Short answer
Tarsus Pharmaceuticals, Inc. (TARS) filed its fiscal 2025 10-K annual report with the SEC on Feb 23, 2026. It reported revenue of $451M (+146.7% year over year) and net income of −$66M.
- Top risk flagged: Risk from OBBB Act tax reform, enacted July 2025, with $2.1M state income tax due to nonconforming states' capitalization requirements
FY2025 key financial metrics · XBRL
- Revenue
- $451M
- +146.7% YoY
- Net income
- −$66M
- +42.5% YoY
- Operating margin
- -15.7%
- +50.2 pp YoY
- EPS (diluted)
- −$1.59
- +48.2% YoY
- ROE
- -19.3%
- +32.1 pp YoY
- Operating cash flow
- −$12M
- +85.0% YoY
Source: XBRL data from the Tarsus Pharmaceuticals, Inc. (TARS) FY2025 10-K on SEC EDGAR. USD.
Tarsus Pharmaceuticals, Inc. FY2025 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Core business model: Development and commercialization of therapeutics addressing root causes of eye diseases, beginning with FDA-approved XDEMVY for Demodex blepharitis launched August 2023
- New product emphasis: Advancement of TP-04 for ocular rosacea with Phase 2 trial initiated December 2025; TP-05 oral tablet for Lyme disease prophylaxis with Phase 2 planned for Q2 2026
- Strategic shift: Expanding beyond eye care with systemic prophylactic indication targeting Lyme disease, exploring significant unmet needs outside ophthalmology
- Quantitative highlight: XDEMVY achieved $646 million net product sales launch-to-date; Saturn-2 trial showed 55% complete collarette cure vs 12% vehicle (p<0.0001)
- Noteworthy fact: First FDA-approved therapeutic for Demodex blepharitis with U.S. patient base estimated at 25 million; ongoing global regulatory progress including China approval expected in 2026
Management Discussion & Analysis
- Revenue $451.4M full year 2025 from XDEMVY sales, up from zero in 2024, delivering 400,000 bottles in 2025
- Net loss $66.4M in 2025 versus $115.6M in 2024 and $135.9M in 2023, operating expenses to increase with commercial expansion
- Best segment: XDEMVY eye care with $151.7M Q4 sales, ~90% covered lives, gross-to-net discount ~45% annually
- Cash, cash equivalents and marketable securities $417.3M at Dec 31, 2025; funded by IPOs, follow-on offerings, license fees, and credit facilities
- Forward outlook: Phase 2 trials ongoing for TP-04 ocular rosacea (results H1 2027) and TP-05 Lyme prophylaxis (Phase 2 start Q2 2026), potential EU/Japan/China approvals for TP-03
Risk Factors
- Risk from OBBB Act tax reform, enacted July 2025, with $2.1M state income tax due to nonconforming states' capitalization requirements
- China geopolitical risk from reliance on China Out-License with $86.1M proceeds and up to $100M sales milestones and royalties exposure
- Supply chain vulnerability from $23.8M non-cancelable minimum XDEMVY manufacturing purchase obligations through 2029
- Commercial disruption risk from expanded direct-to-consumer advertising costs of $112.6M for XDEMVY competing in market
- Financial risk from credit facility with 6.75%+ SOFR interest, $75M drawn in 2024, and potential covenants restricting operations
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