Journey Medical (DERM) - 2025 Q1 - Quarterly Results

Financial Results Journey Medical reported stable Q1 2025 net product revenues, a 10 p.p. gross margin increase to 64%, and a reduced net loss of $4.1 million Q1 2025 vs Q1 2024 Financial Performance | Financial Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Total Net Product Revenues | $13.1 million | $13.0 million | +0.8% | | Gross Margin | 64% | 54% | +10 p.p. | | Research and Development | Nil | $7.9 million | -100% | | Selling, General & Administrative | $10.6 million | $8.4 million | +$2.2 million | | Net Loss | $(4.1) million | $(10.4) million | +$6.3 million | | Net Loss Per Share | $(0.18) | $(0.53) | +$0.35 | | Cash and Cash Equivalents (at end of period) | $21.1 million | N/A | N/A | - The launch of Emrosi contributed $2.1 million in incremental net product revenue in Q1 2025[4] - The increase in SG&A expenses was primarily due to incremental operational activities related to the launch and commercialization of Emrosi[10] Recent Corporate Highlights Q1 highlights include the strong commercial launch of Emrosi™, publication of its superior Phase 3 clinical trial results, and a new COO appointment - The commercial launch of Emrosi™ is off to a strong start, with initial prescriptions filled in late March 2025 and a full launch on April 7, 2025[1][3][10] - Emrosi's Phase 3 clinical trial results, published in JAMA Dermatology, demonstrated statistical superiority over both Oracea® and placebo for treating rosacea[1][3][10] - Emrosi™ was incorporated into the National Rosacea Society's updated Rosacea Treatment Algorithms, enhancing its credibility among prescribers[1][3][10] - In April 2025, Ramsey Alloush, previously General Counsel, was appointed as the company's Chief Operating Officer[10] Financial Statements This section details the unaudited consolidated balance sheets and statements of operations, outlining the company's financial position and performance Unaudited Consolidated Balance Sheets As of March 31, 2025, total assets increased to $85.0 million, supported by higher cash and receivables, with total liabilities and equity also rising Consolidated Balance Sheet Highlights ($ in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $21,070 | $20,305 | | Total current assets | $53,986 | $48,179 | | Total assets | $84,962 | $80,241 | | Total current liabilities | $40,222 | $35,175 | | Total liabilities | $63,421 | $60,172 | | Total stockholders' equity | $21,541 | $20,069 | Unaudited Consolidated Statements of Operations Q1 2025 net loss significantly improved to $4.1 million, or $(0.18) per share, driven by stable revenue and reduced R&D expenses Consolidated Statements of Operations Highlights ($ in thousands) | Account | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Product revenue, net | $13,139 | $13,030 | | Cost of goods sold | $4,790 | $6,002 | | Research and development | $39 | $7,884 | | Selling, general and administrative | $10,569 | $8,420 | | Loss from operations | $(3,324) | $(10,090) | | Net loss | $(4,073) | $(10,442) | | Net loss per share (Basic & Diluted) | $(0.18) | $(0.53) | Non-GAAP Financial Measures Non-GAAP Adjusted EBITDA is used to clarify core performance, showing a Q1 2025 loss of $0.9 million versus a positive $11,000 in Q1 2024 - Management uses non-GAAP measures like Adjusted EBITDA to provide transparency on core performance by excluding non-cash and infrequent items such as share-based compensation, amortization, and short-term R&D expenses related to the Emrosi pre-approval phase[18][20][21] Reconciliation of GAAP Net Loss to Non-GAAP Adjusted EBITDA ($ in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | GAAP Net Loss | $(4,073) | $(10,442) | | Interest | $742 | $331 | | Amortization of acquired intangible assets | $1,065 | $814 | | EBITDA | $(2,266) | $(9,297) | | Share-based compensation | $1,323 | $1,406 | | Short-term R&D | $39 | $7,740 | | Other (Foreign exchange, Severance) | $7 | $162 | | Non-GAAP Adjusted EBITDA | $(897) | $11 | - Non-GAAP Adjusted EBITDA was a loss of $0.9 million, or $(0.04) per share, for Q1 2025, compared to income of $11,000, or $0.00 per share, for Q1 2024[23]