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    VRCA
    Earnings call· Jun 2026(Q2 FY26)

    Verrica Pharmaceuticals Q2 FY26 earnings call VRCA

    Aug 6, 2026 Source

    Executive summary

    Verrica Pharmaceuticals Q2 FY26 — Strong YCAMP Growth and Extended Cash Runway

    Verrica Pharmaceuticals reported strong commercial momentum for YCAMP in Q2 FY26, with significant growth in both net product revenue and dispensed units. The company also secured a non-dilutive financing facility, extending its cash runway into 2028, and made progress on its pipeline assets, including dosing the first patient in a pivotal Phase 3 common warts trial and advancing preparations for VP315's Phase 3 program. Global expansion efforts for YCAMP are also underway with a new distribution agreement in Israel.

    Highlights

    5

    • YCAMP US net product revenue increased 18.7% quarter-over-quarter to $5.1 million.

    • YCAMP dispensed applicator units grew over 28% quarter-over-quarter to 19,626.

    • Secured non-dilutive financing of up to $27.5 million, extending cash runway into 2028.

    • First patient dosed in COVE-3, the second pivotal Phase 3 trial for common warts.

    • Signed a distribution agreement with Madomi Pharma to commercialize YCAMP in Israel.

    Concerns

    5

    • GAAP net loss was $13.2 million, or $0.62 per share, compared to net income in the prior year.

    • Non-GAAP net loss was $10.2 million, or $0.48 per share, compared to net income in the prior year.

    • Total revenue decreased year-over-year from $12.7 million in Q2 FY25 to $5.9 million in Q2 FY26, primarily due to a one-time milestone in the prior year.

    • Research and development expenses increased to $6 million in Q2 FY26 from $1.8 million in Q2 FY25.

    • Selling, general and administrative expenses increased to $10.3 million in Q2 FY26 from $8.9 million in Q2 FY25.

    Guidance & targets

    3
    CategoryTargetConfidence
    Cash runway
    Into 2028
    high materiality
    High
    Common Warts Program Top-line Data
    Mid-2027
    high materiality
    High
    Achievement of additional financing tranche
    $15 million
    medium materiality
    Medium

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    US YCAMP
    Strong growth driven by prescriber adoption and retargeting strategies. Strong growth from commercially insured patients.
    Net product revenue: $5.1 millionDispensed applicator units: 19,626Dispensed applicator units growth QoQ: >28%
    		$5.1M—18.7%—
    License and Collaboration
    Associated with partnership with Torrey Pharmaceutical.
    		$0.8M———

    Operational metrics

    11
    Total Revenue
    $5.9Mdown from $12.7M in Q2 FY25
    Q2 FY26

    Compared to $12.7 million in Q2 FY25, which included an $8 million one-time milestone.

    Gross Product Margins
    91.5%down from 92.5% in Q2 FY25
    Q2 FY26

    Slight decrease compared to the prior year quarter.

    Cost of Product Revenue
    $0.4Mup from $0.3M in Q2 FY25
    Q2 FY26

    Increased year-over-year.

    R&D Expenses
    $6Mup from $1.8M in Q2 FY25
    Q2 FY26

    Excluding stock-based compensation, the increase was due to the Common Warts program.

    SG&A Expenses
    $10.3Mup from $8.9M in Q2 FY25
    Q2 FY26

    Excluding stock-based compensation, the increase was primarily due to sales force expansion.

    Legal Settlement Expense
    $1.7M
    Q2 FY26

    Recognized in Q2 FY26 for a class action settlement, net of insurance recovery.

    GAAP Net Loss
    $13.2Mvs GAAP net income of $0.2M in Q2 FY25
    Q2 FY26

    Resulted in a loss of $0.62 per share.

    Non-GAAP Net Loss
    $10.2Mvs non-GAAP net income of $1.2M in Q2 FY25
    Q2 FY26

    Resulted in a loss of $0.48 per share.

    Cash Balance
    $11.2M
    As of June 30, 2026

    Cash on hand at the end of the second quarter.

    Non-Dilutive Financing Facility
    $27.5M total
    Ongoing

    Provided by Paul Manning, extending cash runway into 2028. The $15M tranche is available upon achieving certain milestones before end of 2026.

    YCAMP Patient Access Program
    $0 copay
    Implemented July

    New program to reduce financial burden for caregivers and patients needing additional applicators.

    Industry KPIs

    7
    MetricValueDetails
    Prescription volume19,626applicator units
    Product franchise net sales$5.1MUSD
    Pipeline clinical milestones3trials
    Regulatory approvals filingsRegulatory submission to be prepared
    Geographic regional revenue growthYCAMP Japan (via Tori), YCAMP Israel (via Madomi)
    Clinical trial efficacy safety data67% reduction%
    Business development capacity deal appetitePursuing additional partnerships

    Deals & partnerships

    3
    Madomi PharmaExclusive distribution, marketing, and supply agreement to commercialize YCAMP for molluscum in Israel.Up to $8.2M in regulatory and commercial milestone payments

    Madomi Pharma will prepare a regulatory submission for approval in Israel. This partnership aims to establish YCAMP as the new standard of care in Israel.

    Torrey Pharmaceutical (subsidiary of Shinogi)Partner for YCAMP in Japan and for the Global Common Warts Program.$40M

    The two companies split overall program costs on a 50-50 basis after the initial $40M. Verica's portion is expected to be paid out of future net transfer payments, milestones, and royalties from Japan sales.

    Paul ManningNon-dilutive financing facility provided by an entity controlled by Verica's largest shareholder and chairman.Up to $27.5M

    This facility supports the continued growth of YCAMP and the ongoing Phase 3 common warts program. It offers significant financial flexibility.

    Risks & headwinds

    4
    Seasonal impact on YCAMP salesSummer months (Q3 FY26)

    Impacted by vacations, lifestyle things

    Mitigation: Continued focus on retargeting, segmentation, and patient access programs.

    Increased R&D expensesOngoing

    $6M in Q2 FY26 vs $1.8M in Q2 FY25

    Mitigation: Common Warts program largely funded by partner Torrey Pharmaceutical (first $40M).

    Increased SG&A expensesOngoing

    $10.3M in Q2 FY26 vs $8.9M in Q2 FY25

    Mitigation: Primarily due to increased commercial spend related to the expansion of the sales force, which is driving YCAMP growth.

    Legal settlement expenseQ2 FY26

    $1.7M

    Mitigation: Agreement in principle reached to settle legal proceedings, expense recognized net of insurance recovery.

    What to watch in Q3 FY26

    4

    YCAMP Dispensed Units Growth

    next quarter
    Current19,626 units (up >28% QoQ)
    TargetContinued growth, accounting for seasonality

    Why it matters

    Sustained unit growth is critical for YCAMP's commercial success and market penetration, especially considering seasonal impacts.

    I certainly would expect continued growth, but I do want to be realistic, we will be impacted by the seasonal aspects that impact everybody.

    Q&A highlights

    4

    Asked about expected YCAMP prescription trends for the summer, key drivers for maximizing adoption (clinician base, access, sales force), and long-term net pricing stabilization.

    Management expects continued growth for YCAMP, acknowledging seasonal impacts from summer vacations. Key drivers include retargeting and segmentation of the sales force, and enhancing patient access programs like the $0 copay for refills. They declined to comment on specific gross-to-net pricing stabilization.

    “I certainly would expect continued growth, but I do want to be realistic, we will be impacted by the seasonal aspects that impact everybody.”

    asked by Stacy Koo · answered by Chris Chapman

    2 min read5 chapters

    Detailed Narrative

    01

    YCAMP Commercial Performance and Patient Access

    Verrica reported strong commercial momentum for YCAMP in Q2 FY26, with US net product revenue reaching $5.1 million, an 18.7% increase quarter-over-quarter. Dispensed applicator units grew over 28% to 19,626, reflecting increased prescriber adoption and effective retargeting strategies. The company observed strong growth from commercially insured patients and implemented a new program in July providing $0 copay for eligible commercially insured patients for refills, aiming to reduce financial burden and improve access.

    02

    Global Expansion of YCAMP

    Beyond the US and Japan, Verrica is actively pursuing global expansion for YCAMP. A new exclusive distribution, marketing, and supply agreement was announced with Madomi Pharma to commercialize YCAMP in Israel. Verrica will receive 60% of the net selling price from Madomi's sales, in addition to up to $8.2 million in regulatory and commercial milestone payments. This partnership is expected to establish YCAMP as a new standard of care for molluscum in Israel, with potential for common warts expansion.

    03

    Common Warts Pipeline Progress

    The global Phase 3 program for YCAMP as a treatment for common warts is advancing, with the first US patient dosed in COVE-3 (the second pivotal trial) in June, and the first Japanese patient also dosed. Enrollment in the first pivotal study, COVE-2, and the long-term follow-up study, COVE-4, continues to progress well. Top-line data from the program is now expected in mid-2027. Partner Torrey Pharmaceutical is funding the first $40 million of the program's cost, covering approximately 90% of the current trial budget.

    04

    VP315 for Basal Cell Carcinoma

    Verrica continues to advance its Phase 3-ready oncology asset, VP315, for basal cell carcinoma. Encouraging new Phase 2 data presented in May highlighted a potential abscopal effect, showing an overall 67% reduction in size across 14 untreated non-target basal cell lesions, with three achieving complete histological clearance. The company is preparing for a Phase 3 program, including CRO selection and manufacturing of clinical supplies, based on favorable FDA feedback.

    05

    Non-Dilutive Financing and Financial Flexibility

    The company announced a new non-dilutive financing facility of up to $27.5 million from its largest investor, Paul Manning. This facility provides $12.5 million immediately, with an additional $15 million available upon achieving certain milestones by year-end 2026. The financing offers significant flexibility with no scheduled interest or principal payments until its December 2030 maturity, extending the cash runway into 2028 and allowing resources to be maximized for business and pipeline advancement.

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