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Arcutis Biotherapeutics, Inc.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 5 August 2026: press release. Guidance figures: 1 raised, 1 kept. The quarter’s numbers.

Key takeaways

  • Product revenue up 59% year over year: Product revenue, net was $129.9 million, up 59% from $81.5 million a year earlier and up 23% from the first quarter. Management attributed the year-over-year increase to unit demand and gross-to-net improvements. Source
  • Quarterly net income reported: Net income was $15.0 million, or $0.11 per basic and diluted share, against a net loss of $15.9 million, or $0.13 per share, in the second quarter of 2025. Source
  • Foam 0.3% was largest product line: ZORYVE foam 0.3% revenue was $67.4 million, the largest of the four ZORYVE product lines reported for the quarter. Source
  • Selling costs up on sales force: SG&A was $82.1 million against $69.2 million a year earlier. Management attributed the increase mainly to personnel costs from the dermatology sales force expansion. Source
  • Cash and securities higher than year-end: Cash, cash equivalents, restricted cash and marketable securities were $238.9 million at June 30, 2026, compared with $221.3 million at December 31, 2025. Source

“With our investment in expanding our dermatology sales force and initiatives designed to simplify patient access, we are well positioned to drive continued growth and momentum through the second half of 2026,”

Frank Watanabe, president and chief executive officer

Guidance

AreaPeriodFigureAgainst last quarter
Net product sales Sourcefull year 2026$525 million - $540 millionRaised from $480 million - $495 million
Pipeline readout and decision timing SourceQ4 2026 and Q1 2027fourth quarter of 2026 and first quarter of 2027, respectivelyKept

What changed from last quarter

  • Guidance raised: Full-year 2026 net product sales guidance raised to $525 million - $540 million from $480 million - $495 million. Source
  • New: FDA approved the sNDA expanding ZORYVE cream 0.3% to children with plaque psoriasis down to age 2 in June 2026, described as the seventh FDA approval since 2022. Source
  • New: FDA accepted an sNDA for ZORYVE cream 0.05% to extend the indication to infants aged 3 to 24 months with mild to moderate atopic dermatitis. Source
  • New: Enrollment was completed in the Phase 2 proof-of-concept study of ZORYVE foam 0.3% in vitiligo. The prior release described enrollment as ongoing. Source
  • New: A partnership was formed with an AI-enabled healthcare platform to support ZORYVE access within provider workflows, alongside a virtual health platform launched in the quarter. Source
  • New: Chris Peetz, president, CEO and founder of Mirum Pharmaceuticals, was appointed to the Board of Directors in July 2026. Source
  • New: The company reported two new U.S. patents, which the release dates to the third quarter of 2026: a new method-of-use patent and a new formulation patent. Source

Revenue growth and drivers

  • Product revenue up 59% year over year: Product revenue, net was $129.9 million, up 59% from $81.5 million a year earlier and up 23% from the first quarter. Management attributed the year-over-year increase to unit demand and gross-to-net improvements. Source
  • Sequential rise tied to demand and pricing: The 23% sequential increase was attributed to growing demand across products and improved gross-to-net pricing. Source
  • Six-month net income positive: Six-month net income was $3.7 million, compared with a net loss of $40.9 million in the first half of 2025. Six-month product revenue was $235.3 million against $145.4 million. Source
  • Quarterly net income reported: Net income was $15.0 million, or $0.11 per basic and diluted share, against a net loss of $15.9 million, or $0.13 per share, in the second quarter of 2025. Source
  • Operating income against prior-year loss: Income from operations was $16.4 million for the quarter, against a loss of $14.6 million a year earlier. Figures are in thousands in the statements. Source

ZORYVE product sales by formulation

  • Foam 0.3% was largest product line: ZORYVE foam 0.3% revenue was $67.4 million, the largest of the four ZORYVE product lines reported for the quarter. Source
  • Cream 0.3% and 0.15% revenue: ZORYVE cream 0.3% recorded $35.3 million and cream 0.15% recorded $24.2 million in revenue for the quarter. Source
  • Cream 0.05% revenue reported separately: ZORYVE cream 0.05% recorded $2.9 million of revenue for the quarter, shown as a separate line in the release. Source

“During the quarter, we also made significant progress in advancing our pipeline, highlighted by the FDA acceptance of our sNDA for ZORYVE cream 0.05% for infants with atopic dermatitis and completion of enrollment in our Phase 2 vitiligo study.”

Frank Watanabe, president and chief executive officer

Operating costs and expenses

  • Cost of sales rose with volume: Cost of sales was $10.9 million, against $7.5 million a year earlier, which management linked to increasing ZORYVE sales. Source
  • Selling costs up on sales force: SG&A was $82.1 million against $69.2 million a year earlier. Management attributed the increase mainly to personnel costs from the dermatology sales force expansion. Source
  • R&D flat, ARQ-234 spend higher: R&D expense was $20.4 million against $19.5 million a year earlier. Higher ARQ-234 development and medical affairs spend was described as roughly consistent overall. Source

Pipeline and development programs

  • ARQ-234 first-in-human study enrolling: The Phase 1a/1b study of ARQ-234, a CD200 receptor checkpoint agonist fusion protein, continues enrolling healthy volunteers and adults with moderate to severe atopic dermatitis. Source
  • Hidradenitis suppurativa study still enrolling: The Phase 2 study of ZORYVE foam 0.3% in hidradenitis suppurativa continues to enroll patients. Timing of results and decision is in the guidance section. Source
  • Pediatric atopic dermatitis spend lower: Development costs for roflumilast in pediatric atopic dermatitis decreased, partly offsetting the higher ARQ-234 and medical affairs costs within R&D. Source

Cash, debt and balance sheet

  • Cash and securities higher than year-end: Cash, cash equivalents, restricted cash and marketable securities were $238.9 million at June 30, 2026, compared with $221.3 million at December 31, 2025. Source
  • Operating cash flow of $12.6 million: Net cash provided by operating activities was $12.6 million in the second quarter, reported as positive operating cash flow for the period. Source
  • Receivables and inventory increased: Trade receivables were $155.2 million against $146.2 million at December 31, 2025. Inventory was $38.9 million against $22.6 million. Source
  • Long-term debt lower than year-end: Long-term debt, net was $102.0 million at June 30, 2026, against $108.0 million at December 31, 2025, with a current portion of $7.0 million. Source

Commercial reach and access

  • Access initiatives launched this quarter: The company launched several initiatives in the quarter to improve patient access to ZORYVE, described in the changes list. Source
  • Targeted sales team for primary care: Hiring of a targeted sales team for primary care and pediatric providers was completed, following the company's earlier plan to assume promotion in those settings. Source
  • Sales force investment tied to growth: Management said the dermatology sales force investment and patient-access initiatives position the company for continued growth through the second half of 2026. Source

Coming up, as management said on 5 August 2026

  • Sales team field launch by August: The launch of the targeted primary care and pediatric sales team into the field is anticipated by the end of August 2026. Source
  • ZORYVE cream 0.05% PDUFA date: The FDA target action date for the infant atopic dermatitis sNDA for ZORYVE cream 0.05% is February 23, 2027. Source

Earlier plans management reported on

  • Met: The prior release anticipated maintaining positive operating cash flow each quarter. The current release reports $12.6 million of operating cash flow in the second quarter and says cash flow was sustained.
  • Not stated: The prior release planned an sNDA submission in Q2 2026. The current release reports that the FDA accepted an sNDA for this indication.
  • Met: The prior release gave a June 29, 2026 PDUFA target date. The current release reports FDA approval of the expanded indication in June 2026.
  • Not stated: The prior release said the company would assume promotion in these settings with a targeted team. The current release reports hiring completed, with field launch expected by the end of August.

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.