Free cash flow remains unstable and prone to extreme swings, evidenced by a $6.4M outflow in 2025Q4 followed by a $2.9M inflow in 2026Q1, largely driven by erratic working capital changes.
Journey Medical Corporation (DERM) cash flow statement — 12-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 |
|---|
| Cash from Operations | -7.49M | -12.44M | -9.13M | 5.24M | -13.53M | -2.18M | 5.13M | 9.02M | -213.1M | -103.96M | -74.11M | -48.44M | -31.4M |
| Operating CF Margin % | - | -20.11% | -16.26% | 6.62% | -18.37% | -3.45% | 11.52% | 25.82% | -503.31% | -2289.43% | -328.14% | -663.59% | -430.19% |
| Operating CF Growth % | -369.75% | -36.31% | -274.18% | 138.72% | -520.54% | -142.5% | -43.09% | 104.23% | -104.97% | -40.28% | -52.99% | -54.25% | - |
| Net Income | -6.1M | -11.43M | -14.67M | -3.85M | -29.63M | -43.99M | 5.28M | 3.63M | -221.54M | -303.26M | -89.08M | -78.4M | -31.88M |
| Depreciation & Amortization | 4.29M | 4.35M | 3.52M | 3.85M | 4.37M | 2.56M | 1.52M | 1.26M | 555K | 339K | 123K | 72K | 47K |
| Stock-Based Compensation | 6.05M | 6.29M | 6.1M | 2.61M | 4.42M | 2.47M | 153K | 240K | 29.84M | 20.7M | 0 | 5.13M | 1.64M |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 1.57M | -335K | 69K | -194K | 0 | -622K | 31K | 31K |
| Other Non-Cash Items | 2.33M | 255K | -302K | 4.29M | 1.12M | 20.51M | 747K | 355K | 132.64M | -24M | -42.19M | -73.04M | 292K |
| Working Capital Changes | -14.07M | -11.9M | -3.77M | -1.66M | 6.19M | 14.71M | -2.23M | 3.46M | -154.4M | 202.26M | 57.66M | 97.76M | -1.54M |
| Change in Receivables | -20.66M | -19.34M | 4.47M | 12.55M | -5.38M | 768K | -5.02M | -10.49M | -5.67M | 21.35M | -21.4M | 7.3M | -7.3M |
| Change in Inventory | 4.7M | 4.81M | -4.22M | 3.95M | 1.74M | -8.46M | -547K | -179K | -8.37M | -271.89M | -174.2M | -104.48M | -91.02M |
| Change in Payables | -4.79M | -7.2M | -2.1M | -18.42M | 14.34M | 20.39M | -152K | 1.15M | 823K | 1.54M | 4.27M | 3.61M | 3.21M |
| Cash from Investing | 0 | 0 | -15M | -5M | -20M | -10M | -1.2M | -2.4M | -13.23M | -104.43M | -130.29M | -2.6M | -109.48M |
| Capital Expenditures | 0 | 0 | -15M | -5M | -20M | -10M | -1.2M | -2.4M | -616K | -278K | -753K | -202K | -156K |
| CapEx % of Revenue | 0% | - | 26.72% | 6.31% | 27.15% | 15.84% | 2.69% | 6.87% | 1.45% | 6.12% | 3.33% | 2.77% | 2.14% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 130.29M | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -56M | -80.3M | -130.29M | 0 | 0 |
| Cash from Financing | 12.84M | 16.23M | 16.99M | -4.8M | 16.46M | 53.02M | -487K | -3.55M | 35.38M | 462.52M | 138.95M | 102.93M | 174.1M |
| Debt Issued (Net) | 16.36M | 15.73M | 16.63M | -4.45M | 16.9M | 5.05M | -500K | -3.55M | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | 7.5M | 567K | 416K | 4.62M | 142K | 51.51M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2.15M | 184.28M | 138.95M | 105.05M | 170.09M |
| Other Financing | -11.01M | -75K | -50K | -4.96M | -585K | -3.55M | 13K | 0 | 35.38M | 462.52M | 138.95M | 102.93M | 174.1M |
| Net Change in Cash | 5.35M | 3.79M | -7.13M | -4.56M | -17.08M | 40.84M | 3.44M | 3.07M | -190.94M | 254.13M | -65.45M | 51.88M | 11.07M |
| Free Cash Flow | -7.49M | -12.44M | -24.13M | 240K | -33.53M | -12.18M | 3.93M | 6.62M | -213.71M | -104.24M | -74.86M | -48.64M | -31.56M |
| FCF Margin % | -10.99% | -20.11% | -42.98% | 0.3% | -45.52% | -19.29% | 8.83% | 18.95% | -504.77% | -2295.55% | -331.48% | -666.36% | -432.33% |
| FCF Growth % | -176.87% | 48.44% | -10152.92% | 100.72% | -175.3% | -409.79% | -40.59% | 103.1% | -105.02% | -39.24% | -53.9% | -54.13% | - |
| FCF per Share | -0.27 | -0.51 | -1.18 | 0.01 | -1.91 | -0.70 | 0.24 | 0.40 | -5.09 | -2.57 | -2.27 | -1.82 | -1.28 |
| FCF Conversion (FCF/Net Income) | 1.23x | 1.09x | 0.62x | -1.36x | 0.46x | 0.05x | 0.97x | 2.49x | 0.96x | 0.34x | 0.83x | 0.62x | 0.99x |
| Interest Paid | 1.65M | 3.24M | 2.01M | 1.13M | 993K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 1K | 50K | 125K | 181K | 168K | 158K | 110K | 192K | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying DERM stock.
Journey Medical Corporation (DERM) generated $-12.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Journey Medical Corporation (DERM) reported negative free cash flow of $12.4M in 2025, indicating capital requirements exceeded cash from operations.
Journey Medical Corporation (DERM) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
Key Metrics
Top Statement Risk
Limited liquidity and burn
Metrics are mathematically derived from official filings.
Earnings Quality Obscured by Volatility
As reported in financial statements, the relationship between net income and operating cash flow remains highly erratic, with OCF/NI ratios swinging from -1.30 in 2026Q1 to 5.10 in 2025Q4, indicating that reported earnings provide little insight into the company's actual ability to generate cash.
The wide divergence between net losses and operating cash flow suggests that non-cash items and working capital swings are the primary drivers of cash movement rather than core operational profitability. Investors should monitor whether this volatility reflects genuine business cycles or aggressive accounting adjustments related to gross-to-net revenue recognition.
Free Cash Flow Remains Unstable
According to recent SEC filings, Journey Medical's free cash flow trajectory is characterized by extreme inconsistency, oscillating between a positive $2.9M in 2026Q1 and a significant $6.4M outflow in 2025Q4, which highlights the company's ongoing struggle to achieve sustainable, self-funding operations.
The inability to maintain positive free cash flow suggests that the current commercial model is not yet self-sustaining. The frequent shifts between cash generation and consumption imply that the company remains highly dependent on external financing or favorable working capital timing to support its ongoing commercialization efforts.
Working Capital Swings Drive Liquidity
Based on the company's reported figures, working capital changes are the dominant force behind cash flow fluctuations, evidenced by a massive $8.0M outflow in 2025Q4 followed by a $2.9M inflow in 2026Q1, suggesting that inventory and accounts receivable management are highly sensitive to seasonal demand.
These dramatic swings in working capital suggest that the company's cash position is vulnerable to the timing of wholesaler stocking and patient prescription fills. Such instability makes it difficult to forecast future liquidity needs and may indicate that the company is struggling to optimize its cash conversion cycle.
Hidden Costs of Commercial Scaling
Analysis of the cash flow statement reveals that stock-based compensation, which reached $1.7M in 2024Q2, consistently masks the true economic cost of operations, as reported in financial filings, thereby complicating the assessment of the company's underlying cash-generating potential and the dilution risk for existing shareholders.
The reliance on stock-based compensation to manage cash burn suggests that the company is effectively using equity to subsidize its commercial infrastructure. This practice warrants further investigation, as it may be artificially inflating the company's apparent cash position while simultaneously diluting the value of the equity base.