Verrica Pharmaceuticals (NASDAQ:VRCA) Announces Quarterly Earnings Results, Misses Expectations By $0.08 EPS

Verrica Pharmaceuticals (NASDAQ:VRCA) released its quarterly earnings data on Wednesday. The company reported ($0.51) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.43) by ($0.08), FiscalAI reports. The business had revenue of $5.09 million for the quarter, compared to analyst estimates of $4.52 million.

Here are the key takeaways from Verrica Pharmaceuticals’ conference call:

• YCANTH commercial traction: Verrica reported >130% YoY revenue growth for YCANTH in 2025, dispensed applicator units rose 99% to 51,196 for the year, inventories are normalized, and February 2026 reached a record monthly high in dispensed units per selling day.
• Improved financial position: The company completed a $50 million PIPE, retired outstanding debt, recorded $30.1 million in cash as of 12/31/2025, and reduced SG&A by over 40%, extending runway into 2027.
• Common warts Phase 3 program underway with Torii: Verrica dosed the first patient in a global Phase 3 for YCANTH (common warts) in Dec 2025, received $18 million in milestone payments, and Torii will fund the first $40 million (~90% of current budget) with Verrica retaining rights outside Japan.
• VP-315 shows promising Phase 2 data and FDA alignment: The oncolytic peptide demonstrated a 97% objective response rate and an 86% tumor size reduction in Phase 2, with reported abscopal effects and FDA agreement on a streamlined Phase 3 design (two ~100-subject placebo-controlled studies).
• Remaining execution and funding uncertainty: Management did not provide 2026 revenue guidance and is actively seeking funding/partnerships to support VP-315 Phase 3 and other programs, meaning additional capital raises or dilution could be required despite the current runway.

Verrica Pharmaceuticals Price Performance

Shares of VRCA traded down $0.02 on Wednesday, reaching $5.96. The company’s stock had a trading volume of 42,088 shares, compared to its average volume of 142,902. The stock’s 50 day simple moving average is $6.79 and its two-hundred day simple moving average is $5.86. The stock has a market capitalization of $95.32 million, a P/E ratio of -1.75 and a beta of 1.47. Verrica Pharmaceuticals has a 12-month low of $3.28 and a 12-month high of $9.82.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the business. AQR Capital Management LLC increased its stake in shares of Verrica Pharmaceuticals by 306.7% in the 1st quarter. AQR Capital Management LLC now owns 58,711 shares of the company’s stock worth $26,000 after purchasing an additional 44,275 shares in the last quarter. Qube Research & Technologies Ltd bought a new position in Verrica Pharmaceuticals in the 2nd quarter worth $28,000. Invesco Ltd. lifted its position in Verrica Pharmaceuticals by 64.8% during the first quarter. Invesco Ltd. now owns 74,388 shares of the company’s stock valued at $33,000 after purchasing an additional 29,256 shares in the last quarter. Bridgeway Capital Management LLC purchased a new position in Verrica Pharmaceuticals during the third quarter valued at $52,000. Finally, Goldman Sachs Group Inc. grew its holdings in Verrica Pharmaceuticals by 23.3% during the first quarter. Goldman Sachs Group Inc. now owns 139,055 shares of the company’s stock valued at $61,000 after purchasing an additional 26,308 shares during the period. Hedge funds and other institutional investors own 42.45% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of brokerages recently weighed in on VRCA. Wall Street Zen lowered shares of Verrica Pharmaceuticals from a “buy” rating to a “hold” rating in a report on Saturday, February 7th. Brookline Capital Acquisition upgraded Verrica Pharmaceuticals from a “hold” rating to a “buy” rating and set a $17.00 price target for the company in a research note on Thursday, December 18th. TD Cowen reaffirmed a “buy” rating on shares of Verrica Pharmaceuticals in a research report on Wednesday, January 7th. Zacks Research downgraded Verrica Pharmaceuticals from a “strong-buy” rating to a “hold” rating in a report on Monday. Finally, Loop Capital set a $17.00 target price on shares of Verrica Pharmaceuticals in a research note on Thursday, December 18th. Two equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, Verrica Pharmaceuticals presently has an average rating of “Hold” and an average price target of $17.00.

About Verrica Pharmaceuticals

Verrica Pharmaceuticals Inc is a clinical‐stage biopharmaceutical company focused on the development and commercialization of topical therapies for dermatological conditions. Its lead investigational product, VP-102, is a standardized formulation of cantharidin in a pre-measured applicator designed to treat molluscum contagiosum and common warts. Verrica’s approach emphasizes consistency of dosing and patient convenience, aiming to improve upon off‐label use of existing treatments.

Beyond VP-102, Verrica is advancing VP-103, a next‐generation topical candidate intended to optimize tolerability while maintaining efficacy against viral skin lesions.