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

Journey Medical (NASDAQ:DERM) posted its quarterly earnings results on Wednesday. The company reported ($0.04) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.06) by $0.02, FiscalAI reports. The firm had revenue of $16.08 million during the quarter, compared to analyst estimates 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 Price Performance

DERM stock traded down $0.20 during trading on Friday, hitting $4.58. 157,770 shares of the stock traded hands, compared to its average volume of 174,189. The stock has a market cap of $152.32 million, a price-to-earnings ratio of -9.74 and a beta of 0.81. Journey Medical has a one year low of $4.51 and a one year high of $9.56. The company has a current ratio of 1.42, a quick ratio of 1.12 and a debt-to-equity ratio of 0.75. The company has a 50 day simple moving average of $8.00 and a 200 day simple moving average of $7.80.

Analyst Upgrades and Downgrades

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

Institutional Trading of Journey Medical

Hedge funds have recently modified their holdings of the company. Lazard Asset Management LLC acquired a new position in shares of Journey Medical in the 4th quarter worth approximately $482,000. State of Wisconsin Investment Board increased its holdings in Journey Medical by 27.8% during the 4th quarter. State of Wisconsin Investment Board now owns 45,795 shares of the company’s stock valued at $353,000 after purchasing an additional 9,957 shares in the last quarter. Charles Schwab Investment Management Inc. increased its holdings in Journey Medical by 16.6% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 35,507 shares of the company’s stock valued at $274,000 after purchasing an additional 5,056 shares in the last quarter. Barclays PLC raised its position in Journey Medical by 28.2% in the 4th quarter. Barclays PLC now owns 22,521 shares of the company’s stock valued at $174,000 after purchasing an additional 4,955 shares during the last quarter. Finally, Jump Financial LLC boosted its stake in Journey Medical by 46.1% in the fourth quarter. Jump Financial LLC now owns 20,183 shares of the company’s stock worth $156,000 after purchasing an additional 6,373 shares in the last quarter. Institutional investors and hedge funds own 7.25% of the company’s stock.

More 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.)

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.