Revenue growth remains highly inconsistent, oscillating between a 57.6% contraction in 2024Q3 and a 21.5% expansion in 2026Q1, while gross margins have fluctuated widely from 47.7% to 83.6%.
| Sales/Revenue | 64.68M | 61.86M | 56.13M | 79.18M | 73.67M | 63.13M | 44.53M | 34.92M | 42.34M | 4.54M | 22.59M | 7.3M | 7.3M |
| Revenue Growth % | 15% | 10.2% | -29.11% | 7.48% | 16.69% | 41.78% | 27.52% | -17.52% | 832.37% | -79.89% | 209.38% | 0% | - |
| Cost of Goods Sold | 25.61M | 25.18M | 20.88M | 26.66M | 30.77M | 32.08M | 14.59M | 10.53M | 1.18M | 0 | 0 | 0 | 0 |
| COGS % of Revenue | - | 40.71% | 37.19% | 33.67% | 41.77% | 50.82% | 32.77% | 30.16% | 2.78% | - | - | - | - |
| Gross Profit | 39.07M | 36.68M | 35.26M | 52.52M | 42.89M | 31.05M | 29.94M | 24.39M | 41.16M | 4.54M | 22.59M | 7.3M | 7.3M |
| Gross Margin % | 60.41% | 59.29% | 62.81% | 66.33% | 58.23% | 49.18% | 67.23% | 69.84% | 97.22% | 100% | 100% | 100% | 100% |
| Gross Profit Growth % | - | 4.03% | -32.87% | 22.44% | 38.14% | 3.72% | 22.75% | -40.75% | 806.47% | -79.89% | 209.38% | 0% | - |
| Operating Expenses | 45.41M | 44.85M | 48.93M | 54.59M | 70.41M | 65.93M | 22.09M | 19.13M | 255.15M | 304.87M | 113.21M | 87.07M | 39M |
| OpEx % of Revenue | - | 72.5% | 87.17% | 68.95% | 95.58% | 104.43% | 49.6% | 54.78% | 602.62% | 6713.65% | 501.26% | 1192.74% | 534.22% |
| Selling, General & Admin | 31.85M | 44.37M | 40.2M | 43.91M | 59.47M | 39.83M | 0 | 19.13M | 172.58M | 71.9M | 30.04M | 17.72M | 8.29M |
| SG&A % of Revenue | - | 71.73% | 71.62% | 55.46% | 80.72% | 63.09% | - | 54.78% | 407.62% | 1583.42% | 133.02% | 242.75% | 113.53% |
| Research & Development | 441K | 480K | 9.86M | 7.54M | 10.94M | 16.56M | 0 | 0 | 80.55M | 104.41M | 83.17M | 66.83M | 30.71M |
| R&D % of Revenue | - | 0.78% | 17.56% | 9.52% | 14.85% | 26.23% | - | - | 190.24% | 2299.25% | 368.24% | 915.49% | 420.68% |
| Other Operating Expenses | 1000K | 0 | -1.13M | 3.14M | 0 | 9.54M | 22.09M | 0 | 2.02M | 128.56M | 0 | 2.52M | 0 |
| Operating Income | -6.34M | -8.17M | -13.68M | -2.07M | -27.52M | -34.88M | 7.85M | 5.26M | -213.98M | -300.33M | -90.62M | -79.77M | -31.7M |
| Operating Margin % | -9.8% | -13.21% | -24.36% | -2.62% | -37.35% | -55.25% | 17.63% | 15.06% | -505.4% | -6613.65% | -401.26% | -1092.74% | -434.22% |
| Operating Income Growth % | - | 40.25% | -559.77% | 92.47% | 21.11% | -544.29% | 49.29% | 102.46% | 28.75% | -231.4% | -13.61% | -151.66% | - |
| EBITDA | -1.95M | -3.83M | -10.16M | 1.78M | -23.15M | -32.32M | 9.28M | 6.46M | -213.43M | -299.99M | -90.5M | -79.7M | -31.65M |
| EBITDA Margin % | -3.02% | -6.19% | -18.1% | 2.25% | -31.43% | -51.19% | 20.83% | 18.51% | -504.09% | -6606.19% | -400.71% | -1091.75% | -433.58% |
| EBITDA Growth % | 37.92% | 62.35% | -670.26% | 107.7% | 28.37% | -448.44% | 43.5% | 103.03% | 28.85% | -231.47% | -13.55% | -151.8% | - |
| D&A (Non-Cash Add-back) | 4.39M | 4.35M | 3.52M | 3.85M | 4.37M | 2.56M | 1.43M | 1.21M | 555K | 339K | 123K | 72K | 47K |
| EBIT | -6.19M | -8.17M | -11.91M | -1.93M | -27.55M | -35.33M | 7.85M | 5.26M | -206.09M | -295.12M | -87.54M | -78.87M | -31.69M |
| Net Interest Income | -3.1M | -3.11M | -1.94M | -1.38M | -1.96M | -7.03M | -698K | -255K | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 597K | 589K | 757K | 322K | 60K | 2K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 3.7M | 3.7M | 2.7M | 1.7M | 2.02M | 7.03M | 698K | 255K | 15.64M | 8.14M | 1.54M | 147K | 153K |
| Other Income/Expense | -3.19M | -3.2M | -934K | -1.56M | -2.05M | -7.48M | -698K | -255K | -7.75M | -2.94M | 1.54M | 749K | -146K |
| Pretax Income | -9.53M | -11.37M | -14.61M | -3.63M | -29.57M | -42.36M | 7.15M | 5M | -221.73M | -303.26M | -89.08M | -79.02M | -31.84M |
| Pretax Margin % | -14.73% | -18.38% | -26.03% | -4.59% | -40.13% | -67.1% | 16.06% | 14.33% | -523.71% | -6678.29% | -394.44% | -1082.48% | -436.22% |
| Income Tax | 60K | 60K | 61K | 221K | 63K | 1.63M | 1.87M | 1.38M | -194K | 0 | 0 | -622K | 31K |
| Effective Tax Rate % | -0.63% | -0.53% | -0.42% | -6.08% | -0.21% | -3.86% | 26.14% | 27.56% | 0.09% | 0% | 0% | 0.79% | -0.1% |
| Net Income | -9.59M | -11.43M | -14.67M | -3.85M | -29.63M | -43.99M | 5.28M | 3.63M | -221.54M | -303.26M | -89.08M | -78.4M | -31.88M |
| Net Margin % | -14.82% | -18.48% | -26.14% | -4.87% | -40.22% | -69.68% | 11.86% | 10.38% | -523.25% | -6678.29% | -394.44% | -1073.96% | -436.64% |
| Net Income Growth % | -15.48% | 22.09% | -280.79% | 87% | 32.65% | -932.75% | 45.74% | 101.64% | 26.95% | -240.42% | -13.63% | -145.96% | - |
| Net Income (Continuing) | -9.59M | -11.43M | -14.67M | -3.85M | -29.63M | -43.99M | 5.28M | 3.63M | -221.54M | -303.26M | -89.08M | -78.4M | -31.88M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.35 | -0.47 | -0.72 | -0.21 | -1.69 | -2.54 | 0.32 | 0.22 | -5.27 | -7.48 | -2.70 | -2.93 | -1.29 |
| EPS Growth % | 6.33% | 34.72% | -242.86% | 87.57% | 33.46% | -893.75% | 45.45% | 104.17% | 29.55% | -177.04% | 7.85% | -127.13% | - |
| EPS (Basic) | - | -0.47 | -0.72 | -0.21 | -1.69 | -2.54 | 0.32 | 0.22 | -5.27 | -7.48 | -1.76 | -1.55 | -0.63 |
| Diluted Shares Outstanding | 27.31M | 24.5M | 20.43M | 18.23M | 17.53M | 17.32M | 16.66M | 16.66M | 42M | 40.56M | 33.04M | 26.73M | 24.66M |
| Basic Shares Outstanding | 27.31M | 24.5M | 20.43M | 18.23M | 17.53M | 17.32M | 16.66M | 16.66M | 42M | 40.56M | 50.73M | 50.73M | 50.73M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - |
Limited cash runway
According to the provided quarterly data, Journey Medical's revenue growth has exhibited significant volatility, oscillating between a 57.6% contraction in 2024Q3 and a 21.5% expansion in 2026Q1, suggesting that the company's top-line performance remains highly sensitive to seasonal demand and potential inventory stocking fluctuations.
The inconsistent revenue trajectory indicates that the company has yet to establish a predictable, recurring sales base for its dermatology portfolio. Investors should monitor whether the recent growth in 2026Q1 represents a sustainable shift in market penetration or merely a temporary recovery from previous periods of destocking.
As reported in financial statements, Journey Medical's gross margin has fluctuated widely from a low of 47.7% in 2024Q1 to a peak of 83.6% in 2024Q4, reflecting the inherent instability in product mix and the impact of gross-to-net adjustments on realized pricing.
This variability suggests that the company lacks strong pricing power or consistent control over its cost of goods sold. The inability to maintain a stable margin profile complicates the path to profitability, as the business remains vulnerable to shifts in rebate levels and third-party manufacturing obligations.
Based on the company's income statement history, operating expenses consistently outpace gross profit, as evidenced by the persistent negative operating margins that reached -77.4% in 2024Q1, indicating that the current commercial infrastructure is not yet scaling efficiently relative to the company's revenue generation.
The high fixed-cost base required to maintain a national sales force appears to be a significant drag on earnings. Unless the company can achieve a meaningful inflection in revenue without a commensurate increase in SG&A, the current operating model may continue to struggle to reach break-even.
Analysis of the income statement reveals that stock-based compensation, which reached $1.7M in 2024Q2, has historically acted as a meaningful non-cash expense that exacerbates the company's net losses, further complicating the assessment of the underlying operational performance and shareholder dilution risks.
The reliance on equity-based incentives in a period of negative net income warrants close investigation by investors. This practice may mask the true cost of talent acquisition and suggests that the company's reported losses might be even more pronounced if viewed on a purely cash-basis.
While the platform strategy aims to leverage existing physician relationships, the company's history of negative net margins and reliance on acquired assets suggests that the business model may be fundamentally challenged by the high costs of commercialization and the competitive nature of the dermatology market.
Short-term revenue gains may be insufficient to offset the long-term capital requirements of this asset-light strategy. Investors should consider whether the company's current trajectory is truly scalable or if it remains dependent on continuous, potentially dilutive, capital infusions to sustain its operations.
Quick answers to the most common questions about buying DERM stock.
For fiscal year 2025, Journey Medical Corporation (DERM) reported total revenue of $61.9M. This represents a 747.4% increase compared to $7.3M in 2014.
Journey Medical Corporation (DERM) reported a net loss of $11.4M for the fiscal year ending 2025.
Journey Medical Corporation (DERM) reported an operating income of $-8.2M, resulting in an operating profit margin of -13.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Journey Medical Corporation (DERM) generated $36.7M in gross profit for the year, representing a gross profit margin of 59.3%. This demonstrates the company's core pricing power and production efficiency.