ARQT · Arcutis Biotherapeutics, Inc.

Arcutis delivered strong top-line growth in Q1 2026, with net product revenue rising 65% year-over-year to $105.4 million — driven primarily by increased unit demand for ZORYVE across all formulations (cream 0.3%, foam 0.3%, cream 0.15%, and cream 0.05%) and improvements in gross-to-net sales deductions. The sequential 17% decline from Q4 2025 was explicitly attributed to typical first-quarter seasonality, including patient deductible resets and insurance plan changes — a pattern management noted as expected and not reflective of underlying demand erosion. Notably, ZORYVE maintained leadership as the most prescribed branded topical across its three approved indications (plaque psoriasis, atopic dermatitis, seborrheic dermatitis), with continued growth in share of branded non-steroidal topical treatments. Operationally, the Company sustained positive operating cash flow ($2.2 million), underscoring financial discipline amid commercial expansion — including completion of the dermatology sales force build-out and initiation of a dedicated primary care and pediatrics organization. R&D expenses rose year-over-year to $30.6 million, largely due to a $10.0 million milestone payment triggered by dosing the first patient in the ARQ-234 Phase 1a/1b trial. SG&A increased to $74.1 million, reflecting higher personnel and commercialization costs. Net loss narrowed significantly to $11.3 million ($0.09 per share), aided by revenue scale and controlled cost growth. Management reaffirmed full-year 2026 net product revenue guidance of $480–$495 million, signaling confidence in continued ZORYVE adoption and upcoming catalysts: the June 29, 2026 PDUFA date for ZORYVE cream 0.3% in pediatric plaque psoriasis (ages 2+), anticipated sNDA submissions for ZORYVE foam in pediatric psoriasis and expanded atopic dermatitis indications, and upcoming Phase 2 readouts in vitiligo and hidradenitis suppurativa later this year and early next year.