Verrica Pharmaceuticals (VRCA) AI Stock Analysis

• Market Cap: $121.68M
• Dividend Yield: N/A
• Average Volume (3M): 179.48K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.28
• Revenue Growth: 234.73%
• EPS Growth: 81.16%
• Country: US
• Employees: 71
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.03
• Shares Outstanding: 15,989,861
• 10 Day Avg. Volume: 133,279
• 30 Day Avg. Volume: 179,480
• PEG Ratio: 0.00
• Price to Book (P/B): -3.68
• Price to Sales (P/S): 4.79
• P/FCF Ratio: -0.59
• Enterprise Value/Market Cap: 0.46
• Enterprise Value/Revenue: 1.80
• Enterprise Value/Gross Profit: 1.96
• Enterprise Value/Ebitda: -3.39
• 1Y Price Target: $18.67
• Price Target Upside: 134.84% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): -1.59
• Revenue Forecast (FY): $26.60M

• Rating: 56 Neutral
• Price Target: $8.00 ▲(0.63% Upside)

The score is held back primarily by weak financial fundamentals—ongoing losses, high cash burn, and negative equity—despite strong revenue growth and margins. Offsetting positives include a constructive earnings outlook with operational traction and regulatory progress, plus improved runway from recent financing; technicals are moderately supportive but not decisive, and valuation lacks earnings/dividend support.

Positive Factors

Revenue Growth

The significant revenue increase indicates strong market acceptance of YCANTH, suggesting potential for sustained growth as the product gains traction.

Regulatory Progress

Regulatory advancements for VP-315 and YCANTH enhance the company's pipeline credibility, potentially accelerating market entry and revenue streams.

Financial Strategy

The strategic financing improves liquidity and reduces debt, providing financial stability to support product development and market expansion.

Negative Factors

Negative Cash Flow

Ongoing negative cash flows indicate reliance on external funding, posing risks to sustainability and limiting self-funded growth opportunities.

Balance Sheet Weakness

The negative equity position reflects financial instability, increasing solvency risk and potentially hindering future investment and growth.

Extended EU Filing Timeline

Delayed EU filing could slow international expansion and revenue diversification, affecting long-term growth prospects in the European market.

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 contagiosum; that has completed Phase II clinical trial for the treatment of external genital warts; and which is in Phase II clinical trial for treating common warts. It is also developing cantharidin-based product candidate, VP-103 for treating plantar warts. The company has a license and collaboration agreement with Torii Pharmaceutical Co., Ltd. for the development and commercialization of its product candidates for the treatment of molluscum contagiosum and common warts in Japan, including VP-102; and a license agreement with Lytix Biopharma AS to develop and commercialize LTX-315 for dermatological oncology indications. Verrica Pharmaceuticals Inc. was incorporated in 2013 and is headquartered in West Chester, Pennsylvania.

How the Company Makes Money

Verrica Pharmaceuticals generates revenue through the commercialization of its products, particularly once they receive regulatory approval and enter the market. The company's primary revenue stream is expected to come from the sales of its lead product, VP-102, upon successful launch. Additionally, Verrica may engage in partnerships with larger pharmaceutical companies, which could involve upfront payments, milestone payments based on development progress, and royalties on sales, thus providing multiple avenues for revenue generation. The company also looks to secure grants and funding opportunities for research and development, which could supplement its earnings as it advances its product pipeline.

Verrica Pharmaceuticals Financial Statement Overview

Summary

Verrica Pharmaceuticals is facing severe financial challenges, with declining revenues, persistent losses, and negative equity. The company is highly leveraged with negative cash flows, posing substantial risks to its financial health.

Income Statement

Verrica Pharmaceuticals shows a declining revenue trend over recent years, with total revenue dropping from $12 million in 2021 to $7.57 million in 2024. The company has been consistently operating at a loss, with a negative EBIT and net profit margin, which are concerning for long-term profitability. Despite a slight increase in revenue from 2023 to 2024, the overall trend reveals financial instability and high operational expenses relative to revenue.

Balance Sheet

The balance sheet reveals significant financial instability, with a negative stockholders' equity in 2024, indicating that liabilities exceed assets. The debt-to-equity ratio is undefined due to negative equity, signaling high leverage and potential solvency issues. The equity ratio is also negative, further highlighting financial distress and the risk of insolvency.

Cash Flow

Verrica Pharmaceuticals faces persistent negative operating and free cash flows, with operating cash flow deteriorating significantly from 2023 to 2024. The free cash flow to net income ratio is unfavorable, indicating insufficient cash generation to cover losses. Although financing cash flows have been positive, they are primarily used to cover operational deficits rather than growth investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	30.83M	7.57M	5.12M	9.03M	12.00M	0.00
Gross Profit	28.33M	4.83M	4.38M	8.31M	11.53M	-229.00K
EBITDA	-16.39M	-65.90M	-62.20M	-21.60M	-30.31M	-39.43M
Net Income	-26.01M	-76.58M	-67.00M	-24.49M	-35.08M	-45.50M
Balance Sheet
Total Assets	40.90M	54.13M	81.60M	44.72M	80.13M	74.15M
Cash, Cash Equivalents and Short-Term Investments	21.10M	46.33M	69.55M	34.27M	70.35M	65.47M
Total Debt	35.74M	45.94M	45.51M	1.53M	43.41M	37.21M
Total Liabilities	57.94M	63.99M	61.83M	4.69M	47.52M	41.17M
Stockholders Equity	-17.04M	-9.86M	19.76M	40.03M	32.60M	32.99M
Cash Flow
Free Cash Flow	-29.10M	-60.95M	-38.94M	-18.95M	-28.46M	-31.68M
Operating Cash Flow	-29.10M	-60.93M	-38.58M	-18.65M	-27.58M	-30.21M
Investing Cash Flow	8.00K	-19.00K	-362.00K	54.04M	-998.00K	-3.58M
Financing Cash Flow	27.23M	37.73M	74.21M	-16.87M	33.65M	35.23M

Verrica Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 7.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VRCA, the sentiment is Neutral. The current price of 7.95 is below the 20-day moving average (MA) of 8.12, above the 50-day MA of 6.74, and above the 200-day MA of 5.78, indicating a neutral trend. The MACD of 0.23 indicates Positive momentum. The RSI at 47.87 is Neutral, neither overbought nor oversold. The STOCH value of 13.97 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for VRCA.

Verrica Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EVAX	58 Neutral	$30.26M	-0.49	―	―	4455.07%	77.31%
VRCA	56 Neutral	$121.68M	-2.11	―	―	234.73%	81.16%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ELUT	48 Neutral	$34.78M	-0.89	―	―	-14.92%	72.81%
GBIO	39 Underperform	$38.00M	-0.60	-80.81%	―	-17.82%	57.32%

Verrica Pharmaceuticals Corporate Events

Verrica Pharmaceuticals Adds Caligan Partner to Board

On December 26, 2025, Verrica Pharmaceuticals Inc. appointed Charles Frantzreb, a partner at therapeutics-focused investment firm Caligan Partners and a physician by training, to its Board of Directors as a Class III director, with a term running through the 2027 annual meeting of stockholders; his appointment stems from a securities purchase agreement with institutional investors and reflects Caligan’s direct governance role in the company. Separately, on December 23, 2025, the board’s Compensation Committee approved equity awards under Verrica’s 2018 Equity Incentive Plan, including a large, performance- and stock-price-contingent stock option grant to President and CEO Jayson Rieger and fully vested restricted stock units to Interim CFO John Kirby, moves aimed at strengthening long-term management incentives, addressing comparatively low insider ownership versus peers, and supporting retention amid recent financing activities and an expanded share base.

The most recent analyst rating on (VRCA) stock is a Buy with a $17.00 price target. To see the full list of analyst forecasts on Verrica Pharmaceuticals stock, see the VRCA Stock Forecast page.

Verrica Pharmaceuticals Secures $50M Financing Deal

On November 23, 2025, Verrica Pharmaceuticals announced a private placement financing agreement to raise approximately $50 million. This funding will be used to retire the company’s debt facility with OrbiMed, extend its cash runway into mid-2027, and support further development of its product pipeline, including the advancement of YCANTH and VP-315. The financing, expected to close on November 25, 2025, involves selling shares and warrants to institutional and accredited investors, with Caligan Partners gaining rights to appoint a board member. This strategic move aims to solidify Verrica’s financial position and enhance its market presence in dermatology therapeutics.

The most recent analyst rating on (VRCA) stock is a Hold with a $4.50 price target. To see the full list of analyst forecasts on Verrica Pharmaceuticals stock, see the VRCA Stock Forecast page.