Summary of Journey Medical's Q2 2026 Earnings Call

1Key Financial Results and Metrics

Total Revenue: $18.5 million, a 23% increase year-over-year (from $15 million in Q2 2025).

Net Product Revenue: $8.1 million from Amrozi, reflecting strong prescription growth.

Gross Margin: 67%, consistent with the prior year.

Operating Expenses: $10.9 million, down from $11.9 million in Q2 2025, attributed to reduced launch-related spending.

Net Loss: Narrowed to $0.3 million ($0.01 per share) from a loss of $3.8 million ($0.16 per share) in Q2 2025.

Positive EBITDA: Reported for the quarter, with adjusted EBITDA at $2.9 million.

2Strategic Updates and Business Highlights

Prescription Growth: Amrozi prescriptions rose to approximately 36,000 in Q2, a 20% sequential increase from Q1.

Unique Prescribers: Increased to over 4,500, up from 3,700 in Q1, indicating growing adoption among dermatologists.

Sales Force Expansion: Five new dermatology sales professionals were hired to enhance market penetration.

Payer Coverage: Improved access with 38% of commercial lives having high-quality formulary coverage, up from 34% in Q1.

New Product Launch: Urox Cream launched in July, aimed at addressing itching, with early positive feedback from dermatologists.

3Forward Guidance and Outlook

Management anticipates continued revenue growth and profitability, expecting 2026 to be a breakout year.

Positive trends in prescription growth and payer coverage are expected to sustain momentum in the second half of the year.

Ongoing negotiations with payers to improve access and reduce barriers to Amrozi prescriptions.

4Bad News, Challenges, or Points of Concern

QBREXZA Performance: Experienced a decline in prescriptions, raising concerns about its long-term growth potential.

Market Access Friction: Some barriers remain, such as prior authorizations and step edits that could hinder prescription fulfillment.

Seasonality: Potential fluctuations in prescription volumes due to seasonal factors, though management downplayed significant seasonality impacts.

5Notable Q&A Insights

ASP Trends: Management confirmed no inventory movements affected ASP and expects continued sequential gains in ASP as reimbursement improves.

QBREXZA Outlook: While it remains a valuable product, its performance may fluctuate, and management is focusing on maintaining consistent contributions.

Physician Utilization: Amrozi's efficacy and safety profile are key factors driving physician adoption, with a focus on moderate to severe rosacea patients.

Out-Licensing Efforts: Ongoing discussions for out-licensing Amrozi and other products in non-U.S. territories, with a robust global patent portfolio backing these efforts. Overall, Journey Medical reported strong financial performance in Q2 2026, driven by Amrozi's growth and strategic initiatives, while also facing challenges with QBREXZA and market access barriers. The outlook remains optimistic for continued growth and profitability.