DERM Delivers 21% Revenue Growth, Strong Cash Position, and Expanding Emrosi® Momentum in Q1 2026
Total Revenues Surge 21% Year-over-Year as Emrosi® Propels Top Line
Journey Medical Corporation (NASDAQ: DERM) kicked off 2026 on a strong note, reporting that total revenues for the first quarter reached $16.0 million—a 21% year-over-year increase from $13.1 million in Q1 2025. This growth was largely powered by rising demand for Emrosi®, which generated $6.3 million in revenue for the quarter, up sharply from $2.1 million a year ago. The company's revenue expansion highlights Emrosi®'s growing role in the portfolio and increasing dermatologist adoption and refill rates.
Emrosi® Gains Ground With Expanded Payer Access
The quarter saw Emrosi® prescriptions climb to 29,968, up from 27,023 in the prior quarter. Notably, Journey Medical announced a new contract with the third largest Group Purchasing Organization in the U.S., bringing Emrosi®’s commercial access to approximately 85% of all commercial lives nationwide. This expanded payer access sets the stage for continued growth, especially as Emrosi® enters its second year on the market.
Improving Profitability: Net Loss Narrows as Adjusted EBITDA Turns Positive
DERM's financial discipline was evident as the company’s net loss narrowed to $2.23 million (or $(0.08) per share) for Q1 2026, from $4.07 million ($(0.18) per share) in the same period last year. Excluding non-cash and one-off items, Adjusted EBITDA swung to a positive $0.62 million, up from a loss of $(0.94) million in Q1 2025, signifying improving operational leverage as the dermatology-focused infrastructure matures.
| Key Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Total Revenue ($M) | 16.00 | 13.10 |
| Emrosi® Revenue ($M) | 6.30 | 2.10 |
| Net Loss ($M) | 2.23 | 4.07 |
| Adjusted EBITDA ($M) | 0.62 | (0.94) |
| Gross Margin (%) | 61.00 | 63.50 |
| SG&A Expenses ($M) | 10.10 | 10.57 |
| Cash & Cash Equivalents ($M) | 27.22 | 24.09* |
| Weighted Average Shares (M) | 27.31 | 22.61 |
*Cash as of December 31, 2025
Expense Management and Gross Margin Developments
Selling, general and administrative (SG&A) expenses dropped to $10.1 million from $10.6 million, thanks to reduced launch costs now that Emrosi® has established its market presence. Gross margin saw a slight dip to 61.0% (from 63.5%), reflecting a $1.3 million non-recurring non-cash charge related to an asset inventory write-down—an event not expected to recur in future quarters.
Cash Position Strengthens, Debt Stable
The company exited the quarter with $27.2 million in cash and cash equivalents, up from $24.1 million at year-end, underlining DERM’s improved cash generation. Balance sheet strength provides flexibility for strategic initiatives as the company advances its commercial execution and evaluates further pipeline investments. Accounts receivable decreased slightly, while inventory levels remained stable and liabilities were generally unchanged.
Outlook: Emrosi®, Cash, and Payer Access Set Up for Continued Growth
With Emrosi® showing accelerating commercial traction—now supported by wider payer access and rising refill rates—DERM appears well-positioned to build on recent gains. The narrowing net loss, shift to positive Adjusted EBITDA, and growing cash reserves underline a business transitioning towards profitability and operational resilience.
Investors and market watchers may want to keep Journey Medical on their radar, especially as Emrosi®’s growth trajectory and the overall dermatology portfolio continue to evolve. The company will hold a conference call today at 4:30 p.m. ET to discuss results—an opportunity for further updates on its strategic initiatives and outlook for 2026 and beyond.
Appendix: Key Financials
| Balance Sheet Item | March 31, 2026 ($000) | December 31, 2025 ($000) |
|---|---|---|
| Total Assets | 91,534 | 94,589 |
| Total Liabilities | 60,703 | 62,737 |
| Stockholders' Equity | 30,831 | 31,852 |
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