Core Insights - Journey Medical Corporation reported revenue of $17.63 million for the quarter ended September 2025, reflecting a year-over-year increase of 20.5% [1] - The earnings per share (EPS) was -$0.09, an improvement from -$0.12 in the same quarter last year [1] - The revenue fell short of the Zacks Consensus Estimate of $17.7 million by 0.39%, while the EPS was below the consensus estimate of -$0.08 by 12.5% [1] Financial Performance Metrics - Total net product revenue for Accutane was $2.77 million, which is 30.7% lower than the year-ago figure and below the average estimate of $3.54 million [4] - Total net product revenue for EmrosiTM was reported at $4.88 million, compared to the estimated $6.35 million, indicating a significant shortfall [4] - Total net product revenue for Qbrexza was $7.36 million, slightly exceeding the estimated $6.67 million, but still showing a year-over-year decline of 2.9% [4] Stock Performance - Journey Medical's shares have increased by 25.7% over the past month, outperforming the Zacks S&P 500 composite, which rose by 4.6% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - Journey Medical reported total revenues of $17.6 million for Q3 2025, a 21% increase from $14.9 million in Q3 2024, driven by the successful launch of Amrosi [5][13] - Gross margin decreased to 67.4% in Q3 2025 from 69.4% in Q3 2024, but showed steady improvement from 63.5% in Q1 2025 and 67.1% in Q2 2025 [13][14] - The company reported a GAAP net loss of $2.3 million, or $0.09 per share, compared to a loss of $2.4 million, or $0.12 per share, in the same period last year [15] - EBITDA improved from a loss of $1 million in Q3 2024 to a loss of $500,000 in Q3 2025, with adjusted EBITDA reaching $1.7 million compared to $300,000 in the prior year [15][16] Business Line Data and Key Metrics Changes - Emrosi contributed $4.9 million to revenue in Q3 2025, a 75% increase from Q2 2025, while legacy products like Qbrexza, Accutane, and Zilxi saw a 16% year-over-year decline due to generic competition [5][6] - Total prescriptions for Emrosi grew by approximately 146% from Q2 to Q3 2025, with 18,198 prescriptions in Q3 compared to 7,394 in Q2 [6][17] - The number of unique prescribers for Amrosi increased by approximately 50% to over 2,700, indicating strong initial adoption [9][11] Market Data and Key Metrics Changes - Over $100 million of the $187 million commercial lives currently have access to Amrosi, with successful contracting with two of the three largest GPOs [7][8] - Physician feedback on Amrosi has been positive, with prescribers noting early efficacy and strong refill rates, indicating a favorable reception in the market [8][10] Company Strategy and Development Direction - The company aims to establish Amrosi as the standard of care for rosacea treatment, with expectations of peak annual net sales exceeding $200 million in the U.S. and $300 million globally [17][18] - Journey Medical is focused on disciplined expense management and margin expansion while scaling Amrosi's commercial footprint [16][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving sustainable EBITDA positivity in Q4 2025, highlighting the transformational potential of 2025 for the company [18] - The company anticipates that as drug coverage increases, reliance on the copay assistance program will decrease, with significant gains expected in 2026 [21][22] Other Important Information - The company is actively participating in dermatology medical conferences to build awareness and momentum for Amrosi [9][11] - The launch of Amrosi is expected to create a snowball effect in prescription growth as more physicians gain confidence in the product [25][26] Q&A Session Summary Question: Usage of patient assistance program for Amrosi - Management noted that the copay assistance program will see reduced reliance as reimbursement improves, with significant gains expected in 2026 [21][22] Question: Focus on breadth vs. depth of prescribers - The company is focusing on both breadth and depth, with efforts to convert new prescribers into consistent writers while expanding the prescriber base [24][25] Question: Revenue per script fluctuations - Management acknowledged variability in gross to net revenue and indicated that improvements are expected as more GPOs are contracted [29][30] Question: Launch curve expectations - Management expressed optimism about a consistently growing and potentially accelerating launch curve based on current performance [32] Question: Accutane's performance amidst generic competition - Management indicated that Accutane appears stable, with a recent uptick in performance, although competition remains a concern [33] Question: Retention rate of prescribers - Management did not provide specific retention rates but noted ongoing trial and adoption among new prescribers [37][40] Question: Qbrexza's performance and overlap with Amrosi - Management reported good growth for Qbrexza despite competition, with effective overlap in marketing strategies for both products [41][42]

Core Insights - Journey Medical Corporation reported third quarter 2025 net revenues of $17.6 million, a 21% increase year-over-year from $14.6 million in Q3 2024, driven by the commercial launch of Emrosi™ [3][6] - Emrosi™ total prescriptions surged by 146% compared to the second quarter of 2025, generating $4.9 million in net revenues for the third quarter [1][3] - The company anticipates significant operating leverage from the growth of Emrosi and its established dermatology commercial infrastructure [3] Financial Results - Gross margin improved to 67.4% in Q3 2025, compared to 69.4% in Q3 2024, influenced by higher revenues from Emrosi and Qbrexza, despite a favorable one-time adjustment in the previous year [6] - Selling, general and administrative (SG&A) expenses rose to $12.1 million in Q3 2025, a 6% increase from $11.4 million in Q3 2024, primarily due to operational activities related to Emrosi's launch [6] - The net loss for Q3 2025 was $2.3 million, slightly improved from a net loss of $2.4 million in Q3 2024, translating to $(0.09) per share [6][17] Recent Corporate Highlights - Emrosi's clinical differentiation was validated through a pooled Phase 3 efficacy analysis, showing statistically significant superiority over Oracea® and placebo [3][12] - The company expanded payer access for Emrosi to over 100 million commercial lives in the U.S. as of July 2025, up from 54 million in May 2025 [12] - Journey Medical's cash and cash equivalents increased to $24.9 million as of September 30, 2025, compared to $20.3 million at the end of 2024 [6]

Group 1: Fund Performance - Summers Value Fund LP reported a net return of -1.8% in Q2 2025, underperforming the Russell 2000 Index ETF (IWM) which returned 8.5% and the Russell 2000 Value Index ETF (IWN) which returned 4.9% [1] - Year-to-date, the fund is down 12.8% net, compared to -1.8% and -3.2% returns for the respective indexes [1] Group 2: Journey Medical Corporation Overview - Journey Medical Corporation (NASDAQ:DERM) focuses on developing and commercializing pharmaceutical products for dermatological conditions [2] - The stock of Journey Medical Corporation had a one-month return of -1.35% but gained 41.47% over the last 52 weeks, closing at $7.30 per share with a market capitalization of $192.062 million on September 19, 2025 [2] Group 3: Investment Insights on Journey Medical Corporation - The fund began building a position in Journey Medical Corporation in February, highlighting its products such as Accutane for acne treatment and Qbrexza for hyperhidrosis [3] - Journey Medical Corporation generated $55 million in revenue in 2024, with a modest operating loss [3] - The company is led by CEO Claude Marauoi and a team with significant experience from Medicis, a dermatology company previously acquired for $2.6 billion [3]