Why Tarsus Pharmaceuticals (TARS) Is Up 9.7% After Raising Revenue Guidance and Narrowing Losses

• Tarsus Pharmaceuticals recently reported third-quarter 2025 revenue of US$118.7 million and reduced its net loss compared to the previous year, while also providing fourth-quarter annual revenue guidance in the range of US$440 million to US$445 million.
• A key insight from these announcements is that the company's financial outlook and operational performance have shown substantial improvement, reflecting both strong product demand and narrowing losses.
• We'll examine how Tarsus Pharmaceuticals' raised revenue guidance and improved quarterly results influence its evolving investment narrative.

These 13 companies survived and thrived after COVID and have the right ingredients to survive Trump's tariffs. Discover why before your portfolio feels the trade war pinch.

Tarsus Pharmaceuticals Investment Narrative Recap

To be a shareholder in Tarsus Pharmaceuticals, you need to believe in the continued and rapid adoption of XDEMVY and the company's ability to convert early momentum into consistent, profitable growth. While the improved Q3 results and higher revenue guidance support the near-term catalyst of demand acceleration, they do not eliminate the key risk of high SG&A costs outpacing prescription growth, profitability may still prove elusive if growth slows or cost controls falter.

The most relevant recent announcement is the company's fourth-quarter annual revenue guidance of US$440 million to US$445 million. This guidance directly reflects Tarsus' confidence in XDEMVY's market uptake and is an important update for those focused on product-driven catalysts and near-term financial performance.

However, investors should also be aware that a single product strategy means...

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

Tarsus Pharmaceuticals' narrative projects $846.8 million in revenue and $237.0 million in earnings by 2028. This requires 42.0% yearly revenue growth and a $329.0 million increase in earnings from the current level of -$92.0 million.

Uncover how Tarsus Pharmaceuticals' forecasts yield a $80.38 fair value, a 7% upside to its current price.

Exploring Other Perspectives

The Simply Wall St Community offers just one fair value estimate for Tarsus Pharmaceuticals at US$80.38 per share. With revenue guidance now raised, the need for strong ongoing adoption of XDEMVY stands out as a main theme for ongoing performance trends.

Explore another fair value estimate on Tarsus Pharmaceuticals - why the stock might be worth as much as 7% 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.

Ready To Venture Into Other Investment Styles?

Don't miss your shot at the next 10-bagger. Our latest stock picks just dropped:

• Uncover the next big thing with financially sound penny stocks that balance risk and reward.
• AI is about to change healthcare. These 32 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.
• The end of cancer? These 29 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's.

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