Journey Medical Corporation Reports Q1 2025 Financial Results with Revenue Growth and Improved Net Loss

Journey Medical Corporation reported its financial results for the first quarter of 2025, revealing a net product revenue of $13.1 million, a slight increase from $13.0 million in the same period last year. The revenue growth was primarily driven by the commercial launch of Emrosi™, which contributed $2.1 million to the total revenue. However, this was offset by a significant decline in sales of Accutane, which fell to $3.7 million from $5.8 million, attributed to increased market competition. Overall, the company recorded a net loss of $4.1 million, a 61% improvement compared to the net loss of $10.4 million in the prior year.

Operating expenses for the quarter decreased by 29% to $16.5 million, down from $23.1 million in the previous year. This reduction was largely due to a significant drop in research and development costs, which fell to nearly zero from $7.9 million, as the company had incurred substantial pre-approval expenses for Emrosi in the prior year. Selling, general, and administrative expenses increased by 26% to $10.6 million, reflecting the costs associated with the launch and commercialization of Emrosi. The cost of goods sold also decreased by 20% to $4.8 million, primarily due to a favorable product sales mix.

In terms of operational metrics, Journey Medical's cash and cash equivalents rose to $21.1 million as of March 31, 2025, compared to $20.3 million at the end of 2024. The company’s working capital also improved to $13.8 million from $13.0 million. The total number of shares outstanding increased to 17.1 million, up from 16.2 million at the end of the previous fiscal year. The company continues to rely on cash generated from product sales and financing activities, including a recent at-the-market offering that raised approximately $4.1 million.

Strategically, Journey Medical has focused on expanding its product portfolio, particularly with the recent FDA approval of Emrosi for treating inflammatory lesions of rosacea. The company has begun initial distribution and sales promotion of Emrosi, which is expected to enhance its market presence in the dermatological sector. Additionally, Journey Medical is exploring further capital-raising opportunities to support its growth initiatives and product development.

Looking ahead, Journey Medical expressed concerns regarding its ability to continue as a going concern due to recurring losses and the need for additional capital. The company plans to evaluate market conditions and financing alternatives, including potential out-licensing arrangements, to strengthen its capital structure. The management remains optimistic about the commercial potential of Emrosi and its impact on future revenue growth, while also acknowledging the challenges posed by market competition and regulatory changes in the pharmaceutical industry.