Verrica Pharmaceuticals (NASDAQ:VRCA) Issues Earnings Results, Beats Estimates By $0.01 EPS

Key Points

• Verrica reported a quarterly loss of $0.49 per share, beating estimates by $0.01, and revenue of $6.91 million, above the $6.20 million consensus.
• U.S. YCANTH product revenue hit a record $5.7 million, up 57.9% year over year. Enrollment in the COVE-2 common-warts trial is complete, with top-line results expected in Q1.
• Net loss widened to $12.4 million, while revenue fell year over year partly because the prior-year quarter included a $10 million Torii milestone. Verrica had $14.4 million in cash at quarter-end and said its runway may extend into Q4 2027 if it draws remaining credit.

Verrica Pharmaceuticals (NASDAQ:VRCA - Get Free Report) posted its quarterly earnings results on Thursday. The company reported ($0.49) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.50) by $0.01, FiscalAI reports. The firm had revenue of $6.91 million during the quarter, compared to the consensus estimate of $6.20 million. Verrica Pharmaceuticals had a negative return on equity of 407.11% and a negative net margin of 102.84%.

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 Trading Down 4.9%

Shares of VRCA stock traded down $0.19 during mid-day trading on Thursday, reaching $3.72. The company's stock had a trading volume of 105,815 shares, compared to its average volume of 86,737. The company's 50 day simple moving average is $4.13 and its 200-day simple moving average is $5.45. Verrica Pharmaceuticals has a 12-month low of $3.08 and a 12-month high of $9.82. The company has a quick ratio of 1.33, a current ratio of 1.45 and a debt-to-equity ratio of 0.18. The firm has a market capitalization of $63.91 million, a PE ratio of -2.23 and a beta of 1.69.

Analyst Ratings Changes

VRCA has been the topic of a number of research reports. Wall Street Zen downgraded Verrica Pharmaceuticals from a "sell" rating to a "strong sell" rating in a report on Saturday, November 7th. Lake Street Capital began coverage on Verrica Pharmaceuticals in a report on Thursday, August 27th. They set a "buy" rating and a $9.00 target price for the company. Finally, Weiss Ratings reiterated a "sell (e+)" rating on shares of Verrica Pharmaceuticals in a report on Tuesday, October 13th. Three analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, Verrica Pharmaceuticals has an average rating of "Hold" and a consensus target price 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.

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