Dermata Therapeutics (DRMA) AI Stock Analysis

• Market Cap: $5.47M
• Dividend Yield: N/A
• Average Volume (3M): 249.42K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.05
• Revenue Growth: N/A
• EPS Growth: 90.53%
• Country: US
• Employees: 8
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -1.65
• Shares Outstanding: 2,835,343
• 10 Day Avg. Volume: 611,626
• 30 Day Avg. Volume: 249,418
• PEG Ratio: <0.01
• Price to Book (P/B): 0.13
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.02
• Enterprise Value/Market Cap: -0.61
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: 0.38
• 1Y Price Target: $10.00
• Price Target Upside: 367.29% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: $2.00 ▼(-6.54% Downside)

The score is primarily held back by pre-revenue financial performance, persistent losses, and heavy cash burn that imply ongoing financing/dilution risk. Technicals are mixed (short-term improvement but weak longer-term trend), while valuation metrics are not supportive due to negative earnings and no indicated dividend yield. Corporate events provide some funding relief but introduce uncertainty from a major strategic pivot.

Positive Factors

Intellectual Property

An Australian patent for the Spongilla acne technology, alongside an already-issued U.S. patent, creates durable IP protection that supports exclusivity for an OTC acne kit. This strengthens licensing leverage, raises barriers to entry, and secures product differentiation for commercialization over the next several years.

Conservative Capital Structure

A debt-free balance sheet reduces refinancing and interest-rate risk, giving strategic optionality as Dermata pivots to OTC. Improved equity provides a modest cushion against continued losses, making the firm less vulnerable to short-term creditor pressure while it executes a multi-quarter commercialization plan.

Near-term Funding and Managerial Alignment

The $3.7M net private placement eases immediate cash pressure and funds OTC launch activities. Insider participation signals management alignment with shareholders and confidence in the strategy, while warrants provide potential follow-on funding if exercised, supporting execution over the coming development and pre-launch phase.

Negative Factors

Pre-revenue Cash Burn

Sustained negative operating cash flow without product revenues consumes cash reserves and limits runway. Persistent burn forces repeated external financing, delaying profitability and making long-term margin sustainability and scalable operations speculative until commercial revenues materialize.

High Dilution / Financing Risk

Reliance on equity raises and ATM increases, plus warrant repricing, indicates ongoing dependence on capital markets. Repeated share issuance can dilute shareholders and constrain long-term EPS recovery, reducing flexibility to invest in marketing or R&D without further dilution until self-sustaining cash flow is achieved.

Strategic Pivot & Execution Risk

Shifting from prescription biologics to OTC skincare changes go-to-market dynamics, requiring consumer marketing, retail distribution, and OTC regulatory pathways. The termination of a license and IND withdrawal reduces pipeline optionality and raises execution risk that success hinges on nonclinical commercial capabilities the company must build quickly.

Dermata Therapeutics Business Overview & Revenue Model

Company Description

Dermata Therapeutics, Inc., a clinical-stage biotechnology company, focuses on identifying, developing, and commercializing pharmaceutical product candidates for the treatment of medical and aesthetic skin conditions. The company's lead product candidate is DMT310, which has completed Phase IIb clinical trial for treatment of moderate-to-severe acne; and Phase Ib proof of concept (POC) trial for Mild-to-Moderate Psoriasis, as well as is in a Phase 2 clinical trial for treatment of moderate-to-severe rosacea. It is also developing DMT410 that has completed Phase Ib POC trials for the treatment of hyperhidrosis and aesthetic conditions. The company was incorporated in 2014 and is headquartered in San Diego, California.

How the Company Makes Money

Dermata Therapeutics primarily makes money through the development and licensing of its proprietary dermatology treatments. The company's revenue model includes securing partnerships with larger pharmaceutical companies for the co-development or commercialization of its drug candidates. Key revenue streams are expected to come from milestone payments, royalties on product sales, and licensing fees once their drugs receive regulatory approval and are brought to market. Additionally, the company may engage in research collaborations and receive funding support from grants or other financial partnerships to advance its pipeline.

Dermata Therapeutics Financial Statement Overview

Summary

Financials reflect an early-stage, pre-revenue profile (revenue $0) with persistent losses (net loss about -$12.3M in 2024 and -$8.8M TTM) and ongoing cash burn (operating cash flow about -$11.2M in 2024 and -$9.3M TTM). The main offset is a conservative balance sheet with $0 debt and improved equity (to about $4.0M TTM), but continued funding/dilution risk remains high until revenue traction emerges.

Income Statement

Results remain firmly pre-revenue (revenue is $0 in both annual periods and TTM (Trailing-Twelve-Months)), with persistent operating losses. Profitability deteriorated versus 2023 (net loss of about -$12.3M in 2024 vs. -$7.8M in 2023) and remains sizable in TTM (net loss about -$8.8M). A modest improvement from 2024 to TTM is a positive, but overall earnings quality and scalability cannot be demonstrated without revenue traction.

Balance Sheet

Leverage looks conservative with total debt at $0 in 2024 and TTM (Trailing-Twelve-Months), which reduces refinancing risk. Equity improved from $1.6M (2024) to $4.0M (TTM), but remains volatile historically (including negative equity in 2020) and profitability is deeply negative, as reflected in very weak returns on equity. The balance sheet provides some flexibility, but ongoing losses create dilution/financing risk over time.

Cash Flow

Cash burn remains heavy and consistent with a development-stage biotech profile: operating cash flow is negative across all periods (about -$11.2M in 2024 and -$9.3M in TTM (Trailing-Twelve-Months)). Free cash flow is similarly negative, and TTM free cash flow declined versus the prior period (negative growth of about -14.7%), indicating burn is not yet stabilizing. While losses and cash burn are directionally aligned (free cash flow roughly matches net loss), the company remains dependent on external funding until revenues emerge.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	0.00
Gross Profit	0.00	0.00	0.00	0.00	0.00	-322.00
EBITDA	-8.85M	-12.29M	247.22K	-9.61M	-7.86M	-3.04M
Net Income	-8.85M	-12.29M	-7.79M	-9.61M	-7.90M	-3.24M
Balance Sheet
Total Assets	5.07M	3.53M	7.98M	6.94M	11.62M	605.45K
Cash, Cash Equivalents and Short-Term Investments	4.66M	3.16M	7.44M	6.24M	10.80M	530.40K
Total Debt	0.00	0.00	0.00	0.00	0.00	3.55M
Total Liabilities	1.11M	1.97M	1.62M	922.63K	1.52M	3.78M
Stockholders Equity	3.96M	1.56M	6.36M	6.02M	10.11M	-3.18M
Cash Flow
Free Cash Flow	-9.34M	-11.16M	-6.41M	-8.83M	-5.69M	-4.03M
Operating Cash Flow	-9.34M	-11.16M	-6.41M	-8.83M	-5.69M	-4.03M
Investing Cash Flow	0.00	0.00	0.00	0.00	0.00	0.00
Financing Cash Flow	7.86M	6.89M	7.61M	4.28M	15.96M	2.57M

Dermata Therapeutics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DRMA, the sentiment is Negative. The current price of 2.14 is below the 20-day moving average (MA) of 2.25, below the 50-day MA of 2.42, and below the 200-day MA of 5.07, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 43.67 is Neutral, neither overbought nor oversold. The STOCH value of 2.45 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DRMA.

Dermata Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
DRMA	47 Neutral	$5.47M	-0.10	-203.36%	―	―	90.53%
REVB	45 Neutral	$2.52M	-0.01	-118.88%	―	―	96.26%
AZTR	45 Neutral	$2.47M	-0.04	-215.04%	―	-100.00%	93.82%

Dermata Therapeutics Corporate Events

Dermata Therapeutics Expands At-The-Market Equity Offering Capacity

On January 27, 2026, Dermata Therapeutics, Inc. increased the maximum aggregate amount of common stock it may issue under its at-the-market offering program with H.C. Wainwright & Co., LLC by an additional $705,000, following prior sales of $3,454,390 in common shares under the same agreement. The move expands the company’s capacity to raise incremental financing through ongoing share issuances, which may support its funding needs while modestly diluting existing shareholders’ ownership stakes.

The most recent analyst rating on (DRMA) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on Dermata Therapeutics stock, see the DRMA Stock Forecast page.

Dermata Therapeutics Raises Capital via December Private Placement

On December 23, 2025, Dermata Therapeutics entered into securities purchase and related agreements for a private placement of common stock, pre-funded warrants and Series C and D warrants, raising approximately $3.7 million in net proceeds (about $4.1 million gross) and creating the potential for roughly $8.3 million in additional gross proceeds if all warrants are exercised. Company insiders, including the CEO, CFO and members of management, participated on the same terms as outside investors, H.C. Wainwright & Co. acted as exclusive placement agent, and Dermata also agreed to reprice certain existing warrants, impose short-term limits on new equity issuance and variable-rate transactions, and register the resale of the new securities, with the fresh capital earmarked for general corporate purposes including research, pre-launch and launch activities for its new OTC acne kit, business development, licensing and working capital, reinforcing the company’s funding base as it advances its consumer-focused dermatology strategy.

The most recent analyst rating on (DRMA) stock is a Buy with a $10.00 price target. To see the full list of analyst forecasts on Dermata Therapeutics stock, see the DRMA Stock Forecast page.

Dermata Therapeutics Ends License Agreement with Villani

On November 17, 2025, Dermata Therapeutics announced the termination of its License Agreement with Villani, Inc., effective 90 days after Villani’s receipt of the notice. This decision aligns with Dermata’s strategic shift towards over-the-counter skincare treatments and withdrawal of its investigational drug application with the FDA, impacting its operational focus and stakeholder expectations.

The most recent analyst rating on (DRMA) stock is a Buy with a $10.00 price target. To see the full list of analyst forecasts on Dermata Therapeutics stock, see the DRMA Stock Forecast page.

Dermata Therapeutics Shifts Focus to OTC Skincare

Dermata Therapeutics announced a strategic shift from prescription dermatology products to over-the-counter (OTC) skincare solutions, with plans to launch a once-weekly acne kit in mid-2026. This pivot aims to leverage Dermata’s scientific expertise and innovative Spongilla technology to meet consumer demand for accessible skincare, potentially enhancing the company’s market position and value for stakeholders.

The most recent analyst rating on (DRMA) stock is a Buy with a $10.00 price target. To see the full list of analyst forecasts on Dermata Therapeutics stock, see the DRMA Stock Forecast page.

Dermata Therapeutics Increases Stock Offering by $1.79M

On November 7, 2025, Dermata Therapeutics announced an increase in the maximum aggregate offering amount of its common stock by $1,792,315 under the At The Market Offering Agreement with H.C. Wainwright & Co., LLC. This move follows a previous sale of $1,662,142 worth of shares, potentially impacting the company’s financial strategy and market positioning.

The most recent analyst rating on (DRMA) stock is a Buy with a $10.00 price target. To see the full list of analyst forecasts on Dermata Therapeutics stock, see the DRMA Stock Forecast page.