Arcutis Biotherapeutics, Inc.ARQT

Arcutis Biotherapeutics, Inc. Revenue Disclosure

10-KFiled Feb 25, 20262 min read
Revenues
Revenues are recognized under guidance within ASC 606, Revenue from Contracts with Customers. The following table presents the Company's disaggregated revenue for the periods presented (in thousands):
Year Ended December 31,
202520242023
ZORYVE cream 0.3%
$120,995 $85,082 $29,186 
ZORYVE foam
181,892 71,539 — 
ZORYVE cream 0.15%
68,274 9,921 — 
ZORYVE cream 0.05%
911 — — 
Total product revenue, net
372,072 166,542 29,186 
Other revenue
4,000 30,000 30,420 
Total revenues
$376,072 $196,542 $59,606 
Other revenue relates primarily to the Sato and Huadong licensing agreements. See Note 7.
Product revenue, net outside the United States represented less than 10% of the Company’s consolidated product revenue, net for the years ended December 31, 2025, 2024 and 2023.
Major customers are defined as customers that individually accounted for greater than 10% of the Company's revenue. The following table presents each major customer that accounted for more than 10% of its gross product sales.
Year Ended December 31,
% of gross product sales
202520242023
Customer A
17 %16 %13 %
Customer B
12 %12 %13 %
Customer C
11 %**
Customer D
11 %14 %21 %
Customer E
*13 %*
Customer F
**22 %
Total gross product sales from major customers
51 %55 %69 %
* Represents less than 10% of respective balance
As of December 31, 2025, amounts due from four of these customers each exceeded 10% of gross trade receivables and accounted for 60% of net trade receivables on a combined basis. As of December 31, 2024, amounts due from five of these customers each exceeded 10% of gross trade receivables and accounted for 69% of net trade receivables on a combined basis.

Historical Timeline

Fiscal YearFiled
2025Feb 25, 2026Showing above
2024Feb 25, 2025

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.

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