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Journey Medical (DERM) - 2025 Q2 - Quarterly Results

Second Quarter 2025 Performance Overview Financial Performance Summary Q2 2025 net product revenues rose to $15.0 million, gross margin improved to 67%, but increased SG&A led to a $3.8 million net loss | Financial Metric (Q2) | 2025 (Millions) | 2024 (Millions) | Change (YoY) | | :-------------------- | :-------------- | :-------------- | :----------- | | Total Net Product Revenues | $15.0 | $14.9 | +0.7% | | Gross Margin | 67% | 61% | +6 ppts | | SG&A Expenses | $11.9 | $10.3 | +$1.6 | | Net Loss | $(3.8) | $(3.4) | $(0.4) | | Net Loss Per Share (Basic & Diluted) | $(0.16) | $(0.17) | +$0.01 | CEO Commentary and Strategic Outlook CEO highlighted Emrosi's strong Q2 2025 prescription ramp and expanding payer coverage, positioning for continued growth and operating leverage - Emrosi™ generated $2.8 million in net sales in its first full quarter on the market, demonstrating a strong initial prescription ramp and expanding payer coverage12 - The company believes it is well-positioned for continued growth and operating leverage in the second half of 2025 and beyond, driven by Emrosi's launch traction, improved cash generation, and a focused dermatology commercial organization2 Recent Corporate Highlights Journey Medical expanded Emrosi's payer access, presented positive clinical data, joined Russell Indexes, and appointed a new COO - Expanded payer access for Emrosi™ in July 2025, covering over 100 million commercial lives in the U.S., up from 54 million in May 20259 - A data analysis from two Phase 3 clinical trials for Emrosi™ was presented in June 2025, confirming that body weight did not affect its efficacy for moderate-to-severe papulopustular rosacea9 - Journey Medical joined the Russell 2000® and Russell 3000® Indexes in June 202519 - Ramsey Alloush was appointed as Chief Operating Officer in April 20259 Condensed Consolidated Financial Statements Unaudited Condensed Consolidated Balance Sheets Total assets increased to $81.16 million by June 30, 2025, driven by accounts receivable, while liabilities rose and equity decreased to $19.25 million | Balance Sheet Item (Thousands) | June 30, 2025 (Thousands) | December 31, 2024 (Thousands) | Change (Thousands) | | :----------------------------- | :------------ | :---------------- | :----- | | Cash and cash equivalents | $20,293 | $20,305 | $(12) | | Accounts receivable, net | $15,644 | $10,231 | +$5,413| | Total current assets | $51,268 | $48,179 | +$3,089| | Total assets | $81,158 | $80,241 | +$917 | | Total current liabilities | $40,481 | $35,175 | +$5,306| | Total liabilities | $61,912 | $60,172 | +$1,740| | Total stockholders' equity | $19,246 | $20,069 | $(823) | Unaudited Condensed Consolidated Statements of Operations Q2 2025 net product revenue slightly increased to $15.01 million, gross margin improved, but higher SG&A led to a $3.80 million net loss | Income Statement Item (Thousands) | Q2 2025 (Thousands) | Q2 2024 (Thousands) | 6M 2025 (Thousands) | 6M 2024 (Thousands) | | :-------------------------------- | :---------- | :---------- | :---------- | :---------- | | Product revenue, net | $15,009 | $14,855 | $28,148 | $27,885 | | Cost of goods sold | $4,939 | $5,727 | $9,729 | $11,728 | | Research and development | $- | $913 | $39 | $8,797 | | Selling, general and administrative | $11,882 | $10,328 | $22,451 | $18,748 | | Total operating expenses | $17,885 | $17,782 | $34,348 | $40,902 | | Loss from operations | $(2,876) | $(2,927) | $(6,200) | $(13,017) | | Net loss | $(3,796) | $(3,361) | $(7,869) | $(13,803) | | Net loss per common share (Basic & Diluted) | $(0.16) | $(0.17) | $(0.34) | $(0.69) | Non-GAAP Financial Measures Explanation of Non-GAAP Measures Adjusted EBITDA is used for transparency, excluding non-cash or non-recurring items like share-based compensation, non-core R&D, and asset amortization - Adjusted EBITDA is defined as net income (loss) excluding interest, taxes, depreciation, and certain other non-cash and infrequent items not considered normal, recurring operating expenses17 - Management uses non-GAAP measures to provide transparency, exclude non-cash/non-recurring items, and align with institutional investor analysis, but they should supplement, not substitute, GAAP measures19 - Key exclusions from Adjusted EBITDA include share-based compensation, non-core and short-term R&D expenses (e.g., Emrosi pre-approval costs), and amortization/impairments of acquired intangible assets20 Reconciliation of GAAP to Non-GAAP Adjusted EBITDA Q2 2025 GAAP Net Loss of $(3.80) million adjusted to a Non-GAAP Adjusted EBITDA of $(0.48) million, a decrease from Q2 2024, by adding back non-cash items | Reconciliation Item (Thousands) | Q2 2025 (Thousands) | Q2 2024 (Thousands) | 6M 2025 (Thousands) | 6M 2024 (Thousands) | | :------------------------------ | :---------- | :---------- | :---------- | :---------- | | GAAP Net Loss | $(3,796) | $(3,361) | $(7,869) | $(13,803) | | Interest | $799 | $402 | $1,541 | $733 | | Taxes | $60 | $- | $60 | $- | | Amortization of acquired intangible assets | $1,064 | $814 | $2,129 | $1,629 | | EBITDA | $(1,873) | $(2,145) | $(4,139) | $(11,441) | | Share-based compensation | $1,336 | $1,674 | $2,659 | $3,080 | | Short-term R&D | $- | $742 | $39 | $8,482 | | Non-GAAP Adjusted EBITDA | $(476) | $309 | $(1,373) | $321 | | Non-GAAP Adjusted EBITDA per share (Basic) | $(0.02) | $0.02 | $(0.06) | $0.02 | Corporate Information About Journey Medical Corporation Journey Medical Corporation is a commercial-stage pharmaceutical company marketing eight FDA-approved prescription dermatological products, founded by Fortress Biotech - Journey Medical Corporation is a commercial-stage pharmaceutical company focused on selling and marketing FDA-approved prescription dermatological products18 - The company currently markets eight branded FDA-approved prescription drugs for common skin conditions8 - Journey Medical is located in Scottsdale, Arizona, and was founded by Fortress Biotech, Inc. (Nasdaq: FBIO)8 Forward-Looking Statements Forward-looking statements are subject to risks like regulatory challenges and Emrosi's commercialization, with no update obligation under the PSLRA - The press release includes forward-looking statements regarding growth strategy and product development, identified by words like 'anticipate,' 'believe,' 'expect,' and 'will'11 - These statements are subject to risks and uncertainties, including regulatory hurdles, competition, market acceptance, reliance on third parties, and the successful commercialization of Emrosi11 - The company disclaims any obligation to publicly update or revise forward-looking statements, claiming protection under the Private Securities Litigation Reform Act of 199511 Conference Call and Webcast Information A conference call and webcast were held on August 12, 2025, at 4:30 p.m. ET to discuss financial results and provide a business update - A conference call and audio webcast were scheduled for August 12, 2025, at 4:30 p.m. ET15 - Participants could register online to receive dial-in numbers for the conference call6 - A live audio webcast was accessible via the Investors section of Journey Medical's website and would be available for replay for approximately 30 days7 Company Contact Information Contact details for investor relations (Jaclyn Jaffe) and media relations (Tony Plohoros) were provided for inquiries - Company Contact: Jaclyn Jaffe at (781) 652-4500 or ir@jmcderm.com12 - Media Relations Contact: Tony Plohoros of 6 Degrees at (908) 591-2839 or tplohoros@6degreespr.com12