Despite maintaining robust gross margins that peaked at 96.1% in 2025Q2, the company continues to report negative operating margins of -193.4% in 2026Q1 due to excessive SG&A spending.
| Sales/Revenue | 37.16M | 35.58M | 7.57M | 5.12M | 9.03M | 12M | 0 | 0 | 0 | 0 | 0 |
| Revenue Growth % | 417.63% | 370.22% | 47.66% | -43.27% | -24.73% | - | - | - | - | - | - |
| Cost of Goods Sold | 3.89M | 3.44M | 2.74M | 746K | 725K | 472K | 229K | 257.2K | 20.29K | 0 | 0 |
| COGS % of Revenue | - | 9.67% | 36.21% | 14.56% | 8.03% | 3.93% | - | - | - | - | - |
| Gross Profit | 33.27M | 32.14M | 4.83M | 4.38M | 8.31M | 11.53M | -229K | -257.2K | -20.29K | 0 | 0 |
| Gross Margin % | 89.52% | 90.33% | 63.79% | 85.44% | 91.97% | 96.07% | - | - | - | - | - |
| Gross Profit Growth % | - | 565.89% | 10.23% | -47.3% | -27.94% | 5134.06% | 10.96% | -1167.36% | - | - | - |
| Operating Expenses | 46.79M | 44.08M | 70.75M | 70.14M | 29.6M | 42.44M | 39.95M | 29.82M | 21.88M | 4.46M | 1.91M |
| OpEx % of Revenue | - | 123.89% | 935.04% | 1368.79% | 327.76% | 353.63% | - | - | - | - | - |
| Selling, General & Admin | 36.36M | 35.22M | 58.82M | 47.3M | 17.41M | 26.98M | 24.51M | 14.39M | 9.05M | 727K | 204K |
| SG&A % of Revenue | - | 99% | 777.45% | 923.2% | 192.7% | 224.83% | - | - | - | - | - |
| Research & Development | 10.43M | 8.86M | 11.84M | 20.3M | 12.2M | 15.93M | 15.67M | 15.44M | 12.83M | 3.73M | 1.71M |
| R&D % of Revenue | - | 24.89% | 156.49% | 396.08% | 135.05% | 132.74% | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 83K | 2.54M | 0 | -472K | -229K | 0 | -1K | 0 | 0 |
| Operating Income | -13.52M | -11.94M | -65.92M | -65.76M | -21.3M | -30.91M | -40.18M | -30.08M | -21.88M | -4.46M | -1.91M |
| Operating Margin % | -36.39% | -33.56% | -871.25% | -1283.35% | -235.78% | -257.57% | - | - | - | - | - |
| Operating Income Growth % | - | 81.89% | -0.24% | -208.79% | 31.1% | 23.08% | -33.58% | -37.49% | -390.87% | -132.98% | - |
| EBITDA | -12.76M | -11.16M | -64.65M | -64.92M | -20.58M | -30.44M | -39.95M | -29.82M | -21.86M | 0 | 0 |
| EBITDA Margin % | -34.33% | -31.36% | -854.48% | -1267.04% | -227.83% | -253.63% | - | - | - | - | - |
| EBITDA Growth % | 76.51% | 82.74% | 0.42% | -215.5% | 32.39% | 23.82% | -33.96% | -36.44% | - | - | - |
| D&A (Non-Cash Add-back) | 767K | 781K | 1.27M | 836K | 718K | 472K | 229K | 257.2K | 20.29K | 4.46M | 1.91M |
| EBIT | -12.32M | -10.14M | -67.17M | -63.03M | -22.32M | -30.79M | -39.66M | -28.21M | -20.65M | -4.46M | -1.91M |
| Net Interest Income | -4.91M | -6.81M | -8M | -1.22M | -1.7M | -4.17M | -2.51M | 1.88M | 0 | 0 | 0 |
| Interest Income | 793K | 929K | 1.42M | 2.74M | 476K | 123K | 521K | 1.88M | 1.23M | 0 | 0 |
| Interest Expense | 5.7M | 7.74M | 9.41M | 3.96M | 2.17M | 4.29M | 3.03M | 0 | 0 | 2K | 0 |
| Other Income/Expense | -4.3M | -5.95M | -10.66M | -1.24M | -3.19M | -4.17M | -2.51M | 1.87M | 1.23M | -2K | 0 |
| Pretax Income | -17.83M | -17.89M | -76.58M | -67M | -24.49M | -35.08M | -42.69M | -28.21M | -20.65M | -4.46M | -1.91M |
| Pretax Margin % | -47.97% | -50.27% | -1012.15% | -1307.47% | -271.11% | -292.33% | - | - | - | - | - |
| Income Tax | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| Net Income | -17.83M | -17.89M | -76.58M | -67M | -24.49M | -35.08M | -45.5M | -28.21M | -20.65M | -4.46M | -1.91M |
| Net Margin % | -47.97% | -50.27% | -1012.15% | -1307.47% | -271.11% | -292.33% | - | - | - | - | - |
| Net Income Growth % | 72.99% | 76.64% | -14.31% | -173.59% | 30.2% | 22.9% | -61.3% | -36.61% | -363.06% | -133.09% | - |
| Net Income (Continuing) | -17.83M | -17.89M | -76.58M | -67M | -24.49M | -35.08M | -42.69M | -28.21M | -20.65M | -4.46M | -1.91M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -1.67 | -1.68 | -14.78 | -14.78 | -7.17 | -12.97 | -17.08 | -11.33 | -8.31 | -3.80 | -0.74 |
| EPS Growth % | 87.03% | 88.63% | 0% | -106.14% | 44.72% | 24.06% | -50.75% | -36.34% | -118.81% | -410.11% | - |
| EPS (Basic) | - | -1.68 | -14.78 | -14.78 | -7.17 | -12.97 | -17.08 | -11.33 | -8.31 | -3.80 | -0.74 |
| Diluted Shares Outstanding | 10.65M | 10.65M | 5.18M | 4.53M | 3.42M | 2.7M | 2.5M | 2.49M | 2.49M | 2.57M | 2.57M |
| Basic Shares Outstanding | 10.65M | 10.65M | 5.18M | 4.53M | 3.42M | 2.7M | 2.5M | 2.49M | 2.49M | 2.57M | 2.57M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - |
Capital dilution and liquidity
As indicated by the quarterly financial data, VRCA's revenue trajectory remains highly inconsistent, characterized by a 46.1% year-over-year growth in 2026Q1 following significant fluctuations, which suggests that the company has yet to establish a predictable, repeatable commercial sales cadence for its primary YCANTH product offering.
The erratic revenue figures suggest that the company is still navigating the early stages of market penetration and potential inventory stocking effects. Investors should monitor whether the recent growth reflects genuine, recurring physician demand or if it is being distorted by non-recurring milestone payments and channel loading.
According to the reported income statement figures, VRCA maintains a robust gross margin profile, peaking at 96.1% in 2025Q2, which highlights the inherent pricing power of its FDA-approved drug-device combination despite the company's inability to translate this into consistent bottom-line profitability during the current commercialization phase.
The wide gap between gross and operating margins suggests that the cost of goods sold is negligible relative to the high fixed costs of the commercial sales force. This structure implies that while the product has strong unit economics, the company requires significantly higher scale to achieve operating leverage.
Based on the provided financial statements, VRCA's operating expenses, particularly SG&A, continue to outpace gross profit generation, as evidenced by the persistent negative operating margins that reached -193.4% in 2026Q1, indicating that the company has not yet achieved the necessary scale to cover its fixed overhead.
The high SG&A burden appears to be a function of the aggressive commercial launch strategy for YCANTH. Without a clear path to reducing these costs relative to revenue, the company may remain reliant on external financing to sustain its current operational footprint.
Financial filings reveal that SG&A remains the primary driver of the company's cash burn, consistently exceeding $8 million per quarter, which underscores the heavy investment required to support the commercial infrastructure necessary for a single-product biotech firm to compete in the dermatology market space.
The concentration of expenses in SG&A suggests that management is prioritizing market share acquisition over near-term expense discipline. Investors should monitor whether these costs stabilize as the product matures or if they will continue to escalate as the company attempts to expand into new indications.
As noted in the historical data, the company's revenue has experienced extreme swings, including a -161.1% decline in 2024Q3, which raises significant questions regarding the durability of the current sales model and the potential for future volatility in the absence of a diversified product portfolio.
Short-sellers may focus on the reliance on a single product and the potential for payer pushback on reimbursement, which could compress the currently high gross margins. The lack of consistent profitability suggests that the company's valuation may be highly sensitive to any disruption in its commercial execution.
Quick answers to the most common questions about buying VRCA stock.
For fiscal year 2025, Verrica Pharmaceuticals Inc. (VRCA) reported total revenue of $35.6M.
Verrica Pharmaceuticals Inc. (VRCA) reported a net loss of $17.9M for the fiscal year ending 2025.
Verrica Pharmaceuticals Inc. (VRCA) reported an operating income of $-11.9M, resulting in an operating profit margin of -33.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Verrica Pharmaceuticals Inc. (VRCA) generated $32.1M in gross profit for the year, representing a gross profit margin of 90.3%. This demonstrates the company's core pricing power and production efficiency.