Journey Medical Corp (DERM)
NASDAQ:DERM
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Journey Medical Corp
(NASDAQ:DERM)
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Rating:48Neutral
Price Target:
$5.00
▼(-7.24% Downside)
Action:ReiteratedDate:04/22/26
The score is held down primarily by weak financial performance (ongoing losses and negative recent free cash flow) and bearish technical trends (price below key moving averages and negative MACD). Offsetting this, the latest earnings call and a subsequent access expansion event point to improving commercial traction for Emrosi and progress toward adjusted EBITDA sustainability, but execution and reimbursement risks remain important.
Positive Factors
Emrosi commercial traction
Sustained prescription growth and meaningful early sales indicate durable prescriber adoption and patient uptake. A growing base of unique prescribers and rising refill ratios point to repeat use, which supports predictable recurring revenue and a scalable commercial model over the next several quarters.
Negative Factors
Persistent GAAP losses & weak cash flow
Despite operating improvements, recurring GAAP losses and negative operating/free cash flow in the last two years indicate the company still consumes cash. Continued cash burn would force reliance on external financing or curtail growth investments, limiting long‑term financial flexibility if positive cash conversion slips.
Read all positive and negative factors
Positive Factors
Negative Factors
Emrosi commercial traction
Sustained prescription growth and meaningful early sales indicate durable prescriber adoption and patient uptake. A growing base of unique prescribers and rising refill ratios point to repeat use, which supports predictable recurring revenue and a scalable commercial model over the next several quarters.
Read all positive factors
Journey Medical Corp (DERM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$136.65M
Dividend YieldN/A
Average Volume (3M)296.62K
Price to Earnings (P/E)―
Beta (1Y)0.49
Revenue Growth10.20%
EPS Growth35.27%
CountryUS
Employees41
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.04
Shares Outstanding21,330,696
10 Day Avg. Volume196,071
30 Day Avg. Volume296,618
Financial Highlights & Ratios
PEG Ratio0.48
Price to Book (P/B)5.93
Price to Sales (P/S)3.05
P/FCF Ratio-15.18
Enterprise Value/Market Cap0.72
Enterprise Value/Revenue1.59
Enterprise Value/Gross Profit2.69
Enterprise Value/Ebitda-28.33
Forecast
1Y Price Target
$13.50Price Target Upside150.46% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.25
Revenue Forecast (FY)$84.74M
Journey Medical Corp Business Overview & Revenue Model
Company Description
Journey Medical Corporation focuses on the development and commercialization of pharmaceutical products for the treatment of dermatological conditions in the United States. The company's marketed products include Qbrexza, a medicated cloth towelet...
How the Company Makes Money
Journey Medical primarily makes money by selling its prescription dermatology products in the U.S. Its revenue model is centered on (1) product sales of its branded dermatology therapies, driven by physician prescribing and patient fulfillment thr...
Journey Medical Corp Earnings Call Summary
Earnings Call Date:Mar 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 19, 2026
Earnings Call Sentiment Positive
The call conveyed a largely positive operational and commercial narrative driven by the successful launch of Emrosi—strong prescription growth, clinical validation (JAMA Dermatology publication and superiority vs Oracea), improved gross margins, a healthier balance sheet and the achievement of positive adjusted EBITDA. Key near-term risks remain: reliance on payer/formulary timing (yielding demand-to-revenue lag), variability in revenue per script driven by reimbursement mix and co-pay program usage, pressure on legacy products from generics, and planned incremental sales/SG&A spend. On balance, progress toward sustainable profitability and multiple tangible market-access and clinical milestones outweighed the challenges discussed.Positive Updates
Successful Commercial Launch of Emrosi
Emrosi achieved $14.7 million in net sales during the 3 quarters it was commercially available in 2025; ~53,000 total prescriptions since promotion began in April 2025; Q4 prescription volume grew nearly 50% sequentially vs Q3; Q4 run-rate annualizes to over 126,000 prescriptions; unique prescribers grew from ~3,200 at year-end 2025 to over 3,500 currently (≈+9.4%).
Negative Updates
Pressure on Legacy Products from Generics
The Accutane franchise and other legacy products experienced pressure from generic competition; management referenced a revenue regression in Accutane of roughly $6.5 million, negatively impacting the base business.
Read all updates
Q4-2025 Updates
Positive
Negative
Successful Commercial Launch of Emrosi
Emrosi achieved $14.7 million in net sales during the 3 quarters it was commercially available in 2025; ~53,000 total prescriptions since promotion began in April 2025; Q4 prescription volume grew nearly 50% sequentially vs Q3; Q4 run-rate annualizes to over 126,000 prescriptions; unique prescribers grew from ~3,200 at year-end 2025 to over 3,500 currently (≈+9.4%).
Read all positive updates
Company Guidance
Management guided that Journey expects to remain adjusted EBITDA positive in 2026 and the foreseeable future, driven by Emrosi momentum and improving reimbursement; key metrics cited include ~53,000 total Emrosi prescriptions since promotion began in April 2025 (Q2 ≈7k, Q3 ≈18k, Q4 ≈27k), a Q4-exit annualized run rate >126,000 scripts, ~3,200 unique prescribers at year-end now >3,500, a refill ratio rising from ~1.0 in Q3 to 1.4 at year-end, and roughly 4,000 new prescriptions/month currently; commercial access sits at ~100 million covered lives with contracts with two of the top three GPOs and the third expected imminently (company indicated access would expand toward >150M), Emrosi net sales were $14.7M in the three quarters it was available, 2025 total revenue was $61.9M (+10% YoY) with net product revenue growth of 11%, gross margin improved to 66.2% (vs. 62.8%, ≈+3.5 pts), GAAP net loss was $11.4M ($0.47/sh) vs $14.7M ($0.72), EBITDA narrowed to a $4.0M loss (improved $5.2M) and adjusted EBITDA was +$2.9M (vs $0.8M), cash totaled $24.1M (vs $20.3M) and working capital $29.4M (vs $13.0M); management expects gradual quarter-over-quarter gross-to-net improvement in 2026, reduced reliance on co‑pay assistance, a meaningful inflection in revenue conversion as formularies mature, a single‑digit sales force increase by early Q3, up to 3 Emrosi publications this year, and 1–2 additional dermatology product launches in 2026, with more detailed financial guidance to follow once downstream payer adoption is clearer.Journey Medical Corp Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
52
Neutral
Cash Flow
29
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 61.86M | 56.13M | 79.18M | 73.67M | 63.13M |
| Gross Profit | 36.68M | 35.26M | 52.52M | 42.89M | 31.05M |
| EBITDA | -3.83M | -8.40M | 1.92M | -23.18M | -32.77M |
| Net Income | -11.43M | -14.67M | -3.85M | -29.63M | -43.99M |
Balance Sheet | |||||
| Total Assets | 94.59M | 80.24M | 76.85M | 105.16M | 97.28M |
| Cash, Cash Equivalents and Short-Term Investments | 24.09M | 20.30M | 27.44M | 32.00M | 49.08M |
| Total Debt | 119.00K | 25.70M | 17.73M | 22.96M | 910.00K |
| Total Liabilities | 62.74M | 60.17M | 56.50M | 88.18M | 55.24M |
| Stockholders Equity | 31.85M | 20.07M | 20.35M | 16.98M | 42.04M |
Cash Flow | |||||
| Free Cash Flow | -12.44M | -9.13M | 240.00K | -33.53M | -12.18M |
| Operating Cash Flow | -12.44M | -9.13M | 5.24M | -13.53M | -2.18M |
| Investing Cash Flow | 0.00 | -15.00M | -5.00M | -20.00M | -10.00M |
| Financing Cash Flow | 16.23M | 16.99M | -4.80M | 16.46M | 53.02M |
Journey Medical Corp Technical Analysis
Neutral
5.39
Price Trends
6.95
Negative
7.46
Negative
7.47
Negative
Market Momentum
-0.51
Negative
41.32
Neutral
73.93
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DERM, the sentiment is Neutral. The current price of 5.39 is above the 20-day moving average (MA) of 5.36, below the 50-day MA of 6.95, and below the 200-day MA of 7.47, indicating a neutral trend. The MACD of -0.51 indicates Negative momentum. The RSI at 41.32 is Neutral, neither overbought nor oversold. The STOCH value of 73.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 | $62.97M | -20.99 | -10.54% | ― | 17.57% | 58.90% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | $116.34M | -1.97 | -29.39% | ― | -5.00% | -39.97% | |
49 Neutral | $173.16M | -11.78 | -23.32% | ― | 7.35% | 44.64% | |
48 Neutral | $136.65M | -16.52 | -46.40% | ― | 10.20% | 35.27% | |
43 Neutral | $40.48M | -3.38 | -118.01% | ― | ― | 28.13% |
* Healthcare Sector Average
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Journey Medical Corp Corporate Events
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.