Verrica 2025 Q1 Earnings Net Loss Narrows by 52.1%

Verrica Pharmaceuticals reported its fiscal 2025 Q1 earnings on May 13th, 2025. The company experienced a 10.1% decrease in total revenue, amounting to $3.44 million compared to the same quarter in 2024. Despite this decline, Verrica showed a substantial improvement in net income, with losses narrowing by 52.1% to $9.74 million. The company also provided optimistic guidance, highlighting plans to continue aligning dispensed applicator units with revenue, and ongoing development of YCANTH for common warts treatment. Overall, the company demonstrated positive momentum in its financial performance.

Revenue

Verrica's revenue for the first quarter of 2025 totaled $3.44 million, a decline of 10.1% from the previous year's $3.83 million in the same quarter. The product revenue, net, accounted for $3.42 million, while collaboration revenue contributed $17,000, resulting in the total revenue figure.

Earnings/Net Income

Verrica's earnings per share improved significantly, with losses narrowing to $0.10 per share in Q1 2025, a 77.3% improvement from a $0.44 loss per share in Q1 2024. The net loss was reduced by 52.1%, highlighting a positive trend in financial performance. This improvement indicates a favorable EPS trend for the company.

Price Action

The stock price of Verrica climbed 5.61% during the latest trading day, surged 22.17% over the past week, and increased 24.27% month-to-date.

Post-Earnings Price Action Review

The strategy of buying VRCA when revenue beats and holding for 30 days has shown promising results, with a 28.57% earnings surprise and a 22.82% revenue beat, reflecting strong financial performance. The positive momentum suggests effective commercialization strategies and growing demand for YCANTH. However, while short-term gains are notable, long-term performance may be influenced by broader market conditions and the progress of the company's late-stage pipeline. The advancement of the pipeline is a positive sign, emphasizing the need for ongoing clinical trial completion and regulatory approvals. Investors should remain vigilant, considering these factors when assessing the stock's future performance. In conclusion, while short-term gains are promising, monitoring the company's pipeline progress and market conditions is crucial for informed investment decisions.

CEO Commentary

"I am pleased to report that our focused commercialization strategy is helping to drive increased demand for YCANTH, allowing us to normalize distributor inventory levels. For the first time, we dispensed more than 10,000 applicator units in a quarter. We are excited by the strong pull-through from our distributors, translating to $3.4 million in revenue in the first quarter. We saw momentum in dispensed applicator units build throughout the first quarter and look to build on that momentum in the second quarter," said Dr. Jayson Rieger, PhD, MBA, President and Chief Executive Officer of Verrica.

Guidance

"We expect this closer alignment between dispensed applicator units and revenue to continue going forward. We are working with our partner Torii Pharmaceutical to initiate our global Phase 3 program of YCANTH for the treatment of common warts. Additionally, we plan on providing a global development program update for VP-315, including the design of the Phase 3 clinical program, in mid-2025.”

Additional News

Verrica Pharmaceuticals recently appointed Noah L. Rosenberg, M.D., as Chief Medical Officer on March 24, 2025. Dr. Rosenberg has a distinguished career, having served as Chief Medical Officer for various biotechnology companies, where he led clinical development and product launches. On April 2, 2025, Verrica also announced the appointment of Dr. Gavin Corcoran to its Board of Directors. Dr. Corcoran brings extensive experience in R&D leadership roles, including positions at Allergan and Stiefel Laboratories. These appointments are expected to bolster Verrica's strategic direction and development efforts in dermatology therapeutics.