Journey Medical (NASDAQ:DERM) Posts Quarterly Earnings Results

Journey Medical (NASDAQ:DERM) released its quarterly earnings data on Wednesday. The company reported ($0.01) EPS for the quarter, topping the consensus estimate of ($0.02) by $0.01, FiscalAI reports. The firm had revenue of $18.51 million for the quarter, compared to the consensus estimate of $18.36 million. Journey Medical had a negative return on equity of 20.67% and a negative net margin of 8.95%.

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

• Q2 revenue increased 23% year over year to $18.5 million, driven by EMROSI net revenue of $8.1 million. GAAP net loss narrowed to $0.3 million, while EBITDA and adjusted EBITDA were positive.
• EMROSI momentum accelerated, with approximately 36,000 prescriptions in Q2, up 20% sequentially, and more than 4,500 dermatology prescribers versus about 3,200 at year-end 2025. June new prescriptions reached a monthly record of over 5,300.
• Payer access continued to improve, with high-quality commercial formulary coverage rising from 34% to approximately 38% of covered lives. Management expects the addition of a major national health plan and further reimbursement gains to support higher ASPs in the second half.
• QBREXZA revenue was somewhat light in the quarter, which management attributed to patient and payer mix and lingering insurance deductible resets, although prescription demand strengthened in June and July. SG&A is also expected to rise somewhat in the second half due to planned marketing and advertising programs.
• Journey launched the niche dermatology product Eurax Cream in July and placed it third in its sales-force promotion priority behind EMROSI and QBREXZA. The company is also pursuing international out-licensing opportunities and potential in-licensing deals, but provided no specific financial guidance or timing.

Journey Medical Trading Up 3.4%

DERM opened at $6.65 on Friday. The company has a market cap of $183.07 million, a P/E ratio of -30.23 and a beta of 1.08. The company has a current ratio of 1.72, a quick ratio of 1.47 and a debt-to-equity ratio of 0.74. Journey Medical has a 1-year low of $4.31 and a 1-year high of $9.56. The company’s 50 day moving average is $6.59 and its 200-day moving average is $6.61.

Journey Medical News Roundup

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

• Positive Sentiment: Q2 results exceeded expectations: Journey Medical reported a loss of $0.01 per share versus the $0.02 consensus loss, while revenue of $18.51 million topped estimates of $18.36 million. The earnings beat suggests better-than-expected operating performance. Journey Medical Reports Second Quarter 2026 Financial Results
• Positive Sentiment: Emrosi momentum remained strong: Management highlighted a 20% sequential increase for Emrosi, which reached $8.1 million, along with 38% high-quality coverage. The company also signaled continued average selling price gains in the second half of 2026, supporting the growth outlook. Journey Medical Signals Continued ASP Gains
• Positive Sentiment: B. Riley raised its price target: The firm reaffirmed a “buy” rating and increased its target to $15 from $12, implying substantial potential upside from the stock’s recent $6.65 level. This reinforces the bullish view that Emrosi and the company’s dermatology portfolio can drive future growth.
• Neutral Sentiment: Long-term profitability remains a key catalyst: HC Wainwright still projects positive EPS from 2027 onward, including $1.07 in 2027 and $1.66 in 2028, but the estimates are now below its prior forecasts. Investors will likely focus on whether improving product sales can translate into sustained profitability.
• Negative Sentiment: HC Wainwright cut earnings estimates across the forecast period: Q3 2026 EPS was reduced to $0.01 from $0.03 and Q4 to $0.02 from $0.07. Estimates for fiscal 2027 through 2030 were also lowered, including 2030 EPS to $1.92 from $1.98. The cuts indicate expectations for slower near-term earnings growth and are the primary bearish factor in the news flow.

Institutional Investors Weigh In On Journey Medical

Institutional investors and hedge funds have recently bought and sold shares of the business. J. Goldman & Co LP purchased a new position in Journey Medical in the 4th quarter worth about $6,155,000. Millennium Management LLC purchased a new position in Journey Medical during the 4th quarter worth approximately $3,530,000. Ikarian Capital LLC acquired a new position in shares of Journey Medical during the 4th quarter worth approximately $1,939,000. Wasatch Advisors LP grew its stake in Journey Medical by 23.8% in the second quarter. Wasatch Advisors LP now owns 1,152,059 shares of the company’s stock worth $8,272,000 after purchasing an additional 221,456 shares in the last quarter. Finally, Geode Capital Management LLC raised its position in Journey Medical by 130.7% during the second quarter. Geode Capital Management LLC now owns 262,353 shares of the company’s stock valued at $1,884,000 after buying an additional 148,612 shares during the period. 7.25% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently weighed in on the stock. Weiss Ratings reissued a “sell (d-)” rating on shares of Journey Medical in a research report on Friday, July 17th. Wall Street Zen upgraded shares of Journey Medical from a “hold” rating to a “buy” rating in a research report on Saturday, June 13th. Finally, B. Riley Financial reaffirmed a “buy” rating and set a $15.00 price objective (up from $12.00) on shares of Journey Medical in a report on Thursday. Two investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $14.00.

Journey Medical Company Profile

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.