Earnings call transcript: Journey Medical narrows loss in Q3 2026 as Emrosi grows

Journey Medical reported a 8% increase in revenue for the third quarter of 2026, growing to $19 million from $15 million a year earlier. However, the company's GAAP net loss narrowed significantly, dropping from $3.9 million to $1.3 million, or $0.05 per share. Emrosi, the company's rosacea drug, played a major role in the revenue growth, generating $9 million in net revenue and prescriptions rising to around 40,000 for the quarter.

The company also reported positive EBITDA for the second straight quarter, with adjusted EBITDA increasing to $3.5 million from $1.4 million. In terms of growth, net product sales rose 11% year over year, outpacing total revenue growth. The main driver of this growth is Emrosi, with the company gaining more than 5,000 unique prescribers, representing about 35.7% of the U.S. dermatology prescriber base.

The results indicate that Journey Medical is moving closer to sustained profitability. However, the stock price has declined, closing at $1.99 and falling to $1.96 in after-hours trading. The company still posts a GAAP loss and has a market capitalization of $67 million at current prices. Investors view the stock as potentially undervalued, with an InvestingPro Financial Health Score of 3.43 out of 5, rated as "GREAT."