Tarsus Pharmaceuticals Inc. Common Stock (TARS)

FairStock Score: 45/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Tarsus as a Graham-style analyst, not as a venture capitalist. The business is commercial-stage eye care, with XDEMVY, a lotilaner ophthalmic solution for Demodex blepharitis. The filed sales ramp is real: revenue was $17.4M in fiscal year 2023 (period ended 2023-12-31), $183.0M in fiscal year 2024 (period ended 2024-12-31), and $451.4M in fiscal year 2025 (period ended 2025-12-31). In fiscal Q2 2026 (quarter ended 2026-06-30), revenue was $173.9M versus $102.7M in fiscal Q2 2025 (quarter ended 2025-06-30), while net loss was $18.6M versus $20.3M and diluted EPS was -$0.43 versus -$0.48. So the top line is scaling and losses are narrowing. Trailing free cash flow is $56.0M, a 1.8% FCF yield on the $3.1B market cap at the 2026-10-13 close of $70.82. That is not enough cash return to anchor value. The company still lost money in each of the last four years, so the computed Lynch category is none. FairStock's P/E is -66.19, P/B is 8.84, ROE is -13.68%, ROCE is -5.49%, and Piotroski is 4/9. Debt/equity of 0.26 and an Altman Z-score of 6.95 suggest balance-sheet risk is not immediate. But P/B of 8.84 gives little margin of safety, and the FairStock Score of 45/100 reflects mixed quality. The data do not let me verify a durable moat; the commercial story rests heavily on XDEMVY adoption, reimbursement, and eventual profit conversion. I would want to see GAAP profits and durable cash flow before calling this a Graham bargain.

In plain English: Tarsus is a healthcare company that sells an eye-care medicine called XDEMVY for a condition caused by tiny mites on the eyelids. Sales are growing fast, and the company is losing less money than before, but it still has not turned a profit. At the recent close of $70.82, the stock looks expensive compared with its current earnings and net assets, so it depends on future growth to justify the price.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer