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Tarsus Pharmaceuticals, Inc. (TARS) Stock Fundamental Analysis & AI Rating 2026

TARS Nasdaq Biological Products, (No Diagnostic Substances) DE CIK: 0001819790
Recently Updated • Analysis: Apr 17, 2026 • SEC Data: 2025-12-31
HOLD
62% Conf
Pending
Analysis scheduled

📊 TARS Key Takeaways

Revenue: $451.4M
Net Margin: -14.7%
Free Cash Flow: $-22.3M
Current Ratio: 3.85x
Debt/Equity: 0.21x
EPS: $-1.59
AI Rating: HOLD with 62% confidence
Tarsus Pharmaceuticals, Inc. (TARS) receives a HOLD rating with 62% confidence from our AI fundamental analysis based on SEC 10-K filings. With revenue of $451.4M, net profit margin of -14.7%, and return on equity (ROE) of -19.3%, Tarsus Pharmaceuticals, Inc. demonstrates mixed fundamentals in the Healthcare sector. Below is our complete TARS stock analysis for 2026.

Is Tarsus Pharmaceuticals, Inc. (TARS) a Good Investment?

Claude

Tarsus demonstrates exceptional revenue growth of 146.7% YoY with improving loss trajectories, indicating strong commercial execution and market traction. However, negative operating cash flow (-$12.5M) despite rapid revenue growth reveals significant margin compression, creating cash burn concerns despite a strong balance sheet providing runway.

Why Buy Tarsus Pharmaceuticals, Inc. Stock? TARS Key Strengths

Claude
  • + Exceptional revenue growth of 146.7% YoY demonstrates strong market demand and commercial execution
  • + Strong balance sheet with $183.6M cash, minimal leverage (0.21x D/E), and excellent liquidity (3.85x current ratio) providing financial runway
  • + Improving loss trajectory with net loss improving 42.5% YoY, indicating movement toward profitability

TARS Stock Risks: Tarsus Pharmaceuticals, Inc. Investment Risks

Claude
  • ! Negative operating cash flow (-$12.5M) and free cash flow (-$22.3M) indicate unsustainable burn despite significant revenue generation, suggesting poor unit economics at scale
  • ! Deep operating losses (-15.7% margin) and net losses (-14.7% margin) with unclear timeline and path to profitability for a mature revenue stage
  • ! Structural cash burn consuming equity reserves; at current FCF burn rate and cash position, approximately 8-year runway if burn continues unchanged

Key Metrics to Watch

Claude
  • * Operating cash flow trajectory and timeline to positive OCF generation
  • * Gross margin evolution and ability to achieve operating leverage as revenue scales
  • * Cash burn rate and monthly cash consumption relative to revenue growth sustainability

Tarsus Pharmaceuticals, Inc. (TARS) Financial Metrics & Key Ratios

Revenue
$451.4M
Net Income
$-66.4M
EPS (Diluted)
$-1.59
Free Cash Flow
$-22.3M
Total Assets
$562.2M
Cash Position
$183.6M

💡 AI Analyst Insight

Strong liquidity with a 3.85x current ratio provides a solid financial cushion.

TARS Profit Margin, ROE & Profitability Analysis

Gross Margin N/A
Operating Margin -15.7%
Net Margin -14.7%
ROE -19.3%
ROA -11.8%
FCF Margin -4.9%

TARS vs Healthcare Sector: How Tarsus Pharmaceuticals, Inc. Compares

How Tarsus Pharmaceuticals, Inc. compares to Healthcare sector averages

Net Margin
TARS -14.7%
vs
Sector Avg 12.0%
TARS Sector
ROE
TARS -19.3%
vs
Sector Avg 15.0%
TARS Sector
Current Ratio
TARS 3.9x
vs
Sector Avg 2.0x
TARS Sector
Debt/Equity
TARS 0.2x
vs
Sector Avg 0.6x
TARS Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is Tarsus Pharmaceuticals, Inc. Stock Overvalued? TARS Valuation Analysis 2026

Based on fundamental analysis, Tarsus Pharmaceuticals, Inc. has mixed fundamental signals relative to the Healthcare sector in 2026.

Return on Equity
-19.3%
Sector avg: 15%
Net Profit Margin
-14.7%
Sector avg: 12%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.21x
Sector avg: 0.6x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

Tarsus Pharmaceuticals, Inc. Balance Sheet: TARS Debt, Cash & Liquidity

Current Ratio
3.85x
Quick Ratio
3.82x
Debt/Equity
0.21x
Debt/Assets
38.9%
Interest Coverage
-7.94x
Long-term Debt
$72.4M

TARS Revenue & Earnings Growth: 5-Year Financial Trend

TARS 5-year financial data: Year 2021: Revenue $57.0M, Net Income -$26.8M, EPS $-4.32. Year 2022: Revenue $57.0M, Net Income -$13.8M, EPS $-0.67. Year 2023: Revenue $25.8M, Net Income -$62.1M, EPS $-2.52. Year 2024: Revenue $183.0M, Net Income -$62.1M, EPS $-2.52. Year 2025: Revenue $451.4M, Net Income -$135.9M, EPS $-4.62.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Tarsus Pharmaceuticals, Inc.'s revenue has grown significantly by 691% over the 5-year period, indicating strong business expansion. The most recent EPS of $-4.62 indicates the company is currently unprofitable.

TARS Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-4.9%
Free cash flow / Revenue

TARS Quarterly Earnings & Performance

Quarterly financial performance data for Tarsus Pharmaceuticals, Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2025 $48.1M -$12.6M $-0.30
Q2 2025 $40.8M -$20.3M $-0.48
Q1 2025 $27.6M -$25.1M $-0.64
Q3 2024 $1.9M -$23.4M $-0.61
Q2 2024 N/A -$23.4M $-0.88
Q1 2024 $2.5M -$23.4M $-0.88
Q3 2023 N/A -$5.7M $-0.84
Q3 2022 N/A $1.0M $0.05

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

Tarsus Pharmaceuticals, Inc. Dividends, Buybacks & Capital Allocation

Operating Cash Flow
-$12.5M
Cash generated from operations
Capital Expenditures
$9.9M
Investment in assets
Dividends
None
No dividend program

TARS SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for Tarsus Pharmaceuticals, Inc. (CIK: 0001819790)

📋 Recent SEC Filings

Date Form Document Action
Mar 24, 2026 4 xslF345X06/wk-form4_1774386340.xml View →
Mar 19, 2026 4 xslF345X06/wk-form4_1773961495.xml View →
Mar 19, 2026 4 xslF345X06/wk-form4_1773961481.xml View →
Mar 19, 2026 4 xslF345X06/wk-form4_1773961468.xml View →
Mar 19, 2026 4 xslF345X06/wk-form4_1773961455.xml View →

Frequently Asked Questions about TARS

What is the AI rating for TARS?

Tarsus Pharmaceuticals, Inc. (TARS) has an AI rating of HOLD with 62% confidence, based on fundamental analysis of SEC EDGAR filings.

What are TARS's key strengths?

Claude: Exceptional revenue growth of 146.7% YoY demonstrates strong market demand and commercial execution. Strong balance sheet with $183.6M cash, minimal leverage (0.21x D/E), and excellent liquidity (3.85x current ratio) providing financial runway.

What are the risks of investing in TARS?

Claude: Negative operating cash flow (-$12.5M) and free cash flow (-$22.3M) indicate unsustainable burn despite significant revenue generation, suggesting poor unit economics at scale. Deep operating losses (-15.7% margin) and net losses (-14.7% margin) with unclear timeline and path to profitability for a mature revenue stage.

What is TARS's revenue and growth?

Tarsus Pharmaceuticals, Inc. reported revenue of $451.4M.

Does TARS pay dividends?

Tarsus Pharmaceuticals, Inc. does not currently pay dividends.

Where can I find TARS SEC filings?

Official SEC filings for Tarsus Pharmaceuticals, Inc. (CIK: 0001819790) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is TARS's EPS?

Tarsus Pharmaceuticals, Inc. has a diluted EPS of $-1.59.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.

Is TARS a good stock to buy right now?

Based on our AI fundamental analysis in April 2026, Tarsus Pharmaceuticals, Inc. has a HOLD rating with 62% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.

Is TARS stock overvalued or undervalued?

Valuation metrics for TARS: ROE of -19.3% (sector avg: 15%), net margin of -14.7% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.

Should I buy TARS stock in 2026?

Our dual AI analysis gives Tarsus Pharmaceuticals, Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is TARS's free cash flow?

Tarsus Pharmaceuticals, Inc.'s operating cash flow is $-12.5M, with capital expenditures of $9.9M. FCF margin is -4.9%.

How does TARS compare to other Healthcare stocks?

Vs Healthcare sector averages: Net margin -14.7% (avg: 12%), ROE -19.3% (avg: 15%), current ratio 3.85 (avg: 2).

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Apr 17, 2026 | Data as of: 2025-12-31 | Powered by Claude AI