Journey Medical (NASDAQ:DERM) Posts Quarterly Earnings Results, Beats Expectations By $0.02 EPS

Journey Medical (NASDAQ:DERM) released its earnings results on Wednesday. The company reported ($0.04) earnings per share for the quarter, beating the consensus estimate of ($0.06) by $0.02, FiscalAI reports. The business had revenue of $16.08 million during the quarter, compared to analysts’ expectations of $18.86 million. Journey Medical had a negative net margin of 18.48% and a negative return on equity of 51.42%.

Here are the key takeaways from Journey Medical’s conference call:

• EMROSI achieved ~53,000 prescriptions in nine months, Q4 scripts rose ~50% sequentially, and >3,500 unique prescribers drove an exit annualized run-rate above 126,000 scripts.
• Full‑year 2025 revenue was $61.9M (+10%), gross margin improved to 66.2%, GAAP net loss narrowed to $11.4M, and the company reported positive adjusted EBITDA of $2.9M while ending the year with ~$24.1M cash.
• Market access is progressing—~100 million commercial covered lives and contracts with two of the top three GPOs (third expected soon)—but downstream payer formulary timing means prescription demand currently outpaces recognized revenue.
• Legacy products, notably the Accutane franchise, faced pressure from generic competition, weighing on the base business revenue in 2025.
• Management expects to remain adjusted EBITDA positive in 2026, plans a modest salesforce increase and the launch of one to two additional dermatology products, and sees reimbursement gains as the key driver of revenue conversion this year.

Journey Medical Stock Performance

Shares of NASDAQ DERM traded down $0.20 during mid-day trading on Friday, reaching $4.58. 122,810 shares of the company were exchanged, compared to its average volume of 173,472. The stock has a market capitalization of $152.38 million, a P/E ratio of -9.78 and a beta of 0.81. The company has a quick ratio of 1.12, a current ratio of 1.42 and a debt-to-equity ratio of 0.75. The company’s 50-day simple moving average is $8.00 and its 200-day simple moving average is $7.80. Journey Medical has a twelve month low of $4.51 and a twelve month high of $9.56.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. Jane Street Group LLC acquired a new stake in Journey Medical during the first quarter worth approximately $110,000. Geode Capital Management LLC grew its position in shares of Journey Medical by 130.7% in the second quarter. Geode Capital Management LLC now owns 262,353 shares of the company’s stock valued at $1,884,000 after purchasing an additional 148,612 shares during the last quarter. Creative Planning increased its stake in shares of Journey Medical by 178.5% during the second quarter. Creative Planning now owns 32,764 shares of the company’s stock worth $235,000 after purchasing an additional 21,000 shares during the period. JPMorgan Chase & Co. bought a new position in shares of Journey Medical during the second quarter worth approximately $41,000. Finally, New York State Common Retirement Fund acquired a new stake in Journey Medical during the 2nd quarter worth approximately $103,000. 7.25% of the stock is owned by institutional investors.

Key Journey Medical News

Here are the key news stories impacting Journey Medical this week:

• Positive Sentiment: Strong early adoption of Emrosi — management reported Emrosi net revenue of $14.7M in FY2025 with ~53,000 prescriptions filled and payer access covering over 100M U.S. commercial lives, supporting a path to higher revenue and margin expansion. Full-Year 2025 Financial Results and Recent Corporate Highlights
• Positive Sentiment: Q4 EPS beat — reported EPS of ($0.04) beat consensus of ($0.06), indicating better-than-expected per-share performance despite top-line pressure. Q4 2025 Earnings – MarketBeat
• Positive Sentiment: HC Wainwright remains bullish — the firm kept a Buy rating and a $13 price target and published multi-year EPS ramp forecasts (FY2026–FY2030 growth to ~$2.01), signaling analyst conviction in recovery/scale. HC Wainwright Buy Rating and $13 Target (summary)
• Neutral Sentiment: Full-year revenue growth — FY2025 revenues were $61.9M vs $56.1M a year earlier, showing growth but still early in commercialization. Full-Year 2025 Financial Results and Recent Corporate Highlights
• Neutral Sentiment: Earnings call/transcripts available — management provided guidance commentary and pipeline/coverage updates on the March 25 call; review the transcript for color on payer uptake and margin timing. Q4 2025 Earnings Call Transcript
• Negative Sentiment: Revenue miss — Q4 revenue was $16.08M versus analyst estimates of $18.86M, highlighting slower-than-expected commercial traction in the quarter and pressuring near-term valuation. Q4 2025 Results and Call
• Negative Sentiment: Margins and profitability remain a concern — Journey shows negative net margin and ROE on recent results, and HC Wainwright trimmed several out-year EPS forecasts slightly, underlining execution and scaling risks. (See HC Wainwright note for estimates.)

Analysts Set New Price Targets

DERM has been the subject of a number of recent analyst reports. Weiss Ratings reiterated a “sell (d-)” rating on shares of Journey Medical in a research note on Wednesday, January 21st. HC Wainwright reiterated a “buy” rating and set a $13.00 target price on shares of Journey Medical in a research note on Thursday. Three equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $13.00.

About Journey Medical

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.