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Journey Medical Corp
(NASDAQ:DERM)
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Rating:52Neutral
Price Target:
$6.50
▲(2.04% Upside)
Action:Reiterated
Date:06/26/26
The score reflects a split picture: strong earnings-call momentum and improving operating leverage are positive, but they are outweighed by weak financial performance today—especially negative TTM cash flow and continued losses alongside increased leverage. Technicals are neutral-to-improving but not strong enough to offset fundamental and valuation risk from unprofitable operations.
Positive Factors
Emrosi revenue acceleration
A ~200% YoY jump and healthy sequential growth for Emrosi demonstrates durable product-market fit and scalable demand in dermatology. Sustained prescription momentum and improving refill rates create a compounding revenue base that supports multi-period top-line expansion as commercial coverage deepens.
Negative Factors
Ongoing GAAP losses
Persistent GAAP net losses mean adjusted profitability hasn't yet translated to full accounting profitability. Continued GAAP deficits can constrain reinvestment, require external financing to fund growth, and signal structural margin shortfalls until scale, ASP stability, and payer reimbursement improve materially.
Read all positive and negative factors
Positive Factors
Negative Factors
Emrosi revenue acceleration
A ~200% YoY jump and healthy sequential growth for Emrosi demonstrates durable product-market fit and scalable demand in dermatology. Sustained prescription momentum and improving refill rates create a compounding revenue base that supports multi-period top-line expansion as commercial coverage deepens.
Read all positive factors
Journey Medical Corp (DERM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$183.10M
Dividend YieldN/A
Average Volume (3M)293.66K
Price to Earnings (P/E)―
Beta (1Y)0.43
Revenue Growth20.89%
EPS Growth40.71%
CountryUS
Employees58
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.23
Shares Outstanding22,224,396
10 Day Avg. Volume156,486
30 Day Avg. Volume293,661
Financial Highlights & Ratios
PEG Ratio0.47
Price to Book (P/B)5.93
Price to Sales (P/S)3.05
P/FCF Ratio-15.18
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$13.50Price Target Upside111.93% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.07
Revenue Forecast (FY)$82.61M
Journey Medical Corp Business Overview & Revenue Model
Company Description
Journey Medical Corporation, a pharmaceutical firm established in Scottsdale, Arizona in 2014 (and previously known as Coronado Dermatology, Inc.), is dedicated to the development and market introduction of treatments for skin conditions across th...
How the Company Makes Money
Journey Medical makes money primarily by selling prescription dermatology products in the U.S. through its commercial organization. Revenue is generated from product sales to wholesale distributors and specialty pharmacies (and ultimately to patie...
Journey Medical Corp Earnings Call Summary
Earnings Call Date:Aug 12, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
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.Positive Updates
Strong Revenue Growth
Total revenue of $18.5M in Q2 2026, up 23% year-over-year from $15.0M in Q2 2025. Net product revenues rose 23% YoY, driven primarily by Amrozi demand.
Negative Updates
Remaining Payer Friction and Limited High-Quality Coverage
Despite improvement, only ~38% of commercial lives have high-quality formulary coverage (single step-edit or better), leaving substantial population (~62% of 192M) still with higher friction (prior authorizations, step edits) that could slow adoption and reimbursement gains.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Revenue Growth
Total revenue of $18.5M in Q2 2026, up 23% year-over-year from $15.0M in Q2 2025. Net product revenues rose 23% YoY, driven primarily by Amrozi demand.
Read all positive updates
Company Guidance
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.Journey Medical Corp Financial Statement Overview
Summary
Income Statement
36
Negative
Balance Sheet
42
Neutral
Cash Flow
24
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 68.18M | 61.86M | 56.13M | 79.18M | 73.67M | 63.13M |
| Gross Profit | 42.43M | 36.68M | 35.26M | 52.52M | 42.89M | 31.05M |
| EBITDA | 1.85M | -3.33M | -8.40M | 1.92M | -23.18M | -32.77M |
| Net Income | -6.10M | -11.43M | -14.67M | -3.85M | -29.63M | -43.99M |
Balance Sheet | ||||||
| Total Assets | 98.36M | 94.59M | 80.24M | 76.85M | 105.16M | 97.28M |
| Cash, Cash Equivalents and Short-Term Investments | 25.64M | 24.09M | 20.30M | 27.44M | 32.00M | 49.08M |
| Total Debt | 25.54M | 25.40M | 25.70M | 17.73M | 22.96M | 9.05M |
| Total Liabilities | 66.24M | 62.74M | 60.17M | 56.50M | 88.18M | 55.24M |
| Stockholders Equity | 32.11M | 31.85M | 20.07M | 20.35M | 16.98M | 42.04M |
Cash Flow | ||||||
| Free Cash Flow | -7.49M | -12.44M | -24.13M | 240.00K | -33.53M | -12.18M |
| Operating Cash Flow | -7.49M | -12.44M | -9.13M | 5.24M | -13.53M | -2.18M |
| Investing Cash Flow | 0.00 | 0.00 | -15.00M | -5.00M | -20.00M | -10.00M |
| Financing Cash Flow | 12.84M | 16.23M | 16.99M | -4.80M | 16.46M | 53.02M |
Journey Medical Corp Risk Analysis
Journey Medical Corp disclosed 62 risk factors in its most recent earnings report. Journey Medical Corp reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Journey Medical Corp Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
58 Neutral | $118.37M | -10.90 | -47.10% | ― | -25.68% | -244.92% | |
55 Neutral | $396.22M | -23.14 | -24.94% | ― | 12.27% | 23.08% | |
52 Neutral | $183.10M | -29.75 | -20.23% | ― | 20.89% | 40.71% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | $62.81M | -3.85 | -87.28% | ― | -96.30% | 35.57% |
* Healthcare Sector Average
DERM
Journey Medical Corp
6.72
-0.23
-3.31%
TLPH
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1.23
0.80
189.41%
CPIX
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7.79
5.36
220.97%
SXTC
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4.33
-19,195.67
-99.98%
TKNO
Alpha Teknova
7.29
2.60
55.44%
Journey Medical Corp Corporate Events
Executive/Board ChangesShareholder Meetings
Journey Medical Shareholders Back Board and Auditor Slate
Positive
Jun 26, 2026
On June 24, 2026, Journey Medical Corporation held its 2026 annual meeting virtually, with stockholders representing 81% of the 27,346,466 eligible shares of common and Class A common stock present, thereby establishing a quorum and underscoring s...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.