Journey Medical Corporation ((DERM)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Journey Medical Corporation’s recent earnings call exuded a positive sentiment, largely fueled by impressive revenue growth and the successful launch of Amrozi. Despite facing challenges such as declining revenues from legacy products and reliance on co-pay assistance programs due to generic competition, the company is actively addressing these issues through strategic initiatives.
Strong Revenue Growth
Journey Medical Corporation reported a robust 21% year-over-year revenue growth in the third quarter of 2025, with total revenues reaching $17.6 million compared to $14.9 million in 2024. This growth underscores the company’s successful strategies in expanding its market presence and product offerings.
Successful Launch of Amrozi
Amrozi has significantly bolstered Journey Medical’s top line, contributing $4.9 million in Q3, which marks a 75% increase from Q2. The product’s prescription growth soared by 146%, with 18,198 prescriptions in Q3 compared to 7,394 in Q2, highlighting its strong market acceptance.
Positive Market Reception and Physician Feedback
The market reception for Amrozi has been overwhelmingly positive, with physicians praising its clinical benefits, including the onset of efficacy in as little as two weeks. Strong initial refill rates further indicate high satisfaction levels among prescribers and patients alike.
Improved Financial Metrics
Journey Medical has made strides in improving its financial metrics, with EBITDA improving by $500,000 from a loss of $1 million in 2024 to a loss of $500,000 in Q3 2025. The company also achieved a positive adjusted EBITDA of $1.7 million, compared to $300,000 in the previous year.
Impact of Generic Competition
The company faces challenges from generic competition, particularly affecting legacy products like Accutane, which saw a 16% decline in revenue year-over-year. This highlights the need for continued innovation and strategic positioning in the market.
Gross Margin Decrease
Journey Medical experienced a decrease in gross margin to 67.4% in Q3 2025 from 69.4% in the same period last year. This decline is attributed to favorable non-operational adjustments and product mix changes in Q3 2024.
Reliance on Co-pay Assistance Program
The company continues to depend on a co-pay assistance program as it navigates the slow adoption of health plan formularies, which impacts short-term financial performance. This reliance underscores the ongoing challenges in achieving widespread market access.
Forward-Looking Guidance
Journey Medical Corporation remains optimistic about its future, anticipating sustainable EBITDA positivity by Q4 2025. The company ended the quarter with $24.9 million in cash, up from $20.3 million at the end of 2024. Amrozi’s market access strategy has successfully secured over 100 million commercial lives, with plans to contract with a third major GPO early next year to expand coverage further.
In conclusion, Journey Medical Corporation’s earnings call highlighted a positive outlook, driven by strong revenue growth and the successful launch of Amrozi. Despite challenges from generic competition and reliance on co-pay assistance programs, the company is taking strategic steps to address these issues. Investors and market watchers can look forward to the company’s continued growth and financial improvements in the coming quarters.