Arcutis Biotherapeutics Reports 33% Revenue Growth to $65.8 Million in Q1 2025

Arcutis Biotherapeutics, Inc. reported significant financial performance improvements in its latest quarterly filing, with total revenues reaching $65.8 million for the three months ended March 31, 2025, compared to $49.6 million in the same period last year. This represents a 33% increase in revenue, primarily driven by a substantial rise in product sales, particularly from its flagship product, ZORYVE. Product revenue surged to $63.8 million, a 196% increase from $21.6 million in the prior year, largely due to the successful commercialization of ZORYVE cream and foam, which saw increased demand in both the U.S. and Canadian markets.

The company’s operating expenses also rose, totaling $90.4 million for the first quarter of 2025, up from $81.2 million in the previous year. This increase was attributed to higher selling, general, and administrative expenses, which grew by 17% to $64.0 million, reflecting ongoing commercialization efforts for ZORYVE. Research and development expenses decreased by 24% to $17.5 million, primarily due to the completion of Phase 3 studies for ZORYVE cream in atopic dermatitis. Despite the increase in revenues, Arcutis reported a net loss of $25.1 million, an improvement from the $35.4 million loss recorded in the same quarter of 2024.

In terms of operational developments, Arcutis has expanded its product offerings and geographic reach. The company launched ZORYVE foam in January 2024 and ZORYVE cream 0.15% in July 2024, both of which contributed to the revenue growth. Additionally, the company entered into a co-promotion agreement with Kowa Pharmaceuticals to market ZORYVE in the U.S., which began in late September 2024. As of March 31, 2025, Arcutis had cash, cash equivalents, restricted cash, and marketable securities totaling $198.7 million, down from $228.6 million at the end of 2024, indicating a need for careful cash management as the company continues to invest in its product pipeline.

Looking ahead, Arcutis anticipates continued investment in commercialization and development activities, particularly for ZORYVE and its pipeline candidates, including ARQ-234 and ARQ-255. The company expects to incur significant expenses in 2025 as it advances these products through clinical trials and regulatory submissions. While management believes that existing capital resources will be sufficient to meet operational needs for at least the next 12 months, they acknowledge the potential need for additional funding through equity or debt financing if cash flows from operations do not meet expectations. The company remains focused on bridging the treatment innovation gap in dermatology, leveraging its expertise to develop differentiated products that address unmet medical needs.