Verrica Pharmaceuticals (NASDAQ:VRCA) Issues Earnings Results, Misses Estimates By $0.08 EPS

Verrica Pharmaceuticals (NASDAQ:VRCA) released its quarterly earnings data on Thursday. The company reported ($0.58) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.50) by ($0.08), Zacks reports. The company had revenue of $6.91 million for the quarter, compared to analyst estimates of $6.20 million. Verrica Pharmaceuticals had a negative net margin of 102.84% and a negative return on equity of 407.11%.

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

• U.S. YCANTH net product revenue reached a record $5.7 million, up 57.9% year over year, although dispensed units dipped slightly from Q2, which management attributed to seasonal patterns. The company also reported improved revenue yield per prescription as it works to reduce access and fulfillment issues.
• Verrica completed enrollment in the first pivotal common-warts trial, COVE-2, and exceeded 50% enrollment in COVE-3 ahead of schedule; top-line results are expected in Q1 and mid-2027, respectively. Management said Torii is funding the first $40 million—about 90% of the program’s current budget—and sees a potentially large market if YCANTH is approved for this use.
• Verrica is exploring an early proof-of-concept study of VP-315 in Gorlin syndrome, where patients face repeated BCCs and substantial surgical burden. The study design, costs, and timing are still being finalized, and management said its results could help guide the broader VP-315 development strategy.
• GAAP net loss widened to $12.4 million from $0.3 million a year earlier, while total revenue fell to $6.9 million from $14.3 million, largely because the prior-year quarter included a one-time $10 million Torii milestone. Verrica had $14.4 million in cash at quarter-end and said its runway could extend beyond the common-warts readouts into Q4 2027 if it draws the remaining $15 million available under its credit facility.

Verrica Pharmaceuticals Stock Down 4.9%

VRCA opened at $3.72 on Friday. Verrica Pharmaceuticals has a 12 month low of $3.08 and a 12 month high of $9.82. The company has a debt-to-equity ratio of 0.18, a current ratio of 1.45 and a quick ratio of 1.33. The stock has a market cap of $63.91 million, a P/E ratio of -2.23 and a beta of 1.69. The stock’s 50 day moving average price is $4.10 and its 200 day moving average price is $5.43.

Analyst Upgrades and Downgrades

Several equities research analysts have weighed in on VRCA shares. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Verrica Pharmaceuticals in a research report on Tuesday, October 13th. Lake Street Capital initiated coverage on shares of Verrica Pharmaceuticals in a research report on Thursday, August 27th. They set a “buy” rating and a $9.00 price target for the company. Finally, Wall Street Zen lowered shares of Verrica Pharmaceuticals from a “sell” rating to a “strong sell” rating in a research report on Saturday, November 7th. Three equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $12.67.

About Verrica Pharmaceuticals

Verrica Pharmaceuticals Inc. is a dermatology-focused biopharmaceutical company developing and commercializing therapies for skin diseases that have limited or inadequate treatment options. The company’s activities center on prescription products designed for use by dermatologists and other healthcare professionals. Verrica’s lead commercial product is YCANTHE (cantharidin) topical solution, 0.7%, a prescription treatment approved by the U.S. Food and Drug Administration for molluscum contagiosum in adults and children two years of age and older.