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what it is
Journey Medical sells prescription dermatology drugs in the U.S. for acne, sweating, wounds, and fungal skin conditions.
how it gets paid
Last year Journey Medical made $55M in revenue. acne oral therapies was the main engine at $16.5M, or 30% of sales.
what just happened
The latest quarter showed $45M in revenue, but EPS still landed at -$0.43.
At a glance
C++ balance sheet — some cracks in the foundation
23.8% return on capital — every dollar works hard here
-$0.72 fy2024 eps est
$2B fy2026 rev est
24.8% operating margin
xvary composite: 41/100 — below average
What they do
Journey Medical sells prescription dermatology drugs in the U.S. for acne, sweating, wounds, and fungal skin conditions.
This is a tiny commercial dermatology shop with 41 employees selling eight FDA-approved branded drugs in one market: the U.S. You are not betting on a lab miracle. You are betting that a lean sales force can squeeze more dollars out of already-approved products without paying to invent them first.
How they make money
$55M
annual revenue
acne oral therapies
$16.5M
acne topical therapies
$13.8M
hyperhidrosis treatment
$9.9M
wound and skin repair
$6.6M
generic and other dermatology products
$8.3M
The products that matter
antifungal treatment
Sulconazole Nitrate Cream
part of the $22M generic portfolio
it sits inside the $22M generic bucket, where volume matters because pricing power usually does not.
generic exposure
treats excessive underarm sweating
Qbrexza (glycopyrronium) cloth
part of the $33M branded portfolio
this is the kind of product the branded segment needs to carry the story, because that $33M bucket is doing most of the heavy lifting.
brand leverage
severe acne treatment
Accutane (isotretinoin)
sold inside a $55M company
in a business this small, a product with safety controls and generic competition can matter more than its label suggests.
execution risk
Key numbers
23.8%
return on capital
Return on capital → profit earned on the money tied up in the business → so what: 23.8% is strong, which makes the -24.8% operating margin look even stranger.
24.8%
operating margin
Operating margin → what is left after running the business → so what: Journey loses about 25 cents for every dollar of sales.
$20M
long-term debt
Long-term debt → borrowed money due over years → so what: $20M is 9% of capital, which is manageable only if losses stop.
$55M
annual revenue
Annual revenue → money brought in from selling products → so what: this is still a very small company against a roughly $197M market cap.
Financial health
C++
strength
- balance sheet grade C++ — below average — limited financial resources
- risk rank 3 — safer than 50% of stocks
- price stability 5 / 100
- long-term debt $20M (9% of capital)
C++ — below average. watch for debt servicing and cash burn.
Total return vs. market
Return history isn't available for DERM right now.
source: institutional data · return history unavailable
What just happened
missed estimates
The latest quarter showed $45M in revenue, but EPS still landed at -$0.43.
Revenue jumped 165% vs. prior year from the EDGAR data, while the latest quarterly EPS stayed negative at -$0.43. Contrast frame: bigger sales versus red ink. That is the whole argument here.
$14M
revenue
$0.43
eps
+165%
revenue vs. last year
the number that mattered
$45M matters because Journey proved it can move product fast, but the negative EPS says those sales have not turned into a durable business yet.
source: company earnings report, 2026
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What could go wrong
the #1 risk is the auditor's substantial doubt warning about Journey Medical's ability to continue as a going concern.
high
going-concern pressure
this is the loudest risk on the page. recurring losses, negative cash flow, and an auditor warning mean financing risk is not theoretical.
a company with $55M in revenue and negative EPS does not have much balance-sheet slack.
high
atm sales and dilution
management's at-the-market stock sales can raise cash, but they also dilute your ownership. when the balance sheet is C++, equity can become the financing tool of first resort.
if the company needs more capital, existing shareholders can own a smaller slice of the same $55M business.
med
product concentration in a crowded market
the portfolio is split between $33M of branded products and $22M of generics. that is diversification in accounting terms, not necessarily in competitive terms.
a slowdown in one meaningful product can ripple through a company this small much faster than investors expect.
a $197M market cap on top of a $55M revenue base, $20M of debt, and a going-concern warning leaves you underwriting financing risk as much as product execution.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
march 19, 2026
the next report needs to show losses narrowing again. if EPS stays stuck below expectations, the balance-sheet narrative gets worse, not better.
financing
atm sales and share count
watch SEC filings for more at-the-market issuance. for this stock, financing activity is operating data.
mix
branded revenue holding above 60%
the branded bucket is $33M versus $22M for generics. if branded products weaken, the case for a premium multiple gets thinner fast.
trend
from narrower losses to actual profitability
moving from -$0.12 to -$0.09 is progress. investors need to see that trend keep moving, not stall a few cents short of breakeven.
Analyst rankings
coverage depth
limited
there isn't much broad ranking data for this name. in human-speak, this is a thinly covered small cap, so sentiment can swing faster than fundamentals.
valuation shorthand
P/E n/a
price-to-earnings compares stock price to profit per share. there is no profit here, so that shortcut does not help you.
street setup
speculative
with a going-concern warning and expected losses, this is a special-situation stock, not a clean consensus story.
source: institutional data
Institutional activity
institutional ownership data for DERM is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$9
current price
n/a
target midpoint · n/a from current
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