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    DERM
    Earnings call· Jun 2026(Q2 FY26)

    Journey Medical Q2 FY26 earnings call DERM

    Aug 12, 2026 Source

    Executive summary

    Journey Medical Q2 FY26 — Strong Emrosi Growth and Positive EBITDA

    Journey Medical delivered strong Q2 FY26 results, driven by accelerating growth in Emrosi prescriptions, an expanding prescriber base, and improving payer access. The company achieved positive non-GAAP EBITDA and strategically expanded its commercial team, positioning for continued revenue growth and profitability. Management reiterated its belief that 2026 will be a breakout year for the company.

    Highlights

    5

    • Emrosi net revenue was $8.1 million in Q2, up significantly year-over-year and sequentially.

    • Total net product revenues for Q2 FY26 rose by 23% year-over-year to $18.5 million.

    • Emrosi prescriptions totaled approximately 36,000 in Q2, representing 20% sequential quarterly growth.

    • Unique Emrosi prescribers increased to over 4,500, more than a 40% increase from 3,200 at the end of 2025.

    • The company generated positive non-GAAP EBITDA of $1.4 million in Q2 FY26.

    Guidance & targets

    3
    CategoryTargetConfidence
    Full-year revenue growth and profitability
    Breakout year for revenue growth and profitability
    high materiality
    High
    Emrosi Average Selling Price (ASP)
    Improve throughout the back half of the year
    medium materiality
    High
    SG&A as percentage of revenue
    Pretty consistent
    medium materiality
    Medium

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    Emrosi (Rosacea Treatment)
    Emrosi continues to gain market share with accelerating prescription growth and expanding prescriber base. Improving payer reimbursement and formulary status are driving ASP increases. A large national health plan added Emrosi to its formulary in early August.
    Prescriptions: 36,000 (Q2 FY26)Sequential prescription growth: 20% (Q2 FY26 vs Q1 FY26)Unique prescribers: >4,500 (Q2 FY26)Increase in unique prescribers: >40% (from 3,200 at end of 2025)New prescriptions (June): 5,300Average new prescriptions (prior 3 months): 4,700Payer access (commercial lives covered by GPOs): 169MHigh-quality formulary coverage: 38% of commercial lives (>72M)High-quality formulary coverage increase: from 34% (Q1 FY26)Average Selling Price (ASP): Increased (Q2 FY26 vs Q1 FY26)
    		$8.1MSignificant increaseSignificant increase—
    QBREXZA (Hyperhidrosis)
    QBREXZA is a significant product for the company, consistently contributing to revenue. While Q2 was 'a little bit light' due to patient/payer mix and deductible resets, demand is increasing, especially in hotter summer months. It is the second priority product for the sales force.
    Annual revenue contribution: ~$25M-$26MPrescriptions (June): >14,500Prescriptions (July): ~15,000
    		————

    Operational metrics

    12
    Total Net Product Revenues
    $18.5Mup 23% YoY
    Q2 FY26

    Total revenue for the quarter.

    Gross Margin
    67%consistent with prior year quarter
    Q2 FY26

    Reported gross margin for the quarter.

    SG&A Expenses
    $10.9Mdown from $11.9M in Q2 FY25
    Q2 FY26

    Decrease primarily due to impact of launch-related spending for Emrosi in the prior quarter.

    GAAP Net Loss
    $300,000narrowed from $3.8M loss in Q2 FY25
    Q2 FY26

    GAAP net loss for the quarter.

    GAAP EPS
    -$0.01vs -$0.16 in Q2 FY25
    Q2 FY26

    GAAP EPS for the quarter.

    EBITDA (non-GAAP)
    $1.4Mvs $1.9M net loss in Q2 FY25
    Q2 FY26

    Positive EBITDA for the quarter.

    EBITDA (non-GAAP)
    $1.1Mvs $4.1M net loss in prior year-to-date period
    6-month period ended June 30, 2026

    Positive EBITDA for the year-to-date period.

    Adjusted EBITDA (non-GAAP)
    $2.9Mvs $500,000 net loss in Q2 FY25
    Q2 FY26

    Positive Adjusted EBITDA for the quarter, excluding non-cash share-based compensation.

    Adjusted EBITDA (non-GAAP)
    $3.5Mvs $1.4M net loss in prior year-to-date period
    6-month period ended June 30, 2026

    Positive Adjusted EBITDA for the year-to-date period, excluding non-cash share-based compensation.

    Cash and Investments Balance
    $25.6Mvs $24.1M as of Dec 31, 2025
    as of June 30, 2026

    Cash balance at the end of the quarter.

    Emrosi Refill Rate
    1.5
    July

    Refill rate for Emrosi in July.

    Sales Professionals Hired
    5
    Q2 FY26

    Additional dermatology sales professionals hired and deployed.

    Industry KPIs

    7
    MetricValueDetails
    Prescription volume36,000prescriptions
    EPS revenue guidanceBreakout year
    Product franchise net sales$8.1MUSD
    Therapeutic drug market shareGaining market share
    Price volume mix decompositionIncreased
    Clinical trial efficacy safety dataSuperior efficacy
    Business development capacity deal appetiteExploring

    Product announcements

    1
    ProductTypeDetails
    Eurax Creamlaunch

    Deals & partnerships

    4
    MaruhoPartnership for QBREXZA in Japan

    QBREXZA is available in Japan through this partnership. Additional out-licensing for QBREXZA in Korea, Taiwan, and other ASEAN countries also mentioned.

    CutiaPartnership for AMZEEQ in China

    AMZEEQ is commercially available in China through this partnership, launched about a year ago.

    Various (unnamed)Out-licensing opportunities for patented products in non-U.S. territories

    Exploring out-licensing for Emrosi and other patented brands in regions including Europe, Canada, Australia, New Zealand, Japan, and other parts of Asia. Discussions are consistent and ongoing.

    Various (unnamed)In-licensing assets to expand dermatology product offering

    Continuously exploring opportunities to in-license assets to expand the dermatology product offering and increase company value.

    What to watch in Q3 FY26

    5

    Emrosi ASP improvement

    next quarter
    CurrentIncreased in Q2 over Q1
    TargetContinued sequential gains

    Why it matters

    Improving ASP is crucial for Emrosi's revenue growth and overall profitability, reflecting better payer reimbursement.

    I think you'll see good progress from -- really from Q4 last year, Q1 to Q2, and our expectation is that we'll continue to gain better ASPs as more reimbursement from our payer strategy gets implemented and more reimbursement is happening through the insurance companies.

    Q&A highlights

    6

    Inquired about inventory movements affecting Emrosi's ASP and whether sequential ASP gains are expected. Also asked about seasonality for Emrosi prescriptions and recent plateauing.

    Management confirmed no inventory movements impacted ASP and expects continued sequential ASP gains due to improving payer reimbursement. They noted minimal seasonality for rosacea treatments, with Emrosi showing consistent growth and recent increases in new prescriptions, despite some weekly plateaus.

    “I think you'll see good progress from -- really from Q4 last year, Q1 to Q2, and our expectation is that we'll continue to gain better ASPs as more reimbursement from our payer strategy gets implemented and more reimbursement is happening through the insurance companies.”

    asked by Scott Henry · answered by Claude Maraoui

    2 min read5 chapters

    Detailed Narrative

    01

    Emrosi Commercial Performance and Growth Drivers

    Emrosi demonstrated strong commercial momentum in Q2 FY26, with net revenue reaching $8.1 million, driven by higher prescription volume and improved payer reimbursement. Total prescriptions grew 20% sequentially to approximately 36,000. The unique prescriber base expanded significantly to over 4,500, a 40% increase since the end of 2025. Management highlighted that growth is fueled by both new prescriptions and refills, with June seeing an all-time monthly high of 5,300 new prescriptions.

    02

    Payer Access and Average Selling Price (ASP) Improvement

    The company continues to make progress with payer access for Emrosi. Agreements with the top 3 GPOs cover over 169 million commercial lives in the U.S. High-quality formulary coverage (single-step edit or better) increased from 34% in Q1 to 38% currently, covering over 72 million lives. A large national health plan added Emrosi to its formulary in early August, expected to drive further traction. This improving formulary status has led to a calculated average selling price increase for Emrosi in Q2 over Q1, and management expects this trend to continue through the back half of the year.

    03

    Financial Results and Profitability Turnaround

    Journey Medical reported total revenue of $18.5 million in Q2 FY26, a 23% increase year-over-year. Gross margin remained consistent at 67%. SG&A expenses decreased to $10.9 million from $11.9 million in Q2 FY25, primarily due to lower launch-related spending. The company achieved a significant improvement in profitability, narrowing its GAAP net loss to $300,000 and generating positive non-GAAP EBITDA of $1.4 million and adjusted EBITDA of $2.9 million for the quarter. Cash balance increased to $25.6 million by quarter-end.

    04

    Commercial Organization Expansion and New Product Launch

    To capitalize on market momentum, Journey Medical hired and deployed 5 additional dermatology sales professionals in late July, primarily into white space territories. These new representatives are expected to augment market penetration efforts. Additionally, the company launched Eurax Cream, an anti-itch, antipruritic product, late in Q2. Eurax is positioned as the third priority product in the portfolio, behind Emrosi and QBREXZA, and is expected to be a strong contributor to the base business.

    05

    Business Development and Global Strategy

    The company is actively exploring business development opportunities, including out-licensing commercial rights for its patented products (Emrosi, QBREXZA, AMZEEQ, ZILXI) in non-U.S. territories. Existing international partnerships include QBREXZA in Japan with Maruho and AMZEEQ in China with Cutia. Journey Medical also seeks to in-license assets to expand its dermatology product offering and increase shareholder value, while maintaining a global patent portfolio for its key brands.

    AI-generated summary of the company’s earnings call. Not investment advice.