arqt-20250630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


			Form			10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2025

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For transition period from to

Commission File Number: 001-39186



ARCUTIS BIOTHERAPEUTICS, INC. (Exact name of registrant as specified in its charter)


Delaware (State or Other Jurisdiction of Incorporation or Organization)			81-2974255 (I.R.S. Employer Identification Number)
3027 Townsgate Road Suite 300 Westlake Village, California (Address of Principal Executive Offices)			91361 (Zip Code)

(805) 418-5006

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, par value $0.0001	ARQT	The Nasdaq Global Select Market

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act): Yes ☐ No ☒

The number of shares of the registrant’s Common Stock outstanding as of July 31, 2025 was 119,905,078.

FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. All statements other than statements of historical facts contained in this Quarterly Report on Form 10-Q may be forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “forecasts,” “predicts,” “potential” or “continue” or the negative of these terms or other similar expressions. Forward-looking statements contained in this Quarterly Report on Form 10-Q include, but are not limited to statements regarding our future results of operations and financial position, industry and business trends, stock compensation, business strategy, plans, market growth, commercialization of approved products, and our objectives for future operations.

The forward-looking statements in this Quarterly Report on Form 10-Q are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition, and results of operations. Forward-looking statements involve known and unknown risks, uncertainties, and other important factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements, including, but not limited to, the important factors discussed in Part II, Item 1A, “Risk Factors” in this Quarterly Report on Form 10-Q for the quarter ended June 30, 2025. The forward-looking statements in this Quarterly Report on Form 10-Q are based upon information available to us as of the date of this Quarterly Report on Form 10-Q, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements.

You should read this Quarterly Report on Form 10-Q and the documents that we reference in this Quarterly Report on Form 10-Q and have filed as exhibits to this Quarterly Report on Form 10-Q with the understanding that our actual future results, levels of activity, performance, and achievements may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements. These forward-looking statements speak only as of the date of this Quarterly Report on Form 10-Q. Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements contained in this Quarterly Report on Form 10-Q, whether as a result of any new information, future events, or otherwise.

INDEX


		Page
PART I	FINANCIAL INFORMATION

Item 1.	Financial Statements (Unaudited)	1
	Condensed Consolidated Balance Sheets	1
	Condensed Consolidated Statements of Operations and Comprehensive Loss	2
	Condensed Consolidated Statements of Changes in Stockholders’ Equity	3
	Condensed Consolidated Statements of Cash Flows	5
	Notes to Condensed Consolidated Financial Statements	6
Item 3.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20
	Quantitative and Qualitative Disclosures about Market Risk	31
Item 4.	Controls and Procedures	32

PART II	OTHER INFORMATION
Item 1.	Legal Proceedings	33
Item 1A.	Risk Factors	33
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	34
Item 3.	Defaults Upon Senior Securities	34
Item 4.	Mine Safety Disclosures	34
Item 5.	Other Information	34
Item 6.	Exhibits	35

Signatures

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

ARCUTIS BIOTHERAPEUTICS, INC.

Condensed Consolidated Balance Sheets

(In thousands, except share and par value)

(unaudited)


	June 30,		December 31,
	2025		2024
ASSETS
Current assets:
Cash and cash equivalents	$	72,740	$	71,335
Restricted cash	308		617
Marketable securities	118,083		156,620
Trade receivables, net	106,688		73,066
Inventories	16,324		14,526
Prepaid expenses and other current assets	18,635		19,656
Total current assets	332,778		335,820
Property, plant, and equipment, net	1,394		1,041
Intangible assets, net	15,937		9,479
Operating lease right-of-use asset	1,728		1,953
Other assets	596		596
Total assets	$	352,433	$	348,889
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	15,082	$	14,220
Current portion of long-term debt, net	1,000		—
Accrued and other current liabilities	87,854		66,793
Total current liabilities	103,936		81,013
Operating lease liability, long-term	2,114		2,562
Long-term debt, net	107,049		107,203
Other long-term liabilities	360		570
Total liabilities	213,459		191,348
Commitments and contingencies

Stockholders’ equity:
Preferred stock, $0.0001 par value; 10,000,000 shares authorized at June 30, 2025 and December 31, 2024; no shares issued and outstanding at June 30, 2025 and December 31, 2024	—		—
Common stock, $0.0001 par value; 300,000,000 shares authorized at June 30, 2025 and December 31, 2024; 119,797,738 and 117,848,033 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively	12		12
Additional paid-in capital	1,301,886		1,279,479
Accumulated other comprehensive loss	(35)		(7)
Accumulated deficit	(1,162,889)		(1,121,943)
Total stockholders’ equity	138,974		157,541
Total liabilities and stockholders’ equity	$	352,433	$	348,889

See accompanying notes to the condensed consolidated financial statements.

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ARCUTIS BIOTHERAPEUTICS, INC.

Condensed Consolidated Statements of Operations and Comprehensive Loss

(In thousands, except per share data)

(unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Revenues:
Product revenue, net	$	81,504	$	30,858	$	145,350	$	52,427
Other revenue	—		—		2,000		28,000
Total revenues	81,504		30,858		147,350		80,427

Operating expenses:
Cost of sales	7,492		3,464		16,322		6,720
Research and development	19,453		19,298		36,996		42,439
Selling, general and administrative	69,170		58,173		133,172		112,967
Total operating expenses	96,115		80,935		186,490		162,126
Loss from operations	(14,611)		(50,077)		(39,140)		(81,699)

Other income (expense):
Other income, net	2,096		5,229		4,826		9,273
Interest expense	(3,029)		(7,484)		(6,011)		(14,964)

Loss before income taxes	(15,544)		(52,332)		(40,325)		(87,390)

Provision for income taxes	342		—		621		324

Net loss	$	(15,886)	$	(52,332)	$	(40,946)	$	(87,714)

Other comprehensive income (loss):
Unrealized loss on marketable securities	(95)		(127)		(232)		(243)
Foreign currency translation adjustment	200		(34)		204		(55)
Total other comprehensive income (loss)	105		(161)		(28)		(298)

Comprehensive loss	$	(15,781)	$	(52,493)	$	(40,974)	$	(88,012)

Per share information:
Net loss per share, basic and diluted	$	(0.13)	$	(0.42)	$	(0.32)	$	(0.75)
Weighted-average shares used in computing net loss per share, basic and diluted	126,997		123,481		126,519		117,265

See accompanying notes to the condensed consolidated financial statements.

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ARCUTIS BIOTHERAPEUTICS, INC. Condensed Consolidated Statements of Changes in Stockholders’ Equity (In thousands) (unaudited)


	Common Stock		Additional Paid-In Capital		Accumulated Other Comprehensive Income (Loss)			Accumulated Deficit		Total Stockholders’ Equity
		Shares					Amount
Balance—December 31, 2024		117,848	$	12	$	1,279,479		$	(7)	$	(1,121,943)	$	157,541
Issuance of common stock upon the exercise of stock options		110	—		395			—		—		395
Issuance of common stock upon the vesting of restricted stock units		1,180	—		—			—		—		—
Stock-based compensation expense		—	—		9,915			—		—		9,915
Unrealized loss on marketable securities		—	—		—			(137)		—		(137)
Foreign currency translation adjustment		—	—		—			4		—		4
Net loss		—	—		—			—		(25,060)		(25,060)
Balance—March 31, 2025		119,138	12		1,289,789			(140)		(1,147,003)		142,658
Issuance of common stock upon the exercise of stock options		19	—		61			—		—		61
Issuance of common stock upon the vesting of restricted stock units		522	—		—			—		—		—
Shares issued pursuant to the employee stock purchase plan		119	—		1,319			—		—		1,319
Stock-based compensation expense		—	—		10,717			—		—		10,717
Unrealized loss on marketable securities		—	—		—			(95)		—		(95)
Foreign currency translation adjustment		—	—		—			200		—		200
Net loss		—	—		—			—		(15,886)		(15,886)
Balance—June 30, 2025		119,798	$	12	$	1,301,886		$	(35)	$	(1,162,889)	$	138,974

See accompanying notes to the condensed consolidated financial statements.

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ARCUTIS BIOTHERAPEUTICS, INC. Condensed Consolidated Statements of Changes in Stockholders’ Equity (In thousands) (unaudited)


	Common Stock		Additional Paid-In Capital		Accumulated Other Comprehensive Income (Loss)			Accumulated Deficit		Total Stockholders’ Equity
		Shares					Amount
Balance—December 31, 2023		96,787	$	9	$	1,070,558		$	4	$	(981,904)	$	88,667
Issuance of shares of common stock net of discount and issuance costs of $10,820		18,158	3		161,679			—		—		161,682
Issuance of common stock upon the exercise of stock options		22	—		82			—		—		82
Issuance of common stock upon the vesting of restricted stock units		538	—		—			—		—		—
Stock-based compensation expense		—	—		10,030			—		—		10,030
Unrealized loss on marketable securities		—	—		—			(116)		—		(116)
Foreign currency translation adjustment		—	—		—			(21)		—		(21)
Net loss		—	—		—			—		(35,382)		(35,382)
Balance—March 31, 2024		115,505	12		1,242,349			(133)		(1,017,286)		224,942
Issuance of common stock upon the exercise of stock options		147	—		806			—		—		806
Issuance of common stock upon the vesting of restricted stock units		443	—		—			—		—		—
Shares issued pursuant to the employee stock purchase plan		384	—		649			—		—		649
Stock-based compensation expense		—	—		12,523			—		—		12,523
Unrealized loss on marketable securities		—	—		—			(127)		—		(127)
Foreign currency translation adjustment		—	—		—			(34)		—		(34)
Net loss		—	—		—			—		(52,332)		(52,332)
Balance—June 30, 2024		116,479	$	12	$	1,256,327		$	(294)	$	(1,069,618)	$	186,427

See accompanying notes to the condensed consolidated financial statements.

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ARCUTIS BIOTHERAPEUTICS, INC.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(unaudited)


	Six Months Ended June 30,
	2025		2024
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(40,946)	$	(87,714)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation expense	20,267		22,553
Amortization of intangible assets	3,542		375
Non-cash interest expense	846		2,009
Net accretion on marketable securities	(1,554)		(4,113)
Other non-cash items, net	348		(123)
Changes in operating assets and liabilities:
Accounts receivable, net	(33,621)		(16,524)
Inventories	(1,433)		(746)
Prepaid expenses and other current assets	1,018		3,369
Accounts payable	863		(4,172)
Accrued liabilities	21,018		8,726
Operating lease liabilities	(404)		(362)
Net cash used in operating activities	(30,056)		(76,722)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of marketable securities	(89,262)		(231,727)
Proceeds from maturities of marketable securities	129,121		140,893
Milestone payment for intangible asset	(10,000)		—
Purchases of property and equipment	(686)		—
Net cash provided by (used in) investing activities	29,173		(90,834)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock upon exercise of stock options	456		888
Proceeds from issuance of common stock pursuant to employee stock purchase plan	1,319		649
Proceeds from issuance of common stock, net of issuance costs	—		161,682
Net cash provided by financing activities	1,775		163,219
Effect of exchange rate changes on cash	204		(99)
Net increase (decrease) in cash, cash equivalents, and restricted cash	1,096		(4,436)
Cash, cash equivalents, and restricted cash at beginning of period	71,952		89,323
Cash, cash equivalents, and restricted cash at end of period	$	73,048	$	84,887
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Interest expense paid in cash	$	5,164	$	13,021

See accompanying notes to the condensed consolidated financial statements.

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ARCUTIS BIOTHERAPEUTICS, INC.

Notes to Condensed Consolidated Financial Statements

(unaudited)

1. Organization and Description of Business

Arcutis Biotherapeutics, Inc. (the Company) is a commercial-stage biopharmaceutical company focused on developing and commercializing treatments for dermatological diseases with high unmet medical needs. The Company’s strategy is to focus on validated biological targets and to use its drug development platform and deep dermatology expertise to develop differentiated products that have the potential to address the major shortcomings of existing therapies in its targeted indications.

The Company received U.S. Food and Drug Administration (FDA) approval of its first product, ZORYVE® (roflumilast) cream 0.3% (ZORYVE cream 0.3%), in July 2022, for the treatment of plaque psoriasis, including intertriginous psoriasis, in individuals 12 years of age and older (subsequently approved down to 6 years old), and began U.S. commercialization in August 2022. The Company also received Health Canada approval of ZORYVE cream 0.3% in plaque psoriasis in April 2023 and began Canadian commercialization in June 2023. The Company received FDA approval of ZORYVE® (roflumilast) topical foam 0.3% (ZORYVE foam), in December 2023, for the treatment of seborrheic de

SEC Form 10-Q filed by Arcutis Biotherapeutics Inc.