Tarsus Pharmaceuticals (TARS) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Tarsus Pharmaceuticals

NasdaqGS•Healthcare•Biotechnology

$77.64-0.59(-0.01%)Pre-market

Market Cap

$3.39B

P/S

5.6x

P/B

9.8x

Tarsus Pharmaceuticals, Inc., a commercial stage biopharmaceutical company, focuses on the development and commercialization of therapeutic candidates for eye care in the United States. The company offers XDEMVY, a lotilaner ophthalmic solution for the treatment of demodex blepharitis caused by the infestation of Demodex mites. It sells its products to specialty pharmacies and distributors, as well as clinics, hospitals, pharmacies, and federal healthcare programs. The company also develops TP-04, a sterile aqueous gel formulation of lotilaner in Phase 2 trial for the treatment of ocular rosacea; and TP-05, an oral tablet formulation of lotilaner in Phase 2 trial for the prevention of Lyme disease, as well as in pre-clinical studies for community malaria reduction. In addition, it is developing the lotilaner active pharmaceutical ingredient (API) to address diseases in human medicine, including eye care and infectious disease prevention. The company has a development and license agreement with Xi An Grand Chang An Pharmaceutical Co., Ltd. for the development and commercialization of TP-03 in China for the treatment of Demodex blepharitis and meibomian gland disease. Tarsus Pharmaceuticals, Inc. was incorporated in 2016 and is headquartered in Irvine, California.

How this company scores

WeakMetricSide Score: 62/100

Grade capped at D — Interest coverage below 1× (-5.6x) — earnings cannot cover interest. Strongest: Growth (20/25); weakest: Profitability (13/25).

Profitability13/25

Growth20/25

Balance Sheet & Red Flags15/25

Cash & Earnings Quality14/25

Strengths

Growing revenueLong cash runwayLow leverageConsistent growth

Grade capped at D

Interest coverage below 1× (-5.6x) — earnings cannot cover interest.

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/S · 5.6x5y range 5.4x – 47.7x

Currently below its 20-quarter median.

P/B · 9.8x5y range 1.6x – 10.3x

Currently above its 20-quarter median.

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Margin Pressure

Red Flag

The company posted negative operating margins in recent quarters — core operations are unprofitable.

Earnings Quality

Red Flag

Free cash flow has been negative in 5 of the last 8 quarters — earnings are not translating to cash.

Price & Volume

Market Cap $3.39B

Metrics at a Glance

as of June 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $606.33M
Q. Revenue: $173.91M
TTM EBITDA: $-46.20M
TTM Op. Income: $-48.53M
Q. Op. Income: $-19.91M
TTM Net Income: $-46.48M
Q. Net Income: $-18.55M
EPS: $-0.43
Shares Out.: $43.39M

$606.33M in TTM revenue grew 105.2% YoY, reaching $173.91M last quarter. TTM EBITDA of $-46.20M and TTM operating income of $-48.53M show growth is flowing through to the bottom line. However, net income is negative at $46.48M — growth is not yet reaching the bottom line. Across the last 8 quarters, TTM revenue has risen for 7 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 93.0%
EBITDA Margin: -10.9%
Op. Margin: -11.4%
Net Margin: -10.7%

Op. margin of -11.4% is up 10.2% YoY — cost efficiency is improving. Net margin at -10.7% and gross margin of 93.0% show how much of each revenue dollar survives to profit. Over the past year, operating margin is up 47% — a weakening trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: N/A
P/S Ratio: 5.6x
P/B Ratio: 9.8x

P/S of 5.6x and P/B of 9.8x.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $611.14M
Cash: $204.59M
Long-Term Debt: $72.76M
Book Value: $346.73M
D/E Ratio: 0.2
Debt/EBITDA: N/A

With $611.14M in assets and $72.76M in long-term debt, D/E is 0.2and book value is $346.73M — a conservative capital structure with a cushion to weather downturns. Over the past year, debt/equity is down 3% — a weakening trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $61.22M
TTM Free Cash Flow: $56.00M
FCF Margin: 9.2%
FCF / Net Income: -1.2

TTM FCF of $56.00M on $61.22M in operating cash flow. The FCF / Net Income ratio of -1.2x means the business consumes cash — it is not yet self-funding. Over the past year, free cash flow is up 168% — an improving trend.