Journey Medical (NASDAQ:DERM) executives highlighted a “milestone” 2025 marked by the commercial launch of EMROSI, an internally developed oral treatment for the inflammatory lesions of rosacea, and pointed to improved profitability metrics as the product ramps.
On the company’s full-year 2025 results and corporate update conference call, management said EMROSI generated $14.7 million in net sales during the three quarters it was commercially available in 2025. The product was made available to pharmacies in late March 2025, with promotion beginning in early April.
EMROSI launch metrics: prescriptions, prescribers, and refills
Journey ended 2025 with about 3,200 unique EMROSI prescribers, meeting its initial goal focused on high-volume writers of ORACEA and similar products. The company later updated that figure to more than 3,500 unique dermatology prescribers who have written at least one EMROSI prescription.
Management also emphasized refill behavior. Maraoui said the third quarter of 2025 saw approximately one refill for every new prescription, and by the end of 2025 the ratio had risen to 1.4 refills per new prescription. He said the company expects that ratio to continue to grow, citing rosacea’s chronic nature and relapse patterns.
In response to analyst questions about early 2026 prescription trends, Maraoui attributed a “flattish” first-quarter pattern to several factors, including annual insurance deductible resets, severe East Coast storms, and the shorter month of February. He said March prescription activity “has come back in very strong,” and Journey still expects first-quarter total prescriptions to exceed the fourth quarter.
Market access and gross-to-net: access vs. coverage
Management repeatedly pointed to reimbursement dynamics as the key reason prescriptions have been tracking ahead of reported revenue. Maraoui said this was primarily driven by downstream health plan coverage decisions and formulary implementation cycles typical for a newly launched branded dermatology product.
As of the call, Journey said approximately 100 million commercial covered lives have access to EMROSI, including contracts with two of the top three U.S. group purchasing organizations (GPOs). The company reiterated it expects to contract with the third major GPO by late first quarter or early second quarter of 2026 and said it remains on track to do so.
COO and General Counsel Ramsey Alloush drew a distinction between “access” and “coverage.” He said GPO contracting provides a framework for downstream payer adoption, while “coverage” is achieved when national plans actually adopt EMROSI on formulary under those contracts. Alloush said the company is focused on “quality coverage,” including tier positioning and limiting step edits and prior authorization requirements, and expects gross-to-net improvement gradually through 2026 as formulary milestones are reached.
On questions about revenue per prescription and fourth-quarter gross-to-net impacts, Maraoui said fourth-quarter revenue-per-script calculations were influenced by reimbursement mix—specifically a higher proportion of prescriptions routed through the company’s co-pay bridging program rather than reimbursed prescriptions. He also referenced new-to-market blocks or moratoriums at some plans, which he said could lift after the product reaches its one-year mark, potentially improving reimbursement dynamics.
Clinical positioning and publications
Management said EMROSI is promoted on efficacy versus ORACEA—the only other branded oral rosacea treatment mentioned on the call—along with a “placebo-like” safety and tolerability profile and once-daily dosing. Maraoui pointed to EMROSI’s head-to-head superiority data versus ORACEA and placebo in Phase 3 trials and said physician feedback has been “very positive.”
Journey also cited third-party support for payer and prescriber discussions, including publication of EMROSI’s Phase 3 efficacy and safety results in JAMA Dermatology and updated treatment algorithms from the National Rosacea Society. Maraoui said the company expects up to three additional journal publications on EMROSI in 2026 and believes the drug has potential to be incorporated into consensus treatment guidelines.
The company said it presented EMROSI clinical data at two medical conferences in 2025 and plans to exhibit at the American Academy of Dermatology meeting at the end of March 2026, along with additional conference participation later in the year.
Full-year 2025 financial results
CFO Joseph Benesch reported total revenue of $61.9 million in 2025, up 10% from $56.1 million in 2024, attributing the increase to incremental net product revenue from the EMROSI launch.
- Gross margin: 66.2% in 2025 vs. 62.8% in 2024, driven by a favorable product mix (including EMROSI and QBREXZA) and lower inventory period costs.
- SG&A: $44.4 million vs. $40.2 million, reflecting increased operating activities to support EMROSI’s launch and expansion.
- GAAP net loss: $11.4 million, or $0.47 per share, compared with a $14.7 million loss, or $0.72 per share, in 2024.
- EBITDA: loss of $4.0 million, improved from a $9.2 million loss in 2024.
- Adjusted EBITDA: positive $2.9 million, compared with $0.8 million in 2024.
- Cash: $24.1 million at year-end 2025 vs. $20.3 million at year-end 2024.
- Working capital: $29.4 million vs. $13.0 million, an increase of $16.4 million.
Benesch said management is focused on disciplined expense management and margin expansion as EMROSI scales. He added that margin progression should benefit as higher-margin products like EMROSI and QBREXZA represent a larger share of sales and as the company continues to manage period costs such as shipping and testing.
On accounts receivable, Benesch said the fourth-quarter increase was timing-related and that “most, if not all” of the balance was collected subsequent to year-end, with the impact expected in the first quarter.
2026 outlook: profitability focus and additional launches
Maraoui said the company generated positive adjusted EBITDA and positive EBITDA in the fourth quarter of 2025 and expects to remain adjusted EBITDA positive in 2026 and “the foreseeable future,” citing anticipated sales growth and leverage from Journey’s commercial organization. Management said it plans to offer more detailed financial guidance later in 2026 as visibility improves on downstream payer adoption for EMROSI.
Journey also discussed planned portfolio expansion. Maraoui said the company expects to launch one or two incremental dermatology products later in 2026, and in the Q&A he indicated at least one appears likely in the second half of the year. He characterized them as incremental additions meant to support the “base business” outside EMROSI, describing one as internally developed and another as tied to a licensing deal, while withholding additional details for competitive reasons.
Management acknowledged competitive pressure on the legacy portfolio in 2025, including generic competition impacting the Accutane franchise, but said the company still delivered revenue growth and improved margins. Maraoui said the base business outside EMROSI generated about $46 million in 2025 revenue and that Journey expects it to remain stable, adding that Accutane prescription trends were stable from the third quarter to the fourth quarter and “looking strong” early in 2026.
About Journey Medical (NASDAQ:DERM)
Journey Medical Corp, headquartered in Fairfield, New Jersey, is a commercial dermatology company focused on acquiring, developing and marketing prescription dermatology products in the United States. Since its incorporation in 2019, the company has built a portfolio of both branded and generic topical therapies designed to address a range of skin conditions, including acne, atopic dermatitis, fungal infections and inflammatory lesions.
The company’s product lineup features antibiotic/anti-inflammatory combinations and corticosteroid-based formulations delivered through proprietary gel, cream and foam vehicles.
