Verrica Pharmaceuticals Reports Fourth Quarter and Full Year 2025 Financial Results - YCANTH net revenue grew 130% to $15.3 million in 2025, and selling, general and administrative expenses decreased by over 40%, when co

Verrica Pharmaceuticals Reports Fourth Quarter and Full Year 2025 Financial Results

- YCANTH net revenue grew 130% to $15.3 million in 2025, and

selling, general and administrative expenses decreased by over 40%, when compared to 2024 -

$35.6 million in total revenue in 2025, up from $7.6 million in the prior year -

applicator units grew 99% to 51,296 in 2025 versus 25,773 units in 2024

- Company is advancing

VP-315, its novel oncolytic peptide, toward a Phase 3 program for basal cell carcinoma in 2026, further analysis supports abscopal effects and tumor size reduction in untreated lesions -

- First patient dosed in the first Phase 3 study of YCANTH for the treatment of common warts in December 2025, and Company

expects to initiate the second Phase 3 study in the US and Japan with Torii Pharmaceutical in mid-2026 -

- Company gained alignment with the European Medicines Agency supporting a clear regulatory path forward to file for approval of

YCANTH in the European Union without additional clinical studies -

- Company has no outstanding debt and cash

runway extended into the first quarter of 2027 -

- Conference call scheduled for today at 8:30 am

WEST CHESTER, PA - March 11, 2026 (GLOBE NEWSWIRE) - Verrica Pharmaceuticals Inc. ("Verrica")

(Nasdaq: VRCA), a therapeutics company developing and commercializing medications for the treatment of dermatological diseases, including skin cancers, today announced financial results for the fourth quarter and full year ended December 31,

"In 2025, Verrica successfully implemented a series of transformational changes that we believe have fundamentally improved the future growth

and strategic value of our entire business," said Jayson Rieger, PhD, MBA, President and Chief Executive Officer of Verrica. "Our focused and efficient commercial strategy allowed us to nearly double dispensed applicator units of YCANTH

from the prior year while cutting selling, general and administrative expenses by over 40% over that same period. This February, we dispensed more applicators of YCANTH per selling day than in any month in our history, reflecting strong and

increasing demand for YCANTH. We are poised to advance our late-stage clinical pipeline in common warts and basal cell carcinoma, which collectively could represent a multiple billion-dollar opportunity. Finally, in 2025 we significantly improved

our financial position, repaying our outstanding debt while extending our cash runway into the first quarter of 2027.

"Looking ahead, in addition to growing YCANTH sales in the United States we have multiple potential

avenues to continue building value by entering new markets and expanding our product portfolio. Our first international partnership for YCANTH, with Torii Pharmaceutical, has now launched in Japan. After recently gaining alignment with regulators

for YCANTH's approval pathway in the European Union, we are now able to more meaningfully engage in discussions with additional potential commercialization partners, which could provide a significant source of

non-dilutive funding and future revenue for the Company," Dr. Rieger continued.

advancing toward pivotal Phase 3 studies of VP-315 for the treatment of basal cell carcinoma. VP-315 represents a unique opportunity to introduce a novel immunotherapy

with potential abscopal activity that could become a primary or neoadjuvant, non-surgical treatment option for this large patient population. With the opportunity to grow YCANTH in the United States, enter new

markets and develop transformative medicines, we are tremendously excited about what 2026 has in store for Verrica and our patients," Dr. Rieger concluded.

Conference Call and Webcast Information

host a conference call on Wednesday, March 11, 2026, at 8:30 am, to discuss its fourth quarter and full year 2025 financial results and provide a business update. To participate in the conference call, please utilize the following information:

Domestic Dial-In Number: Toll-Free: 1-800-343-4136

International Dial-In Number: 1-203-518-9843

Conference ID: VERRICA

Participants can use Guest dial-in #s above and be answered by an operator.

The call will be broadcast live over the Web and can also be accessed on Verrica Pharmaceuticals' website: www.verrica.com.

The conference call will also be available for replay for one month on the Company's website in the Events Calendar of the Investors section.

Business Highlights and Recent Developments

Fourth Quarter 2025 Financial

Full Year 2025 Financial Results

Non-GAAP Financial Measures

In evaluating the operating performance of its business, Verrica's management considers non-GAAP loss

from operations, non-GAAP net loss and non-GAAP net loss per share. These non-GAAP financial

measures exclude stock-based compensation expense and non-cash interest expense that are required by GAAP. Verrica excludes non-cash stock-based compensation

expense from these non-GAAP measures to facilitate comparison to peer companies who also provide similar non-GAAP disclosures and because it reflects how management

internally manages the business. In addition, Verrica excludes non-cash interest expense from these non-GAAP measures to facilitate an understanding of the effects of

the debt service obligations on the Company's liquidity and comparisons to peer group companies who also provide similar non-GAAP disclosures and because it is reflective of how management internally

manages the business. Verrica also excludes certain other one-time expenses and impacts from loss on debt settlement and change in fair value of derivative liability.

Non-GAAP loss from operations, non-GAAP net loss and non-GAAP net loss per share should be considered in

addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results. Non-GAAP loss from

operations, non-GAAP net loss and non-GAAP net loss per share have been reconciled to the nearest GAAP measure in the tables following the financial

statements in this press release.

YCANTH is a proprietary drug-device combination product that contains a GMP-controlled formulation of cantharidin delivered via a single-use applicator that allows for precise topical dosing and targeted administration for the treatment of molluscum. YCANTH is the first and only healthcare professional-administered product approved by the FDA

to treat adult and pediatric patients two years of age and older with molluscum contagiosum - a common, highly contagious skin disease that affects an estimated six million people in the United States, primarily children. Approval of YCANTH

was based upon the positive results from two Phase 3 clinical trials in approximately 500 patients which demonstrated that YCANTH was a safe and effective therapeutic for the treatment of molluscum. Approximately 250 million lives are

eligible to receive YCANTH covered by insurance. Commercially insured patients pay just $25 per YCANTH treatment visit, for up to two applicators. Other uninsured patients may be eligible to receive YCANTH at a reduced cost if certain eligibility

requirements are met for patient assistance. Please visit YCANTHPro.com for additional information.

VP-315 (ruxotemitide)

VP-315 is a potential first-in-class oncolytic chemotherapeutic peptide immunotherapy administered directly into a tumor to induce immunogenic cell death and thereby unleashing a broad spectrum of

tumor antigens for T cell responses, which may offer a non-surgical option for patients suffering from skin cancer. The technology is based on pioneering research in "host

defense peptides" - nature's first line of defense towards foreign pathogens. Verrica holds an exclusive worldwide license to develop and commercialize VP-315 for certain dermatologic oncology indications, including non-metastatic melanoma and non-metastatic merkel cell carcinoma, and

intends to focus initially on basal cell and squamous cell carcinomas as the lead indications for development. VP-315 has demonstrated positive tumor-specific immune cell responses in multi-indication Phase

1/2 oncology trials.

About Verrica Pharmaceuticals Inc.

Verrica is a therapeutics company developing and commercializing medications for the treatment of dermatological diseases, including skin cancer.

Verrica's product YCANTH (VP-102) (cantharidin), is the first and only healthcare professional-administered treatment approved by the FDA to

treat adult and pediatric patients two years of age and older with molluscum contagiosum, a highly contagious viral skin infection affecting approximately 6 million people in the United States, primarily children. YCANTH (VP-102) is also in development to treat common warts, the largest remaining unmet need in medical dermatology. Verrica has also entered a worldwide

license agreement with Lytix Biopharma AS to develop and commercialize VP-315 (ruxotemitide, formerly known as LTX-315 and VP-LTX-315) for non-melanoma skin cancers including basal cell carcinoma and squamous cell carcinoma. For more information, visit www.verrica.com.

Forward-Looking Statements

Any statements contained in

this press release that do not describe historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements may be identified by words such as

"believe," "expect," "may," "plan," "potential," "will," and similar expressions, and are based on Verrica's current beliefs and expectations. These forward-looking

statements include statements about the commercialization of YCANTH, including broadened access for molluscum patients, the clinical development and benefits of Verrica's product candidates, including YCANTH

(VP-102) and VP-315, the development and regulatory plans for YCANTH in Europe or other international markets, the timing of patient enrollment in the global Phase 3

program in common warts, and the likelihood and impact of potential partnering arrangements. These statements involve risks and uncertainties that could cause actual results to differ materially from those reflected in such statements. Risks and

uncertainties that may cause actual results to differ materially include risks and uncertainties related to market conditions, satisfaction of customary closing conditions related to the proposed public offering and other risks and uncertainties

that are described in Verrica's Annual Report on Form 10-K for the year ended December 31, 2025, Verrica's Quarterly Reports on Form 10-Q and other

filings Verrica makes with the SEC. Any forward-looking statements speak only as of the date of this press release and are based on information available to Verrica as of the date of this release, and Verrica assumes no obligation to, and does not

intend to, update any forward-looking statements, whether as a result of new information, future events or otherwise.

VERRICA PHARMACEUTICALS INC.

Selected Statements of Operations Data

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Selected Balance Sheets Data

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Reconciliation of Non-GAAP Financial Measures (unaudited)

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Reconciliation of Non-GAAP Financial Measures (unaudited)

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