYVE brand and directly supports the company’s pipeline-driven growth strategy, which could help offset some of the concentration risk and strengthen near-term revenue diversification.

On the other hand, given ongoing reliance on a single product line, investors should be aware that...

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

Arcutis Biotherapeutics is projected to reach $643.6 million in revenue and $319.1 million in earnings by 2028. This outlook assumes 34.7% annual revenue growth and a $412.4 million increase in earnings from the current -$93.3 million.

Uncover how Arcutis Biotherapeutics' forecasts yield a $20.86 fair value, a 41% upside to its current price.

Exploring Other Perspectives

Six different fair value estimates from the Simply Wall St Community range from US$18.04 to US$54.07 per share. With most positivity around ZORYVE's latest approvals, current sentiment shows how far outlooks can stretch when future business concentration risks remain top of mind for many investors.

Explore 6 other fair value estimates on Arcutis Biotherapeutics - why the stock might be worth just $18.04!

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 4 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.

Ready To Venture Into Other Investment Styles?

Right now could be the best entry point. These picks are fresh from our daily scans. Don't delay:

• The latest GPUs need a type of rare earth metal called Neodymium and there are only 26 companies in the world exploring or producing it. Find the list for free.
• This technology could replace computers: discover 26 stocks that are working to make quantum computing a reality.
• Trump's oil boom is here - pipelines are primed to profit. Discover the 22 US stocks riding the wave.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com