Verrica Pharmaceuticals Reports First Quarter 2026 Financial Results
Rhea-AI Summary
Verrica Pharmaceuticals (Nasdaq: VRCA) reported Q1 2026 revenue of $5.0 million, including U.S. YCANTH net product revenue of $4.3 million, up 16.2% sequentially and 25.4% year-over-year. Dispensed YCANTH applicator units reached 15,302, up 12.1% sequentially and 51.3% year-over-year.
YCANTH surpassed 100,000 total dispensed units since launch and was commercially launched in Japan by partner Torii. Verrica reported a GAAP net loss of $9.7 million and continues Phase 3 programs in common warts and development of VP-315 for basal cell carcinoma.
AI-generated analysis. Not financial advice.
Positive
- Q1 2026 total revenue reached $5.0 million
- U.S. YCANTH net product revenue rose to $4.3 million, up 25.4% year-over-year
- YCANTH dispensed applicator units grew 51.3% year-over-year to 15,302
- YCANTH commercial launch in Japan adds first ex-U.S. revenue via Torii
- Over 50% of targeted enrollment achieved in COVE-2 Phase 3 common warts trial
- Torii to fund first $40 million of common warts Phase 3 program costs
- Interest expense fell to $0.2 million from $2.2 million after debt facility termination
Negative
- Q1 2026 GAAP net loss remained $9.7 million
- Non-GAAP net loss widened to $8.8 million from $8.3 million year-over-year
- Selling, general and administrative expenses increased to $10.0 million from $8.8 million
- Research and development expenses rose to $3.9 million from $2.3 million
- Interest income declined to $0.2 million from $0.3 million due to lower cash balances
News Market Reaction – VRCA
On the day this news was published, VRCA gained 3.08%, reflecting a moderate positive market reaction. Argus tracked a peak move of +9.8% during that session. Our momentum scanner triggered 7 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $4M to the company's valuation, bringing the market cap to $140.87M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
VRCA fell 7.38% while close biotech peers were mixed: CALC at -5.7%, OTLK up 10.09%, GRCE up 1.29%, PSTV down 0.49%. Scanner names like CALC showed upside momentum, reinforcing that VRCA’s move appears stock-specific rather than a coordinated sector rotation.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Mar 11 | Earnings & outlook | Positive | +4.7% | Full-year 2025 results with strong YCANTH growth and improved balance sheet. |
| Nov 14 | Quarterly earnings | Positive | -5.1% | Q3 2025 revenue growth and Torii milestone despite modest net loss. |
| Aug 12 | Quarterly earnings | Positive | -3.4% | Strong Q2 2025 revenue, YCANTH growth, and VP-315 Phase 3 preparation. |
| May 13 | Quarterly earnings | Positive | -2.7% | Q1 2025 YCANTH records and lower operating expenses with ongoing pipeline work. |
| Apr 07 | YCANTH demand update | Positive | +21.8% | Q1 2025 demand-led growth in YCANTH dispensed applicator units. |
Across prior earnings-related releases, Verrica usually reported strong YCANTH growth and pipeline progress, yet share reactions were often volatile and sometimes negative despite positive fundamentals. Out of five recent earnings events, three saw negative moves following constructive updates, indicating a history of mixed or contrarian trading responses around results.
Over the last year, Verrica’s earnings updates have highlighted rapid YCANTH growth and expanding dermatology programs. Q1 2025 showed record YCANTH sales and reduced operating expenses, while Q2 and Q3 2025 added milestones and rising applicator volumes. Full-year 2025 results on Mar 11, 2026 emphasized revenue jumping to $35.6M and extinguished debt. Today’s Q1 2026 report continues that trajectory with further demand growth and advancing Phase 3 programs.
Historical Comparison
Recent earnings and demand updates for VRCA led to an average move of about 3.06%, with several past reports seeing negative reactions despite strong YCANTH growth, similar to today’s -7.38% decline.
Earnings releases show progression from early YCANTH launch to broader revenue scale, with Torii milestones, expanding Phase 3 programs, and improving cost structure building toward a diversified dermatology franchise.
Regulatory & Risk Context
An effective shelf registration dated Dec 15, 2025 registers up to 14,756,230 common shares for resale by existing holders. Verrica receives no proceeds from resales but may obtain cash upon warrant exercises at the specified strike prices, providing a potential, holder-driven source of additional share float.
Market Pulse Summary
This announcement underscores continued YCANTH uptake, with 15,302 Q1 2026 applicator units and total revenue of $5.0M, alongside progress toward Phase 3 programs in common warts and basal cell carcinoma. At the same time, Verrica reported a GAAP net loss of $9.7M and non-GAAP net loss of $8.8M, highlighting ongoing investment needs. Investors may watch future quarters for revenue scaling, trial readouts, and any use of the existing 14,756,230-share resale shelf.
Key Terms
molluscum contagiosum medical
common warts medical
phase 3 medical
oncolytic peptide medical
basal cell carcinoma medical
abscopal-like effect medical
net loss financial
non-gaap financial
AI-generated analysis. Not financial advice.
– Company reports record demand for YCANTH® as dispensed applicator units grew to 15,302 in Q1 2026, up
– Company announces achievement of over
– Company reports total revenue of
– YCANTH commercial launch in Japan by partner Torii Pharmaceutical represents expansion into first ex-U.S. market –
– Company continues preparation for Phase 3 study of VP-315 in basal cell carcinoma –
– Conference call scheduled for today, May 12, 2026, at 4:30 pm ET –
WEST CHESTER, Pa., May 12, 2026 (GLOBE NEWSWIRE) -- Verrica Pharmaceuticals Inc. (“Verrica”) (Nasdaq: VRCA), a therapeutics company developing and commercializing medications for the treatment of dermatological diseases, including skin cancers, today announced financial results for the first quarter ended March 31, 2026.
“Our first quarter performance reflects accelerating growth in market demand for YCANTH as the new standard of care for the treatment of molluscum contagiosum, a condition that impacts approximately 6 million people in the United States alone,” said Jayson Rieger, PhD, MBA, President and Chief Executive Officer of Verrica. “As the only FDA-approved, HCP-administered therapy for molluscum, YCANTH is a product that is uniquely positioned to address the unmet need of patients with molluscum, largely children under the age of 14. Demand for YCANTH grew sharply during the first quarter, as we set new records for dispensed applicator units during the quarter and in the month of March. April dispensed applicator units increased further from the record total in March, and the Company has achieved the milestone of over 100,000 total dispensed applicator units since launch. We have also achieved another significant milestone in expanding to new markets as our partner, Torii Pharmaceutical, launched YCANTH in Japan for patients with molluscum following regulatory approval last year.”
“We are beginning to realize the traction from the efforts we began to implement last year to stabilize and grow our business. Alongside the growth in demand for YCANTH, we believe Verrica’s future growth is enhanced by the potential of our late-stage clinical programs in basal cell carcinoma and common warts, which we believe could represent multi-billion dollar opportunities if these programs successfully complete their development and are approved,” Dr. Rieger continued. “The exciting data from the Phase 2 study of our novel oncolytic peptide, VP-315, for the treatment of basal cell carcinoma is generating strong interest within the dermatology and oncology communities and among patients faced with treating basal cell carcinoma. Further, last December the first patient was dosed in the first trial (COVE-2) of the global Phase 3 program evaluating YCANTH (VP-102) for the treatment of common warts, and we are happy to announce achievement of over
Dr. Rieger concluded, “we are proud of our progress in establishing YCANTH as the new standard of care for molluscum and of our work to expand our products, indications and markets. Collectively, our commercially available asset and pipeline programs, if successful, could represent significant benefits for patients and value for our company and our shareholders.”
Conference Call and Webcast Information
The Company will host a conference call on Tuesday, May 12, 2026, at 4:30 pm, to discuss its first 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: 1-833-316-2483
International Dial-In Number: 1-785-838-9284
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=1758586&tp_key=307852c58b
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 first quarter of 2026, YCANTH dispensed applicator units totaled 15,302, representing a year-over-year increase of approximately
51.3% from the first quarter of 2025. On a sequential basis, YCANTH dispensed applicator units increased approximately12.1% from the prior quarter. In the first quarter of 2026, while January was likely impacted by winter weather across the East Coast, dispensed applicator units per selling day rebounded sharply in February and March, setting a record monthly high since launch in March. - On February 9, 2026, the Company announced the commercial launch of YCANTH in Japan by its partner, Torii Pharmaceutical Co. Ltd. (“Torii”), a wholly-owned subsidiary of Shionogi & Co., Ltd., for the treatment of molluscum.
- On January 7, 2026, the Company announced that the first patient was dosed in December 2025 in the first trial (COVE-2) of our global Phase 3 program evaluating YCANTH (VP-102) for the treatment of common warts. If the Phase 3 program is successful, YCANTH could become the first therapy approved in either the United States or Japan for the treatment of common warts, a condition that impacts over 22 million people in the United States alone. The Company has retained full commercial rights for all potential YCANTH indications outside of Japan and believes that YCANTH for common warts could represent a substantial commercial and licensing opportunity.
VP-315
- On May 5, 2026, the Company announced that it will present data from its Phase 2 study of its novel oncolytic peptide, VP-315, for the treatment of basal cell carcinoma in a late-breaking abstract selected for oral presentation at the upcoming 2026 Society for Investigative Dermatology (SID) Annual Meeting, which will take place from May 13-16, 2026, in Chicago, Illinois. Data from the Company’s Phase 2 study will highlight an observed abscopal-like effect of VP-315 in non-treated basal cell carcinoma lesions.
CORPORATE
- On February 12, 2026, the Company announced the appointment of Chris Chapman as its Chief Commercial Officer. Mr. Chapman brings over 25 years of commercial experience in the pharmaceutical industry to Verrica, and most recently served as Chief Commercial Officer at Dermavant Sciences through its acquisition by Organon, where he played an instrumental role in launching VTAMA® (tapinarof) cream,
1% , approved for adult plaque psoriasis in June 2022 and atopic dermatitis in December 2024.
First Quarter 2026 Financial Results
- Total revenue for the three months ended March 31, 2026, was
$5.0 million . - U.S. YCANTH product revenue, net was
$4.3 million for the quarter ended March 31, 2026, compared to net product revenue of$3.4 million for the quarter ended March 31, 2025. The increase in product revenue, net was primarily related to an increase in deliveries of YCANTH to Verrica’s distribution partners commensurate with an increase in dispensed applicator unit volume. - License and collaboration revenue was
$0.7 million for the quarter ended March 31, 2026, consisting primarily of commercial supply for Torii’s YCANTH launch in Japan. License and collaboration revenue was not material for the three months ended March 31, 2025. - Costs of product revenue were
$0.5 million for the quarter ended March 31, 2026, compared to$0.4 million for the quarter ended March 31, 2025, consisting primarily of product costs related to the sale of YCANTH. - Selling, general and administrative expenses were
$10.0 million for the quarter ended March 31, 2026, compared to$8.8 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. - Research and development expenses were
$3.9 million for the quarter ended March 31, 2026, compared to$2.3 million for the same period in 2025. Excluding the impact of stock-based compensation, the increase 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. - Interest income was
$0.2 million for the quarter ended March 31, 2026, compared to$0.3 million for the quarter ended March 31, 2025. The decrease in interest income was primarily due to lower cash balances. - Interest expense was
$0.2 million for the quarter ended March 31, 2026, compared to$2.2 million for the same period in 2025. The decrease of$2.0 million was related to the settlement and termination of the Company’s debt facility in November 2025. - For the quarter ended March 31, 2026, net loss was
$9.7 million , or$0.45 per share, compared to a net loss of$9.7 million , or$1.03 per share, for the same period in 2025. - For the quarter ended March 31, 2026, non-GAAP net loss was
$8.8 million , or$0.41 per share, compared to a non-GAAP net loss of$8.3 million , or$0.88 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 from operations, non-GAAP net loss and non-GAAP net loss 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 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. Non-GAAP loss from operations, non-GAAP net loss and non-GAAP net loss 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 from operations, non-GAAP net loss and non-GAAP net loss 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. Approximately 250 million lives are eligible to receive YCANTH covered by insurance. Commercially insured patients pay just
About VP-315 (ruxotemitide)
VP-315 is a potential first-in-class oncolytic chemotherapeutic peptide immunotherapy administered directly into a tumor to induce immunogenic cell death and thereby unleashing a broad spectrum of tumor antigens for T cell responses, which may offer a non-surgical option for patients suffering from skin cancer. The technology is based on pioneering research in “host defense peptides” – nature’s first line of defense towards foreign pathogens. Verrica holds an exclusive worldwide license to develop and commercialize VP-315 for certain dermatologic oncology indications, including non-metastatic melanoma and non-metastatic merkel cell carcinoma, and intends to focus initially on basal cell and squamous cell carcinomas as the lead indications for development. VP-315 has demonstrated positive tumor-specific immune cell responses in multi-indication Phase 1/2 oncology trials.
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.
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, and the timing of initiating the second Phase 3 study of YCANTH for common warts. 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 Reports on Form 10-Q 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.
| VERRICA PHARMACEUTICALS INC. | |||||||
| Selected Statements of Operations Data | |||||||
| (in thousands except share and per share data) | |||||||
| Three Months Ended March 31, | |||||||
| 2026 | 2025 | ||||||
| Revenue | |||||||
| Product revenue, net | $ | 4,290 | $ | 3,422 | |||
| License and Collaboration revenue | 733 | 17 | |||||
| Total revenue | 5,023 | 3,439 | |||||
| Operating Expenses: | |||||||
| Cost of product revenue | 544 | 423 | |||||
| Cost of collaboration revenue | 345 | 14 | |||||
| Selling, general and administrative | 9,989 | 8,848 | |||||
| Research and development | 3,860 | 2,284 | |||||
| Total expenses | 14,738 | 11,569 | |||||
| Loss from operations | (9,715 | ) | (8,130 | ) | |||
| Interest income | 201 | 337 | |||||
| Interest expense | (160 | ) | (2,203 | ) | |||
| Change in fair value of derivative liability | - | 254 | |||||
| Other expense | (8 | ) | - | ||||
| Net loss | $ | (9,682 | ) | $ | (9,742 | ) | |
| Net loss per share | |||||||
| Basic and diluted | $ | (0.45 | ) | $ | (1.03 | ) | |
| Weighted average common shares outstanding | |||||||
| Basic and diluted | 21,305,025 | 9,483,734 | |||||
| VERRICA PHARMACEUTICALS INC. | |||||||
| Selected Balance Sheets Data | |||||||
| (in thousands) | |||||||
| March 31, | December 31, | ||||||
| 2026 | 2025 | ||||||
| Cash | $ | 20,600 | $ | 30,147 | |||
| Accounts receivable | 7,813 | 5,397 | |||||
| Deferred R&D services, current portion | 1,374 | 1,958 | |||||
| Inventory | 1,974 | 2,236 | |||||
| Prepaid expenses and other assets | 2,368 | 2,801 | |||||
| Total current assets | 34,129 | 42,539 | |||||
| Deferred R&D services, non-current portion | 2,354 | 2,354 | |||||
| PP&E, Lease right-of-use asset, other | 2,303 | 2,238 | |||||
| Total assets | $ | 38,786 | $ | 47,131 | |||
| Current Liabilities | 16,917 | 17,322 | |||||
| R&D funding liability | 5,814 | 5,066 | |||||
| Total liabilities | 22,731 | 22,388 | |||||
| Total stockholders' equity | 16,055 | 24,743 | |||||
| Total Liabilities & Stockholders' Equity | $ | 38,786 | $ | 47,131 | |||
| VERRICA PHARMACEUTICALS INC. | |||||||||||
| Reconciliation of Non-GAAP Financial Measures (unaudited) | |||||||||||
| (in thousands, except share and per share data) | |||||||||||
| Three Months Ended March 31, 2026 | |||||||||||
| Loss from Operations | Net loss | Net loss per share (basic and diluted) | |||||||||
| GAAP | $ | (9,715 | ) | $ | (9,682 | ) | $ | (0.45 | ) | ||
| Non-GAAP Adjustments: | |||||||||||
| Stock-based compensation - Selling, General & Admin (a) | 593 | 593 | 0.03 | ||||||||
| Stock-based compensation - Research & Development (a) | 276 | 276 | 0.01 | ||||||||
| Stock-based compensation - Cost of Product (a) | 14 | 14 | 0.00 | ||||||||
| Stock-based compensation - Cost of Collaboration (a) | 14 | 14 | 0.00 | ||||||||
| Adjusted | $ | (8,818 | ) | $ | (8,785 | ) | $ | (0.41 | ) | ||
| Three Months Ended March 31, 2025 | |||||||||||
| Loss from Operations | Net loss | Net loss per share | |||||||||
| GAAP | $ | (8,130 | ) | $ | (9,742 | ) | $ | (1.03 | ) | ||
| Non-GAAP Adjustments: | |||||||||||
| Stock-based compensation - Selling, General & Admin (a) | 785 | 785 | 0.08 | ||||||||
| Stock-based compensation - Research & Development (a) | 241 | 241 | 0.03 | ||||||||
| Derivative liability change in value (b) | (254 | ) | (0.03 | ) | |||||||
| Non-cash interest expense (b) | 668 | 0.07 | |||||||||
| Adjusted | $ | (7,104 | ) | $ | (8,302 | ) | $ | (0.88 | ) | ||
| (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 non-cash interest expenses and derivative liability change in value are excluded because Verrica believes such exclusions facilitate an understanding of the effects of the debt service obligation on the Company’s liquidity and comparisons to peer group companies and is reflective of how management internally manages the business. |
FOR MORE INFORMATION, PLEASE CONTACT:
Investors:
John Kirby
Interim Chief Financial Officer
jkirby@verrica.com
Kevin Gardner
LifeSci Advisors
kgardner@lifesciadvisors.com
