Journey Medical Corporation Reports Q2 2025 Financial Results with Revenue Increase and Reduced Net Losses

Journey Medical Corporation reported its financial results for the second quarter of 2025, revealing a slight increase in revenue and a notable reduction in net losses compared to the same period last year. The company generated $15.0 million in product revenue for the three months ended June 30, 2025, a 1% increase from $14.9 million in the prior year. For the six-month period, revenue rose to $28.1 million from $27.9 million, reflecting a 1% increase. The net loss for the quarter was $3.8 million, compared to a loss of $3.4 million in the same quarter of 2024, while the six-month net loss improved to $7.9 million from $13.8 million year-over-year.

The company’s operational expenses remained relatively stable, totaling $17.9 million for the second quarter, a marginal increase from $17.8 million in the previous year. Notably, the cost of goods sold decreased by 14% to $4.9 million, attributed to a favorable product sales mix, particularly the introduction of Emrosi, which has a lower cost structure compared to other products like Accutane. However, amortization of acquired intangible assets increased by 31% to $1.1 million, reflecting the addition of Emrosi's intangible asset following its FDA approval in November 2024.

Journey Medical's strategic developments included the successful launch of Emrosi, which contributed $2.8 million to the second-quarter revenue. The company has also expanded its product portfolio, which now includes eight FDA-approved dermatological products. The total number of shares outstanding increased to 17.5 million as of June 30, 2025, up from 16.2 million at the end of 2024, primarily due to stock options exercised and shares issued under the company's at-the-market offering program, which raised $4.1 million in net proceeds during the first half of 2025.

In terms of liquidity, Journey Medical reported cash and cash equivalents of $20.3 million, unchanged from the end of 2024. The company’s working capital decreased to $10.8 million from $13.0 million, indicating a tighter liquidity position. The company continues to rely on cash generated from product sales and financing activities to support its operations and product development initiatives. The company has expressed substantial doubt about its ability to continue as a going concern for at least the next twelve months, primarily due to ongoing losses and the need for additional capital.

Looking ahead, Journey Medical plans to focus on the commercialization of Emrosi and explore opportunities for further product development and acquisitions. The company may seek additional financing through debt or equity offerings to enhance its capital structure and support its growth initiatives. The management remains cautious about market conditions and the competitive landscape, particularly regarding pricing pressures and regulatory changes that could impact its operations.