ARQTArcutis Biotherapeutics, Inc.

Pharmaceutical Preparations

Revenue: $372M; 123% YoY
Operating margin: -3.3%; 96% YoY
EBITDA: −$12M; 91% YoY
Market cap: $4.0B
Employees: 354; $1M revenue each
Net debt / EBITDA: —; $75M net debt
AI in 10-K: 0.8; mentions per 10K words

Takeover score 5 of 13

Fixable underperformance 3 of 7

TSR below peersYes
5 of 5 years
3+ of last 5 years
High CEO pay despite TSRNo
$5M median
Median CEO pay ≥ $15M while TSR trails
Earnings not backed by cashNo
—
Cash flow under 80% of net income
Dilutive SBCYes
11% of revenue
Over 10% of revenue
Payouts exceed cash flowNo
0% of cash flow
Buybacks + dividends over cash flow
Goodwill-heavyNo
—
Over 40% of assets
Shareholder dissentYes
67% lowest support
Any vote under 80% support

Buyer economics 1 of 4

Low revenue per employeeNo
$1M · 75th pct
Bottom quartile of its SIC industry
Quiet on AINo
0.8 per 10K words · 30th pct
Bottom quartile of AI mentions in 10-Ks
Net cashNo
—
More cash than debt, positive EBITDA
Buyout-sizedYes
$4.0B market cap
Market cap $500M–$5B

Catalysts 1 of 2

Active 13DNo
0 filings
Active-intent 13D in 18 months
Net insider sellingYes
−$15M net
Net sales over $10M in 12 months

Financials

Metric	FY2021	FY2022	FY2023	FY2024	FY2025	YoY	Trend
Revenue	$0	$4M	$29M	$167M	$372M	123%
Operating income	−$207M	−$302M	−$241M	−$128M	−$12M	90%
Net income	−$206M	−$311M	−$262M	−$140M	−$16M	88%
Operating cash flow	−$175M	−$258M	−$247M	−$112M	−$6M	95%
Capex	$995K	$333K	$428K	$143K	$686K	380%
Stock-based comp	$24M	$33M	$39M	$42M	$40M	3.3%

Deal filings

None.

13D filers

Filed	Filer	Form	Stake	Intent
Aug 20, 2025	Frazier Life Sciences VIII, L.P.	SCHEDULE 13D/A	7.3%	Passive
Mar 6, 2024	Frazier Life Sciences VIII, L.P.	SC 13D/A	7.8%	Passive
Oct 26, 2023	Frazier Life Sciences VIII, L.P.	SC 13D/A	9.3%	Passive
Aug 26, 2022	ORBIMED ADVISORS LLC	SC 13D/A	4.7%	Passive
Aug 9, 2022	Frazier Life Sciences VIII, L.P.	SC 13D/A	14.5%	Passive
Aug 8, 2022	Bain Capital Life Sciences Fund, L.P.	SC 13D/A	4.9%	Passive
Aug 8, 2022	ORBIMED ADVISORS LLC	SC 13D/A	5.4%	Passive
Jun 28, 2022	ORBIMED ADVISORS LLC	SC 13D/A	9.5%	Passive
May 27, 2022	Bain Capital Life Sciences Fund, L.P.	SC 13D/A	5.8%	Passive
Apr 8, 2022	ORBIMED ADVISORS LLC	SC 13D/A	9.6%	Passive

Insider trading

Open-market buys, 12 mo: $0 · 0
Open-market sells, 12 mo: $15M · 77
Net: −$15M

Pay vs performance

Year	CEO total comp	Comp actually paid	TSR (indexed)	Peer TSR
FY2025	$7M	$20M	103	120
FY2024	$4M	$11M	50	91
FY2023	$5M	−$1M	11	92
FY2022	$5M	$2M	53	89
FY2021	$5M	$442K	74	99