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Journey Medical Corporation (DERM)
NASDAQ:DERM
US Market
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Journey Medical Corp (DERM) AI Stock Analysis

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DERM

Journey Medical Corp

(NASDAQ:DERM)

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Neutral 52 (OpenAI - 5.2)
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.
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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)

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
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
Financials are mixed and still weak overall: modest TTM revenue growth (+4.6%) but continued losses (TTM EBIT margin -7.1%, net margin -14.8%). Balance sheet risk rose as leverage increased (debt-to-equity up to 0.83) despite positive equity. Cash flow is the main drag with TTM operating and free cash flow both at -$6.8M, indicating renewed cash burn and reliance on financing.
Income Statement
36
Negative
Balance Sheet
42
Neutral
Cash Flow
24
Negative
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue68.18M61.86M56.13M79.18M73.67M63.13M
Gross Profit42.43M36.68M35.26M52.52M42.89M31.05M
EBITDA1.85M-3.33M-8.40M1.92M-23.18M-32.77M
Net Income-6.10M-11.43M-14.67M-3.85M-29.63M-43.99M
Balance Sheet
Total Assets98.36M94.59M80.24M76.85M105.16M97.28M
Cash, Cash Equivalents and Short-Term Investments25.64M24.09M20.30M27.44M32.00M49.08M
Total Debt25.54M25.40M25.70M17.73M22.96M9.05M
Total Liabilities66.24M62.74M60.17M56.50M88.18M55.24M
Stockholders Equity32.11M31.85M20.07M20.35M16.98M42.04M
Cash Flow
Free Cash Flow-7.49M-12.44M-24.13M240.00K-33.53M-12.18M
Operating Cash Flow-7.49M-12.44M-9.13M5.24M-13.53M-2.18M
Investing Cash Flow0.000.00-15.00M-5.00M-20.00M-10.00M
Financing Cash Flow12.84M16.23M16.99M-4.80M16.46M53.02M

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

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
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
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DERM
Journey Medical Corp
6.72
-0.23
-3.31%
TLPH
Talphera
1.23
0.80
189.41%
CPIX
Cumberland Pharmaceuticals
7.79
5.36
220.97%
SXTC
China SXT Pharmaceuticals
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.Date of analysis: Jun 26, 2026