Arcutis Biotherapeutics, Inc.: Q3 FY2026 earnings call

What management said about Q3 FY2026, from the documents filed with the SEC on 4 November 2026: press release. Guidance figures: 1 raised, 2 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Product revenue rose 45% year over year: Net product revenue was $143.9 million, up from $99.2 million a year earlier and 11% above the second quarter of 2026. Source
• Demand growth drove both comparisons: Management attributed the year-over-year and sequential increases to increasing demand across products. Source
• Foam led quarterly sales by formulation: Management said all products grew in the quarter: $75.1 million for ZORYVE topical foam 0.3%, $37.8 million for cream 0.3%, $27.3 million for cream 0.15% and $3.7 million for cream 0.05%. Source
• SG&A rose to $99.6 million: SG&A expense was $99.6 million against $62.4 million a year earlier. Source
• Vitiligo topline and decision due Q4: Phase 2 vitiligo foam study topline results and a program advancement decision are on track for Q4 2026. Source
• Operating cash flow of $18.9 million: Management described sustained positive cash flow; operating cash flow was $12.6 million in the second quarter of 2026. Source

“ZORYVE continues to lead the branded non-steroidal topical segment driven by its efficacy and tolerability across multiple inflammatory skin conditions and patient populations.”

Frank Watanabe, president and chief executive officer

Guidance

What changed from last quarter

• Guidance raised: Full-year 2026 net product sales guidance was raised from $525 million - $540 million to $535 million - $545 million. Source
• Guidance kept: The vitiligo topline and program decision timing of Q4 2026 was restated as on track. Source
• New: A pivotal Phase 3 trial of ZORYVE cream 0.3% in adults and children with moderate to severe atopic dermatitis was initiated. Source
• New: The Skin to Believe In awareness campaign with Simone Biles was launched. Source
• New: Rob Lisicki was appointed chief commercial officer, effective November 4, 2026. Source
• New: Rob Scott, MD, was appointed to the Board of Directors in October 2026. Source

Results and growth drivers

• Product revenue rose 45% year over year: Net product revenue was $143.9 million, up from $99.2 million a year earlier and 11% above the second quarter of 2026. Source
• Demand growth drove both comparisons: Management attributed the year-over-year and sequential increases to increasing demand across products. Source
• Net income and diluted EPS reported: Net income was $8.8 million against $7.4 million a year earlier; diluted EPS was $0.06 in both periods. Source
• Income from operations reported: Income from operations was $9.4 million for the quarter against $8.5 million a year earlier, per the statement of operations in thousands. Source

Product sales by formulation

• Foam led quarterly sales by formulation: Management said all products grew in the quarter: $75.1 million for ZORYVE topical foam 0.3%, $37.8 million for cream 0.3%, $27.3 million for cream 0.15% and $3.7 million for cream 0.05%. Source
• Sequential increase of 11% reported: Net product sales were $143.9 million, up 11% from $129.9 million in the second quarter of 2026. Source
• Nine-month product revenue reported: Product revenue, net for the nine months ended September 30, 2026 was $379.2 million, against $244.6 million a year earlier. Source

“We are very excited to launch a new awareness campaign with Simone Biles, a World Champion gymnast who uses ZORYVE herself”

Frank Watanabe, president and chief executive officer

Costs, margins and pricing

• Cost of sales rose with volume: Cost of sales was $12.5 million against $8.7 million a year earlier, which management attributed to increasing ZORYVE sales volume. Source
• R&D expense increased year over year: R&D expense was $22.4 million against $19.6 million in the third quarter of 2025. Source
• R&D rise tied to ARQ-234 and medical affairs: Management attributed the R&D increase primarily to ARQ-234 clinical development and medical affairs investment supporting medical education on roflumilast programs. Source
• SG&A rose to $99.6 million: SG&A expense was $99.6 million against $62.4 million a year earlier. Source
• Campaign and sales team drove SG&A: Management tied the SG&A increase to campaign marketing spend and to personnel costs from the dermatology sales force expansion and the new primary care and pediatric sales team. Source
• Gross-to-net deductions modestly improved: Management said product revenue growth reflected unit demand and modest improvements in gross-to-net deductions. Source

Pipeline and regulatory milestones

• Phase 3 trial started in atopic dermatitis: A pivotal Phase 3 trial of ZORYVE cream 0.3% in adults and children with moderate to severe atopic dermatitis was initiated, separate from the 0.15% indication. Source
• Vitiligo topline and decision due Q4: Phase 2 vitiligo foam study topline results and a program advancement decision are on track for Q4 2026. Source
• Hidradenitis readout set for Q1 2027: The Phase 2 hidradenitis suppurativa trial of ZORYVE foam 0.3% continues enrolling, with results and a program decision expected in the first quarter of 2027. Source
• FDA target date set for infants: The FDA target action date of February 23, 2027 covers the supplemental NDA expanding ZORYVE cream 0.05% to infants aged 3 to 24 months with mild to moderate atopic dermatitis. Source
• Checkpoint-inhibitor skin events trial planned: The company is preparing to enroll a Phase 2 trial of ZORYVE foam 0.3% for cutaneous adverse events due to checkpoint inhibitors. Source
• ARQ-234 moves to multiple-dose stage: The Phase 1a/1b ARQ-234 study for atopic dermatitis continues enrolling and has reached the multiple ascending dose portion. Source

“we are well positioned to drive continued growth”

Frank Watanabe, president and chief executive officer

Cash, balance sheet and equity

• Operating cash flow of $18.9 million: Management described sustained positive cash flow; operating cash flow was $12.6 million in the second quarter of 2026. Source
• Cash and securities rose to $259.8 million: Cash, cash equivalents, restricted cash and marketable securities were $259.8 million at September 30, 2026, versus $221.3 million at December 31, 2025. Source
• Stockholders’ equity increased: Total stockholders’ equity was $244.0 million at September 30, 2026, up from $189.5 million at December 31, 2025. Source
• Receivables and inventory both higher: Trade receivables were $171.3 million and inventory $45.7 million at September 30, 2026, against $146.2 million and $22.6 million at December 31, 2025. Source

Commercial campaign, awards and leadership

• Simone Biles awareness campaign launched: The Skin to Believe In campaign with Simone Biles aims to raise awareness of seborrheic dermatitis and eczema. Source
• Campaign urges talks about steroid-free options: The campaign encourages people to discuss long-term, steroid-free topical treatment options with their doctor, including ZORYVE. Source
• ZORYVE cream 0.15% wins magazine award: ZORYVE cream 0.15% received Marie Claire magazine's 2026 award, described as the first time that magazine recognized a prescription drug. Source
• Rob Lisicki named chief commercial officer: Rob Lisicki, with over 30 years of biopharmaceutical industry experience, became chief commercial officer effective November 4, 2026. Source
• Rob Scott joins board: Rob Scott, MD, was appointed to the Board of Directors in October 2026 and is described as a global pharma industry leader and pioneer. Source

Coming up, as management said on 4 November 2026

• Vitiligo topline and decision due Q4: Phase 2 vitiligo topline results and a program decision are expected in Q4 2026. Source
• Hidradenitis results due Q1 2027: Results and a program decision for the Phase 2 hidradenitis suppurativa study are expected in the first quarter of 2027. Source
• Potential infant approval in Q1 2027: A potential FDA approval of ZORYVE cream 0.05% for infants as young as 3 months is expected in the first quarter of 2027. Source
• Checkpoint-inhibitor Phase 2 enrollment: The company is preparing to enroll the Phase 2 checkpoint-inhibitor trial; no start date is given. Source

Figures management reported

Earlier plans management reported on

• On track: Management said it remains on track to disclose the vitiligo topline results and program decision in Q4 2026. Source
• Not stated: Management said it expects to report hidradenitis results and a program decision in the first quarter of 2027. Source
• Not stated: Management cited the FDA target action date for the supplemental NDA covering infants aged 3 to 24 months. Source

Other quarters

• Q2 FY2026 earnings call
• Q1 FY2026 results
• Q4 FY2025 earnings call
• Q3 FY2025 earnings call

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.