Arcutis Biotherapeutics (ARQT) Stock Forecast & Price Target

Arcutis Biotherapeutics Inc. has demonstrated strong financial performance, with its product candidate ZORYVE achieving total sales of $99.2 million in Q3 2025, representing a 22% increase quarter-over-quarter and a remarkable 122% year-over-year growth, surpassing expectations substantially. The company's successful completion of pivotal Phase 3 trials for ZORYVE in plaque psoriasis, combined with recent collaboration efforts and label expansions, are anticipated to drive continued sales momentum into 2026, with an initial guidance projecting revenues between $455 million and $470 million. Additionally, the company's reporting of positive net income for the first time further underscores its advancing operational efficiency and financial stability in the evolving medical dermatology market.

Arcutis Biotherapeutics Inc. maintains expectations for cash flow break-even in 2026 and projected net product sales of $455 million to $470 million, despite potential risks from the end of a co-promotion agreement. However, the company closed the third quarter of 2025 with approximately $191 million in cash, reflecting a decline in net operating cash, which raises concerns about its financial stability. Additionally, reliance on third-party supplier Interquim for Zoryve’s manufacturing and significant operating expenses associated with the development of its pipeline candidates pose further risks to the company's financial outlook.