Tarsus Pharmaceuticals (TARS) Narrowing EPS Loss Backs Bullish Earnings Turnaround Narrative

Tarsus Pharmaceuticals (TARS) closed FY 2025 with fourth quarter revenue of US$151.7 million and a basic EPS loss of US$0.20, while net income excluding extra items came in at a loss of US$8.4 million. The company has seen quarterly revenue move from US$48.1 million and a basic EPS loss of US$0.61 in Q3 2024 to US$151.7 million and a loss of US$0.20 per share in Q4 2025. Trailing twelve month EPS stands at a loss of US$1.59 on revenue of US$451.4 million, outlining a picture where higher sales are still accompanied by loss-making margins.

See our full analysis for Tarsus Pharmaceuticals.

With the headline numbers on the table, the next step is to set these results against the widely followed earnings narratives around Tarsus to see which views hold up and which might need a rethink.

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Losses Narrow While TTM Remains Deep in the Red

• On a trailing twelve month basis, Tarsus recorded a net loss of US$66.4 million on US$451.4 million of revenue, compared with a quarterly loss of US$8.4 million on US$151.7 million of revenue in Q4 2025, so the business is still loss making even though the recent quarter looks less heavy than the full year picture.
• Bulls argue that this kind of loss profile sets the stage for improvement, pointing to forecasts that earnings could grow about 50.69% per year and turn positive within three years. However, the current TTM net loss and loss per share of US$1.59 show that the earnings turnaround case is starting from a clearly negative base.
  • Supporters of the bullish view often highlight revenue forecast growth of 18.3% per year versus a 10.3% US market comparison. Even so, the TTM loss of US$66.4 million shows that higher revenue has not yet translated into positive margins.
  • The Q4 2025 basic EPS loss of US$0.20, compared with a TTM EPS loss of US$1.59, helps bulls argue that the most recent quarters may be trending closer to their profitability thesis, while still leaving plenty of room for that view to be tested in future results.

Bulls say this earnings line is exactly the kind of early-stage profile that could see a sharp swing if revenue and margins move the way they expect, and they lay out their full case in the 🐂 Tarsus Pharmaceuticals Bull Case.

Sequential Revenue Climb vs Five Year Loss Trend

• Over the last six reported quarters, quarterly revenue moved from US$48.1 million in Q3 2024 to US$151.7 million in Q4 2025. However, the company remained unprofitable across that whole period, with quarterly net income excluding extra items staying in loss territory from US$23.4 million in Q3 2024 to US$8.4 million in Q4 2025.
• Bears focus on this, pointing out that losses have expanded over the past five years at about 29% per year and arguing that even with higher revenue, the pattern of negative net income and negative EPS across every quarter shown in the data keeps profitability risk front and center.
  • Critics highlight that trailing losses of US$66.4 million sit alongside forecasts of high future earnings growth, and see that gap between current and expected profitability as a key area where things could fall short of projections.
  • The shift from a basic EPS loss of US$0.61 in Q3 2024 to US$0.20 in Q4 2025 is seen by cautious investors as encouraging but not decisive, because the five year history of growing losses keeps their attention on execution risk rather than just recent quarter to quarter moves.

Skeptics argue that this pattern of rising revenue but persistent losses deserves just as much attention as the growth story, and walk through that argument in detail in the 🐻 Tarsus Pharmaceuticals Bear Case.

Conflicting Signals From P/S and DCF Fair Value

• At a current share price of US$75.01, Tarsus trades on a P/S of 7.1x, which the data shows is below a 32x peer average but above the 4.3x US pharmaceuticals industry average, while a DCF fair value of about US$350.84 suggests the shares sit well below that modeled value.
• Consensus style commentary often points out this mix of signals, where the P/S multiple looks lower than peers but higher than the broader industry, and where the DCF fair value and an analyst price target cap of US$93.13 both sit above the current price. This leaves investors weighing current unprofitability against valuation markers that imply room for upside if the earnings path plays out as expected.
  • On one hand, the DCF fair value of US$350.84 is a very large premium to US$75.01, which can support the view that the market is pricing in a lot of execution risk compared with those model assumptions.
  • On the other hand, the P/S level of 7.1x being above the
    

    Next Steps

    To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Tarsus Pharmaceuticals on Simply Wall St. Add the company to your watchlist or portfolio so you’ll be alerted when the story evolves.

    If this mix of bullish and cautious views leaves you unsure, take a closer look at the numbers yourself and decide where you stand. To see what is driving the optimism in the data, check out the 3 key rewards and weigh those positives against your own expectations.

    See What Else Is Out There

    Tarsus is still carrying sizeable trailing losses alongside every recent quarter in the red, so profitability risk remains a key concern for many investors.

    If that earnings risk feels a bit uncomfortable right now, you might want to check companies screened for resilience using our 78 resilient stocks with low risk scores and compare their profiles side by side.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data
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    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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