TARS (Tarsus Pharmaceuticals) Operating Margin %: -3.78% (As of Mar. 2026)


TARS Tarsus Pharmaceuticals Inc TARS
48 GF Score
Price $67.11
GF Value $201.69
Valuation Possible Value Trap
! 2 Warning Signs
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What is Tarsus Pharmaceuticals Operating Margin %?

Tarsus Pharmaceuticals TARS +1.42% 48 Operating Margin % is -3.78% as of Mar. 2026. GuruFocus rates TARS with a GF Score™ of 48/100 and a GF Value™ of $201.69 (Possible Value Trap). The stock has 2 warning signs investors should review. Among 945 Biotechnology companies, Tarsus Pharmaceuticals ranks better than 66.98% on this metric.

Operating Margin % is calculated as Operating Income divided by its Revenue. Tarsus Pharmaceuticals's Operating Income for the three months ended in Mar. 2026 was $-6.1 Mil. Tarsus Pharmaceuticals's Revenue for the three months ended in Mar. 2026 was $162.1 Mil. Therefore, Tarsus Pharmaceuticals's Operating Margin % for the quarter that ended in Mar. 2026 was -3.78%.

The historical rank and industry rank for Tarsus Pharmaceuticals's Operating Margin % or its related term are showing as below:

TARS' s Operating Margin % Range Over the Past 10 Years
Min: -820.53   Med: -65.9   Max: -9.5
Current: -9.5


TARS's Operating Margin % is ranked better than
66.98% of 945 companies
in the Biotechnology industry
Industry Median: -86.77 vs TARS: -9.50

Tarsus Pharmaceuticals's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

Tarsus Pharmaceuticals's Operating Income for the three months ended in Mar. 2026 was $-6.1 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was $-50.8 Mil.


Tarsus Pharmaceuticals  (NAS:TARS) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Tarsus Pharmaceuticals Operating Margin % Related Terms


Tarsus Pharmaceuticals Operating Margin % Historical Data

* Premium members only.

The historical data trend for Tarsus Pharmaceuticals's Operating Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Tarsus Pharmaceuticals Operating Margin % Chart

Tarsus Pharmaceuticals Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Operating Margin %
Get a 7-Day Free Trial -21.32 -242.92 -820.53 -65.90 -15.72

Tarsus Pharmaceuticals Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -33.55 -21.61 -12.24 -5.26 -3.78

TARS vs VERA, IDYA, MLYS: Operating Margin % Comparison

For the Biotechnology subindustry, Tarsus Pharmaceuticals's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Tarsus Pharmaceuticals Operating Margin % vs Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Tarsus Pharmaceuticals's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Tarsus Pharmaceuticals's Operating Margin % falls into.


TARS
48GF Score
Tarsus Pharmaceuticals Inc TARS
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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Tarsus Pharmaceuticals Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Tarsus Pharmaceuticals's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as

Operating Margin %=Operating Income (A: Dec. 2025 ) / Revenue (A: Dec. 2025 )
=-70.969 / 451.36
=-15.72 %

Tarsus Pharmaceuticals's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as

Operating Margin %=Operating Income (Q: Mar. 2026 ) / Revenue (Q: Mar. 2026 )
=-6.122 / 162.054
=-3.78 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Operating Margin % →
What does a Operating Margin % of -3.78% mean?
Tarsus Pharmaceuticals (TARS) has a Operating Margin % of -3.78% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Tarsus Pharmaceuticals and its competitors. According to the industry distribution chart, Tarsus Pharmaceuticals ranks #312 out of 945 companies in the Biotechnology industry, placing it in the top 33%.
Is Tarsus Pharmaceuticals' Operating Margin % too high?
Tarsus Pharmaceuticals' current Operating Margin % is -3.78%. Based on the distribution chart, Tarsus Pharmaceuticals ranks #312 out of 945 companies in the Biotechnology industry, which is above the industry midpoint. Overall, Tarsus Pharmaceuticals has a GF Score™ of 48/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Tarsus Pharmaceuticals' Operating Margin % compare to VERA and IDYA?
According to the Biotechnology industry distribution chart, Tarsus Pharmaceuticals ranks #312 out of 945 companies for Operating Margin %. This puts Tarsus Pharmaceuticals in the upper half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Biotechnology company?
A good Operating Margin % depends on the Biotechnology industry context. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Tarsus Pharmaceuticals and its competitors. Tarsus Pharmaceuticals's current Operating Margin % is -3.78%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tarsus Pharmaceuticals stock overvalued right now?
Based on GuruFocus' analysis, Tarsus Pharmaceuticals (TARS) is currently considered Possible Value Trap. The stock's GF Value™ is $201.69, compared to a current price of $67.11 — trading 66.7% below its estimated fair value. The current Operating Margin % is -3.78%. Tarsus Pharmaceuticals' overall GF Score™ is 48/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Tarsus Pharmaceuticals (TARS), the current Operating Margin % is -3.78% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Tarsus Pharmaceuticals (TARS) Overvalued in 2026?

Based on GuruFocus' analysis, Tarsus Pharmaceuticals stock appears to be undervalued. The current stock price of $67.11 is trading 66.7% below its estimated GF Value™ of $201.69. GuruFocus considers Tarsus Pharmaceuticals to be Possible Value Trap.

Key valuation signals for TARS:

  • Operating Margin %: -3.78%
  • GF Value™: $201.69 vs. price of $67.11 (66.7% below fair value)
  • GF Score™: 48/100 with 2 warning signs

No single metric tells the full story. See the TARS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Tarsus Pharmaceuticals Business Description

Address 15440 Laguna Canyon Road, Suite 160, Irvine, CA, USA, 92618
Tarsus Pharmaceuticals Inc is a commercial-stage biopharmaceutical company focused on the development and commercialization of therapeutics, starting with eye care. The company is focused on the development and commercialization of first-in-class therapeutic candidates to provide treatment for ophthalmic conditions. The company's candidate XDEMVY is a novel investigational eye drop to treat blepharitis caused by the infestation of Demodex mites, referred to as Demodex blepharitis. TP-04 for the potential treatment of ocular rosacea and TP-05 for potential Lyme disease prophylaxis and community malaria reduction.
48GF Score

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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$67.11
Price
$201.69
GF Value