FBIO — Fortress Biotech, Inc.

Summary of Journey Medical's Q3 2025 Earnings Call

1. Key Financial Results and Metrics

• Total Revenues: $17.6 million, a 21% increase year-over-year from $14.9 million in Q3 2024.
• Gross Margin: 67.4%, down from 69.4% in Q3 2024, but showing improvement from 63.5% in Q1 and 67.1% in Q2 2025.
• Operating Expenses: SG&A expenses increased to $12.1 million, up 6% from $11.4 million in Q3 2024.
• Net Loss: GAAP net loss of $2.3 million ($0.09 per share), slightly improved from a loss of $2.4 million ($0.12 per share) in Q3 2024.
• EBITDA: Loss reduced to $500,000 from $1 million in Q3 2024; adjusted EBITDA was positive at $1.7 million compared to $300,000 in the prior year.

2. Strategic Updates and Business Highlights

• Product Launch: EMROSI, the new oral treatment for rosacea, contributed $4.9 million in Q3, with a 75% increase in revenue from Q2. Total prescriptions grew 146% from Q2 to Q3.
• Market Access: Over 100 million of the 187 million commercial lives have access to EMROSI; two out of three major GPOs have contracted, with expectations to finalize the third in early 2026.
• Physician Engagement: The number of unique prescribers for EMROSI increased by approximately 50% to over 2,700, indicating strong adoption and engagement from dermatologists.
• Clinical Feedback: Positive feedback from physicians regarding EMROSI's efficacy, with refills and new prescriptions tracking at a 1:1 ratio.

3. Forward Guidance and Outlook

• EBITDA Expectations: Journey Medical anticipates becoming sustainably EBITDA positive in Q4 2025.
• Revenue Growth: The company expects continued revenue growth driven by EMROSI, with potential peak annual net sales projected at over $200 million in the U.S. and $300 million globally.
• Operational Focus: Continued emphasis on disciplined expense management and margin expansion as EMROSI's commercial footprint scales.

4. Bad News, Challenges, or Points of Concern

• Legacy Products: Revenue from legacy products, including Accutane, declined 16% year-over-year due to generic competition, although Accutane showed signs of stabilization in Q4.
• Gross to Net Variability: Revenue per prescription decreased from $380 in Q2 to $275 in Q3, reflecting early-stage dynamics in reimbursement and the impact of the co-pay assistance program.
• Market Adoption Timeline: Full implementation of payer coverage and formulary adoption for EMROSI may take up to three quarters, potentially delaying revenue realization.

5. Notable Q&A Insights

• Patient Assistance Program: Management expects reliance on the co-pay assistance program to decrease as reimbursement improves, particularly in 2026.
• Launch Curve: The launch curve for EMROSI is viewed positively, with expectations of accelerating growth as more prescribers gain confidence in the product.
• Retention Rates: While specific retention rates for prescribers were not disclosed, management noted ongoing engagement and positive feedback from physicians.
• Qbrexza Management: Qbrexza is expected to maintain single-digit growth year-over-year, with a strong sales force continuing to engage dermatologists.

Overall, Journey Medical reported strong progress in Q3 2025, particularly with the launch of EMROSI, while also facing challenges with legacy products and reimbursement dynamics. The outlook remains optimistic as the company aims for sustained growth and profitability.