Journey Medical Q2 Earnings Call Highlights

Journey Medical (NASDAQ:DERM) reported higher second-quarter revenue and a sharply narrower net loss as sales of its rosacea treatment EMROSI continued to grow, supported by rising prescription volume, broader prescriber adoption and improving payer reimbursement.

Total revenue for the second quarter of 2026 rose 23% year over year to $18.5 million, compared with $15 million in the prior-year period. EMROSI generated $8.1 million in net revenue during the quarter, Chief Financial Officer Joseph Benesch said. The company’s GAAP net loss narrowed to $300,000, or $0.01 per share, from $3.8 million, or $0.16 per share, a year earlier.

Journey Medical also reported positive EBITDA and adjusted EBITDA for both the second quarter and first half of 2026. Second-quarter EBITDA was $1.4 million, compared with an EBITDA loss of $1.9 million in the prior-year quarter, while adjusted EBITDA was $2.9 million, compared with an adjusted EBITDA loss of $500,000 a year earlier.

EMROSI Prescription Growth Accelerates

Co-Founder, President and Chief Executive Officer Claude Maraoui said EMROSI prescriptions totaled approximately 36,000 in the second quarter, up from about 30,000 in the first quarter. That represented roughly 20% sequential growth, accelerating from the 11% sequential growth reported in the prior quarter.

New prescriptions contributed to the growth. In June, more than 5,300 new EMROSI prescriptions were filled, compared with an average of 4,700 new prescriptions in each of the preceding three months. Maraoui said June marked an all-time monthly high for new prescriptions.

The number of dermatology providers prescribing the product also expanded. More than 4,500 unique dermatology prescribers have now written an EMROSI prescription, up from approximately 3,700 at the end of the first quarter and 3,200 at the end of 2025, according to management.

During the question-and-answer session, Maraoui said July prescription data showed approximately 14,000 EMROSI prescriptions, compared with about 13,000 in June. He said the company has not observed meaningful seasonality in the overall rosacea market and characterized prescription trends as strong.

Management attributed EMROSI adoption to its Phase III head-to-head results against Oracea, the other branded oral rosacea treatment cited on the call. Maraoui said dermatologists have responded to the product’s efficacy, rapid onset and tolerability profile. He said EMROSI is indicated for papulopustular rosacea and is being used particularly among moderate-to-severe patients.

Payer Coverage and Selling Price Improve

Journey Medical said the calculated average selling price for EMROSI increased in the second quarter from the first quarter, following an increase in the first quarter from the fourth quarter of 2025. Maraoui said there were no inventory movements during the quarter that affected the selling-price trend.

The company has agreements with the three largest U.S. group purchasing organizations, providing plan access to more than 169 million of 192 million covered commercial lives, management said. The percentage of commercial lives with what the company defines as high-quality formulary access—single-step therapy or better—increased to approximately 38% from 34% in the first quarter.

A large national health plan added EMROSI to its formulary in early August. Chief Operating Officer and General Counsel Ramsey Alloush said the addition should further improve access and support average selling price growth. The company continues discussions with other plans to reduce barriers such as prior authorization requirements and multi-step treatment edits.

Alloush said the company believes EMROSI’s clinical data and financial profile have resonated with payers, though it expects formulary negotiations to take time. Management said it expects selling prices to continue improving during the second half as more reimbursed prescriptions enter the mix.

Costs, Commercial Expansion and Portfolio Updates

Gross margin was 67%, unchanged from the year-earlier quarter. Selling, general and administrative expense declined to $10.9 million from $11.9 million, primarily reflecting launch-related EMROSI spending in the prior-year period.

Benesch said the company expects some higher SG spending in the second half tied to marketing and advertising programs, but he expects SG as a percentage of revenue to remain relatively consistent.

Journey Medical ended the quarter with $25.6 million in cash, up from $24.1 million at Dec. 31, 2025.

The company added five dermatology sales representatives during the second quarter. The representatives joined in late July and were deployed into the field, with most placed in white-space territories and some supporting territory splits in areas with a higher concentration of dermatologists.

Journey Medical also launched Eurax Cream, a 10% crotamiton anti-itch treatment, in July after training its commercial team in June. Maraoui described the product as non-steroidal, non-histaminic and fragrance-free. He said it is currently the third promotional priority behind EMROSI and QBREXZA, and that it is beginning to show early traction without providing sales guidance.

Regarding QBREXZA, Maraoui said the product remains a meaningful contributor and has historically generated roughly $25 million to $26 million in revenue. While its second-quarter performance was lighter, he cited patient and payer mix as factors and said June prescriptions exceeded 14,000, with July prescriptions just below 15,000.

Management also said it continues to explore out-licensing opportunities for its patented products outside the U.S., particularly EMROSI, while evaluating potential in-licensing opportunities to expand its dermatology portfolio. Maraoui said the company expects 2026 to be a “breakout year” for revenue growth and profitability and is focused on remaining EBITDA-positive for the rest of the year.

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.

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