SG&A Grew Faster Than ZORYVE
Arcutis' release put Q3 product revenue at $143.9 million, up 45% from $99.2 million a year earlier and 11% from Q2. Foam 0.3% contributed $75.1 million, cream 0.3% $37.8 million, cream 0.15% $27.3 million and cream 0.05% $3.7 million. Investing.com had consensus revenue at $141.94 million, so the top line beat.
The bottom line did not. Selling, general and administrative expense rose to $99.6 million from $62.4 million, an increase of nearly 60%, as the company ran its Simone Biles awareness campaign and expanded commercial efforts. Net income was $8.8 million, or $0.06 per diluted share, against the $0.18 consensus cited by Investing.com. Operating cash flow was $18.9 million and cash, restricted cash and marketable securities totaled $259.8 million.
A Raise That Landed Near Consensus
Arcutis lifted 2026 net product sales guidance to $535 million to $545 million from $525 million to $540 million. Investing.com put analyst consensus at $538.60 million, so the new midpoint of $540 million sits only slightly above what the Street already expected. The release also said topline Phase 2 results for ZORYVE foam in vitiligo, and a decision on whether to advance that program, remain on track for the fourth quarter of 2026.
A Call-Heavy Tape Meets a Downside Gap
ARQT lists monthly options only, with November 20 as the front expiration. At Wednesday's close, delayed Cboe data quoted the $35 call at $1.20 to $2.75 and the $35 put at $2.00 to $3.90. At midpoints the straddle cost about $4.93, roughly 14.5% of the $34.05 close, with break-evens near $30.07 and $39.93. Cboe's 30-day IV index stood near 63%.
Wednesday's volume was almost entirely calls, about 443 calls against 3 puts. The busiest lines were the January 15, 2027 $35 call at 157 contracts against open interest of 1,205 and the December 18 $40 call at 135 against 143. A $28.49 premarket print would leave the $35 put with about $6.51 of intrinsic value, above the straddle's midpoint cost, and push those upside calls further out of the money.
Earnings Out, Vitiligo Readout Still Ahead
Even with earnings behind it, ARQT still has a dated catalyst left this quarter in the vitiligo data. That can keep implied volatility on December and January contracts from deflating as far as it might after a stock's only near-term event. Traders comparing post-earnings premium across expirations often look at how much of each expiration's IV reflects that remaining readout. The very wide quoted spreads on ARQT's front-month lines mean the midpoint can differ meaningfully from what fills at. Our implied volatility guide covers IV behavior around events, and the OCC options disclosure document covers the risks of standardized options.
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*By the OptionsPilot Editorial Team. Published November 5, 2026, 3:18 AM PT. This article is for education only and is not investment advice. Options involve risk and are not suitable for all investors.*
