Journey Medical 2025 Q2 Earnings Slight Revenue Growth, Wider Net Loss

Journey Medical (DERM) reported fiscal 2025 Q2 earnings on August 12, 2025. While the company posted a modest revenue increase, it faced a wider net loss compared to the prior year, despite improved earnings per share. Investors remain optimistic due to strong performance from new product launches and favorable post-earnings price trends.

Revenue
Journey Medical’s total revenue rose slightly by 1.0% to $15.01 million in Q2 2025, compared to $14.86 million in the same period the previous year. Product revenue, net, accounted for the full $15.01 million in revenue. Among the company’s products, Qbrexza led the charge with $6.95 million in sales, followed by Accutane at $3.40 million. Emrosi, newly launched, contributed $2.79 million, while Amzeeq and Zilxi brought in $879,000 and $256,000 respectively. The remaining $735,000 came from other and legacy products. The overall performance reflected a mixed bag, with new launches showing strong potential despite headwinds in some legacy segments.

Earnings/Net Income
Journey Medical’s earnings per share improved slightly, narrowing from a loss of $0.17 per share in 2024 Q2 to $0.16 per share in 2025 Q2, marking a 5.9% improvement. However, the company’s net loss widened to $-3.80 million for Q2 2025, an increase of 12.9% from the $-3.36 million loss in the prior-year period. The EPS improvement is a positive signal, but the widening net loss indicates ongoing challenges in achieving profitability.

Price Action
Following the earnings report, the stock price of Journey Medical surged significantly. Shares jumped 10.62% during the latest trading day, surged 18.45% over the most recent full trading week, and gained 19.44% month-to-date. This robust performance highlights strong investor sentiment post-earnings.

Post-Earnings Price Action Review
A strategy of purchasing Journey Medical shares 30 days after the release of a quarterly earnings report with a raised revenue forecast has historically delivered positive returns. Over the past three years, the strategy achieved a compound annual growth rate (CAGR) of 18.78%, with a maximum drawdown of 25.56% and a Sharpe ratio of 0.82. The strategy outperformed the benchmark by 12.78%, demonstrating strong risk-adjusted returns and reinforcing its appeal to investors.

CEO Commentary
Claude Maraoui, CEO of Journey Medical, emphasized the successful launch of Emrosi, which generated $2.8 million in sales and over 12,800 prescriptions during Q2 2025. He highlighted the product’s clinical value and rapid expansion in payer access, noting coverage now reaches 65% of commercial lives, up from 30% in less than a quarter. Emrosi also saw a near-tripling in the number of unique prescribers, indicating strong adoption. Qbrexza was identified as the company’s second top-selling product, and Maraoui expressed confidence in leveraging the existing dermatology infrastructure for future profitability. He acknowledged challenges with Accutane due to generic competition but stated that the growth of Emrosi and Qbrexza is expected to offset these losses.

Guidance
While the company is optimistic about the long-term potential of Emrosi and Qbrexza, it has not yet provided specific financial guidance for 2025 or beyond. CEO Claude Maraoui noted that the company is still in the early stages of the Emrosi launch and expects continued prescription growth. He also indicated that gross margin improvements are anticipated as Emrosi contributes a larger portion of revenue. The company aims to expand payer coverage and convert prescriptions into revenue but has not set specific targets at this time.

Additional News
In the three weeks following Journey Medical’s earnings report, several key non-earnings-related developments emerged. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) reported a significant drop in fuel consumption to 1.44 billion litres in June 2025. Meanwhile, political tensions escalated in Nigeria, particularly in Oyo and Zamfara states, where cattle breeders threatened to halt livestock sales and lawmakers criticized government security measures. Internationally, the Israeli military announced plans for a new offensive in the Gaza Strip, and President Zelensky of Ukraine emphasized the need for a "fair peace" without territorial concessions. Domestically, Nigeria’s Federal Government announced plans to appoint a prominent artist, KWAM 1, as an aviation security ambassador following a controversial airport incident. These developments reflect a dynamic global and domestic environment as Journey Medical continues to focus on its product launch momentum and operational improvements.