Tarsus Pharmaceuticals (TARS) Is Up 5.8% After Q3 Revenue Jumps and Losses Narrow – What’s Changed

• Tarsus Pharmaceuticals reported third quarter 2025 earnings, with revenue rising to US$118.7 million from US$48.12 million a year earlier, and net loss narrowing to US$12.59 million for the period.
• This marked a meaningful improvement in both revenue and loss reduction, reflecting operational progress as the company continued to expand its commercial activities.
• We’ll examine how Tarsus Pharmaceuticals’ strong revenue growth and narrower losses in Q3 could shape its investment narrative going forward.

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Tarsus Pharmaceuticals Investment Narrative Recap

To be a shareholder in Tarsus Pharmaceuticals, you need to believe in the continued rapid adoption of XDEMVY and the company’s ability to expand its therapeutic reach in eye care. The strong Q3 revenue growth and narrower net loss reinforce the key short-term catalyst, sustained prescription and patient uptake of XDEMVY, while also highlighting ongoing dependence on a single product, a risk that remains material despite recent progress.

Among recent announcements, Tarsus’ presentation at the American Society of Cataract and Refractive Surgery (ASCRS) is especially relevant. The new clinical data on XDEMVY’s impact in Demodex blepharitis supports both ongoing physician engagement and the case for continued robust market adoption, tying directly into top-line growth catalysts.

In contrast, investors should be aware that competitor activity or a sudden slowdown in XDEMVY adoption could...

Read the full narrative on Tarsus Pharmaceuticals (it's free!)

Tarsus Pharmaceuticals' outlook forecasts $846.8 million in revenue and $237.0 million in earnings by 2028. This implies annual revenue growth of 42.0% and a $329 million improvement in earnings from the current $-92.0 million.

Uncover how Tarsus Pharmaceuticals' forecasts yield a $80.38 fair value, a 12% upside to its current price.

Exploring Other Perspectives

The Simply Wall St Community submitted a single fair value estimate of US$80.38 for Tarsus Pharmaceuticals, showing consensus without range. Yet with future growth tied closely to XDEMVY’s uptake, keep in mind that investor perspectives can diverge, explore what others are seeing.

Explore another fair value estimate on Tarsus Pharmaceuticals - why the stock might be worth as much as 12% more than the current price!

Build Your Own Tarsus Pharmaceuticals 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 Tarsus Pharmaceuticals research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Tarsus Pharmaceuticals research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Tarsus Pharmaceuticals' 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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