Verrica Pharmaceuticals (VRCA)
NASDAQ:VRCA
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Verrica Pharmaceuticals
(NASDAQ:VRCA)
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Rating:45Neutral
Price Target:
$5.50
▲(7.63% Upside)
Action:ReiteratedDate:04/11/26
The score is primarily weighed down by continued losses and persistent cash burn despite improved revenue and strong gross margins. Technical indicators are mixed with neutral-to-slightly negative trend signals, and valuation is hard to support with a negative P/E and no dividend yield data.
Positive Factors
High gross margins
A ~94% gross margin indicates the product has low incremental production cost and strong pricing power versus peers. This structural margin cushion allows the company to absorb commercial and R&D spending while moving toward operating leverage if top-line growth continues.
Negative Factors
Negative cash flow / cash burn
Consistent negative operating and free cash flow (~-$17.6M) means the business requires ongoing external funding to sustain operations and growth. Persistent cash burn is a structural risk that can dilute investors or constrain investment if revenues do not continue to scale.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins
A ~94% gross margin indicates the product has low incremental production cost and strong pricing power versus peers. This structural margin cushion allows the company to absorb commercial and R&D spending while moving toward operating leverage if top-line growth continues.
Read all positive factors
Verrica Pharmaceuticals (VRCA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$87.78M
Dividend YieldN/A
Average Volume (3M)121.54K
Price to Earnings (P/E)―
Beta (1Y)1.48
Revenue Growth234.73%
EPS Growth81.16%
CountryUS
Employees71
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.57
Shares Outstanding17,178,785
10 Day Avg. Volume73,320
30 Day Avg. Volume121,539
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)3.58
Price to Sales (P/S)2.49
P/FCF Ratio-5.02
Enterprise Value/Market Cap0.36
Enterprise Value/Revenue0.88
Enterprise Value/Gross Profit0.97
Enterprise Value/Ebitda-2.81
Forecast
1Y Price Target
$20.00Price Target Upside291.39% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-1.3
Revenue Forecast (FY)$26.43M
Verrica Pharmaceuticals Business Overview & Revenue Model
Company Description
Verrica Pharmaceuticals Inc., a dermatology therapeutics company, develops and commercializes treatments for people with skin diseases in the United States. The company's lead product candidate includes VP-102 for the treatment of molluscum contag...
How the Company Makes Money
Verrica primarily makes money by selling YCANTH™ (cantharidin topical solution, 0.7%) in the United States. Revenue is generated from product sales made into the healthcare channel (e.g., sales to specialty distributors/wholesalers and/or specialt...
Verrica Pharmaceuticals Earnings Call Summary
Earnings Call Date:Nov 14, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Positive
The earnings call highlighted significant growth in YCANTH dispensations, strategic partnerships, and positive regulatory feedback, offset by challenges like seasonality impacts and a lengthy EU filing process.Positive Updates
Significant Growth in YCANTH Dispensations
YCANTH dispensed applicator units increased by 120% year-over-year, reaching 37,642 units for the nine months ended September 30, 2025.
Negative Updates
Seasonality Impact on Sales
Sales were affected by seasonality, particularly in August, due to scheduled vacations and fewer doctor visits.
Read all updates
Q3-2025 Updates
Positive
Negative
Significant Growth in YCANTH Dispensations
YCANTH dispensed applicator units increased by 120% year-over-year, reaching 37,642 units for the nine months ended September 30, 2025.
Read all positive updates
Company Guidance
During the third quarter of 2025, Verrica Pharmaceuticals reported significant growth and achievements, including a 120% increase in dispensed applicator units of YCANTH compared to the same period in 2024. The company achieved a total revenue of $14.3 million, with $10.7 million from Torii milestone and collaboration revenue and $3.6 million from net YCANTH revenue. YCANTH's quarter-over-quarter growth was about 5%, with 14,093 dispensed applicator units. Verrica has also successfully reduced spending by about half over the past year while more than doubling the dispensed units of YCANTH. Financially, Verrica's gross product margins stood at 79.1%, and the company ended the quarter with $21.1 million in cash and cash equivalents. On the regulatory front, Verrica received positive feedback from the FDA for their oncology asset, VP-315, and significant progress was made towards YCANTH approval in the European Union, anticipating a Marketing Authorization Application filing by late 2026. The company also expanded its sales force to 45 reps and plans further expansion to 50 in 2026, alongside the introduction of YCANTH Rx, a non-dispensing pharmacy expected to launch in Q4 2025, aimed at streamlining YCANTH prescription processing.Verrica Pharmaceuticals Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
55
Neutral
Cash Flow
30
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 35.58M | 7.57M | 5.12M | 9.03M | 12.00M |
| Gross Profit | 32.14M | 4.83M | 4.38M | 8.31M | 11.53M |
| EBITDA | -11.16M | -65.90M | -62.20M | -21.60M | -30.31M |
| Net Income | -17.89M | -76.58M | -67.00M | -24.49M | -35.08M |
Balance Sheet | |||||
| Total Assets | 47.13M | 54.13M | 81.60M | 44.72M | 80.13M |
| Cash, Cash Equivalents and Short-Term Investments | 30.15M | 46.33M | 69.55M | 34.27M | 70.35M |
| Total Debt | 1.63M | 45.94M | 45.51M | 1.53M | 43.41M |
| Total Liabilities | 22.39M | 63.99M | 61.83M | 4.69M | 47.52M |
| Stockholders Equity | 24.74M | -9.86M | 19.76M | 40.03M | 32.60M |
Cash Flow | |||||
| Free Cash Flow | -17.63M | -60.95M | -38.94M | -18.95M | -28.46M |
| Operating Cash Flow | -17.63M | -60.93M | -38.58M | -18.65M | -27.58M |
| Investing Cash Flow | 0.00 | -19.00K | -362.00K | 54.04M | -998.00K |
| Financing Cash Flow | 1.45M | 37.73M | 74.21M | -16.87M | 33.65M |
Verrica Pharmaceuticals Technical Analysis
Negative
5.11
Price Trends
5.78
Negative
6.57
Negative
5.97
Negative
Market Momentum
-0.07
Negative
43.64
Neutral
68.07
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VRCA, the sentiment is Negative. The current price of 5.11 is below the 20-day moving average (MA) of 5.39, below the 50-day MA of 5.78, and below the 200-day MA of 5.97, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 43.64 is Neutral, neither overbought nor oversold. The STOCH value of 68.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VRCA.
Verrica Pharmaceuticals Risk Analysis
Verrica Pharmaceuticals disclosed 65 risk factors in its most recent earnings report. Verrica Pharmaceuticals 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
Verrica Pharmaceuticals Peers Comparison
UnderperformOutperform
Sector (51)
VRCA
Verrica Pharmaceuticals
5.11
-0.42
-7.58%
ELUT
Elutia
1.13
-0.88
-43.78%
EVAX
Evaxion Biotech
4.04
2.62
184.51%
LIMN
Liminatus Pharma
0.19
-6.81
-97.33%
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.