Revenue recovered to $18.5M in 2026Q2 with a 66.8% gross margin, but a 2.5% operating margin and -1.7% net margin indicate that profitability remains thin and unproven.
Journey Medical Corporation (DERM) annual income statement — 12-year revenue, gross profit & net income history
| 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 |
|---|
| Sales/Revenue | 68.18M | 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 % | 20.89% | 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 | 25.75M | 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 | 42.43M | 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 % | 62.24% | 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 | 45.44M | 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 | 30.86M | 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 | 495K | 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 | 1.97M | 0 | -1.13M | 3.14M | 0 | 9.54M | 22.09M | 0 | 2.02M | 128.56M | 0 | 2.52M | 0 |
| Operating Income | -3.01M | -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 % | -4.41% | -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% | -185.9% | -151.66% | - |
| EBITDA | 1.28M | -3.83M | -10.16M | 1.78M | -23.15M | -32.32M | 9.37M | 6.52M | -213.43M | -299.99M | -90.5M | -79.7M | -31.65M |
| EBITDA Margin % | 1.88% | -6.19% | -18.1% | 2.25% | -31.43% | -51.19% | 21.03% | 18.68% | -504.09% | -6606.19% | -400.71% | -1091.75% | -433.58% |
| EBITDA Growth % | 145.08% | 62.35% | -670.26% | 107.7% | 28.37% | -445.05% | 43.6% | 103.06% | 28.85% | -231.47% | -185.93% | -151.8% | - |
| D&A (Non-Cash Add-back) | 4.29M | 4.35M | 3.52M | 3.85M | 4.37M | 2.56M | 1.52M | 1.26M | 555K | 339K | 123K | 72K | 47K |
| EBIT | -2.42M | -7.67M | -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 | -3.06M | -3.11M | -1.94M | -1.38M | -1.96M | -7.03M | -698K | -255K | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 613K | 589K | 757K | 322K | 60K | 2K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 3.67M | 3.7M | 2.7M | 1.7M | 2.02M | 7.03M | 698K | 255K | 15.64M | 8.14M | 1.54M | 147K | 153K |
| Other Income/Expense | -3.08M | -3.2M | -934K | -1.56M | -2.05M | -7.48M | -698K | -255K | -7.75M | -2.94M | 1.54M | 749K | -146K |
| Pretax Income | -6.09M | -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 % | -8.93% | -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 | 15K | 60K | 61K | 221K | 63K | 1.63M | 1.87M | 1.38M | -194K | 0 | 0 | -622K | 31K |
| Effective Tax Rate % | -0.25% | -0.53% | -0.42% | -6.08% | -0.21% | -3.86% | 26.14% | 27.56% | 0.09% | 0% | 0% | 0.79% | -0.1% |
| 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 |
| Net Margin % | -8.95% | -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 % | 30.14% | 22.09% | -280.79% | 87% | 32.65% | -932.75% | 45.74% | 101.64% | 26.95% | -240.42% | -179.48% | -145.96% | - |
| Net Income (Continuing) | -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 |
| 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) | -0.22 | -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 % | 42.27% | 34.72% | -242.86% | 87.57% | 33.46% | -893.75% | 45.45% | 104.17% | 29.55% | -177.04% | -109.3% | -127.13% | - |
| EPS (Basic) | - | -0.47 | -0.72 | -0.21 | -1.69 | -2.54 | 0.32 | 0.22 | -5.27 | -7.48 | -2.70 | -1.55 | -0.63 |
| Diluted Shares Outstanding | 27.49M | 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 | 27.49M | 24.5M | 20.43M | 18.23M | 17.53M | 17.32M | 16.66M | 16.66M | 42M | 40.56M | 33.04M | 50.73M | 50.73M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - |
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.
Key Metrics
Top Statement Risk
Persistent operating losses despite recovery
Metrics are mathematically derived from official filings.
Revenue Recovery Reverses Prior Decline
Based on the reported quarterly figures, DERM's revenue climbed from $15.0M in 2025Q2 to $18.5M in 2026Q2, with year-over-year growth reaching 23.3%, a sharp reversal from the 57.6% contraction recorded in 2024Q3.
The shift from negative to double-digit growth over the last several quarters suggests the business has regained commercial momentum after a weak 2024. Whether this growth is durable depends on whether the 2026 quarters reflect sustained demand rather than timing effects, and the reported figures alone do not reveal the volume versus pricing mix. Investors should monitor whether growth holds above the high-teens range over the next several reporting periods.
Gross Margin Volatility Undercuts Pricing Stability
As reported in the financial statements, DERM's gross margin swung from 47.7% in 2024Q1 to 83.6% in 2024Q4 and settled at 66.8% in 2026Q2, indicating a highly variable cost base relative to revenue.
Margin movements of this magnitude are more consistent with changes in product mix, one-time cost items, or inventory accounting than with steady pricing power. The latest 66.8% gross margin is more stable and approaches the range of higher-margin specialty peers, but the eight-quarter history does not establish a durable structural level. The quarter-to-quarter swings warrant further investigation before treating current margins as sustainable.
Operating Leverage Remains Unproven
Based on the reported figures, DERM's operating margin improved from -25.3% in 2025Q1 to +2.5% in 2026Q2, but SG&A of $10.9M still consumes nearly 59% of gross profit in the latest quarter.
The move to a small positive operating income suggests gross profit growth is beginning to outpace the SG&A base, which is the core signature of operating leverage. However, the margin of 2.5% is thin, and a single quarter of profitability does not confirm a durable scaling pattern. Investors should monitor whether SG&A growth remains flat as revenue rises over the coming quarters.
Net Losses Persist Beneath Operating Breakeven
According to reported filings, DERM posted a net loss of $312.0K in 2026Q2 despite positive operating income of $456.0K, and EPS of -$0.01 reflects a gap between operating and bottom-line results.
The reconciliation between a positive operating line and a net loss implies material non-operating charges, most likely interest expense or other financing costs, though the supplied data does not itemize them. Stock-based compensation of $1.4M in the latest quarter is also large relative to operating income, which weakens the quality of the operating profit figure. The gap warrants further investigation before treating the operating improvement as representative of shareholder earnings.
Recovery Narrative Rests on Thin Margins
Based on reported figures, DERM's 2.5% operating margin and -1.7% net margin trail peers such as PODD at 17.5% operating margin, and the company remains loss-making on a trailing quarterly basis in most of the last ten periods.
The strongest challenge is that the recent profitability is a single quarter and may reflect favorable timing rather than a structural shift. Ten quarters of history show net losses in the majority of periods, and the margin profile remains far below the specialty peer group. Investors should be cautious about extrapolating the 2026Q2 result without evidence of several consecutive profitable quarters.