Tarsus Pharmaceuticals, Inc.: Q1 FY2026 earnings call
What management said about Q1 FY2026, from the documents filed with the SEC on 6 May 2026: press release. Guidance figures: 2 new, 3 kept. The quarter’s numbers.
Key takeaways
- XDEMVY sales rose over 85%: XDEMVY net product sales reached $145.4 million, up from $78.3 million a year earlier, with the increase attributed to higher volume and a better gross-to-net discount. Source
- Nearly half of ECPs prescribe weekly: Nearly half of core eye care professionals are prescribing XDEMVY weekly. Management attributes this to deeper utilization, DTC-driven patient demand, and ongoing evidence generation. Source
- TP-05 Lyme trial started: The Calliope Phase 2 trial of TP-05, an oral tablet designed to kill ticks before disease transmission, was initiated in the quarter. Source
- China approval triggers $15 million milestone: The Greater China partner, Grand Pharmaceuticals, received PRC regulatory approval for XDEMVY, which triggered a $15 million milestone payment to Tarsus. Source
- SG&A rose on commercial spending: SG&A was $136.4 million, up from $85.0 million. The increase was led by $25.7 million of commercial and marketing costs, including DTC advertising, and $21.2 million of patient support and other costs. Source
- Net loss narrowed to $7.0 million: The net loss was $7.0 million, or $(0.16) per share, compared with a net loss of $25.1 million, or $(0.64) per share, a year earlier. Source
- Cash and securities declined: Cash, cash equivalents and marketable securities totaled $388.7 million at March 31, 2026, down from $417.3 million at December 31, 2025. Source
“XDEMVY is driving a fundamental shift in how Demodex blepharitis is diagnosed and treated,”
Bobak Azamian, M.D., Ph.D., Chief Executive Officer and Chairman of Tarsus
Guidance
| Area | Period | Figure | Against last quarter |
|---|---|---|---|
| XDEMVY net product sales Source | full-year 2026 | $670-700 million | Kept |
| XDEMVY peak sales potential Source | peak | exceeding $2 billion | Kept |
| Key Account Leader activations Source | by Q3 2026 | approximately 20 new | New |
| TP-04 topline data timing Source | first half of 2027 | first half of 2027 | Kept |
| TP-05 topline data timing Source | first half of 2027 | first half of 2027 | New |
| Europe preservative-free formulation Source | 2026 | complete stability work in 2026 |
What changed from last quarter
- Guidance kept: The full-year 2026 XDEMVY net product sales guidance of $670-700 million was reaffirmed, not revised. Source
- Guidance withdrawn: The prior release's 2027 potential approval timing for the Europe preservative-free formulation is not repeated. The current release gives stability work in 2026 and a potential path under evaluation. Source
- New: The Greater China partner received regulatory approval in the PRC, which the prior release had expected in 2026, triggering a $15 million milestone to Tarsus. Source
- New: The TP-05 Calliope Phase 2 trial was initiated in the quarter. The prior release had planned the start for Q2 2026. Source
- New: Management plans to activate approximately 20 new Key Account Leaders by Q3 2026 to drive deeper utilization in eye care practices. Source
- Ended: Dermatology no longer appears in the company's list of therapeutic categories. The prior release listed eye care, dermatology, and infectious disease prevention. Source
Sales growth and revenue
- XDEMVY sales rose over 85%: XDEMVY net product sales reached $145.4 million, up from $78.3 million a year earlier, with the increase attributed to higher volume and a better gross-to-net discount. Source
- Partner milestone added to revenue: Total revenues were $162.1 million. License fees and collaboration revenue was $16.7 million, including the $15.0 million China regulatory milestone. Source
- Full-year guidance reaffirmed: The company reaffirmed its 2026 XDEMVY net product sales guidance and its peak sales potential, both detailed under guidance. Source
Prescriber and patient demand
- Nearly half of ECPs prescribe weekly: Nearly half of core eye care professionals are prescribing XDEMVY weekly. Management attributes this to deeper utilization, DTC-driven patient demand, and ongoing evidence generation. Source
- DTC campaign drives website activity: The DTC campaign drove millions of visitors to XDEMVY.com. High-value website actions rose about 40% quarter-over-quarter. Source
- Conference data supported clinical message: The company presented numerous data sets at ophthalmology and optometry conferences to reinforce the importance of diagnosing and treating Demodex blepharitis. Source
“As we look across the business, every key signal is gaining momentum, and we are seeing the market expand as a result”
Bobak Azamian, M.D., Ph.D., Chief Executive Officer and Chairman of Tarsus
Pipeline and category strategy
- TP-05 Lyme trial started: The Calliope Phase 2 trial of TP-05, an oral tablet designed to kill ticks before disease transmission, was initiated in the quarter. Source
- TP-04 ocular rosacea trial advancing: The Phase 2 trial of TP-04, a lotilaner-based gel for ocular rosacea, continues to progress. Source
- Playbook extended across pipeline: Management said it is scaling the XDEMVY category-creation approach across the pipeline, with several catalysts ahead. Source
Global expansion and milestones
- China approval triggers $15 million milestone: The Greater China partner, Grand Pharmaceuticals, received PRC regulatory approval for XDEMVY, which triggered a $15 million milestone payment to Tarsus. Source
- Milestone booked gross with tax: The milestone was recorded gross, adding $1.7 million to license revenue, with an equal amount booked as foreign tax expense within the provision for income taxes. Source
- Europe formulation work continues: Stability work on a preservative-free formulation is on track for 2026, and management continues to evaluate a potential European approval path. Source
- Japan approval path in discussion: Ongoing discussions with Japanese regulatory authorities concern a potential path to approval for XDEMVY. Source
“Equally as exciting, XDEMVY validates a repeatable playbook for category creation.”
Bobak Azamian, M.D., Ph.D., Chief Executive Officer and Chairman of Tarsus
Operating costs and net loss
- SG&A rose on commercial spending: SG&A was $136.4 million, up from $85.0 million. The increase was led by $25.7 million of commercial and marketing costs, including DTC advertising, and $21.2 million of patient support and other costs. Source
- R&D spending increased: R&D expenses were $22.4 million, up from $14.4 million, including a $2.0 million upfront payment for a new in-license agreement and $1.4 million of TP-05 costs. Source
- Stock compensation increased: Non-cash stock-based compensation was $3.0 million in R&D, compared with $1.5 million a year earlier. SG&A stock compensation was $8.8 million, compared with $5.3 million. Source
- Net loss narrowed to $7.0 million: The net loss was $7.0 million, or $(0.16) per share, compared with a net loss of $25.1 million, or $(0.64) per share, a year earlier. Source
Gross margin and pricing
- Gross margin held at 94%: Gross margin was 94%, compared with 93% a year earlier. Source
- Cost of sales rose with volume: Cost of sales was $9.4 million, up from $5.2 million, reflecting XDEMVY manufacturing costs, the royalty on net product sales, and milestone amortization. Source
Cash, debt and share count
- Cash and securities declined: Cash, cash equivalents and marketable securities totaled $388.7 million at March 31, 2026, down from $417.3 million at December 31, 2025. Source
- Receivables rose sharply: Accounts receivable, net rose to $100.3 million from $85.1 million. Other receivables rose to $16.9 million from $2.1 million. Source
- Shares outstanding increased: Shares issued and outstanding rose to 43,021,312 at March 31, 2026, from 42,553,931 at December 31, 2025. Source
- Long-term debt little changed: Long-term debt, net was $72.6 million, compared with $72.4 million at December 31, 2025. Source
Coming up, as management said on 6 May 2026
- TP-05 Calliope topline data: Topline data from the Calliope Phase 2 trial of TP-05 are expected in the first half of 2027, with potential to support a Phase 3-ready package. Source
- TP-04 topline data expected: Topline data from the Phase 2 trial of TP-04 for ocular rosacea are expected in the first half of 2027. Source
Figures management reported
| Figure | Reported |
|---|---|
| XDEMVY net product sales Source | $145.4 million, first quarter 2026 |
| R&D expenses Source | $22.4 million, first quarter 2026 |
| Regulatory approval Source | Greater China approval; $15.0 million milestone |
| Pipeline milestone Source | TP-05 Phase 2 initiated; TP-04 Phase 2 ongoing |
Risks management discussed
- Regulatory: The Japan approval path is still under discussion with regulators, and no timing is given. Source
- Regulatory: After stability work on the preservative-free formulation, management continues to evaluate a potential European approval path. Source
Earlier plans management reported on
- On track: Management states it is on track to activate approximately 20 new Key Account Leaders by Q3 2026. Source
- Not stated: Management reaffirmed the full-year 2026 guidance given earlier. The release does not describe progress against it beyond reaffirming it. Source
- On track: Management says it remains on track to complete stability work on the preservative-free formulation in 2026. Source
- Not stated: The prior release planned the Phase 2 start for Q2 2026. This release says the Calliope trial was initiated in the quarter, without describing the timing against plan. Source
- Met: The partner had expected potential approval in 2026. Management reports that regulatory approval was achieved in the PRC. Source
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.