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

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

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 Performance

Verrica Pharmaceuticals stock opened at $3.72 on Friday. Verrica Pharmaceuticals has a 1-year low of $3.08 and a 1-year high of $9.82. The firm has a 50 day simple moving average of $4.10 and a 200-day simple moving average of $5.43. The stock has a market cap of $63.91 million, a price-to-earnings ratio of -2.23 and a beta of 1.69. The company has a debt-to-equity ratio of 0.18, a current ratio of 1.45 and a quick ratio of 1.33.

Analyst Ratings Changes

Several analysts recently weighed in on VRCA shares. Lake Street Capital started coverage on shares of Verrica Pharmaceuticals in a report on Thursday, August 27th. They issued a “buy” rating and a $9.00 price target on the stock. Wall Street Zen cut shares of Verrica Pharmaceuticals from a “sell” rating to a “strong sell” rating in a research note on Saturday, November 7th. Finally, Weiss Ratings reiterated a “sell (e+)” rating on shares of Verrica Pharmaceuticals in a research report on Tuesday, October 13th. Three research 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.com, the stock has a consensus rating of “Hold” and a consensus price target of $12.67.

Verrica Pharmaceuticals Company Profile

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.