Tarsus Pharmaceuticals, Inc. (TARS) saw its stock price soar 6.15% in after-hours trading on Monday. The significant upward movement followed the release of the company's fourth-quarter and full-year 2025 financial results.

The biopharmaceutical company reported Q4 revenue of $151.668 million, surpassing analyst estimates of $144.6 million. Full-year net product sales for its flagship drug XDEMVY reached $451.4 million, representing growth of more than 150% year-over-year. Additionally, the company reiterated the peak sales potential for XDEMVY at over $2 billion and provided updates on clinical progress for other pipeline candidates, including the initiation of a Phase 2 trial for TP-04 in ocular rosacea.

Investor sentiment was further bolstered by the company's improved financial performance, with Q4 net loss narrowing to $8.4 million compared to $23.1 million in the same period last year. The company ended 2025 with a strong cash position of $417.3 million in cash, cash equivalents and marketable securities.