Arcutis Biotherapeutics Inc. (ARQT) stock is soaring 5.47% in pre-market trading on Thursday, building on the momentum from its impressive 6.12% gain during Wednesday's intraday session. The surge comes on the heels of the company's strong second-quarter 2025 financial results and significant business developments announced the previous day.

The biopharmaceutical company, which focuses on innovative dermatological therapies, reported better-than-expected Q2 earnings with an adjusted loss of 13 cents per share, outperforming analyst estimates of a 16 cents per share loss. This marks a substantial improvement from the 42 cents per share loss in the same quarter last year. Arcutis's revenue skyrocketed by 164.1% to $81.50 million, surpassing Wall Street's expectations of $73.69 million, driven primarily by strong demand for its flagship product, ZORYVE® (roflumilast) for plaque psoriasis treatment.

Adding to the positive momentum, Arcutis announced FDA approval for ZORYVE foam 0.3% to treat plaque psoriasis of the scalp and body in adults and adolescents aged 12 and older. The company also initiated the INTEGUMENT-INFANT study for ZORYVE cream 0.05% in infants with atopic dermatitis and submitted an Investigational New Drug Application for ARQ-234, a novel fusion protein for atopic dermatitis. These developments, coupled with a reiterated Buy rating from Mizuho Securities analyst Uy Ear with a price target of $21.00, are fueling investor optimism and contributing to the stock's pre-market rally.