Journey Medical Corp (DERM) Q2 2026 Earnings Report

The call conveyed substantial commercial momentum—notably strong top-line growth (total revenue +23% YoY), robust Amrozi prescription growth (≈20% sequential), expanding prescriber footprint (>40% increase since 2025 year-end), positive EBITDA and materially narrowed GAAP losses—while also acknowledging remaining headwinds around payer friction (only ~38% high-quality formulary coverage), some product-level softness (QBREXZA in the quarter), and timing uncertainty for international out-licensing. Management highlighted continued investments (new reps, marketing, a new product launch) to capitalize on momentum. On balance, the positive operational and financial progress substantially outweighs the noted challenges.

Management reiterated that 2026 should be a "breakout year" for revenue growth and profitability, guiding to positive EBITDA for the remainder of the year and continued sequential gains in Amrozi performance: Q2 Amrozi net revenue was $8.1M and company total revenue was $18.5M (up 23% YoY) with a 67% gross margin; SG&A was $10.9M (vs $11.9M prior), GAAP net loss narrowed to $0.3M ($0.01/sh) from $3.8M ($0.16), EBITDA was $1.4M in Q2 ($1.1M YTD) and adjusted EBITDA $2.9M in Q2 ($3.5M YTD), and cash was $25.6M (vs $24.1M at 12/31/25). Key commercial KPIs are expected to keep improving: Amrozi totaled ~36k prescriptions in Q2 (≈20% sequential growth from ~30k in Q1), monthly new Rx hit an all‑time high of >5.3k in June (vs a 4.7k monthly average prior three months), monthly totals moved from ~13k in June to ~14k in July, and unique prescribers exceeded 4.5k (up >40% from 3.2k at end‑2025). On access and pricing, management noted ASP rose in Q2 vs Q1 (and Q1 vs Q4) and expects further ASP upside as formulary access improves—they now have planned access via top‑3 GPO deals to >169M of 192M commercial lives and quality (single‑step or better) coverage rose from 34% in Q1 to 38% currently after a major national plan addition in early August. They also said five new dermatology reps were hired and deployed in late July, Urox cream launched in late Q2/July, modest marketing spend may step up in Q3/Q4 but SG&A should remain roughly stable as a percent of revenue, and they expect continued payer/formulary milestones through Q3/Q4 and into 2028.