Tarsus Pharmaceuticals (NASDAQ:TARS) Announces Quarterly Earnings Results, Misses Expectations By $0.24 EPS

Posted by Stanley Muller on Aug 8th, 2026

Tarsus Pharmaceuticals (NASDAQ:TARS – Get Free Report) issued its quarterly earnings results on Thursday. The company reported ($0.43) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.19) by ($0.24), FiscalAI reports. The company had revenue of $173.91 million during the quarter, compared to the consensus estimate of $169.65 million. Tarsus Pharmaceuticals had a negative return on equity of 13.57% and a negative net margin of 7.67%.

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 Trading Down 0.8%

TARS stock traded down $0.54 during mid-day trading on Friday, reaching $64.79. The company had a trading volume of 983,151 shares, compared to its average volume of 1,076,469. The company has a debt-to-equity ratio of 0.21, a current ratio of 3.74 and a quick ratio of 3.71. The company has a market capitalization of $2.79 billion, a PE ratio of -59.44 and a beta of 0.53. The firm has a 50 day moving average of $61.39 and a 200 day moving average of $64.94. Tarsus Pharmaceuticals has a 12 month low of $47.21 and a 12 month high of $85.25.

Insider Activity at Tarsus Pharmaceuticals

In other news, Director Katherine Goodrich sold 2,954 shares of Tarsus Pharmaceuticals stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $62.08, for a total transaction of $183,384.32. Following the completion of the sale, the director owned 2,233 shares of the company’s stock, valued at approximately $138,624.64. The trade was a 56.95% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Bobak R. Azamian sold 10,000 shares of the stock in a transaction that occurred on Wednesday, June 17th. The stock was sold at an average price of $61.55, for a total value of $615,500.00. Following the completion of the transaction, the chief executive officer directly owned 847,991 shares in the company, valued at approximately $52,193,846.05. This trade represents a 1.17% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 39,850 shares of company stock valued at $2,452,821. 9.64% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Invesco Ltd. increased its position in Tarsus Pharmaceuticals by 8.0% during the 4th quarter. Invesco Ltd. now owns 1,012,357 shares of the company’s stock valued at $82,892,000 after purchasing an additional 75,351 shares during the period. Mackenzie Financial Corp bought a new position in shares of Tarsus Pharmaceuticals during the fourth quarter valued at approximately $202,000. XTX Topco Ltd increased its holdings in Tarsus Pharmaceuticals by 270.3% during the fourth quarter. XTX Topco Ltd now owns 18,410 shares of the company’s stock valued at $1,507,000 after buying an additional 13,438 shares during the period. Squadron Capital Management LLC purchased a new position in Tarsus Pharmaceuticals during the fourth quarter valued at approximately $6,550,000. Finally, Tudor Investment Corp ET AL bought a new position in Tarsus Pharmaceuticals in the fourth quarter worth approximately $1,859,000. 90.01% of the stock is currently owned by institutional investors.

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

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on the stock. Mizuho reduced their target price on shares of Tarsus Pharmaceuticals from $100.00 to $98.00 and set an “outperform” rating on the stock in a research note on Friday, July 31st. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Tarsus Pharmaceuticals in a research note on Friday, July 17th. Wall Street Zen downgraded shares of Tarsus Pharmaceuticals from a “buy” rating to a “hold” rating in a report on Sunday, July 12th. HC Wainwright reissued a “buy” rating and issued a $88.00 price objective on shares of Tarsus Pharmaceuticals in a research report on Thursday, July 9th. Finally, Guggenheim decreased their price objective on shares of Tarsus Pharmaceuticals from $90.00 to $89.00 and set a “buy” rating for the company in a research note on Tuesday, July 21st. Two investment analysts have rated the stock with a Strong Buy rating, four have given a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $90.17.

View Our Latest Analysis on Tarsus Pharmaceuticals

Tarsus Pharmaceuticals Company Profile

(Get Free Report)

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.

Earnings History for Tarsus Pharmaceuticals (NASDAQ:TARS)

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