Tarsus Pharmaceuticals (NASDAQ:TARS) Releases Quarterly Earnings Results, Misses Estimates By $0.01 EPS

Tarsus Pharmaceuticals (NASDAQ:TARS) released its quarterly earnings results on Monday. The company reported ($0.20) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.19) by ($0.01), FiscalAI reports. Tarsus Pharmaceuticals had a negative net margin of 22.17% and a negative return on equity of 26.29%. The business had revenue of $151.67 million for the quarter, compared to the consensus estimate of $144.56 million.

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 Price Performance

NASDAQ TARS opened at $69.59 on Tuesday. The stock has a 50-day simple moving average of $72.32 and a 200 day simple moving average of $68.16. Tarsus Pharmaceuticals has a twelve month low of $38.51 and a twelve month high of $85.25. The stock has a market capitalization of $2.95 billion, a PE ratio of -34.45, a P/E/G ratio of 0.96 and a beta of 0.57. The company has a debt-to-equity ratio of 0.22, a quick ratio of 4.25 and a current ratio of 4.29.

Insider Activity at Tarsus Pharmaceuticals

In related news, insider Dianne C. Whitfield sold 7,397 shares of the business’s stock in a transaction on Tuesday, December 16th. The shares were sold at an average price of $80.10, for a total transaction of $592,499.70. Following the transaction, the insider owned 38,958 shares of the company’s stock, valued at approximately $3,120,535.80. The trade was a 15.96% decrease in their ownership of the stock. The sale was disclosed in a legal filing 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 shares were sold at an average price of $82.51, for a total transaction of $495,060.00. Following the transaction, the chief executive officer owned 857,991 shares of the company’s stock, valued at approximately $70,792,837.41. The trade was a 0.69% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 8.97% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in TARS. Invesco Ltd. lifted its stake 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 valued at $82,892,000 after buying an additional 75,351 shares during the period. Mackenzie Financial Corp bought a new position in Tarsus Pharmaceuticals during the fourth quarter valued at about $202,000. XTX Topco Ltd raised its holdings in Tarsus Pharmaceuticals by 270.3% in the 4th quarter. XTX Topco Ltd now owns 18,410 shares of the company’s stock valued at $1,507,000 after acquiring an additional 13,438 shares in the last quarter. Squadron Capital Management LLC bought a new stake in shares of Tarsus Pharmaceuticals in the 4th quarter worth approximately $6,550,000. Finally, Tudor Investment Corp ET AL acquired a new stake in shares of Tarsus Pharmaceuticals during the 4th quarter worth approximately $1,859,000. Institutional investors and hedge funds own 90.01% of the company’s stock.

Analyst Ratings Changes

Several equities analysts have weighed in on TARS shares. The Goldman Sachs Group restated a “neutral” rating and set a $68.00 target price on shares of Tarsus Pharmaceuticals in a report on Thursday, February 5th. Guggenheim raised their price objective on Tarsus Pharmaceuticals from $84.00 to $87.00 and gave the company a “buy” rating in a research note on Wednesday, November 5th. Wall Street Zen upgraded Tarsus Pharmaceuticals from a “hold” rating to a “buy” rating in a report on Saturday, November 8th. Mizuho assumed coverage on Tarsus Pharmaceuticals in a research report on Thursday, November 20th. They set an “outperform” rating and a $100.00 target price for the company. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of Tarsus Pharmaceuticals in a report on Thursday, January 22nd. Two investment analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $82.29.

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.