Verrica Pharmaceuticals (NASDAQ:VRCA) Releases Earnings Results

Verrica Pharmaceuticals (NASDAQ:VRCA) posted its quarterly earnings results on Thursday. The company reported ($0.48) EPS for the quarter, missing the consensus estimate of ($0.41) by ($0.07), FiscalAI reports. The company had revenue of $5.86 million for the quarter, compared to analysts’ expectations of $5.73 million. Verrica Pharmaceuticals had a negative return on equity of 1,077.78% and a negative net margin of 47.97%.

Here are the key takeaways from Verrica Pharmaceuticals’ conference call:

• YCANTH unit growth accelerated, with dispensed applicator units rising 28% sequentially to 19,626 and U.S. net product revenue increasing 18.7% to $5.1 million. Management attributed the momentum to improved prescriber targeting, field-force execution, and patient access initiatives.
• Verrica and Torii began dosing patients in the second pivotal common-warts trial, COVE3, while COVE2 enrollment remains on schedule for top-line data in mid-2027. The company is targeting a large underserved market with no currently FDA-approved treatment.
• A new Israel distribution agreement with Medomie could provide up to $8.2 million in regulatory and commercial milestones, while Verrica will receive 60% of YCANTH’s net selling price. The company continues to pursue additional international partnerships.
• A shareholder-provided credit facility offers up to $27.5 million and could extend the cash runway into 2028 without scheduled principal or interest payments until maturity in December 2030, supporting YCANTH expansion and pipeline development.
• Despite higher recurring YCANTH revenue, total revenue fell to $5.9 million from $12.7 million a year earlier because the prior-year period included an $8 million milestone payment. Higher R&D and commercial spending, plus a $1.7 million legal-settlement expense, contributed to a $13.2 million GAAP net loss versus net income of $0.2 million a year ago.

Verrica Pharmaceuticals Trading Down 2.7%

Shares of NASDAQ VRCA traded down $0.15 during trading on Thursday, reaching $5.36. The stock had a trading volume of 84,104 shares, compared to its average volume of 26,664. The company has a debt-to-equity ratio of 0.03, a quick ratio of 1.98 and a current ratio of 2.10. The company has a market cap of $92.08 million, a P/E ratio of -5.20 and a beta of 1.49. Verrica Pharmaceuticals has a fifty-two week low of $3.28 and a fifty-two week high of $9.82. The business’s 50-day moving average price is $5.81 and its 200-day moving average price is $6.06.

Hedge Funds Weigh In On Verrica Pharmaceuticals

Hedge funds and other institutional investors have recently bought and sold shares of the company. XTX Topco Ltd acquired a new position in Verrica Pharmaceuticals in the 4th quarter valued at about $122,000. Quadrature Capital Ltd acquired a new stake in shares of Verrica Pharmaceuticals during the fourth quarter worth about $99,000. Man Group plc acquired a new stake in shares of Verrica Pharmaceuticals during the fourth quarter worth about $94,000. Squarepoint Ops LLC purchased a new position in shares of Verrica Pharmaceuticals in the fourth quarter valued at approximately $276,000. Finally, OMERS ADMINISTRATION Corp purchased a new position in shares of Verrica Pharmaceuticals in the fourth quarter valued at approximately $188,000. 42.45% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several research firms recently issued reports on VRCA. Zacks Research upgraded shares of Verrica Pharmaceuticals from a “strong sell” rating to a “hold” rating in a research report on Monday, May 11th. HC Wainwright started coverage on shares of Verrica Pharmaceuticals in a report on Tuesday, May 26th. They set a “buy” rating and a $12.00 price target for the company. Wall Street Zen lowered shares of Verrica Pharmaceuticals from a “hold” rating to a “sell” rating in a research report on Saturday, July 25th. Finally, Weiss Ratings reiterated a “sell (e+)” rating on shares of Verrica Pharmaceuticals in a research report on Wednesday, July 15th. Two analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Verrica Pharmaceuticals presently has an average rating of “Hold” and a consensus target price of $14.50.

About Verrica Pharmaceuticals

Verrica Pharmaceuticals Inc is a clinical‐stage biopharmaceutical company focused on the development and commercialization of topical therapies for dermatological conditions. Its lead investigational product, VP-102, is a standardized formulation of cantharidin in a pre-measured applicator designed to treat molluscum contagiosum and common warts. Verrica’s approach emphasizes consistency of dosing and patient convenience, aiming to improve upon off‐label use of existing treatments.

Beyond VP-102, Verrica is advancing VP-103, a next‐generation topical candidate intended to optimize tolerability while maintaining efficacy against viral skin lesions.