Verrica Pharmaceuticals (NASDAQ:VRCA) Announces Quarterly Earnings Results

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

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 5.2%

Shares of VRCA traded down $0.28 during trading hours on Friday, hitting $5.08. The stock had a trading volume of 126,277 shares, compared to its average volume of 93,658. Verrica Pharmaceuticals has a 12-month low of $3.28 and a 12-month high of $9.82. The firm has a market cap of $87.27 million, a P/E ratio of -4.93 and a beta of 1.49. 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’s fifty day simple moving average is $5.81 and its 200 day simple moving average is $6.06.

Institutional Investors Weigh In On Verrica Pharmaceuticals

Several institutional investors and hedge funds have recently added to or reduced their stakes in VRCA. Affinity Asset Advisors LLC acquired a new position in shares of Verrica Pharmaceuticals in the 4th quarter valued at about $5,878,000. Velan Capital Investment Management LP acquired a new stake in Verrica Pharmaceuticals during the 4th quarter worth approximately $3,919,000. Boothbay Fund Management LLC purchased a new position in Verrica Pharmaceuticals in the third quarter valued at approximately $1,210,000. Kalehua Capital Management LLC purchased a new position in Verrica Pharmaceuticals in the fourth quarter valued at approximately $1,959,000. Finally, Bank of America Corp DE lifted its position in Verrica Pharmaceuticals by 347.5% during the fourth quarter. Bank of America Corp DE now owns 143,818 shares of the company’s stock valued at $101,000 after buying an additional 111,678 shares in the last quarter. 42.45% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of equities analysts have recently weighed in on the stock. Weiss Ratings reissued a “sell (e+)” rating on shares of Verrica Pharmaceuticals in a research report on Wednesday, July 15th. Wall Street Zen cut shares of Verrica Pharmaceuticals from a “hold” rating to a “sell” rating in a research note on Saturday, July 25th. HC Wainwright initiated coverage on Verrica Pharmaceuticals in a report on Tuesday, May 26th. They issued a “buy” rating and a $12.00 price target for the company. Finally, Zacks Research upgraded Verrica Pharmaceuticals from a “strong sell” rating to a “hold” rating in a report on Monday, May 11th. Two investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus 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.