Start here if you're new
what it is
Verrica sells one FDA-approved skin treatment and is trying to turn that single product into a real business.
how it gets paid
Last year Verrica Pharma made $8M in revenue. YCANTH commercial sales was the main engine at $8.0M, or 100% of sales.
what just happened
Revenue hit $16M, but the cleaner read is that Verrica is still trying to outrun heavy losses.
At a glance
C+ balance sheet — struggling to keep the lights on
40/100 earnings predictability — expect surprises
-$14.80 fy2024 eps est
$8M fy2024 rev est
n/a operating margin
xvary composite: 24/100 — weak
What they do
Verrica sells one FDA-approved skin treatment and is trying to turn that single product into a real business.
YCANTH is the first and only FDA-approved treatment a healthcare professional applies for molluscum contagiosum in patients age 2 and older. That matters because about 6 million people in the United States get this viral skin infection, mostly children. If you are a doctor treating molluscum today, there is only one approved office-applied option on the label.
How they make money
$8M
annual revenue
YCANTH commercial sales
$8.0M
+27%
Common warts program
$0.0M
flat
VP-315 skin cancer program
$0.0M
flat
Other development activity
$0.0M
flat
The products that matter
topical dermatology drug
YCANTH
$15.3M · 100% of revenue
this is the whole commercial story today. YCANTH net revenue grew 130% to $15.3M in 2025, and that one product now carries the full weight of the valuation.
only approved topical
Key numbers
-161%
operating margin
Operating margin → profit after operating costs → so what: Verrica lost about $1.61 from operations for every $1 it brought in.
$8M
annual revenue
Annual revenue → total sales for the year → so what: the entire business generated just $8M against a market value near $105M.
$22M
long-term debt
Long-term debt → money owed over years → so what: obligations already equal 17% of capital before the company has shown durable profits.
6M
U.S. patients
Patient population → people affected by the disease → so what: about 6 million Americans get molluscum, which is why YCANTH has a real market if adoption sticks.
Financial health
C+
strength
- balance sheet grade C+ — weak — may struggle to fund operations
- risk rank 5 — safer than 5% of stocks
- price stability 5 / 100
- long-term debt $22M (17% of capital)
C+ — below average. watch for debt servicing and cash burn.
Total return vs. market
Return history isn't available for VRCA right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Revenue hit $16M, but the cleaner read is that Verrica is still trying to outrun heavy losses.
EDGAR data shows latest-quarter revenue of $16 million, up 27% vs. prior year, while EPS was -$1.03. That is the classic small-biotech contrast: sales are moving, but profitability is still nowhere close.
$16M
revenue
$1.03
eps
+27%
revenue growth
the number that mattered
$16M matters because it shows YCANTH can produce real quarterly sales, but the stock still lives or dies on whether those sales can outrun losses.
source: company earnings report, 2026
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What could go wrong
the #1 risk is YCANTH adoption failing to outrun cash burn. This is not a diversified drug company. It is one product trying to fund the rest of the enterprise.
med
single-product dependence
100% of 2025 revenue came from YCANTH. There is no second commercial asset large enough to offset a stumble.
If YCANTH slows, you are not trimming a segment. You are pressuring all $15.3M of current revenue.
med
funding pressure
The company carries a C+ balance sheet, $22M of long-term debt, and a fy2024 EPS estimate of -$14.80. Those numbers do not describe a business throwing off excess cash.
If operating losses do not narrow, more capital is the obvious next chapter. In small caps, that usually means dilution, more debt, or both.
med
material weakness in controls
A 2024 SEC filing disclosed a material weakness related to revenue recognition. For a company with one product and limited scale, reporting credibility matters more, not less.
Remediation delays can drag on investor trust, audit effort, and how confidently you can read the reported sales line.
med
commercial execution is still unproven
YCANTH sales rose 130% to $15.3M, which is real traction. But that is still only $15.3M supporting a $105M market cap and a full corporate cost structure.
A launch can look impressive in percentage terms and still be too small in dollar terms. That gap is what you need to watch.
With 100% of revenue tied to one product and only $15.3M of 2025 sales against a $105M market cap, the downside case is not subtle.
source: institutional data · regulatory filings · risk analysis
Pay attention to
catalyst
next earnings print
The next quarter matters because Q4 revenue was only $5.1M. You need to see whether YCANTH is building a real sales cadence or just producing isolated bursts.
metric
YCANTH revenue run rate
2025 YCANTH revenue reached $15.3M. The whole bull case is that this number keeps climbing fast enough to matter at the company level.
risk
internal-control remediation
Keep an eye on filings for progress on the revenue-recognition material weakness. When one drug is the whole revenue line, the accounting around that line is not background noise.
trend
gross margin versus operating losses
81.9% gross margin says the product is attractive. A -33.6% EBIT margin says the company is still underwater. You want those two numbers moving toward each other.
Analyst rankings
earnings predictability
40 / 100
in human-speak, analysts do not expect a smooth ride. Small changes in YCANTH sales can swing the story fast.
risk rank
5
This sits near the bottom of the safety spectrum. Translation: you are being paid in possible upside because the risk is obvious.
source: institutional data
Institutional activity
institutional ownership data for VRCA is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$6
current price
n/a
target midpoint · n/a from current
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