What Journey Medical (DERM) Said on Its Q3 Earnings Call

Key Points

• Third-quarter results improved: Revenue rose to $19 million from $15 million a year earlier, while the net loss narrowed to $1.3 million from $3.9 million. Adjusted EBITDA increased to $3.5 million, marking a second consecutive profitable quarter on that measure.
• Emrosi continued to gain traction: The rosacea drug generated $9 million in quarterly net revenue, with prescriptions reaching about 40,000 and refill rates rising nearly 12% sequentially.
• Expanded coverage could support growth in 2027: Journey expects Emrosi to join a major national health plan covering more than 25 million people, potentially shifting prescriptions toward reimbursement. The company cautioned that deductible resets could delay the benefit early in the year.

Journey Medical NASDAQ: DERM reported higher third-quarter revenue and a narrower net loss as sales of its rosacea treatment Emrosi grew, while executives said broader insurance coverage could support the product’s pricing and revenue in 2027.

The company reported total revenue of $19 million for the quarter, compared with $15 million a year earlier. Chief Financial Officer Joseph Benesch described the increase as 8%, although the stated dollar figures imply a larger percentage gain. Emrosi generated $9 million in net revenue during the quarter.

Journey posted a net loss of $1.3 million, or $0.05 per share, compared with a loss of $3.9 million, or $0.14 per share, in the prior-year quarter. Adjusted EBITDA rose to $3.5 million from $1.4 million. The company said EBITDA was positive for the second consecutive quarter.

Emrosi prescriptions and coverage

Chief Executive Officer Claude Maraoui said Emrosi prescriptions totaled approximately 40,000 in the third quarter, up from about 36,000 in the second quarter. He described the sequential growth as approximately 8%, although the stated prescription figures imply a larger increase.

Maraoui said the number of unique prescribers rose by approximately 500 during the quarter to more than 5,000, meeting the company’s internal goal for the year. Refill rates rose nearly 12% from the second quarter, he said.

The company has expanded its sales force from 35 to about 40 representatives and is considering another increase in 2027. Maraoui said Journey is also considering a second trial program next year aimed at encouraging providers who have not adopted Emrosi to try it.

On insurance coverage, Maraoui said 40% of commercial lives currently have what Journey considers high-quality access to Emrosi, defined as coverage with a single-step requirement or better. A large national health plan added the drug to its formulary in early August, he said.

Chief Operating Officer and General Counsel Ramsey Alloush said Journey expects to be added to the largest national plan in the United States at the beginning of 2027. Maraoui said the plan covers more than 25 million lives and that the company expects a shift from non-reimbursed prescriptions to profitable prescriptions.

Alloush cautioned that first-quarter deductible resets may delay some of the benefit. He said the company expects average selling price and gross-to-net results to improve as 2027 progresses, including from other anticipated formulary additions.

Costs and fourth-quarter trends

Third-quarter gross margin improved to 69% from 67% a year earlier, primarily because of Emrosi’s lower impact on cost of sales, Benesch said. Selling, general and administrative expenses rose to $12.6 million from $12.1 million, including a $1.7 million charge related to a dispute with a former vendor.

Benesch said the settlement was a one-time cash payment and the dispute was fully resolved. Journey ended the quarter with $22.3 million in cash, down from $24.1 million at the end of 2025.

Asked about prescription trends after a change to the copay bridging program, Maraoui said the company saw volatility from late September into October but was seeing a recovery. The program helps patients whose insurance does not yet cover Emrosi on formulary. He said previous changes had caused temporary declines before prescriptions recovered.

Benesch said selling, general and administrative expenses should remain consistent or decline slightly as a percentage of revenue, even as Journey continues to invest in Emrosi and its sales force.

2027 outlook

Maraoui said Journey is strongly considering whether to provide formal 2027 guidance but may be reluctant to do so in the first half as it assesses the impact of the new health plan and other expected coverage additions.

The company also continues to explore opportunities to license commercial rights to its patented products outside the United States and to acquire rights to additional dermatology assets, Maraoui said.

About Journey Medical (NASDAQ:DERM)

Journey Medical Corporation is a commercial-stage pharmaceutical company focused on developing and marketing prescription treatments for dermatological conditions. Founded in 2014 and based in Scottsdale, Arizona, the company primarily serves the U.S. market. Its portfolio includes treatments for conditions such as acne, rosacea, excessive underarm sweating and fungal skin infections. Products include Amzeeq and Zilxi, topical minocycline therapies; Qbrexza, a topical treatment for primary axillary hyperhidrosis; and the oral rosacea treatment Emrosi.

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