Journey Medical targets sustained EMROSI momentum and profitability through 2025 as prescriber base nearly triples

Earnings Call Insights: Journey Medical Corporation (DERM) Q2 2025

MANAGEMENT VIEW

* Claude Maraoui, CEO, highlighted the first full quarter of EMROSI's market launch, reporting "second quarter net product revenue of $15 million included approximately $2.8 million of EMROSI sales, surpassing our prior year quarter sales and contributing to a notable improvement in the business gross profit margins." Maraoui emphasized rapid uptake: "prescriptions increasing at an impressive pace as we gain additional traction with dermatology prescribers." He noted EMROSI's coverage expanded from "30% of commercial lives in May of this year to approximately 65% of commercial lives as noted in our announcement in July." The CEO also underlined progress in unique prescribers: "we have now seen over 1,800 unique prescribers for EMROSI to date."
* Management continues to address Accutane sales declines due to generic competition, but "growth brands more than offsetting the decline" and focus remains on EMROSI and QBREXZA.
* Joseph M. Benesch, CFO, stated: "The total net revenue for the second quarter of 2025 was $15 million compared to $14.9 million for the second quarter of 2024. Second quarter of 2025 includes $2.8 million of incremental net product revenue related to the U.S. commercial launch of EMROSI. This was offset by a decrease in Accutane revenue of $2.3 million, driven by generic competition."
* Benesch also reported: "Our gross margin increased to 67% for the second quarter of 2025 from 61% in the prior period... SG&A increased by $1.6 million to $11.9 million for the second quarter of 2025 and $10.3 million for the second quarter of 2024."

OUTLOOK

* Management expects to build on EMROSI’s early momentum, with Maraoui stating, "we are on pace to achieve our launch objectives and facilitate EMROSI in becoming the standard of care in the treatment of rosacea."
* The company is focused on "expanding the base of EMROSI prescribers, growing prescription volume, expanding payer access and converting more of the prescription volume into revenue."
* No specific financial guidance was provided for the remainder of the year or 2026, as Maraoui said, "we're going to wait a few more quarters before we give hard guidance in that."

FINANCIAL RESULTS

* Net revenue for Q2 2025 was $15 million, including $2.8 million from EMROSI.
* Gross margin rose to 67% for Q2 2025, up from 61% in Q2 2024.
* SG&A expenses were $11.9 million, up from $10.3 million a year ago, attributed to operational activities for the EMROSI launch.
* Net loss to common shareholders was $3.8 million or ($0.16) per share, compared to a net loss of $3.4 million or ($0.17) per share for Q2 2024.
* The company ended Q2 2025 with $20.3 million in cash, unchanged from December 31, 2024.
* R&D costs were nil in Q2 2025, compared to $900,000 in Q2 2024.

Q&A

* Thomas Flaten, Lake Street Capital Markets: Asked about end-of-year coverage goals for EMROSI. COO Ramsey Alloush responded, "We haven't publicly disclosed what that target is going to be. We are continuing to grow that... We're also working on the quality. So that's getting it on formularies, getting that implementation."
* Flaten: Inquired about gross margin trajectory. Benesch answered, "product mix is really the driver... EMROSI is a very low-cost product. So we expect this to continue. We believe it represents a reasonable baseline going forward."
* Flaten: Asked about guidance timing. Maraoui replied, "we're going to wait a few more quarters before we give hard guidance in that."
* Scott Robert Henry, AGP: Queried about net revenue per EMROSI script. Maraoui cautioned, "I wouldn't recommend just doing that simple math on volume and the reported sales. We still have a significant proportion of scripts utilizing our patient assistance program and coupons, and there could be significant delays in reimbursement."
* Henry: Asked about seasonality effects. Maraoui observed, "I think the market has been stable... Our ramp is moving along nicely... I don't think the seasonality is going to come into play much at all at this point."
* Henry: Requested QBREXZA revenue. Maraoui provided, "$6.9 million for the quarter."
* Mayank Mamtani, B. Riley Securities: Sought clarity on EMROSI sales dynamics and payer rebating. Maraoui and Alloush explained channel stocking occurred in Q1 and payer dynamics are evolving, with expectations for "less utilization of the co-pay assistance program and more coming in through the managed care program."
* Mamtani: Asked about market share and refill trends. Maraoui declined to give specifics but stated, "the 10% NRxs in June is fantastic. We see that continuing to grow... we went from 660 unique prescribers to well over 1,800 prescribers."

SENTIMENT ANALYSIS

* Analysts maintained a positive to slightly optimistic tone, applauding EMROSI’s initial uptake and market access, while seeking more clarity on revenue per script and future guidance. They pressed for specifics on future targets and margin evolution but accepted management’s decision to withhold detailed forecasts.
* Management’s tone in prepared remarks remained confident and forward-looking, with Maraoui stating, "we are confident that the prescription ramp for EMROSI will continue to build momentum and enable us to generate strong revenue growth going forward." During Q&A, management was careful not to overpromise, often deflecting on specifics but reinforcing confidence in the overall trajectory.
* Compared to the previous quarter, management’s confidence increased, especially regarding EMROSI’s adoption, while analysts shifted to probing for metrics that would confirm sustainability of the growth.

QUARTER-OVER-QUARTER COMPARISON

* EMROSI sales rose from $2 million in Q1 to $2.8 million in Q2 with a significant increase in unique prescribers from 660 to over 1,800.
* Payer access for EMROSI expanded from 30% in Q1 to about 65% in Q2.
* Gross margin improved from 64% in Q1 to 67% in Q2, while cash position remained stable.
* Management’s tone evolved from early optimism in Q1 to more assertive confidence in Q2, citing tangible traction in EMROSI’s launch.
* Analysts’ questions shifted from launch logistics and early adoption to sustainability, conversion of prescriptions to revenue, and margin durability.

RISKS AND CONCERNS

* Management acknowledged ongoing Accutane sales pressure from generic competition and indicated continued volatility in that segment.
* Delays in payer reimbursement and high utilization of patient assistance programs are impacting realized revenue per EMROSI script.
* No formal guidance was provided for the remainder of 2025, reflecting uncertainty in projecting near-term growth.
* Analysts are focused on revenue sustainability, net revenue per script, and the evolution of managed care and rebate dynamics.

FINAL TAKEAWAY

Journey Medical’s Q2 2025 call showcased EMROSI’s rapid adoption, with strong prescription growth, expanded payer coverage, and a tripling of unique prescribers since the previous quarter. Management reiterated confidence in EMROSI’s ability to drive revenue and margin improvements, despite continued pressure in the Accutane segment and uncertainties around realized net revenue per script. The company expects to leverage its commercial infrastructure and recent launch momentum to progress toward profitability while remaining disciplined in cash management and operational execution.

Read the full Earnings Call Transcript [https://seekingalpha.com/symbol/derm/earnings/transcripts]

MORE ON JOURNEY MEDICAL

* Journey Medical Corporation (DERM) Q2 2025 Earnings Call Transcript [https://seekingalpha.com/article/4812829-journey-medical-corporation-derm-q2-2025-earnings-call-transcript]
* Journey Medical Corporation (DERM) Q1 2025 Earnings Call Transcript [https://seekingalpha.com/article/4786834-journey-medical-corporation-derm-q1-2025-earnings-call-transcript]
* Journey Medical GAAP EPS of -$0.18 beats by $0.06, revenue of $13.1M beats by $1.05M [https://seekingalpha.com/news/4448515-journey-medical-gaap-eps-of--018-beats-by-006-revenue-of-131m-beats-by-105m]
* Journey Medical outlines Emrosi launch momentum and targets expanded payer access in 2025 [https://seekingalpha.com/news/4448462-journey-medical-outlines-emrosi-launch-momentum-and-targets-expanded-payer-access-in-2025]
* Seeking Alpha’s Quant Rating on Journey Medical [https://seekingalpha.com/symbol/DERM/ratings/quant-ratings]