Verrica Pharmaceuticals (NASDAQ:VRCA) Releases Earnings Results, Misses Estimates By $0.07 EPS

Verrica Pharmaceuticals (NASDAQ:VRCA) announced its quarterly earnings data on Thursday. The company reported ($0.48) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.41) by ($0.07), FiscalAI reports. The firm 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 Stock Down 5.2%

NASDAQ:VRCA traded down $0.28 during trading hours on Friday, reaching $5.08. The company’s stock had a trading volume of 126,277 shares, compared to its average volume of 93,658. The company has a market cap of $87.27 million, a price-to-earnings ratio of -4.93 and a beta of 1.49. Verrica Pharmaceuticals has a one year low of $3.28 and a one year high of $9.82. The business’s 50-day moving average is $5.81 and its 200-day moving average is $6.06. The company has a debt-to-equity ratio of 0.03, a current ratio of 2.10 and a quick ratio of 1.98.

Analyst Upgrades and Downgrades

Several brokerages have weighed in on VRCA. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Verrica Pharmaceuticals in a research report on Wednesday, July 15th. HC Wainwright initiated coverage on 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 cut Verrica Pharmaceuticals from a “hold” rating to a “sell” rating in a research note on Saturday, July 25th. Finally, Zacks Research upgraded Verrica Pharmaceuticals from a “strong sell” rating to a “hold” rating in a report on Monday, May 11th. Two research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Verrica Pharmaceuticals currently has an average rating of “Hold” and an average target price of $14.50.

Hedge Funds Weigh In On Verrica Pharmaceuticals

Several institutional investors have recently bought and sold shares of VRCA. AQR Capital Management LLC boosted its stake in shares of Verrica Pharmaceuticals by 306.7% during the 1st quarter. AQR Capital Management LLC now owns 58,711 shares of the company’s stock worth $26,000 after acquiring an additional 44,275 shares in the last quarter. Qube Research & Technologies Ltd bought a new position in shares of Verrica Pharmaceuticals in the 2nd quarter valued at approximately $28,000. Invesco Ltd. raised its stake in shares of Verrica Pharmaceuticals by 64.8% in the 1st quarter. Invesco Ltd. now owns 74,388 shares of the company’s stock valued at $33,000 after acquiring an additional 29,256 shares in the last quarter. Bridgeway Capital Management LLC acquired a new stake in Verrica Pharmaceuticals in the 3rd quarter worth approximately $52,000. Finally, Goldman Sachs Group Inc. lifted its holdings in Verrica Pharmaceuticals by 23.3% in the 1st quarter. Goldman Sachs Group Inc. now owns 139,055 shares of the company’s stock worth $61,000 after purchasing an additional 26,308 shares during the last quarter. 42.45% of the stock is currently owned by institutional investors.

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.