Arcutis Biotherapeutics
ARQT on Nasdaq. Arcutis sells skin disease treatments to people with psoriasis and other skin conditions. Market value $3.2bn.
Price checks use the past 12 months to June 2026. Quality checks use five annual reports, the latest for the year to December 2025.
Should I look at this?
Not a fit for our list right now
Why it could be worth it
Nothing stands out yet.
See Health care stocks that passed both tests
This is not advice. Check the numbers below.
For every $100 of what the whole company costs, it produced $1.30 of spare cash in the past 12 months. A savings account pays about $4.
You pay 90.0 years of operating profit for the business. The average large US company costs around 18.
Each dollar kept in the business earns -60 cents a year. Above 10 is good.
Quality score: 30 of 100. Price score: 12 of 100. Our list needs 70 on quality and 60 on price.
$23.92 a share, 24% above its 1-year low
Over the past year the price has ranged from $19.30 to $31.77.
Pays no dividend
Prices from Tuesday’s close (6 October).
Five years of cash, in billions
Spare cash swings from quarter to quarter here: $39 million in the past 12 months, a shortfall of $6 million in the year to December 2025.
| Revenue | |||||
| Revenue | $0 | $4m | $60m | $197m | $376m |
| Operating margin | |||||
| Operating margin | n/a | -8183.0% | -404.5% | -65.3% | -3.3% |
| Debt to equity | |||||
| Debt to equity | 0.24 | 0.94 | 2.28 | 0.68 | 0.58 |
| Shares outstanding | |||||
| Shares outstanding | 0.06bn | 0.09bn | 0.12bn | 0.12bn | 0.13bn |
Health checks
- Free cash flow positive0 of 5 years
- Accounting looks honest (Beneish)Warning signs
- Financial strength (Piotroski)2 of 9
- Profit backed by cash (accruals)Yes
- Debt0.58× equity
- Revenue growth, five yearsUnknown
- Buying back its own sharesNo, 106% more shares since 2021
The quarter to June 2026
How the business did, compared with the same quarter a year earlier.
- Sales: $130 million last quarter, up 59% on a year ago.
- Profit: $15 million, after a loss of $16 million a year ago.
- It keeps 7 cents of each $1 of sales as operating profit, after losing 33 cents a year earlier.
- Spare cash over the past 12 months: $39 million. A year earlier it spent $66 million more than it brought in.
- 7% more shares than a year ago. Each share owns a bit less of the company.
- Debt is $75 million more than cash, up from $35 million a year ago.
- Sales grew on a year ago in each of the last 4 quarters.
| Quarter to | Amount |
|---|---|
| September 2024 | $45m |
| December 2024 | $71m |
| March 2025 | $66m |
| June 2025 | $82m |
| September 2025 | $99m |
| December 2025 | $130m |
| March 2026 | $105m |
| June 2026 | $130m |
| Quarter to | Amount |
|---|---|
| September 2024 | -$42m |
| December 2024 | -$11m |
| March 2025 | -$25m |
| June 2025 | -$16m |
| September 2025 | $7m |
| December 2025 | $17m |
| March 2026 | -$11m |
| June 2026 | $15m |
From the company's quarterly reports to the SEC.
Dates
- Next results (estimated)
- n/a
- Last annual report (10-K)
- 25 February 2026
- Next quarterly (estimated, 10-Q)
- 4 November 2026
Who owns it
1 long-term investor we follow owns it, up from 0 last quarter. 272 funds in all.
| Fund | Value | Share of that fund | Change |
|---|---|---|---|
| Gotham Asset ManagementJoel Greenblatt | $499,019 | <0.1% | New |
Largest holders overall
- Montanova Capital$326m
- BlackRock$277mAdded
- Frazier Life Sciences Management, L.P.$259m
- Rubric Capital Management LP$217m
- Polar Capital Holdings$173mAdded
- State Street$153mCut
- Vanguard Capital Management$131mAdded
- Morgan Stanley$117mAdded
- Jennison Associates$111mCut
- D. E. Shaw$104mAdded
From 13F filings for the quarter ended 30 June 2026.
Big holders and activists
4 investors own more than 5%.
- BlackRock, Inc.Passive investor14.1%Since 30 September 2026
- Patrick J. HeronPassive investorat least 7.5%(filed with 19 related holders)Since 18 August 2025
What they said
FLS VIII, FHM Life Sciences VIII, L.L.C, FLS X, FLSPF, FLSPOF, FLS XI and FLS XII each acquired the FLS VIII Shares (as defined below), the FHM Life Sciences VIII, L.L.C. Shares (as defined below), the FLS X Shares (as defined below), the FLSPF Shares (as defined below), the…
Read the filing - Rubric Capital Management LPPassive investorat least 6.8%(filed with 1 related holder)Since 31 December 2025
- Polar Capital Holdings PlcPassive investorat least 5.3%+1.1 pts(filed with 1 related holder)Since 30 June 2026
- STATE STREET CORPORATIONPassive investorSold down below 5%Since 30 June 2026
- PRUDENTIAL FINANCIAL INCPassive investorSold down below 5%Since 31 March 2026
- Polar Capital Funds PLC - Biotechnology FundPassive investorSold down below 5%Since 30 June 2025
- Jennison Associates LLCPassive investorSold down below 5%Since 31 March 2026
- The Vanguard GroupPassive investorSold down below 5%Since 13 March 2026
| Holder | Stake | Since | |
|---|---|---|---|
BlackRock, Inc. Passive investor | 14.1% | 30 September 2026 | |
Patrick J. Heron Passive investor | at least 7.5% (filed with 19 related holders) | 18 August 2025 | What they saidFLS VIII, FHM Life Sciences VIII, L.L.C, FLS X, FLSPF, FLSPOF, FLS XI and FLS XII each acquired the FLS VIII Shares (as defined below), the FHM Life Sciences VIII, L.L.C. Shares (as defined below), the FLS X Shares (as defined below), the FLSPF Shares (as defined below), the… Read the filing |
Rubric Capital Management LP Passive investor | at least 6.8% (filed with 1 related holder) | 31 December 2025 | |
Polar Capital Holdings Plc Passive investor | at least 5.3%+1.1 pts (filed with 1 related holder) | 30 June 2026 | |
STATE STREET CORPORATION Passive investor | Sold down below 5% | 30 June 2026 | |
PRUDENTIAL FINANCIAL INC Passive investor | Sold down below 5% | 31 March 2026 | |
Polar Capital Funds PLC - Biotechnology Fund Passive investor | Sold down below 5% | 30 June 2025 | |
Jennison Associates LLC Passive investor | Sold down below 5% | 31 March 2026 | |
The Vanguard Group Passive investor | Sold down below 5% | 13 March 2026 |
From Schedule 13D and 13G filings: anyone owning more than 5% must file one.
What insiders did
No insider bought shares on the open market in the last 12 months. 11 sold $16m, $13m of it under preset trading plans.
- Matsuda MasaruSee RemarksSoldunder a preset trading plan
- Date
- 16 September 2026
- Shares
- 3,674
- Price
- $25.00
- Value
- $91,853
- Welgus Howard G.DirectorSoldunder a preset trading plan
- Date
- 15 September 2026
- Shares
- 4,730
- Price
- $24.18
- Value
- $114,371
- Matsuda MasaruSee RemarksSoldunder a preset trading plan
- Date
- 8 September 2026
- Shares
- 9,989
- Price
- $25.03
- Value
- $249,986
- Curran TerrieDirectorSold
- Date
- 27 August 2026
- Shares
- 38,200
- Price
- $25.03
- Value
- $956,123
- Curran TerrieDirectorSold
- Date
- 20 August 2026
- Shares
- 1,072
- Price
- $26.04
- Value
- $27,912
- Burnett PatrickSee RemarksSold
- Date
- 19 August 2026
- Shares
- 1,697
- Price
- $27.00
- Value
- $45,819
- Welgus Howard G.DirectorSoldunder a preset trading plan
- Date
- 17 August 2026
- Shares
- 4,730
- Price
- $26.18
- Value
- $123,835
- Burnett PatrickSee RemarksSold
- Date
- 12 August 2026
- Shares
- 6,700
- Price
- $26.08
- Value
- $174,767
- Burnett PatrickSee RemarksSold
- Date
- 11 August 2026
- Shares
- 8,300
- Price
- $26.52
- Value
- $220,129
- Burnett PatrickSee RemarksSoldunder a preset trading plan
- Date
- 3 August 2026
- Shares
- 955
- Price
- $26.12
- Value
- $24,942
| Date | Who | Did | Shares | Price | Value |
|---|---|---|---|---|---|
| 16 September 2026 | Matsuda Masaru See Remarks | Sold under a preset trading plan | 3,674 | $25.00 | $91,853 |
| 15 September 2026 | Welgus Howard G. Director | Sold under a preset trading plan | 4,730 | $24.18 | $114,371 |
| 8 September 2026 | Matsuda Masaru See Remarks | Sold under a preset trading plan | 9,989 | $25.03 | $249,986 |
| 27 August 2026 | Curran Terrie Director | Sold | 38,200 | $25.03 | $956,123 |
| 20 August 2026 | Curran Terrie Director | Sold | 1,072 | $26.04 | $27,912 |
| 19 August 2026 | Burnett Patrick See Remarks | Sold | 1,697 | $27.00 | $45,819 |
| 17 August 2026 | Welgus Howard G. Director | Sold under a preset trading plan | 4,730 | $26.18 | $123,835 |
| 12 August 2026 | Burnett Patrick See Remarks | Sold | 6,700 | $26.08 | $174,767 |
| 11 August 2026 | Burnett Patrick See Remarks | Sold | 8,300 | $26.52 | $220,129 |
| 3 August 2026 | Burnett Patrick See Remarks | Sold under a preset trading plan | 955 | $26.12 | $24,942 |
From Form 4 filings: insiders must report trades in their own company's shares within two days.
Warning signs in its filings
Problems the company itself reported to the SEC, in its own words.
None of the warning signs we check for were found.
We look for five warning signs: doubt it can keep going, weak checks on its own accounts, a notice that its past accounts can't be relied on, a change of auditor, and one customer bringing in a big share of sales. We don't check lawsuits, investigations or debt yet.
We checked the auditor's report, internal controls, restatement notices, auditor changes and big customers in the 10-K filed 25 Feb 2026, plus the 10-Q filed 5 Aug 2026 and 4 later 8-Ks.
A 10-K is the yearly report every US company files with the SEC. An 8-K is a short notice of a big event.
What could go wrong
- Its accounts show patterns that sometimes come before companies have to correct past results (Beneish score).
- It isn't cheap on profits: 90.0× operating profit.
Whether the price already reflects the risks is what the deep dive is for.
The deep dive
Everything above is arithmetic on public filings. The deep dive reads the last ten years of annual reports, the proxy statements, and the earnings calls, then argues the case the way Buffett, Klarman, and Hohn would, and checks every claim against the source.
- What the business is worth, as a range, and the margin of safety at today’s price
- Prices to start buying, buy, and buy hard
- The three things that would make this a mistake
- Every number footnoted to the filing it came from
Your first deep dive is free.
Not advice. Numbers on this page come from SEC filings and are updated each night; prices are updated again after the US market closes. The five-year figures are rounded.