Tarsus Pharmaceuticals (NASDAQ:TARS) Issues Earnings Results

Tarsus Pharmaceuticals (NASDAQ:TARS) announced its earnings results on Thursday. The company reported ($0.43) EPS for the quarter, missing analysts’ consensus estimates of ($0.19) by ($0.24), FiscalAI reports. Tarsus Pharmaceuticals had a negative net margin of 7.67% and a negative return on equity of 13.57%. The business had revenue of $173.91 million for the quarter, compared to analysts’ expectations of $169.68 million.

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 Price Performance

TARS traded down $0.54 on Friday, hitting $64.79. 983,151 shares of the company’s stock traded hands, compared to its average volume of 1,076,469. The company’s 50 day simple moving average is $61.39 and its 200-day simple moving average is $64.94. The company has a current ratio of 3.74, a quick ratio of 3.71 and a debt-to-equity ratio of 0.21. Tarsus Pharmaceuticals has a one year low of $47.21 and a one year high of $85.25. The firm has a market cap of $2.79 billion, a price-to-earnings ratio of -59.44 and a beta of 0.53.

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

Insiders Place Their Bets

In other news, Director William J. Phd Link sold 12,500 shares of the business’s 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 transaction, the director owned 106,786 shares of the company’s stock, valued at approximately $6,633,546.32. The trade was a 10.48% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Jeffrey S. Farrow sold 14,396 shares of the company’s stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $60.95, for a total transaction of $877,436.20. Following the transaction, the insider owned 56,801 shares of the company’s stock, valued at approximately $3,462,020.95. This represents a 20.22% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders have sold 39,850 shares of company stock valued at $2,452,821. 9.64% of the stock is owned by company insiders.

Institutional Trading of Tarsus Pharmaceuticals

A number of institutional investors and hedge funds have recently bought and sold shares of TARS. RTW Investments LP boosted its holdings in shares of Tarsus Pharmaceuticals by 5.0% during the 4th quarter. RTW Investments LP now owns 3,335,320 shares of the company’s stock valued at $273,096,000 after purchasing an additional 157,884 shares during the last quarter. Deep Track Capital LP increased its holdings in shares of Tarsus Pharmaceuticals by 71.4% in the third quarter. Deep Track Capital LP now owns 3,000,000 shares of the company’s stock worth $178,290,000 after purchasing an additional 1,250,000 shares during the last quarter. Morgan Stanley increased its holdings in shares of Tarsus Pharmaceuticals by 6.7% in the fourth quarter. Morgan Stanley now owns 2,040,742 shares of the company’s stock worth $167,096,000 after purchasing an additional 128,340 shares during the last quarter. Janus Henderson Group PLC lifted its position in shares of Tarsus Pharmaceuticals by 34.1% in the fourth quarter. Janus Henderson Group PLC now owns 1,930,325 shares of the company’s stock worth $158,062,000 after buying an additional 491,326 shares in the last quarter. Finally, Invesco Ltd. lifted its position in shares of Tarsus Pharmaceuticals by 8.0% in the fourth quarter. Invesco Ltd. now owns 1,012,357 shares of the company’s stock worth $82,892,000 after buying an additional 75,351 shares in the last quarter. 90.01% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

TARS has been the subject of a number of recent research reports. Mizuho cut their price objective on shares of Tarsus Pharmaceuticals from $100.00 to $98.00 and set an “outperform” rating for the company in a research report on Friday, July 31st. Oppenheimer started coverage on Tarsus Pharmaceuticals in a report on Friday, April 24th. They issued an “outperform” rating and a $98.00 target price on the stock. HC Wainwright reiterated a “buy” rating and set a $88.00 target price on shares of Tarsus Pharmaceuticals in a research report on Thursday, July 9th. Guggenheim cut their price target on Tarsus Pharmaceuticals from $90.00 to $89.00 and set a “buy” rating for the company in a report on Tuesday, July 21st. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of Tarsus Pharmaceuticals in a report on Friday, July 17th. Two research analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Tarsus Pharmaceuticals currently has a consensus rating of “Moderate Buy” and a consensus price target of $90.17.

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.