Full Press Release Details
Corporation Reports First Quarter 2026 Financial Results and Recent Corporate Highlights
for the first quarter ended March 31, 2026 increased 21% year-over-year to $16.0 million
revenues were $6.3 million in the first quarter ended March 31, 2026
position increased to $27 million, driven by strong financial performance
to hold conference call today at 4:30 p.m. ET
AZ - May 13, 2026 - Journey Medical Corporation (Nasdaq: DERM) ("Journey Medical," "the Company,"
"we" or "our"), a commercial-stage pharmaceutical company focused on developing, selling and marketing FDA-approved
prescription pharmaceutical products for the treatment of dermatological conditions, today announced financial results and recent corporate
highlights for the first quarter ended March 31, 2026.
Journey Medical's Co-Founder, President and Chief Executive Officer, said, "2026 is off to a strong start, as we delivered
solid revenue growth and cash generation in the first quarter of the year. Prescription demand and payer coverage for Emrosi
continue to increase, with the product's differentiated clinical profile gaining traction as we establish Emrosi
as the best-in-class oral treatment for patients suffering from rosacea. Increasing refill rates and a growing number of Emrosi
prescribers are also building momentum behind the brand. Our net product sales growth in the quarter coupled with disciplined investment
in our dermatology-focused commercial infrastructure resulted in improved operating leverage, and we expect this trend to continue going
forward. With over $27 million in cash and Emrosi entering
its second year on the market, we remain well-positioned to continue to execute on our strategy and deliver strong financial progress
throughout the year."
and Webcast Information
management will conduct a conference call and audio webcast on May 13, 2026, at 4:30 p.m. ET.
conference call, interested parties within the U.S. should dial 1-866-777-2509 (domestic) or 1-412-317-5413 (international). All callers
should dial in approximately 10 minutes prior to the scheduled start time and ask to be joined into the Journey Medical conference call.
Participants can register for the conference call here: https://dpregister.com/sreg/10209171/10401b25258. Please note that registered
participants will receive their dial-in number upon registration.
A live audio webcast
can be accessed on the News and Events page of the Investors section of Journey Medical's website, www.journeymedicalcorp.com,
and will remain available for replay for approximately 30 days after the meeting.
define gross margin as total revenue less cost of goods sold divided by total revenue.
Corporation (Nasdaq: DERM) ("Journey Medical") is a commercial-stage pharmaceutical company that primarily focuses on developing,
selling and marketing FDA-approved prescription pharmaceutical products for the treatment of dermatological conditions through its efficient
sales and marketing model. The Company currently markets eight branded FDA-approved prescription drugs that help treat and heal common
skin conditions. The Journey Medical team comprises industry experts with extensive experience in developing and commercializing some
of dermatology's most successful prescription brands. Journey Medical is located in Scottsdale, Arizona and was founded by Fortress
Biotech, Inc. (Nasdaq: FBIO). Journey Medical's common stock is registered under the Securities Exchange Act of 1934, as amended,
and it files periodic reports with the U.S. Securities and Exchange Commission ("SEC"). For additional information about
Journey Medical, visit www.journeymedicalcorp.com.
may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. As used below and throughout this press release, the words "the
Company", "we", "us" and "our" may refer to Journey Medical. Such statements include, but are
not limited to, any statements relating to our growth strategy and product development programs and any other statements that are not
historical facts. The words "anticipate," "believe," "continue," "estimate," "may,"
"expect," "will," "could," "project," "intend," "potential" and
similar expressions are generally intended to identify forward-looking statements. Forward-looking statements are based on management's
current expectations and are subject to risks and uncertainties that could negatively affect our business, operating results, financial
condition and stock price. Factors that could cause actual results to differ materially from those currently anticipated include: the
fact that our products and product candidates are subject to time and cost intensive regulation and clinical testing and as a result,
may never be successfully developed or commercialized; a substantial portion of our sales derive from products that may become subject
to third-party generic competition because their period of exclusivity has ended or they are without patent protection, subjecting them
to the potential introduction of new competitor products and/or an increase in market share of existing competitor products, either of
which could have a significant adverse impact on our operating income; we operate in a heavily regulated industry, and we cannot predict
the impact that any future legislation or administrative or executive action may have on our operations; our revenue is dependent mainly
upon sales of our dermatology products and any setback relating to the sale of such products could impair our operating results; competition
could limit our products' commercial opportunity and profitability, including competition from manufacturers of generic versions
of our products; the risk that our products do not achieve broad market acceptance, including by government and third-party payors; our
reliance on third parties for several aspects of our operations; our dependence on our ability to identify, develop, and acquire or in-license
products and integrate them into our operations, at which we may be unsuccessful; the dependence of the success of our business, including
our ability to finance our company and generate additional revenue, on the successful commercialization of Emrosi
and the successful development, regulatory approval and commercialization of any future product candidates that we may develop, in-license
or acquire; clinical drug development is very expensive, time consuming, and uncertain and our clinical trials may fail to adequately
demonstrate the safety and efficacy of our current or any future product candidates; our competitors could develop and commercialize
products similar or identical to ours; risks related to the protection of our intellectual property and our potential inability to maintain
sufficient patent protection for our technology and products; our business and operations would suffer in the event of computer system
failures, cyber-attacks, or deficiencies in our or our third parties' cybersecurity; the substantial doubt expressed about our
ability to continue as a going concern; the effects of major public health issues, epidemics or pandemics on our product revenues and
any future clinical trials; our potential need to raise additional capital; Fortress controls a voting majority of our common stock,
which could be detrimental to our other shareholders; as well as other risks described in Part I, Item 1A, "Risk Factors,"
in our Annual Report on Form 10-K for the year ended December 31, 2025, subsequent Reports on Form 10-Q, and our other filings we make
with the SEC. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking
statements contained herein to reflect any change in our expectations or any changes in events, conditions or circumstances on which
any such statement is based, except as may be required by law, and we claim the protection of the safe harbor for forward-looking statements
contained in the Private Securities Litigation Reform Act of 1995.
Media Relations Contact:
Condensed Consolidated Balance Sheets
in thousands except for share and per share amounts)
| March 31, | December 31, | |||||||
| 2026 | 2025 | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 27,219 | $ | 24,090 | ||||
| Accounts receivable, net of reserves | 24,992 | 29,783 | ||||||
| Inventory | 9,292 | 9,624 | ||||||
| Prepaid expenses and other current assets | 3,464 | 3,376 | ||||||
| Total current assets | 64,967 | 66,873 | ||||||
| Intangible assets, net | 26,479 | 27,605 | ||||||
| Operating lease right-of-use asset, net | 88 | 111 | ||||||
| Total assets | $ | 91,534 | $ | 94,589 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 8,202 | $ | 8,851 | ||||
| Due to related party | 472 | 455 | ||||||
| Accrued expenses | 26,102 | 27,567 | ||||||
| Accrued interest | 390 | 398 | ||||||
| Income taxes payable | 70 | 70 | ||||||
| Term loan, short-term | 2,500 | - | ||||||
| Operating lease liability, short-term | 94 | 101 | ||||||
| Total current liabilities | 37,830 | 37,442 | ||||||
| Term loan, long-term, net of discount | 22,873 | 25,277 | ||||||
| Operating lease liability, long-term | - | 18 | ||||||
| Total liabilities | 60,703 | 62,737 | ||||||
| Stockholders' equity | ||||||||
| Common stock, $.0001 par value, 50,000,000 shares authorized, 21,333,946 and 21,144,655 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively | 2 | 2 | ||||||
| Common stock - Class A, $.0001 par value, 50,000,000 shares authorized, 6,000,000 shares issued and outstanding as of March 31, 2026 and December 31, 2025 | 1 | 1 | ||||||
| Additional paid-in capital | 131,516 | 130,307 | ||||||
| Accumulated deficit | (100,688 | ) | (98,458 | ) | ||||
| Total stockholders' equity | 30,831 | 31,852 | ||||||
| Total liabilities and stockholders' equity | $ | 91,534 | $ | 94,589 |
Condensed Consolidated Statements of Operations
in thousands except for share and per share amounts)
| Three-Month Periods Ended | ||||||||
| March 31, | ||||||||
| 2026 | 2025 | |||||||
| Revenue: | ||||||||
| Product revenue, net | $ | 15,921 | $ | 13,139 | ||||
| Other revenue | 40 | - | ||||||
| Total revenue | 15,961 | 13,139 | ||||||
| Operating expenses | ||||||||
| Cost of goods sold - (excluding amortization of acquired intangible assets) | 6,218 | 4,790 | ||||||
| Amortization of acquired intangible assets | 1,126 | 1,065 | ||||||
| Research and development | - | 39 | ||||||
| Selling, general and administrative | 10,109 | 10,569 | ||||||
| Total operating expenses | 17,453 | 16,463 | ||||||
| Loss from operations | (1,492 | ) | (3,324 | ) | ||||
| Other expense (income) | ||||||||
| Interest income | (157 | ) | (149 | ) | ||||
| Interest expense | 892 | 891 | ||||||
| Foreign exchange transaction losses | 3 | 7 | ||||||
| Total other expense | 738 | 749 | ||||||
| Loss before income taxes | (2,230 | ) | (4,073 | ) | ||||
| Income tax expense | - | - | ||||||
| Net loss | $ | (2,230 | ) | $ | (4,073 | ) | ||
| Net loss per common share: | ||||||||
| Basic and diluted | $ | (0.08 | ) | $ | (0.18 | ) | ||
| Weighted average number of common shares: | ||||||||
| Basic and diluted | 27,305,028 | 22,611,040 |
Use of Non-GAAP Measures:
In addition to the GAAP financial measures
as presented in our Form 10-Q that will be filed with the Securities and Exchange Commission ("SEC"), the Company has, in
this press release, included certain non-GAAP measurements, including EBITDA, Adjusted EBITDA, Adjusted EBITDA per share basic and Adjusted
EBITDA per share diluted. We define EBITDA as net income (loss) excluding interest, taxes and depreciation and amortization and we define
Adjusted EBITDA as net income (loss) excluding interest, taxes and depreciation, less certain other non-cash and/or infrequent items
not considered to be normal, recurring operating expenses, including, share-based compensation expense, amortization and impairments
of acquired intangible assets, inventory step-ups from the purchases of intangibles assets and products, severance, and foreign exchange
we exclude the following matters for the reasons more fully described below:
first quarter of 2026, we no longer exclude short-term research and development expenses (including any one-time license and milestone
payments) from our Non-GAAP Adjusted EBITDA results. Prior period Non-GAAP Adjusted EBITDA results have been revised to reflect this
per share basic and Adjusted EBITDA per share diluted are determined by dividing the resulting Adjusted EBITDA by the number of shares
outstanding on an actual and fully diluted basis.
the use of these non-GAAP measures provides meaningful supplemental information regarding the Company's performance because (i)
they allow for greater transparency with respect to key measures used by management in its financial and operational decision-making,
(ii) they exclude the impact of non-cash or, when specified, non-recurring items that are not directly attributable to the Company's
core operating performance and that may obscure trends in the Company's core operating performance and (iii) they are used by institutional
investors and the analyst community to help analyze the Company's results. However, Adjusted EBITDA, Adjusted EBITDA per share basic,
Adjusted EBITDA per share diluted and any other non-GAAP financial measures should be considered as a supplement to, and not as a substitute
for, or superior to, the corresponding measures calculated in accordance with GAAP. Further, non-GAAP financial measures used by the
Company and the manner in which they are calculated may differ from the non-GAAP financial measures or the calculations of the same non-GAAP