Earnings release
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VERRICA Verrica Pharmaceuticals Reports Second Quarter 2026 Financial Results - Company reports record demand for YCANTHⓇ as dispensed applicator units grew to 19,626 in Q2 2026 , up 28.3 % over the previous quarter and 46.1 % year - over - year – - Topline data from global Phase 3 program studying common warts currently expected in mid- 2027- - The Company's cash runway could extend into 2028 based on its current operating plan and assuming full availability of its new credit facility - -Company reports total revenue of $ 5.9 million in Q2 2026 , including U.S. YCANTH net product revenue of $ 5.1 million , up 18.7 % over the previous quarter and 12.3 % year - over - year- - Conference call scheduled for today , August 6 , 2026 , at 4:30 pm ET - WEST CHESTER , PA - Aug 6 , 2026 ( GLOBE NEWSWIRE ) - Verrica Pharmaceuticals Inc. ( " Verrica " or the " Company " ) ( Nasdaq : VRCA ) , a therapeutics company developing and commercializing medications for the treatment of dermatological diseases , including skin cancers , today announced financial results for the second quarter ended June 30 , 2026 . " Demand for YCANTH continues to accelerate , with dispensed applicator units reaching 19,626 for the quarter , up approximately 28 % sequentially and 46 % on a year - over - year basis , and representing our highest quarterly total since launch . We believe that our commercial strategy is working well and provides us with a growing confidence that YCANTH can become the standard of care for patients suffering from molluscum , ” said Jayson Rieger , PhD , MBA , President and Chief Executive Officer of Verrica . " In addition to our commercial efforts , we also continue to make progress with our work to expand the label for YCANTH to include common warts , an indication that is more than three times the six million patients estimated to be suffering from molluscum . Topline data from our global Phase 3 program is currently expected in mid - 2027 , as our studies are recruiting well . We continue to enroll patients in the first pivotal study , COVE - 2 , and first patients in the U.S. and Japan were dosed in the second pivotal trial , COVE - 3 , during the quarter , " Dr. Rieger continued . " With respect to our basal cell carcinoma program , we remain highly encouraged by the Phase 2 data for our novel oncolytic peptide , VP - 315 . At the Society for Investigative Dermatology Annual Meeting in May , VP - 315 demonstrated a potential ability to impact both treated lesions , as well as showing evidence of a meaningful abscopal effect in untreated lesions . Based on the unique and promising profile of this Phase 3 - ready asset , we are continuing our Phase 3 readiness activities . "
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Dr. Rieger concluded, “Finally, our new credit facility for up to $27.5 million with an entity controlled by Paul B. Manning, Verrica’s Chairman and largest shareholder, gives us access to additional non-dilutive capital to support YCANTH’s continued commercialization and advance our ongoing Phase 3 common warts program. Based on our current operating plan, we believe the full $27.5 million that may be available under the facility could extend our cash runway into 2028. We believe this quarter’s progress across our YCANTH business for molluscum and our pipeline programs, along with this extended cash runway, positions Verrica well to deliver long-term value for patients and shareholders.” Conference Call and Webcast Information The Company will host a conference call on Thursday, August 6, 2026, at 4:30 pm, to discuss its second quarter 2026 financial results and provide a business update. To participate in the conference call, please utilize the following information: Domestic Dial-In Number: Toll-Free: 1-800-225-9448 International Dial-In Number: 1-203-518-9708 Conference ID: VERRICA Participants can use Guest dial-in #s above and be answered by an operator. Webcast: https://viavid.webcasts.com/starthere.jsp?ei=1766684&tp_key=a08a369194 The call will be broadcast live over the Web and can also be accessed on Verrica Pharmaceuticals’ website: www.verrica.com. The conference call will also be available for replay for one month on the Company’s website in the Events Calendar of the Investors section. Business Highlights and Recent Developments YCANTH® (VP-102) • During the second quarter of 2026, YCANTH dispensed applicator units totaled 19,626, representing a year-over-year increase of approximately 46% from the second quarter of 2025. On a sequential basis, YCANTH dispensed applicator units increased approximately 28% from the prior quarter. • On June 22, 2026, the Company announced that the first U.S. patient was dosed in the second pivotal clinical trial (COVE-3) in its global Phase 3 program evaluating YCANTH® (VP-102) for the treatment of common warts in the US and Japan. Based upon current projections, the Company expects to present topline data from the program in mid-2027.
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VP-315 • On May 5, 2026, the Company announced the presentation of Phase 2 clinical data highlighting the potential abscopal effects of its novel oncolytic peptide, VP-315 (ruxotemitide), for the treatment of basal cell carcinoma (BCC) at the 2026 Society for Investigative Dermatology (SID) Annual Meeting. Corporate • On August 6, 2026, the Company announced that it has entered into a credit agreement (the “Facility”) with an entity controlled by Paul B. Manning, Verrica’s Chairman and largest shareholder for up to $27.5 million. • On July 21, 2026, the Company announced an exclusive distribution, marketing and supply agreement with Medomie Pharma Ltd., regarding commercial rights to YCANTH® for the treatment of molluscum contagiosum in Israel. Financial Results Second Quarter 2026 Financial Results • Total revenue for the three months ended June 30, 2026, was $5.9 million compared to total revenue of $12.7 million for the three months ended June 30, 2025. • U.S. YCANTH product revenue, net was $5.1 million for the quarter ended June 30, 2026, compared to net product revenue of $4.5 million for the quarter ended June 30, 2025. The increase in product revenue, net, was primarily related to increased deliveries of YCANTH to our distribution partners. • License and collaboration revenue was $0.8 million for the quarter ended June 30, 2026, consisting primarily of commercial supply for Torii’s YCANTH launch in Japan, compared to license and collaboration revenue from Torii of $8.2 million for the three months ended June 30, 2025, which included $8.0 million of one-time milestone revenue. • Costs of product revenue were $0.4 million for the quarter ended June 30, 2026, compared to $0.3 million for the quarter ended June 30, 2025, consisting primarily of product costs related to the sale of YCANTH. • Selling, general and administrative expenses were $10.3 million for the quarter ended June 30, 2026, compared to $8.9 million for the same period in 2025. Excluding the impact of stock-based compensation, the increase of $1.3 million was primarily due to increased commercial spend, related to the expansion of the sales force.
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• Research and development expenses were $6.0 million for the quarter ended June 30, 2026, compared to $1.8 million for the same period in 2025. Excluding the impact of stock-based compensation, the increase of $4.1 million was primarily attributable to costs associated with the Phase 3 program for common warts. The expense for the Phase 3 common warts program did not impact Verrica’s cash balance, as the first $40 million of payments for this program will be made by Torii under the Company’s collaboration and license agreement. • Expense of $1.7 million was recognized during the quarter ended June 30, 2026, as an agreement in principle was reached to settle legal proceedings related to a class action brought against the Company in 2022. The expense represents Verrica’s share of the settlement after the insurance recovery. • Interest income was $0.1 million for the quarter ended June 30, 2026, compared to $0.2 million for the quarter ended June 30, 2025. The decrease in interest income was primarily due to lower cash balances. • Interest expense was $0.2 million for the quarter ended June 30, 2026, compared to $2.1 million for the same period in 2025. The decrease of $2.0 million was related to the settlement and termination of the Company’s OrbiMed debt facility in November 2025. • For the quarter ended June 30, 2026, net loss was $13.2 million, or $0.62 per share, compared to a net income of $0.2 million, or $0.02 per share, for the same period in 2025. • For the quarter ended June 30, 2026, non-GAAP net loss was $10.2 million, or $0.48 per share, compared to a non-GAAP net income of $1.2 million, or $0.12 per share, for the same period in 2025. Year-to-date Financial Results • Product revenue, net was $9.4 million for the six months ended June 30, 2026, compared to $8.0 million for the six months ended June 30, 2025. • License and collaboration revenue was $1.5 million for the six months ended June 30, 2026, compared to $8.2 million for the six months ended June 30, 2025. License and collaboration revenue for the six months ended June 30, 2026 consisted of supplies and development activity with Torii. License and collaboration revenue for the six months ended June 30, 2025 consisted of a one-time $8.0 million milestone payment from Torii as well as supplies and development activity.
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• Costs of product revenue were $1.0 million for the six months ended June 30, 2026, compared to $0.8 million for the six months ended June 30, 2025. • Selling, general and administrative expenses were $20.3 million in the six months ended June 30, 2026, compared to $17.7 million for the same period in 2025. Excluding the impact of stock compensation, the increase of $2.6 million was primarily due to increased commercial spend related to the expansion of the sales force. • Research and development expenses were $9.9 million in the six months ended June 30, 2026, compared to $4.1 million for the same period in 2025. Excluding the impact of stock compensation, the increase of $5.6 million was primarily due to increased costs related to the Program for common warts. • Expense of $1.7 million was recognized during the six months ended June 30, 2026, as an agreement in principle was reached to settle legal proceedings related to a class action brought against the Company in 2022. The expense represents Verrica’s share of the settlement after the insurance recovery. • Interest income was $0.3 million for the six months ended June 30, 2026, compared to $0.6 million for the same period in 2025. The decrease of $0.3 million was primarily due to a lower cash balance. • Interest expense was $0.3 million for the six months ended June 30, 2026, and $4.3 million for the same period in 2025. The decrease of $4.0 million was related to the settlement of the OrbiMed Loan Facility and the termination of the OrbiMed Credit Agreement in November 2025. • For the six months ended June 30, 2026, net loss was $22.8 million, or $1.07 per share, compared to a net loss of $9.5 million, or $1.01 per share, for the same period in 2025. • For the six months ended June 30, 2026, non-GAAP net loss was $19.0 million, or $0.89 per share, compared to a non-GAAP net loss of $7.1 million, or $0.75 per share, for the same period in 2025. Non-GAAP Financial Measures In evaluating the operating performance of its business, Verrica’s management considers non-GAAP (loss) income from operations, non-GAAP net (loss) income and non-GAAP net (loss) income per share. These non-GAAP financial measures exclude stock-based compensation expense and non-cash interest expense that are required by GAAP. Verrica excludes non-cash stock-based compensation expense from these non-GAAP measures to facilitate comparison to peer companies who also provide similar non-GAAP disclosures and because it reflects how management internally manages the business. In addition, Verrica excludes non-cash interest
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expense from these non-GAAP measures to facilitate an understanding of the effects of the debt service obligations on the Company’s liquidity and comparisons to peer group companies who also provide similar non-GAAP disclosures and because it is reflective of how management internally manages the business. Verrica also excludes certain other one-time expenses and impacts from change in fair value of derivative liability and legal settlement, net of insurance recovery. Non-GAAP (loss) income from operations, non-GAAP net (loss) income and non-GAAP net (loss) income per share should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results. Non-GAAP (loss) income from operations, non-GAAP net (loss) income and non-GAAP net (loss) income per share have been reconciled to the nearest GAAP measure in the tables following the financial statements in this press release. About YCANTH® (VP-102) YCANTH® is a proprietary drug-device combination product that contains a GMP-controlled formulation of cantharidin delivered via a single-use applicator that allows for precise topical dosing and targeted administration for the treatment of molluscum. YCANTH is the first and only healthcare professional-administered product approved by the FDA to treat adult and pediatric patients two years of age and older with molluscum contagiosum — a common, highly contagious skin disease that affects an estimated six million people in the United States, primarily children. Approval of YCANTH was based upon the positive results from two Phase 3 clinical trials in approximately 500 patients which demonstrated that YCANTH was a safe and effective therapeutic for the treatment of molluscum. YCANTH is also approved for the treatment of molluscum contagiosum in Japan and is being studied in a global phase 3 program in the US and Japan for the treatment of common warts. Approximately 250 million lives are eligible to receive YCANTH covered by insurance. Commercially insured patients pay just $25 per YCANTH treatment visit, for up to two applicators. Other uninsured patients may be eligible to receive YCANTH at a reduced cost if certain eligibility requirements are met for patient assistance. Please visit YCANTHPro.com for additional information. About Verrica Pharmaceuticals Inc. Verrica is a therapeutics company developing and commercializing medications for the treatment of dermatological diseases, including skin cancers. Verrica’s product YCANTH® (VP-102) (cantharidin), is the first and only healthcare professional-administered treatment approved by the FDA to treat adult and pediatric patients two years of age and older with molluscum contagiosum, a highly contagious viral skin infection affecting approximately 6 million people in the United States, primarily children. YCANTH® (VP-102) is also in development to treat common warts, the largest remaining unmet need in medical dermatology. Verrica has also entered a worldwide license agreement with Lytix Biopharma ASA to develop and commercialize VP-315 (ruxotemitide, formerly known as LTX-315 and VP-LTX-315) for non-melanoma skin cancers including basal cell carcinoma and squamous cell carcinoma. For more information, visit www.verrica.com.
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Forward-Looking Statements Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements may be identified by words such as “believe,” “expect,” “may,” “plan,” “potential,” “will,” and similar expressions, and are based on Verrica’s current beliefs and expectations. These forward-looking statements include statements about the commercialization of YCANTH, the clinical development and benefits of Verrica’s product candidates, including YCANTH (VP-102) and VP-315, the development and regulatory plans for YCANTH, the timing of release of clinical data from the Phase 3 studies of YCANTH for common warts, Verrica’s ability to borrow funds under the Facility, Verrica’s achievement of milestones set forth in the Facility, and the commercial performance of YCANTH in Israel. These statements involve risks and uncertainties that could cause actual results to differ materially from those reflected in such statements. Risks and uncertainties that may cause actual results to differ materially include risks and uncertainties related to market conditions, and other risks and uncertainties that are described in Verrica’s Annual Report on Form 10-K for the year ended December 31, 2025, Verrica’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 to be filed with the SEC on August 6, 2026 and other filings Verrica makes with the SEC. Any forward-looking statements speak only as of the date of this press release and are based on information available to Verrica as of the date of this release, and Verrica assumes no obligation to, and does not intend to, update any forward-looking statements, whether as a result of new information, future events or otherwise.
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2026 2025RevenueProduct revenue, net 5,093$ 4,534$ License and Collabora;on revenue769 8,168 Total revenue 5,862 12,702Opera;ng Expenses:Cost of product revenue 435 340 Cost of collabora;on revenue 443 154 Selling, general and administra;ve10,349 8,852 Research and development 6,034 1,846 Legal seKlement, net of insurance recovery1,698 - Total expenses 18,959 11,192(Loss) income from opera;ons (13,097) 1,510Interest income 111 228 Interest expense (164) (2,131) Change in fair value of deriva;ve liability- 598 Other expense (3) (1) Net (loss) income (13,153)$ 204$ Net (loss) income per shareBasic (0.62)$ 0.02$ Weighted average common shares outstanding Basic 21,305,0259,488,055 Net (loss) income per shareDiluted (0.62)$ 0.02$ Weighted average common shares outstanding Diluted 21,305,0259,490,600 VERRICA PHARMACEUTICALS INC.Selected Statements of Operations Data(in thousands except share and per share data) Three Months Ended June 30, (unaudited)
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2026 2025RevenueProduct revenue, net 9,383$ 7,956$ License and Collabora;on revenue1,502 8,185 Total revenue 10,885 16,141Opera;ng Expenses:Cost of product revenue 979 763 Cost of collabora;on revenue 788 168 Selling, general and administra;ve20,338 17,700 Research and development 9,894 4,130 Legal seKlement, net of insurance recovery1,698 - Total expenses 33,697 22,761Loss from opera;ons (22,812) (6,620)Interest income 312 565 Interest expense (324) (4,334) Change in fair value of deriva;ve liability- 852 Other expense (11) (1) Net loss (22,835)$ (9,538)$ Net loss per shareBasic and diluted (1.07)$ (1.01)$ Weighted average common shares outstandingBasic and diluted 21,305,0259,485,907 Selected Statements of Operations Data(in thousands except share and per share data) Six Months Ended June 30, VERRICA PHARMACEUTICALS INC. (unaudited)
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June 30,December 31, 2026 2025Cash 11,198$ 30,147$ Accounts receivable 11,090 5,397 Deferred R&D services, current porBon2,718 1,958 Insurance recovery asset 2,302 - Inventory 2,712 2,236 Prepaid expenses and other assets 2,619 2,801 Total current assets 32,639 42,539 Deferred R&D services, non-current porBon706 2,354 PP&E, Lease right-of-use asset, other 2,672 2,238 Total assets 36,017$ 47,131$ Legal seNlement liability 4,000 - R&D funding liability 8,414 5,066 Other current and noncurrent liabiliBes19,296 17,322 Total liabiliBes 31,710 22,388 Total stockholders' equity 4,307 24,743 Total LiabiliBes & Stockholders' Equity36,017$ 47,131$ VERRICA PHARMACEUTICALS INC.Selected Balance Sheets Data(in thousands)(unaudited)
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(a) The effects of non-cash stock-based compensation are excluded because of varying available valuation methodologies and subjective assumptions. Verrica believes this is a useful measure for investors because such exclusion facilitates comparison to peer companies who also provide similar non-GAAP disclosures and is reflective of how management internally manages the business. (b) The effects of legal settlement, net of insurance recovery, change in derivative liability and non-cash interest expense are excluded because Verrica believes such exclusions facilitate comparisons to peer group companies and is reflective of how management Loss from OperaLonsNet loss Net loss per share (basic and diluted)GAAP (13,097)$ (13,153)$ (0.62)$ Non-GAAP Adjustments: Stock-based compensa;on - Selling, General & Admin (a)799 799 0.04 Stock-based compensa;on - Research & Development (a)396 396 0.02 Stock-based compensa;on - Cost of Product (a)8 8 0.00 Stock-based compensa;on - Cost of Collabora;on (a)10 10 0.00 Legal seKlement, net of insurance recovery (b)1,698 1,698 0.08 Adjusted (10,186)$ (10,242)$ (0.48)$ Income from OperaLonsNet incomeNet income per share GAAP 1,510$ 204$ 0.02$ Non-GAAP Adjustments: Stock-based compensa;on - Selling, General & Admin (a)588 588 0.06 Stock-based compensa;on - Research & Development (a)300 300 0.03 Deriva;ve liability change in value (b)- (598) (0.06) Non-cash interest expense (b) - 691 0.07 Adjusted 2,398$ 1,185$ 0.12$ VERRICA PHARMACEUTICALS INC.ReconciliaLon of Non-GAAP Financial Measures (unaudited)(in thousands, except share and per share data) Three Months Ended June 30, 2026 Three Months Ended June 30, 2025
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internally manages the business. Verrica also believes that the exclusion of non-cash interest expense facilitates an understanding of the effects of the debt service obligations on the Company’s liquidity. (a) The effects of non-cash stock-based compensation are excluded because of varying available valuation methodologies and subjective assumptions. Verrica believes this is a useful measure for investors because such exclusion facilitates comparison to peer Loss from OperaLonsNet loss Net loss per share (basic and diluted)GAAP (22,812)$ (22,835)$ (1.07)$ Non-GAAP Adjustments: Stock-based compensa;on - Selling, General & Admin (a)1,392 1,392 0.07 Stock-based compensa;on - Research & Development (a)672 672 0.03 Stock-based compensa;on - Cost of Product (a)22 22 0.00 Stock-based compensa;on - Cost of Collabora;on (a)24 24 0.00 Legal seKlement, net of insurance recovery (b)1,698 1,698 0.08 Adjusted (19,004)$ (19,027)$ (0.89)$ Loss from OperaLonsNet lossNet loss per share GAAP (6,620)$ (9,538)$ (1.01)$ Non-GAAP Adjustments: Stock-based compensa;on - Selling, General & Admin (a)1,373 1,373 0.14 Stock-based compensa;on - Research & Development (a)541 541 0.06 Deriva;ve liability change in value (b)- (852) (0.09) Non-cash interest expense (b) - 1,359 0.14 Adjusted (4,706)$ (7,117)$ (0.75)$ VERRICA PHARMACEUTICALS INC.ReconciliaLon of Non-GAAP Financial Measures (unaudited)(in thousands, except share and per share data) Six Months Ended June 30, 2026 Six Months Ended June 30, 2025
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companies who also provide similar non-GAAP disclosures and is reflective of how management internally manages the business. (b) The effects of legal settlement, net of insurance recovery, change in derivative liability and non-cash interest expense are excluded because Verrica believes such exclusions facilitate comparisons to peer group companies and is reflective of how management internally manages the business. Verrica also believes that the exclusion of non-cash interest expense facilitates an understanding of the effects of the debt service obligations on the Company’s liquidity. FOR MORE INFORMATION, PLEASE CONTACT: Investors: John Kirby Interim Chief Financial Officer jkirby@verrica.com Kevin Gardner LifeSci Advisors kgardner@lifesciadvisors.com