Journey Medical Corporation (DERM) Market Cap
Journey Medical Corporation has a market capitalization of $123.5M.
Financials based on reported quarter end 2025-12-31
Price: $5.04
▲ 0.12 (2.44%)
Market Cap: 123.47M
NASDAQ · time unavailable
CEO: Claude Maraoui
Sector: Healthcare
Industry: Drug Manufacturers - Specialty & Generic
IPO Date: 2021-11-12
Website: https://journeymedicalcorp.com
Journey Medical Corporation (DERM) - Company Information
Market Cap: 123.47M · Sector: Healthcare
Journey Medical Corporation focuses on the development and commercialization of pharmaceutical products for the treatment of dermatological conditions in the United States. The company's marketed products include Qbrexza, a medicated cloth towelette for the treatment of primary axillary hyperhidrosis; Accutane, an oral isotretinoin drug to treat severe recalcitrant acne; Targadox, an oral doxycycline drug for adjunctive therapy for severe acne; Ximino, an oral minocycline drug for the treatment of moderate to severe acne; and Exelderm cream and solution for topical use. It also sells doxycycline hyclate tablets, minocycline hydrocholoride capsules, and sulconazole nitrate cream and solution. The company was formerly known as Coronado Dermatology, Inc. and changed its name to Journey Medical Corporation. Journey Medical Corporation was incorporated in 2014 and is headquartered in Scottsdale, Arizona.
Analyst Sentiment
Based on 3 ratings
Analyst 1Y Forecast: $13.00
Average target (based on 1 sources)
Consensus Price Target
Low
$11
Median
$12
High
$13
Average
$12
Potential Upside: 133.1%
Price & Moving Averages
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Fundamentals Overview
📊 AI Financial Analysis
Powered by StockMarketInfo"DERM reported revenue of $16.1M for the latest quarter ended 2025-12-31, with net loss of $1.25M and EPS of -$0.04. That implies a net margin of about -7.8%, indicating profitability remains challenging. Cash flow also weakened: free cash flow was -$2.38M (operating cash flow -$2.38M) in the latest reported cash flow period (2025-09-30), and the company paid no dividends. On the balance sheet, total assets were $94.6M versus $62.7M in liabilities, leaving equity of $31.9M. Notably, net debt is negative (-$24.0M), suggesting the company is currently net cash rather than highly levered. From a shareholder-return perspective, recent performance has been negative: the stock is down -22.2% over 1 year, and -30.7% over 6 months (with -35.8% year-to-date). Despite this, the analyst consensus price target of $11.75 versus the current price of $4.78 indicates the Street sees substantially higher long-term value—though near-term fundamentals and cash burn have limited observable operating progress. Overall, the setup points to continued execution and cash-flow improvement as key determinants of valuation."
Revenue Growth
Revenue of $16.1M is reported, but no prior-period (YoY/ QoQ) growth rate is provided in the dataset, limiting confidence on trend direction.
Profitability
Net loss of $1.25M (EPS -$0.04) on $16.1M revenue equates to ~-7.8% net margin, showing profitability is not yet established.
Cash Flow Quality
Free cash flow was -$2.38M and operating cash flow -$2.38M in the latest cash-flow period, with no dividends and no capex disclosed (capex reported as $0). Ongoing cash burn risk remains.
Leverage & Balance Sheet
Net debt is negative (-$24.0M), implying net cash. Equity of $31.9M versus liabilities of $62.7M supports some balance-sheet resilience despite profitability losses.
Shareholder Returns
Total shareholder return has been weak given the stock decline (-22.2% 1Y, -30.7% 6M, -35.8% YTD) and no dividends; buybacks are not reported.
Analyst Sentiment & Valuation
No P/E or FCF yield is provided, but analyst consensus of $11.75 versus $4.78 current price implies a valuation discount. Sentiment appears more positive than current price, yet fundamentals remain loss-making.
Disclaimer:This analysis is AI-generated for informational purposes only. Accuracy is not guaranteed and this does not constitute financial advice.
Management delivered a clear FY 2025 profitability and mix win: gross margin up ~3.5 percentage points to 66.2%, GAAP net loss narrowed to $(11.4)M, and adjusted EBITDA turned positive at $2.9M with ~$24M cash. The Q&A, however, revealed where the real execution risk sits: revenue conversion versus prescriptions is still being driven by downstream reimbursement mechanics. The company explicitly attributed Q4’s lower revenue per script to reimbursement mix (more scripts falling into co-pay bridging vs reimbursed), not deterioration in pricing. Near-term headwinds also showed up in prescription timing—deductible resets, severe storms, and shorter months made Q1 “flattish,” though March recovered and Q1 is expected to surpass Q4. The key catalyst for 2026 remains formulary conversion as the 3rd GPO is expected late Q1/early Q2 (described as imminent). Analysts pressured for quantitative gross-to-net expectations; management avoided numbers, instead emphasizing gradual improvement and upward pressure as co-pay subsidies decline.
Growth Catalysts
- Emrosi launched commercially in late March 2025; $14.7M net sales during the 3 quarters it was commercially available
- Emrosi prescription growth: 53,000 total prescriptions since April promotion start; ~27,000 annualized out of Q4 implying ~126,000 annual run-rate
- Sequential growth: Q4 total Emrosi prescription volume grew ~50% sequentially vs Q3
- Refill momentum: Emrosi refills per new prescription increased from ~1.0 in Q3 to 1.4 at end of 2025
- Expectation of improved reimbursement rates and reduced reliance on co-pay bridging as formulary policies mature through 2026
Business Development
- Market access: ~100M commercial covered lives with Emrosi access
- Coverage agreements with 2 of the top 3 GPOs (3rd GPO expected late Q1 or early Q2 2026; described as 'imminently' in Q&A)
- Target prescriber penetration: ended 2025 with ~3,200 unique Emrosi prescribers; disclosed >3,500 unique dermatology prescribers have written at least 1 script
Financial Highlights
- Revenue: $61.9M total revenues for FY 2025 (+10% vs $56.1M in FY 2024)
- Gross margin: 66.2% in 2025 vs 62.8% in 2024 (+3.4 percentage points, stated as 'nearly 3.5 percentage points')
- GAAP net loss: $(11.4)M or $(0.47) per share (basic and diluted) in 2025 vs $(14.7)M or $(0.72) per share in 2024
- EBITDA: improved from $(9.2)M loss (2024) to $(4.0)M loss (2025)
- Adjusted EBITDA: positive $2.9M in 2025 vs $0.8M in 2024
- Cash: ended 2025 with ~$24.1M cash (vs $20.3M at Dec 31, 2024)
- Q&A: Q4 revenue per script was lower in a way the company attributed to reimbursement mix (more scripts using co-pay assistance vs reimbursed), not long-term pricing
Capital Funding
- Cash balance: $24.1M at year-end 2025 (up from $20.3M at Dec 31, 2024)
- No buyback/debt guidance disclosed in the transcript
Strategy & Ops
- Sales force expansion planned: increase in single digits; ramped no later than early Q3 2026 (Q&A)
- Launch pipeline: plan to launch up to 2 additional incremental dermatology products in 2026 (one expected in 2H 2026; another remains unnamed)
- Marketing/publicity: planned exhibit at the American Academy of Dermatology meeting at end of March (conference presence to drive adoption)
Market Outlook
- Emrosi prescriptions: management expects Q1 total prescriptions to surpass Q4 number despite deductible resets; Q2 expected to build sequentially
- GPO milestone: 3rd major GPO contracting expected late Q1 or early Q2 2026; described as 'imminently' when asked in Q&A
- No quantitative revenue guidance provided; management emphasized scripts and gross-to-net improvement over 2026
Risks & Headwinds
- Generic competition pressure: Accutane franchise and other legacy products faced pressure from generic competition (management cited as the reason for 'pressure on our Accutane franchise and other legacy products')
- Gross-to-net and revenue conversion risk: demand tracks ahead of reported revenue due to health plan coverage decisions/formulary implementation cycle timing (downstream payer friction)
- Launch-year reimbursement constraints: first 12 months described as 'Phase I' (GPO contracting/new-to-market moratoriums/new-to-market blocks) implying continued demand/revenue lag until formularies convert
- Q1 prescription softness factors: deductible/co-pay resets, severe storms on the East Coast, and shorter month effects were explicitly cited as reasons Q1 was flattish
- Inventory/channel timing: Q4 revenue per script volatility attributed to shift in reimbursed vs co-pay-bridged scripts (co-pay assistance mix changes impact gross-to-net)
Sentiment: CAUTIOUS
Note: This summary was synthesized by AI from the DERM Q4 2025 earnings transcript. Financial data is complex; please verify all metrics against official SEC filings before making investment decisions.