SEC Filings

Arcutis Doubles Its Stock-Sale Program To $200 Million As Selling Costs Jump 60%

The ZORYVE maker says it expects no need for financing, yet its selling expenses are growing faster than its revenue.

Matteo Parrino Jonathan Ponciano

Matteo Parrino, Jonathan Ponciano

— 2 min read
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Arcutis Doubles Its Stock-Sale Program To $200 Million As Selling Costs Jump 60%

Arcutis Biotherapeutics, which makes the steroid-free skin treatment ZORYVE, saw selling, general and administrative expenses rise $37.2 million, or 60% in the third quarter from a year earlier, outpacing 45% revenue growth, its 10-Q shows. In November it also raised the capacity of its at-the-market stock-sale program to $200.0 million.

Costs growing faster than sales

Revenue reached $143.9 million in the quarter, up 45%, while SG&A hit $99.6 million against $62.4 million a year earlier. The company says it expects SG&A to keep rising in future periods.

The "Skin to Believe In" awareness campaign and other marketing, media and celebrity spending explain $16.4 million of the rise. Hiring added $8.6 million, chiefly dermatology sales reps and a new group targeting primary care doctors and pediatricians. Arcutis took over that promotion after ending its agreement with Kowa effective January 23, 2026.

Still, the company posted third-quarter net income of $8.8 million, and nine-month net income of $12.5 million against a $33.5 million loss a year earlier.

A bigger share-sale shelf

In November, Arcutis amended its sales agreement with TD Cowen, lifting the at-the-market program, which lets a company sell shares gradually into the market, to $200.0 million from $100.0 million. The company has not sold any shares under the 2024 agreement or yet under the new one.

The 10-Q says Arcutis does not anticipate needing financings to support its current planned operations. It held $259.8 million in cash and marketable securities at September 30 and had $100.0 million of principal outstanding on its SLR loan, with a $6.95 million final fee due January 4, 2027.

Deal talk and what comes next

The filing says Arcutis regularly discusses acquiring or in-licensing products and businesses. Any such deal could require the issuance of equity, new debt or a significant portion of its cash.

The company also owes $9.2 million in interest-free promissory notes to former Ducentis stockholders, payable 12 months after their April 2026 issuance and callable by holders as early as seven months after. Arcutis has a market value of $4.0 billion as of its Wednesday report.

The company said it remains on track to report topline results from its Phase 2 vitiligo trial in the fourth quarter of 2026.

Sources

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