Arcutis Biotherapeutics Inc. (ARQT) saw its stock price surge 6.12% in intraday trading on Wednesday, following the release of its impressive second-quarter 2025 financial results and positive business updates. The biopharmaceutical company, focused on developing innovative therapies for dermatological diseases, reported better-than-expected earnings and significant revenue growth, driving investor optimism.

The company reported a quarterly adjusted loss of 13 cents per share, beating analyst expectations of a 16 cents per share loss. This represents a substantial improvement from the 42 cents per share loss reported in the same quarter last year. Arcutis's Q2 revenue skyrocketed by 164.1% to $81.50 million, surpassing Wall Street's expectations of $73.69 million. The robust revenue growth was primarily attributed to the strong demand for ZORYVE® (roflumilast), the company's flagship product for plaque psoriasis treatment.

Adding to the positive momentum, Arcutis announced that ZORYVE foam 0.3% received FDA approval for the treatment of plaque psoriasis of the scalp and body in adults and adolescents aged 12 and older. This regulatory win expands the potential market for ZORYVE and reinforces the company's position in the dermatology space. Furthermore, Arcutis initiated the INTEGUMENT-INFANT study to evaluate ZORYVE cream 0.05% in infants with atopic dermatitis, potentially opening up new growth avenues. The company's pipeline progress, including the submission of an Investigational New Drug Application for ARQ-234, a novel fusion protein for atopic dermatitis, also contributed to the positive investor sentiment.