Verrica Pharmaceuticals (VRCA)
NASDAQ:VRCA
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Verrica Pharmaceuticals
(NASDAQ:VRCA)
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Rating:57Neutral
Price Target:
$6.00
▼(-5.06% Downside)
Action:Reiterated
Date:05/14/26
Overall score is held back primarily by ongoing losses and significant cash burn with a limited runway, despite strong revenue growth and high gross margins. Technicals are supportive (price above major moving averages and positive MACD), and earnings-call updates were broadly positive on commercial/pipeline execution but still constrained by spend, guidance uncertainty, and financing risk.
Positive Factors
Revenue & Margin Strength
Rapid, sustained revenue growth combined with very high gross margins indicates strong product-level economics and scalable unit profitability. Durable high margins give flexibility to invest in commercialization and R&D while requiring less incremental revenue to reach breakeven as adoption expands.
Negative Factors
Limited Cash Runway
A runway into roughly Q1 2027 creates an imminent financing need that can force dilution or constrain strategic investments. Dependence on capital raises within ~12 months increases execution risk for commercial expansion and Phase III programs if funding terms are unfavorable or delayed.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue & Margin Strength
Rapid, sustained revenue growth combined with very high gross margins indicates strong product-level economics and scalable unit profitability. Durable high margins give flexibility to invest in commercialization and R&D while requiring less incremental revenue to reach breakeven as adoption expands.
Read all positive factors
Verrica Pharmaceuticals (VRCA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$98.95M
Dividend YieldN/A
Average Volume (3M)80.97K
Price to Earnings (P/E)―
Beta (1Y)1.78
Revenue Growth417.63%
EPS Growth91.39%
CountryUS
Employees71
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-1.56
Shares Outstanding17,178,785
10 Day Avg. Volume45,302
30 Day Avg. Volume80,968
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 Cap0.43
Enterprise Value/Revenue1.14
Enterprise Value/Gross Profit1.27
Enterprise Value/Ebitda-3.65
Forecast
1Y Price Target
$16.00Price Target Upside153.16% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)-1.58
Revenue Forecast (FY)$25.53M
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:May 12, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Positive
The call conveyed strong commercial momentum for YCANTH — notably large year-over-year unit growth (51.3%), record monthly dispensing, a Japan launch and an advancing global Phase III program — and compelling Phase II clinical data for VP-315 (97% objective response, 86% tumor size reduction). These positive operational, regulatory and clinical developments are tempered by near-term financial pressures: a Q1 net loss, increased R&D and SG&A spend, modest gross-to-net variability, remaining access work particularly in pediatrics/PBMs, and a cash runway into Q1 2027 that implies a forthcoming financing need. Overall, the progress on product adoption, pipeline advancement, and international expansion outweigh the financial and access challenges reported.Positive Updates
Revenue Growth
Total Q1 2026 revenue of $5.0M, including U.S. YCANTH product revenue of $4.3M, a 25.4% increase versus Q1 2025.
Negative Updates
Operating Loss and Cash Runway
GAAP net loss of $9.7M in Q1 2026 (unchanged vs prior-year dollar loss) and non-GAAP net loss of $8.8M (vs $8.3M prior year); cash of $20.6M as of March 31, 2026, expected to fund operations into Q1 2027 — indicating a funding need within ~12 months.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Growth
Total Q1 2026 revenue of $5.0M, including U.S. YCANTH product revenue of $4.3M, a 25.4% increase versus Q1 2025.
Read all positive updates
Company Guidance
Management provided limited formal guidance but outlined clear operational milestones and metrics: commercial traction with Q1 total revenue of $5.0M (U.S. YCANTH $4.3M, +25.4% YoY), 15,302 U.S. dispensed applicator units in Q1 (+51.3% YoY; +12.1% sequential), and sequential revenue +15.3%; over 100,000 applicators dispensed since launch and April demand outpaced March’s record; gross product margin 87.3% (vs 87.6% prior), cost of product $0.5M, R&D $3.9M, SG&A $10.0M, GAAP net loss $9.7M ($0.45/sh), non‑GAAP net loss $8.8M ($0.41/sh), and cash of $20.6M expected to fund operations into Q1 2027. Development milestones include COVE‑2 (common warts) >50% enrolled with COVE‑4 long‑term follow‑up initiated and COVE‑3 targeted to start by mid‑2026; Torii (now part of Shionogi) launched YCANTH in Japan in Feb and will fund the first $40M (~90% of current trial budget) under a 50/50 cost‑share; VP‑315 showed Phase II results of 97% objective response rate, 86% mean tumor-size reduction and >50% complete histologic resolution and is being readied for Phase III. Other operational guidance: YCANTH Rx launched in Q4 2025 (early rollout), EU submission preparation is underway after positive CHMP feedback (no additional Phase III required), and the commercial field will be optimized to ~50 reps covering ~85% of TAM; more specific financial guidance expected later in 2026 (Q3/Q4).Verrica Pharmaceuticals Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
63
Positive
Cash Flow
28
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 37.16M | 35.58M | 7.57M | 5.12M | 9.03M | 12.00M |
| Gross Profit | 33.27M | 32.14M | 4.83M | 4.38M | 8.31M | 11.53M |
| EBITDA | -11.55M | -9.36M | -65.90M | -62.20M | -21.60M | -30.31M |
| Net Income | -17.83M | -17.89M | -76.58M | -67.00M | -24.49M | -35.08M |
Balance Sheet | ||||||
| Total Assets | 38.79M | 47.13M | 54.13M | 81.60M | 44.72M | 80.13M |
| Cash, Cash Equivalents and Short-Term Investments | 20.60M | 30.15M | 46.33M | 69.55M | 34.27M | 70.35M |
| Total Debt | 1.44M | 1.63M | 45.94M | 45.51M | 1.53M | 43.41M |
| Total Liabilities | 22.73M | 22.39M | 63.99M | 61.83M | 4.69M | 47.52M |
| Stockholders Equity | 16.05M | 24.74M | -9.86M | 19.76M | 40.03M | 32.60M |
Cash Flow | ||||||
| Free Cash Flow | -14.11M | -17.63M | -60.95M | -38.94M | -18.95M | -28.46M |
| Operating Cash Flow | -14.11M | -17.63M | -60.93M | -38.58M | -18.65M | -27.58M |
| Investing Cash Flow | 0.00 | 0.00 | -19.00K | -362.00K | 54.04M | -998.00K |
| Financing Cash Flow | 5.38M | 1.45M | 37.73M | 74.21M | -16.87M | 33.65M |
Verrica Pharmaceuticals Technical Analysis
Negative
6.32
Price Trends
6.10
Negative
6.35
Negative
5.90
Negative
Market Momentum
-0.16
Positive
41.56
Neutral
31.55
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 6.32 is below the 20-day moving average (MA) of 6.65, above the 50-day MA of 6.10, and above the 200-day MA of 5.90, indicating a bearish trend. The MACD of -0.16 indicates Positive momentum. The RSI at 41.56 is Neutral, neither overbought nor oversold. The STOCH value of 31.55 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 69 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
5.76
0.35
6.53%
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-34.09%
EVAX
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47.06%
LIMN
Liminatus Pharma
0.16
-5.23
-96.96%
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.