Tarsus Pharmaceuticals (NASDAQ:TARS) Posts Quarterly Earnings Results, Misses Expectations By $0.24 EPS

Tarsus Pharmaceuticals (NASDAQ:TARS) announced its quarterly earnings data on Thursday. The company reported ($0.43) EPS for the quarter, missing analysts’ consensus estimates of ($0.19) by ($0.24), FiscalAI reports. The company had revenue of $173.91 million for the quarter, compared to analysts’ expectations of $169.65 million. Tarsus Pharmaceuticals had a negative return on equity of 13.57% and a negative net margin of 7.67%.

Here are the key takeaways from Tarsus Pharmaceuticals’ conference call:

• XDEMVY sales reached $173.9 million in Q2, up approximately 69% year over year and 20% sequentially. Full-year 2026 net product sales guidance increased to $685 million-$705 million, with gross margins expected near 93%.
• XDEMVY adoption continues to broaden, with the number of ECPs prescribing on a yearly cadence doubling over the past year and retreatment rates reaching the high teens, potentially stabilizing around 20%. Consumer efforts also lifted unaided Demodex blepharitis awareness to roughly 30%.
• Tarsus agreed to acquire Alkeus Pharmaceuticals and its late-stage Stargardt disease therapy, ALK-001, for $450 million upfront—$270 million in cash and $180 million in stock—plus up to $350 million in regulatory and commercial milestones. The company cited encouraging visual-function, retinal-atrophy, and long-term tolerability data from more than 400 treated patients.
• ALK-001’s NORTHSTAR Phase III study is enrolling approximately 230 patients ages 8 to 45, with topline results expected in the second half of 2029; Tarsus is also evaluating a second Phase III trial. Management believes the therapy could represent a billion-dollar-plus opportunity, but approval and commercialization remain several years away.
• Full-year R&D expense guidance rose to $190 million-$210 million, partly reflecting the $75 million upfront payment for the prior iRenix acquisition, while additional Alkeus-related costs are excluded. Management still sees potential profitability in 2027, though the expanded pipeline and future sales-force investment could delay that timeline by one or two quarters.

Tarsus Pharmaceuticals Trading Down 0.8%

NASDAQ TARS traded down $0.54 during trading hours on Friday, reaching $64.79. The company had a trading volume of 983,151 shares, compared to its average volume of 1,076,469. The company has a current ratio of 3.74, a quick ratio of 3.71 and a debt-to-equity ratio of 0.21. The stock has a market capitalization of $2.79 billion, a P/E ratio of -59.44 and a beta of 0.53. The stock has a 50-day moving average of $61.39 and a 200 day moving average of $64.94. Tarsus Pharmaceuticals has a 1-year low of $47.21 and a 1-year high of $85.25.

Key Stories Impacting Tarsus Pharmaceuticals

Here are the key news stories impacting Tarsus Pharmaceuticals this week:

• Positive Sentiment: XDEMVY sales continued to accelerate. Second-quarter net product sales reached $173.9 million, up more than 69% year over year and ahead of analysts’ expectations of approximately $169.7 million. The company projected 2026 XDEMVY net sales of $685 million to $705 million, supporting the investment case for its approved Demodex blepharitis treatment. Tarsus second-quarter results
• Positive Sentiment: Tarsus is expanding into a potentially significant retinal-disease market. The company agreed to acquire Alkeus Pharmaceuticals and its Phase 3-stage oral candidate gildeuretinol (ALK-001), which targets Stargardt disease. The transaction gives Tarsus a potential blockbuster opportunity in a disease with no FDA-approved therapy and broadens its pipeline beyond XDEMVY. Alkeus acquisition
• Neutral Sentiment: Analyst expectations remain above the current trading level. Recent price targets cited by Quiver Quantitative range from $88 to $105, with a $90 median target, although these targets may not yet fully reflect the Alkeus transaction or updated execution risks.
• Negative Sentiment: The quarterly loss was materially worse than expected. Tarsus reported a loss of $0.43 per share versus consensus estimates for a loss of roughly $0.19 to $0.21, despite revenue exceeding forecasts. The company remains unprofitable, which can increase sensitivity to spending and deal-related costs. Tarsus Q2 earnings report
• Negative Sentiment: The Alkeus deal and financing create near-term execution and dilution concerns. The acquisition has a potential value of up to $800 million, including $450 million in upfront consideration, while Tarsus separately announced a $125 million private placement. Investors may be concerned about capital needs, share dilution and the clinical and regulatory risks of ALK-001. Tarsus Alkeus acquisition announcement Tarsus private placement

Insider Activity at Tarsus Pharmaceuticals

In other Tarsus Pharmaceuticals news, CEO Bobak R. Azamian sold 10,000 shares of the company’s stock in a transaction on Wednesday, June 17th. The stock was sold at an average price of $61.55, for a total transaction of $615,500.00. Following the transaction, the chief executive officer directly owned 847,991 shares in the company, valued at $52,193,846.05. This represents a 1.17% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director William J. Phd Link sold 12,500 shares of Tarsus Pharmaceuticals stock in a transaction on Monday, June 15th. The shares were sold at an average price of $62.12, for a total value of $776,500.00. Following the completion of the sale, the director directly owned 106,786 shares of the company’s stock, valued at $6,633,546.32. The trade was a 10.48% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 39,850 shares of company stock valued at $2,452,821 over the last 90 days. Insiders own 9.64% of the company’s stock.

Hedge Funds Weigh In On Tarsus Pharmaceuticals

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in shares of Tarsus Pharmaceuticals by 5.8% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 22,143 shares of the company’s stock valued at $1,137,000 after purchasing an additional 1,217 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in shares of Tarsus Pharmaceuticals by 2.0% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 71,220 shares of the company’s stock valued at $3,659,000 after acquiring an additional 1,394 shares in the last quarter. Jane Street Group LLC boosted its holdings in Tarsus Pharmaceuticals by 105.8% in the first quarter. Jane Street Group LLC now owns 10,456 shares of the company’s stock valued at $537,000 after purchasing an additional 190,000 shares during the period. JPMorgan Chase & Co. grew its stake in Tarsus Pharmaceuticals by 402.7% during the 2nd quarter. JPMorgan Chase & Co. now owns 140,610 shares of the company’s stock worth $5,696,000 after purchasing an additional 112,637 shares in the last quarter. Finally, Invesco Ltd. increased its holdings in Tarsus Pharmaceuticals by 12.3% during the 2nd quarter. Invesco Ltd. now owns 928,501 shares of the company’s stock worth $37,614,000 after purchasing an additional 101,978 shares during the period. 90.01% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several analysts have issued reports on the company. Weiss Ratings restated a “sell (d-)” rating on shares of Tarsus Pharmaceuticals in a report on Friday, July 17th. Wall Street Zen cut shares of Tarsus Pharmaceuticals from a “buy” rating to a “hold” rating in a research report on Sunday, July 12th. Guggenheim dropped their price objective on shares of Tarsus Pharmaceuticals from $90.00 to $89.00 and set a “buy” rating for the company in a report on Tuesday, July 21st. Oppenheimer began coverage on shares of Tarsus Pharmaceuticals in a research report on Friday, April 24th. They set an “outperform” rating and a $98.00 price objective for the company. Finally, Mizuho decreased their target price on shares of Tarsus Pharmaceuticals from $100.00 to $98.00 and set an “outperform” rating on the stock in a report on Friday, July 31st. Two investment analysts have rated the stock with a Strong Buy rating, four have given a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $90.17.

Tarsus Pharmaceuticals Company Profile

Tarsus Pharmaceuticals, Inc is a clinical‐stage biopharmaceutical company focused on developing novel therapies for diseases of the eye and ocular surface. The company’s research platform centers on neuro‐effector modulation to address underlying disease mechanisms rather than solely treating symptoms. Tarsus’s lead candidate, OC-01 (varenicline solution), is an intranasal formulation in Phase 3 development for the treatment of dry eye disease, a condition affecting millions worldwide and associated with significant patient discomfort and reduced quality of life.

In addition to its dry eye program, Tarsus is advancing preclinical and early‐stage programs targeting other ophthalmic indications, including allergic conjunctivitis and retinal disorders.