Tarsus Pharmaceuticals (NASDAQ:TARS) Posts Earnings Results, Misses Expectations By $0.01 EPS

Tarsus Pharmaceuticals (NASDAQ:TARS) announced its quarterly earnings data on Monday. The company reported ($0.20) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.19) by ($0.01), FiscalAI reports. The business had revenue of $151.67 million during the quarter, compared to analysts’ expectations of $144.56 million. Tarsus Pharmaceuticals had a negative net margin of 14.72% and a negative return on equity of 19.73%.

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

• Company delivered strong commercial traction with $451.4M net product sales in 2025 (Q4 $151.7M$670M–$700M implies ~50% growth at the midpoint.
• Tarsus increased conviction in XDEMVY’s long-term opportunity, raising U.S. peak sales potential to over $2 billion based on low current penetration (≈500k patients treated vs ~25M TAM), growing patient awareness (25%), and plans to add ~15–20 key account leaders to deepen prescriber utilization.
• Pipeline advancement: Phase 2 for TP‑04 (ocular rosacea) is underway with top-line data expected H1 2027, and TP‑05 (Lyme prevention) Phase 2 is planned for Q2 2026 (~700 participants) with top-line data H1 2027, representing meaningful optionality beyond XDEMVY.
• Near-term and financial risks include high gross‑to‑net discounts (~44%), expected Q1 seasonality headwinds, and elevated spending (2026 SG&A $545M–$565M; R&D $115M–$135M) versus cash of ≈$418M, which could pressure cash runway absent continued revenue acceleration or financing.

Tarsus Pharmaceuticals Stock Performance

Shares of TARS opened at $75.01 on Wednesday. The company has a 50-day simple moving average of $72.25 and a two-hundred day simple moving average of $68.35. The company has a debt-to-equity ratio of 0.22, a current ratio of 4.29 and a quick ratio of 4.25. The firm has a market capitalization of $3.18 billion, a PE ratio of -46.30, a price-to-earnings-growth ratio of 1.01 and a beta of 0.57. Tarsus Pharmaceuticals has a one year low of $38.51 and a one year high of $85.25.

Tarsus Pharmaceuticals News Summary

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

• Positive Sentiment: Management guided 2026 revenue to $670M–$700M and reiterated XDEMVY’s potential for $2B+ peak sales, a major growth catalyst that supports higher valuation and investor optimism. Tarsus expects $670M–$700M 2026 sales as XDEMVY eyes blockbuster $2B+ potential while pipeline advances
• Positive Sentiment: Q4/FY2025 topline strength: FY2025 revenue jumped ~150% to $451M, Q4 sales beat consensus ($151.7M vs ~$144.6M), and management forecasts high gross margins (~93%) — signals of rapid commercial traction for XDEMVY and margin leverage ahead. Tarsus Pharmaceuticals: Q4 Results Highlight Xdemvy Blockbuster Potential
• Neutral Sentiment: Management provided detailed commentary on international rollout timing (China 2026, Europe 2027) and commercial planning on the earnings call; these expand the TAM but will take time to convert into near-term revenue. Tarsus Pharmaceuticals, Inc. (TARS) Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Company posted a formal press release and slide deck summarizing Q4 results and strategic milestones — useful for investors modeling rollout assumptions and margin expansion. Tarsus Reports Fourth Quarter and Full-Year 2025 Financial Results and Recent Business Achievements
• Negative Sentiment: GAAP EPS missed by $0.01 (reported -$0.20 vs. consensus -$0.19) and the company remains unprofitable with negative net margin and ROE; management now expects profitability in 2027, which delays cash-flow conversion risk. Tarsus Pharmaceuticals, Inc. (TARS) Reports Q4 Loss, Beats Revenue Estimates

Insider Activity at Tarsus Pharmaceuticals

In other news, insider Dianne C. Whitfield sold 7,397 shares of the firm’s stock in a transaction that occurred on Tuesday, December 16th. The stock was sold at an average price of $80.10, for a total value of $592,499.70. Following the completion of the transaction, the insider owned 38,958 shares in the company, valued at $3,120,535.80. This trade represents a 15.96% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Bobak R. Azamian sold 6,000 shares of the company’s stock in a transaction on Wednesday, December 24th. The stock was sold at an average price of $82.51, for a total value of $495,060.00. Following the completion of the sale, the chief executive officer directly owned 857,991 shares in the company, valued at approximately $70,792,837.41. The trade was a 0.69% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 8.97% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Tarsus Pharmaceuticals

Several hedge funds have recently bought and sold shares of TARS. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in shares of Tarsus Pharmaceuticals by 5.8% during 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 increased its position in Tarsus Pharmaceuticals by 2.0% during the 1st 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 buying an additional 1,394 shares in the last quarter. Jane Street Group LLC raised its stake in Tarsus Pharmaceuticals by 105.8% during the first quarter. Jane Street Group LLC now owns 10,456 shares of the company’s stock valued at $537,000 after buying an additional 190,000 shares during the last quarter. JPMorgan Chase & Co. raised its stake in Tarsus Pharmaceuticals by 402.7% during the second quarter. JPMorgan Chase & Co. now owns 140,610 shares of the company’s stock valued at $5,696,000 after buying an additional 112,637 shares during the last quarter. Finally, Invesco Ltd. boosted its holdings in Tarsus Pharmaceuticals by 12.3% in the second quarter. Invesco Ltd. now owns 928,501 shares of the company’s stock worth $37,614,000 after acquiring an additional 101,978 shares in the last quarter. Institutional investors own 90.01% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of research analysts have recently issued reports on TARS shares. The Goldman Sachs Group reaffirmed a “neutral” rating and set a $68.00 price objective on shares of Tarsus Pharmaceuticals in a research note on Thursday, February 5th. Wall Street Zen upgraded Tarsus Pharmaceuticals from a “hold” rating to a “buy” rating in a research report on Saturday, November 8th. Mizuho started coverage on shares of Tarsus Pharmaceuticals in a report on Thursday, November 20th. They issued an “outperform” rating and a $100.00 target price on the stock. Guggenheim upped their price target on shares of Tarsus Pharmaceuticals from $84.00 to $87.00 and gave the company a “buy” rating in a report on Wednesday, November 5th. Finally, Barclays initiated coverage on shares of Tarsus Pharmaceuticals in a report on Monday, December 8th. They issued an “overweight” rating and a $100.00 price target on the stock. Two investment analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Tarsus Pharmaceuticals presently has a consensus rating of “Moderate Buy” and a consensus price target of $82.29.

About Tarsus Pharmaceuticals

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.