Verrica Pharmaceuticals Reports $12.7M Revenue and $204K Net Income in Q2 2025

Verrica Pharmaceuticals Inc. reported its financial results for the second quarter of 2025, revealing a total revenue of $12.7 million, a significant increase from $5.2 million in the same period last year. This growth was primarily driven by a substantial rise in license and collaboration revenue, which surged to $8.2 million from $0.3 million, largely due to an $8.0 million milestone payment from Torii Pharmaceutical Co., Ltd. Product revenue, however, saw a slight decline, totaling $4.5 million compared to $4.9 million in the prior year, reflecting a decrease in initial stock-in related to the expansion of the specialty distribution network.

The company's operating expenses for the second quarter decreased to $11.2 million from $20.4 million in the previous year, resulting in an income from operations of $1.5 million, a turnaround from a loss of $15.2 million in the same quarter of 2024. The reduction in expenses was attributed to lower selling, general, and administrative costs, which fell to $8.9 million from $16.5 million, as well as a decrease in research and development expenses, which dropped to $1.8 million from $3.3 million. The net income for the quarter was $204,000, a significant improvement from a net loss of $17.2 million in the prior year.

As of June 30, 2025, Verrica's total assets amounted to $39.1 million, down from $54.1 million at the end of 2024. The company reported cash and cash equivalents of $15.4 million, a decrease from $46.3 million at the end of the previous fiscal year. The accumulated deficit increased to $316.6 million, reflecting ongoing operational losses. Current liabilities remained relatively stable at $29.2 million, with the company maintaining compliance with its debt covenants under the Credit Agreement with OrbiMed.

Strategically, Verrica has made significant advancements, including the FDA approval of its product YCANTH (VP-102) for the treatment of molluscum contagiosum in July 2023, and the initiation of a Phase 3 program for common warts in collaboration with Torii. The company has also implemented a reverse stock split at a ratio of 1-for-10, effective July 24, 2025, aimed at improving its stock price and market perception. Looking ahead, Verrica plans to secure additional funding through equity offerings and collaborations to support its ongoing commercialization efforts and research activities, although it acknowledges substantial doubt regarding its ability to continue as a going concern without further financing.