Arcutis Biotherapeutics (ARQT) Stock Forecast & Price Target

Arcutis Biotherapeutics, Inc. has demonstrated a strong financial performance in its 3Q25 results, with total Zoryve sales reaching $99.2 million, representing a notable increase of 22% quarter-over-quarter and 122% year-over-year. The company reported positive net income for the first time and provided an initial 2026 top-line guidance of $455 million to $470 million, surpassing market expectations. Continued growth momentum is anticipated, driven by the collaboration with Kowa and recent label expansions, positioning Arcutis favorably in the medical dermatology market.

Arcutis Biotherapeutics Inc.'s financial outlook is hindered by its reliance on a third-party supplier, Interquim, for the manufacturing of its product candidate ZORYVE, which introduces risks related to supply chain stability and quality control. The company also faces substantial and escalating operating expenses associated with the development and commercialization of ZORYVE and other pipeline candidates, which could strain financial resources and impact future profitability. Although Arcutis maintains optimistic cash flow and sales projections for 2026, its recent cash position shows a decline, with approximately $191 million by the end of Q3 2025, following a notable drop in net operating cash use, which raises concerns about financial sustainability in the face of ongoing costs.