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Journey Medical Corp
(NASDAQ:DERM)
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Rating:52Neutral
Price Target:
$6.50
▲(20.59% 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
$195.22M
Dividend YieldN/A
Average Volume (3M)296.62K
Price to Earnings (P/E)―
Beta (1Y)0.42
Revenue Growth15.00%
EPS Growth3.18%
CountryUS
Employees41
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.38
Shares Outstanding21,534,548
10 Day Avg. Volume196,071
30 Day Avg. Volume296,618
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 Cap0.83
Enterprise Value/Revenue2.49
Enterprise Value/Gross Profit4.13
Enterprise Value/Ebitda-111.77
Forecast
1Y Price Target
$14.00Price Target Upside159.74% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)0.07
Revenue Forecast (FY)$82.62M
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:May 13, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Positive
The call conveyed strong commercial momentum for Emrosi and meaningful financial improvement: robust revenue growth (total revenue +21% YoY; Emrosi revenue +~200% YoY), rising prescription volumes and prescriber counts, swing to positive adjusted EBITDA, and improved cash balance. Key execution wins include contracts with the three major PBM-affiliated GPOs and expanding clinical validation. Remaining execution items and risks include gross-margin pressure from a one-time API write-down, variability in revenue-per-script/ASP as payer coverage matures, limited current quality coverage (single-step or better ~34% of commercial lives), and an ongoing GAAP net loss. Overall, positive operational and financial trajectory but with clear near-term tasks on payer adoption and margin stability.Positive Updates
Strong Top-Line Growth
Total revenue of $16.0M in Q1 2026, up 21% year-over-year from $13.1M in Q1 2025.
Negative Updates
Gross Margin Impact from One-Time Charge
Reported gross margin declined to 61% in Q1 2026 from 63.5% a year ago due to a $1.3M noncash write-down of API inventory related to the 2021 Qbrexza acquisition (company states ex-item gross margin would have been ~69%).
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Top-Line Growth
Total revenue of $16.0M in Q1 2026, up 21% year-over-year from $13.1M in Q1 2025.
Read all positive updates
Company Guidance
Management said formal guidance will be provided later in the year but signaled clear directional targets: they expect operating leverage to increase and to deliver positive adjusted EBITDA (Q1 adjusted EBITDA +$0.6M vs -$0.9M in Q1 2025) and positive EBITDA for the remainder of 2026 and beyond. Key Q1 metrics cited were total revenue $16.0M (up 21% YoY from $13.1M), Emrosi revenue $6.3M, GAAP net loss $2.2M ($0.08/share) vs $4.1M ($0.18) prior, gross margin 61% (≈69% excluding a $1.3M one‑time API write‑down), and cash $27.2M (vs $24.1M at year‑end). Commercially, Emrosi scripts were ~30,000 in Q1 (vs ~27,000 in Q4, ~11% sequential growth), refill:new ≈1.5:1 (vs 1:1 at end‑2025), >3,700 unique prescribers (vs ~3,200), GPO coverage now reaches ~169M of 192M commercial lives (~85%) with ~34% (~60M) having single‑step or better coverage; the company plans up to +5 sales hires (35→40) to be in field by early Q3 and up to 2 niche launches this year.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 | 64.68M | 61.86M | 56.13M | 79.18M | 73.67M | 63.13M |
| Gross Profit | 39.07M | 36.68M | 35.26M | 52.52M | 42.89M | 31.05M |
| EBITDA | -1.44M | -3.33M | -8.40M | 1.92M | -23.18M | -32.77M |
| Net Income | -9.59M | -11.43M | -14.67M | -3.85M | -29.63M | -43.99M |
Balance Sheet | ||||||
| Total Assets | 91.53M | 94.59M | 80.24M | 76.85M | 105.16M | 97.28M |
| Cash, Cash Equivalents and Short-Term Investments | 27.22M | 24.09M | 20.30M | 27.44M | 32.00M | 49.08M |
| Total Debt | 25.47M | 25.40M | 25.70M | 17.73M | 22.96M | 910.00K |
| Total Liabilities | 60.70M | 62.74M | 60.17M | 56.50M | 88.18M | 55.24M |
| Stockholders Equity | 30.83M | 31.85M | 20.07M | 20.35M | 16.98M | 42.04M |
Cash Flow | ||||||
| Free Cash Flow | -6.70M | -12.44M | -9.13M | 240.00K | -33.53M | -12.18M |
| Operating Cash Flow | -6.70M | -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 | 12.85M | 16.23M | 16.99M | -4.80M | 16.46M | 53.02M |
Journey Medical Corp Technical Analysis
Positive
5.39
Price Trends
5.93
Positive
6.38
Positive
7.11
Negative
Market Momentum
0.28
Negative
63.84
Neutral
86.09
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DERM, the sentiment is Positive. The current price of 5.39 is below the 20-day moving average (MA) of 6.42, below the 50-day MA of 5.93, and below the 200-day MA of 7.11, indicating a neutral trend. The MACD of 0.28 indicates Negative momentum. The RSI at 63.84 is Neutral, neither overbought nor oversold. The STOCH value of 86.09 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DERM.
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 | $95.44M | -12.88 | -28.75% | ― | 2.08% | -106.57% | |
57 Neutral | $310.43M | -17.99 | -24.32% | ― | 9.29% | 31.97% | |
52 Neutral | $195.22M | -18.86 | -35.57% | ― | 15.00% | 3.18% | |
52 Neutral | $55.53M | -2.98 | -92.98% | ― | -96.30% | 32.21% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
DERM
Journey Medical Corp
7.09
>-0.01
-0.14%
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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...
Business Operations and StrategyProduct-Related Announcements
Journey Medical Expands Emrosi Commercial Access Across U.S.
Positive
Apr 21, 2026
On April 21, 2026, Journey Medical announced that approximately 85% of all U.S. commercial lives now have access to its rosacea treatment Emrosi, after securing a contract with a third major group purchasing organization. The new agreement expande...
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.