Dermata Therapeutics (DRMA) AI Stock Analysis

• Market Cap: $2.26M
• Dividend Yield: N/A
• Average Volume (3M): 249.42K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.08
• 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: 1,026,457
• 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: -0.21
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: 0.05
• 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: 44 Neutral
• Price Target: $2.00 ▼(-6.54% Downside)

The score is held down primarily by weak financial performance (no revenue, ongoing losses and cash burn) and bearish technicals (below key moving averages with negative MACD). These are partially offset by a debt-free balance sheet and recent financing that supports near-term operations, but valuation signals are limited due to negative earnings.

Positive Factors

Debt-Free Balance Sheet

Having no debt reduces financial risk and provides flexibility in strategic decision-making, supporting long-term stability and operational resilience.

Strategic Shift to OTC Skincare

The shift to OTC skincare leverages existing technology and reduces regulatory burdens, potentially accelerating market entry and broadening consumer reach.

Intellectual Property Strength

Strengthening the IP portfolio enhances competitive advantage, protecting innovations and supporting long-term strategic positioning in the dermatology market.

Negative Factors

Persistent Cash Burn

Consistent negative cash flow indicates reliance on external funding, which can lead to dilution and financial instability if not managed effectively.

Pre-Revenue Status

Operating without revenue limits financial self-sufficiency and increases dependence on external capital, posing risks to long-term sustainability.

Ongoing Losses

Continued losses without revenue growth can erode equity and investor confidence, challenging the company's ability to fund future operations and growth.

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

Dermata Therapeutics is at a high-risk pre-revenue stage typical for biotech startups, with significant operating losses and negative cash flow. The absence of debt is a positive aspect, but the company's financial health is heavily reliant on external financing to sustain operations. Future financial stability hinges on developing revenue streams or securing continued financing.

Income Statement

Dermata Therapeutics has reported no revenue for the past several years, indicating a pre-revenue stage typical for biotech firms. The company has consistently recorded net losses, with a significant increase in net loss in 2024, reflecting ongoing operational challenges and substantial R&D expenses without offsetting revenues. This results in negative profitability metrics across all measured margins.

Balance Sheet

The company's balance sheet shows a reasonable equity position with no outstanding debt, which is positive for financial stability. However, the equity base has been declining, and total liabilities have increased over recent years. The equity ratio is declining, pointing to potential financial risk if this trend continues. The absence of revenue generation raises concerns about the sustainability of the current equity position.

Cash Flow

Operating cash flows are negative, consistent with the company's net loss position. Free cash flow is similarly negative, reflecting high cash burn typical of early-stage biotech firms. The company relies heavily on financing activities to fund operations, which may pose risks if external funding becomes challenging to secure.

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: Neutral
• Last Price: 2.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DRMA, the sentiment is Neutral. The current price of 2.14 is below the 20-day moving average (MA) of 2.15, below the 50-day MA of 2.58, and below the 200-day MA of 5.47, indicating a neutral trend. The MACD of -0.15 indicates Negative momentum. The RSI at 47.89 is Neutral, neither overbought nor oversold. The STOCH value of 52.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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%
AZTR	45 Neutral	$2.96M	-0.06	-215.04%	―	-100.00%	93.82%
DRMA	44 Neutral	$2.26M	-0.11	-203.36%	―	―	90.53%
REVB	43 Neutral	$5.33M	-0.03	-118.88%	―	―	96.26%

Dermata Therapeutics Corporate Events

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.