Tarsus Pharmaceuticals, Inc. (TARS)

Price$83.53Cached quoteAs of 2026-09-04 16:23 UTC

AI: Fair-priced

Price checkThe shares look roughly fair because rapid sales growth is offset by a demanding revenue valuation.

Using roughly 44 million shares outstanding, the market equity value is about $3.7 billion. Against 2026 XDEMVY sales guidance of $685 million to $705 million, that is roughly 5.2 to 5.4 times annual sales before adjusting for cash, debt, and pending acquisition shares. That is not cheap for a company still reporting losses, but second-quarter product sales grew 69% year over year and gross margin was 93%. Those strengths make the valuation demanding but defensible rather than clearly excessive.

Big pictureSales are scaling fast, but profits and cash generation are not yet consistently durable.

Revenue rose from $183.0 million in 2024 to $451.4 million in 2025, while the 2025 operating loss narrowed to $71.0 million from $120.6 million. Operating cash flow also improved sharply, from negative $83.0 million in 2024 to negative $12.5 million in 2025. The pattern remains uneven: first-quarter 2026 operating cash flow was negative $24.7 million, followed by positive $61.2 million in the second quarter. This suggests improving economics, but not yet a proven record of steady cash generation.

Business strengthXDEMVY has strong economics and adoption, while the company still relies on one marketed product.

Second-quarter XDEMVY sales reached $173.9 million, up more than 69% year over year, with a 93% gross margin. Tarsus also said the number of eye-care professionals prescribing XDEMVY at least five times weekly doubled from a year earlier. These are strong signs of product adoption and attractive unit economics. However, Tarsus currently generates product revenue from only one marketed medicine, and second-quarter selling, general and administrative spending was $150.7 million, showing that substantial commercial investment is still required to support growth.

What could change the storyProfitable scale would justify more upside, while acquisition spending and dilution raise the execution bar.

Capital allocation is becoming more aggressive. iRenix cost about $75 million upfront, half cash and half stock, with up to $490 million of milestones. The pending Alkeus deal requires about $270 million cash and $180 million of stock upfront, plus as much as $350 million of milestones. Tarsus also raised $125 million by issuing about 2.1 million shares plus pre-funded warrants. Healthcare demand is not highly economic-cycle sensitive, but results remain sensitive to XDEMVY adoption, reimbursement, marketing efficiency, and whether these acquired clinical programs eventually create enough value to offset dilution and spending.

AI: News

Sales guidance raisedXDEMVY growth remained very strong, prompting management to increase its full-year sales expectations.

On August 6, Tarsus reported second-quarter XDEMVY net product sales of $173.9 million, more than 69% above the prior-year quarter. Management raised full-year 2026 XDEMVY sales guidance to $685 million to $705 million from the previous $670 million to $700 million range. Gross margin remained 93%, although the company still recorded an $18.6 million quarterly net loss. The stronger guidance matters because continued prescription growth is the main near-term driver of operating leverage and future cash generation.

Alkeus deal and financingTarsus added a major late-stage retina program while accepting substantial cash spending and shareholder dilution.

On August 6, Tarsus announced an agreement to acquire Alkeus Pharmaceuticals for about $450 million upfront, including $270 million in cash and $180 million in Tarsus shares, plus up to $350 million of future milestones. Alkeus brings gildeuretinol, a Phase 3 treatment candidate for Stargardt disease, with topline data expected in the second half of 2029. Tarsus simultaneously announced a $125 million private placement involving about 2.1 million shares and additional pre-funded warrants, partly replenishing cash but increasing dilution.

iRenix acquisitionThe iRenix purchase broadened Tarsus beyond XDEMVY with another late-stage eye-care development program.

On July 8, Tarsus acquired iRenix Medical for approximately $75 million upfront, split evenly between cash and stock, with potential approval and commercial milestones of up to $490 million. Its IRX-101 program showed about a 50% relative reduction in post-procedure pain and about a 25% reduction in corneal staining versus povidone-iodine in a 154-patient study. Tarsus plans to begin a Phase 3 study in the first half of 2027, with results expected in 2028, creating a meaningful new opportunity but also additional development spending.

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Revenue

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2021

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2025

Net income

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2022

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2025

Free cash flow

2019

2020

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Total cash / debt

CashTotal debt

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2025

Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018
Revenue	$451.4M	$183.0M	$17.4M	$25.8M	$57.0M	$0	—	—
Research & development	$64.3M	$53.4M	$50.3M	$42.6M	$41.7M	$18.8M	$3.2M	—
Operating expenses	$522.3M	$303.5M	$160.6M	$88.5M	$69.2M	$27.0M	$4.3M	—
Operating income	−$71.0M	−$120.6M	−$143.2M	−$62.7M	−$12.2M	−$27.0M	−$4.3M	—
Operating margin	−15.72%	−65.90%	−820.53%	−242.92%	−21.32%	—	—	—
EBITDA	−$69.2M	−$119.3M	−$142.3M	−$62.4M	−$11.9M	−$26.9M	−$4.3M	—
EBITDA margin	−15.32%	−65.23%	−815.50%	−241.66%	−20.79%	—	—	—
Net income	−$66.4M	−$115.6M	−$135.9M	−$62.1M	−$13.8M	−$26.8M	−$4.7M	−$1.3M
Net profit margin	−14.72%	−63.16%	−778.89%	−240.51%	−24.25%	—	—	—
Basic EPSper basic share	-$1.59	-$3.07	-$4.62	-$2.52	-$0.67	-$4.32	-$1.98	—
Diluted EPSper diluted share	-$1.59	-$3.07	-$4.62	-$2.52	-$0.67	-$4.32	-$1.98	—

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

8.91%of listed shares

BlackRock, Inc.3.86M shares · Jun 30, 2026

View holders

Top 20 reported holders of TARS
Holder	% owned
BlackRock, Inc.	8.91%3.86M shares
Deep Track Capital, LP	8.47%3.67M shares
RTW INVESTMENTS, LP	7.76%3.36M shares
Jupiter Topco LLC	6.49%2.81M shares
Paradigm Biocapital Advisors LP	6.41%2.78M shares
Assenagon Asset Management S.A.	4.38%1.89M shares
MORGAN STANLEY	4.22%1.83M shares
VANGUARD CAPITAL MANAGEMENT LLC	4.14%1.79M shares
JENNISON ASSOCIATES LLC	3.84%1.66M shares
TANG CAPITAL MANAGEMENT LLC	3.62%1.57M shares
MILLENNIUM MANAGEMENT LLC	3.30%1.43M shares
BANK OF AMERICA CORP /DE/	2.76%1.19M shares
GEODE CAPITAL MANAGEMENT, LLC	2.56%1.11M shares
STATE STREET CORP	2.48%1.07M shares
Vestal Point Capital, LP	2.43%1.05M shares
Azamian Bobak R.	≈2.04%881.41K shares
Invesco Ltd.	1.82%785.81K shares
GOLDMAN SACHS GROUP INC	1.72%742.69K shares
Frazier Life Sciences Management, L.P.	1.68%728.64K shares
D. E. Shaw & Co., Inc.	1.64%710.56K shares

Percentages use 43.27M shares of this listed class outstanding on Jun 30, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)72$22.51M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 17, 2026Form 4 · 10b5-1	Azamian Bobak R.President/CEO and Board Chair	SellCommon Stock · indirect	5.4K	$61.81	$334.9K	848.0K
Jun 17, 2026Form 4 · 10b5-1	Azamian Bobak R.President/CEO and Board Chair	SellCommon Stock · indirect	4.6K	$61.24	$280.6K	853.4K
Jun 16, 2026Form 4	Farrow Jeffrey SSee Remarks	SellCommon Stock	14.4K	$60.95	$877.4K	56.8K
Jun 15, 2026Form 4 · 10b5-1	Goodrich KatherineDirector	SellCommon Stock	3.0K	$62.08	$183.4K	2.2K
Jun 15, 2026Form 4 · 10b5-1	LINK WILLIAM J PHDDirector	SellCommon Stock	1.9K	$62.94	$121.3K	106.8K