Journey Medical (NASDAQ:DERM) reported higher first-quarter revenue and narrower losses, driven by continued growth of EMROSI, its oral treatment for rosacea, while management said it expects operating leverage to improve as prescriptions and payer reimbursement expand.
On the company’s first-quarter 2026 earnings call, Co-Founder, President and Chief Executive Officer Claude Maraoui said Journey delivered EMROSI revenue of $6.3 million in the quarter, up both year over year and sequentially from the fourth quarter. Total revenue rose 21% to $16 million, compared with $13.1 million in the first quarter of 2025.
EMROSI Prescription Growth and Reimbursement Progress
EMROSI prescriptions totaled approximately 30,000 in the first quarter, up from about 27,000 in the fourth quarter of 2025, representing roughly 11% sequential growth. Maraoui said EMROSI revenue increased about 26% sequentially as revenue per prescription improved.
The company said more than 3,700 unique dermatology prescribers have written prescriptions for EMROSI, compared with about 3,200 at the end of 2025. Maraoui also said the ratio of refills to new prescriptions is now approaching 1.5-to-1, up from about 1-to-1 at the end of 2025, which the company views as an indicator of patient satisfaction.
Management highlighted payer access as a central focus for the brand. In April, Journey announced an agreement with the third of the three largest PBM-owned or affiliated group purchasing organizations in the U.S. Maraoui identified the three GPOs as Zinc Health Services, Emisar Pharma Services and Ascent Health Services, which he said collectively negotiate prescription drug pricing for about 85% of commercial lives in the U.S.
With those contracts in place, Maraoui said more than 169 million of the nation’s 192 million commercial lives now have access to EMROSI. Ramsey Alloush, Chief Operating Officer and General Counsel, said about 60 million commercial lives, or roughly 34% of the total, have coverage with a single step edit or better.
Alloush said the company is working with national and regional health plans on formulary placement, tier positioning, prior authorization criteria and step-edit requirements. He said Journey views a single step edit through an oral or topical agent, with a lookback of one year or greater, as an appropriate benchmark for coverage.
Revenue Rises While SG&A Declines
Chief Financial Officer Joseph Benesch said EMROSI generated $6.3 million in net revenue during the quarter, compared with $2.1 million in the prior-year period. He said the product was the primary driver of Journey’s revenue growth.
Gross margin was 61%, down from 63.5% in the first quarter of 2025. Benesch said the decline reflected a $1.3 million non-cash charge to cost of sales tied to a write-down of API inventory associated with the 2021 Qbrexza acquisition. Excluding that item, he said gross margin would have been approximately 69%.
SG&A expenses declined to $10.1 million from $10.6 million a year earlier. Benesch attributed the decrease primarily to lower EMROSI launch-related expenses as the company moved from the initial launch investment phase into ongoing commercial execution.
Journey reported a GAAP net loss of $2.2 million, or $0.08 per share, compared with a net loss of $4.1 million, or $0.18 per share, in the prior-year quarter. Adjusted EBITDA was positive $600,000, or $0.02 per share, compared with negative adjusted EBITDA of $900,000, or $0.04 per share, in the first quarter of 2025.
The company ended the quarter with $27.2 million in cash, up from $24.1 million as of Dec. 31, 2025.
Company Plans Sales Expansion and Possible New Product Launches
Maraoui said Journey plans to add up to five sales professionals this year, increasing the sales force from 35 to 40 representatives. He said the new hires are expected to be trained in June and in the field in July.
The company also plans to potentially launch up to two niche dermatology products later in 2026. In response to an analyst question, Maraoui said EMROSI will remain the company’s top promotional priority, with Qbrexza as the second brand. He described one of the potential new products as an anti-itch, antipruritic product and the other as a lifecycle-management opportunity tied to an existing brand.
Maraoui said Journey’s non-EMROSI base business is expected to remain “steady and consistent” in 2026, while the potential new products could add incremental revenue.
Management Signals Confidence but Holds Off on Formal Guidance
Journey did not issue detailed financial guidance during the call. Maraoui said the company plans to provide more detailed guidance later in the year, but said management is confident the business will deliver positive adjusted EBITDA and positive EBITDA for the remainder of 2026 and for the foreseeable future.
He also said Journey continues to pursue business development opportunities, including out-licensing commercial rights to patented products in non-U.S. territories and potential in-licensing of assets to expand its dermatology portfolio.
“We believe that 2026 will be a breakout year for Journey Medical,” Maraoui said, citing EMROSI’s prescription growth, expanding payer access and the company’s improving cash position.
About Journey Medical (NASDAQ:DERM)
Journey Medical Corp, headquartered in Fairfield, New Jersey, is a commercial dermatology company focused on acquiring, developing and marketing prescription dermatology products in the United States. Since its incorporation in 2019, the company has built a portfolio of both branded and generic topical therapies designed to address a range of skin conditions, including acne, atopic dermatitis, fungal infections and inflammatory lesions.
The company’s product lineup features antibiotic/anti-inflammatory combinations and corticosteroid-based formulations delivered through proprietary gel, cream and foam vehicles.
