Verrica Pharmaceuticals | 10-Q: FY2026 Q1 Revenue Beats Estimate at USD 5.023 M

Revenue: As of FY2026 Q1, the actual value is USD 5.023 M, beating the estimate of USD 4.52 M.

EPS: As of FY2026 Q1, the actual value is USD -0.45, missing the estimate of USD -0.42.

EBIT: As of FY2026 Q1, the actual value is USD -9.756 M.

Segment Revenue

• Total Revenue: Verrica Pharmaceuticals Inc. reported total revenue of $5.0 million for the three months ended March 31, 2026, an increase from $3.4 million for the same period in 2025 .
• Product Revenue, Net: Product revenue, net was $4.3 million in Q1 2026, up from $3.4 million in Q1 2025 .
• License and Collaboration Revenue: This revenue significantly increased to $0.7 million in Q1 2026 from $17,000 in Q1 2025 .

Operational Metrics

• Total Operating Expenses: Total operating expenses increased to $14.7 million in Q1 2026 from $11.6 million in Q1 2025 .
• Cost of Product Revenue: Increased to $0.5 million in Q1 2026 from $0.4 million in Q1 2025 .
• Cost of License and Collaboration Revenue: Rose to $0.3 million in Q1 2026 from $14,000 in Q1 2025 .
• Selling, General and Administrative (SG&A) Expenses: Increased to $10.0 million in Q1 2026 from $8.8 million in Q1 2025 .
  • Commercial (including payroll) expenses were $5.7 million in Q1 2026, up from $4.3 million in Q1 2025 .
  • General and administrative (including payroll) expenses were $3.7 million in Q1 2026, a slight decrease from $3.8 million in Q1 2025 .
  • Stock-based compensation within SG&A decreased to $0.6 million in Q1 2026 from $0.8 million in Q1 2025 .
• Research and Development (R&D) Expenses: Increased to $3.9 million in Q1 2026 from $2.3 million in Q1 2025 .
  • R&D for YCANTH (VP-102) was $0.3 million in Q1 2026, down from $0.4 million in Q1 2025 .
  • R&D for VP-315 was $0.1 million in Q1 2026, down from $0.2 million in Q1 2025 .
  • R&D for common warts significantly increased to $1.6 million in Q1 2026 from $27,000 in Q1 2025 .
  • Stock-based compensation within R&D increased to $0.3 million in Q1 2026 from $0.2 million in Q1 2025 .
  • Other unallocated R&D expenses were $1.5 million in Q1 2026, similar to $1.5 million in Q1 2025 .
• Loss from Operations: Increased to -$9.7 million in Q1 2026 from -$8.1 million in Q1 2025 .
• Net Loss: Remained stable at -$9.7 million in Q1 2026 compared to -$9.7 million in Q1 2025 .
• Accumulated Deficit: As of March 31, 2026, the accumulated deficit was -$334.6 million .
• Interest Income: Decreased to $0.2 million in Q1 2026 from $0.3 million in Q1 2025 .
• Interest Expense: Significantly decreased to -$0.2 million in Q1 2026 from -$2.2 million in Q1 2025 .
• Change in Fair Value of Derivative Liability: Was $0 in Q1 2026, compared to $0.3 million in Q1 2025 .

Cash Flow

• Net Cash Used in Operating Activities: Decreased to -$9.2 million in Q1 2026 from -$12.7 million in Q1 2025 .
• Net Cash Used in Investing Activities: Remained $0 for both Q1 2026 and Q1 2025 .
• Net Cash Used in Financing Activities: Decreased to -$0.1 million in Q1 2026 from -$4.1 million in Q1 2025 .
• Cash and Restricted Cash: Total cash and restricted cash at the end of Q1 2026 was $20.9 million, a decrease from $29.6 million at the end of Q1 2025 . Cash specifically was $20.6 million as of March 31, 2026 .

Unique Metrics

• Accounts Receivable Concentration: One customer accounted for approximately 92% of accounts receivable as of March 31, 2026 .
• Torii Agreements: Verrica Pharmaceuticals Inc. has received $38.0 million in milestone payments from Torii in prior periods and is entitled to an additional $32.0 million contingent on future milestones .
• R&D Funding Liability: The company recorded a $5.8 million R&D funding liability related to a cost-sharing arrangement for the global Phase 3 program for common warts with Torii, with the company’s share of program costs incurred being $1.7 million for Q1 2026 .
• Lytix Agreement: Verrica Pharmaceuticals Inc. is obligated to pay up to $111.0 million in development, regulatory, and sales milestones to Lytix Biopharma ASA for VP-315 .

Outlook and Strategy

Verrica Pharmaceuticals Inc. expects to continue incurring significant losses and will need substantial additional financing to fund operations, with current cash estimated to support operations into Q1 2027, highlighting substantial doubt regarding its ability to continue as a going concern without additional funding . Strategies include obtaining additional funding through equity offerings, debt financing, collaborations, strategic alliances, and/or licensing arrangements . The company plans to expand its field sales force to approximately 50 representatives by the end of 2026, scale its commercialization infrastructure for YCANTH (VP-102), advance YCANTH (VP-102) for common warts, and prepare for a Phase 3 program for VP-315 for basal cell carcinoma .