Welgus Howard G. 4

What Happened
Howard G. Welgus, a director of Arcutis Biotherapeutics (ARQT), exercised stock options to acquire 4,096 shares on July 15, 2026 and sold 4,730 shares the same day in an open‑market/private sale. Exercise details: 822 shares @ $6.52 ($5,361), 1,019 shares @ $7.51 ($7,653), and 2,255 shares @ $8.63 ($19,461) — aggregate exercise cost $32,475. The sale of 4,730 shares at $26.91 generated proceeds of $127,284. Net of the exercised shares, the transactions represent a net reduction of 634 shares held by the insider.

Key Details

• Transaction date: July 15, 2026 (Form 4 filed July 17, 2026 — timely)
• Exercises: 822 @ $6.52; 1,019 @ $7.51; 2,255 @ $8.63 (total 4,096 shares; total paid $32,475)
• Sale: 4,730 shares @ $26.91 for $127,284 (listed as open market/private sale)
• Net change: sold 4,730 vs. acquired 4,096 → net decrease of 634 shares
• Shares owned after transaction: not specified in the provided excerpt of the Form 4
• Footnotes: trades were executed under a 10b5‑1 trading plan adopted Mar 13, 2026 (plan end date June 15, 2027); the options exercised were fully vested
• Derivative items showing $0 on the disposition lines reflect termination of the option instruments upon exercise (standard reporting)

Context

• The sequence (exercise of options followed by a same‑day sale) is consistent with a cashless or sell‑to‑cover approach commonly used to cover option exercise costs and taxes; because more shares were sold than exercised, some sold shares came from prior holdings.
• The 10b5‑1 plan note indicates these trades were pre‑arranged under a written plan, which may reduce concerns about trading on nonpublic information; it does not speak to the insider’s motivation.
• This filing is by a company director (not a 10% owner).