Verrica Pharmaceuticals (NASDAQ: VRCA) grows YCANTH demand but reports Q2 loss

Rhea-AI Filing Summary

Verrica Pharmaceuticals reported second quarter 2026 results highlighted by strong uptake of YCANTH, its FDA-approved treatment for molluscum contagiosum. Dispensed applicator units reached 19,626, up 28.3% sequentially and 46.1% year-over-year. Q2 2026 total revenue was $5.9 million, including U.S. YCANTH net product revenue of $5.1 million, up 18.7% over the previous quarter and 12.3% year-over-year.

Despite product growth, the company recorded a Q2 2026 net loss of $(13,153) thousand, or $(0.62) per share, compared with net income of $204 thousand in Q2 2025. Higher operating expenses, including $10,349 thousand in selling, general and administrative costs, $6,034 thousand in research and development, and a $1,698 thousand legal settlement, contributed to the loss. For the first six months of 2026, net loss was $(22,835) thousand.

Cash was 11,198 (in thousands) at June 30, 2026, with total assets of 36,017 (in thousands) and stockholders’ equity of 4,307 (in thousands). Verrica entered a new credit facility for up to $27.5 million with an entity controlled by its chairman and largest shareholder and states that, based on its current operating plan and assuming full availability of this facility, its cash runway could extend into 2028. The company is advancing a global Phase 3 program to expand YCANTH’s label to common warts, with topline data currently expected in mid-2027, and continues Phase 3 readiness work for VP-315 for non-melanoma skin cancers.

Positive

• YCANTH demand accelerating: Q2 2026 dispensed applicator units reached 19,626, up 28.3% sequentially and 46.1% year-over-year, with U.S. YCANTH net product revenue of $5.1 million, up 18.7% quarter-over-quarter and 12.3% year-over-year.
• Pipeline and funding visibility: Global Phase 3 YCANTH program for common warts is progressing with topline data expected mid-2027, while a new $27.5 million credit facility could, under the stated assumptions, extend cash runway into 2028.

Negative

• Shift from profit to sizable loss: Q2 2026 net loss was $(13,153) thousand, or $(0.62) per share, versus net income of $204 thousand and EPS of $0.02 in Q2 2025.
• Balance sheet compression: Cash declined to 11,198 (in thousands) from 30,147 (in thousands) at December 31, 2025, while stockholders’ equity fell to 4,307 (in thousands) from 24,743 (in thousands).

Filing Explained

At June 30, 2026, Verrica reported $11,198 thousand of cash against $31,710 thousand of liabilities and $4,307 thousand of stockholders’ equity.

The August 6, 2026 Form 8-K furnishes a press release reporting second-quarter and six-month results; the release is expressly furnished rather than filed for Section 18 purposes. At June 30, 2026, the balance sheet reported $11,198 thousand of cash, $31,710 thousand of total liabilities, and $4,307 thousand of stockholders’ equity.

Reported liabilities included a $4,000 thousand legal settlement liability, an $8,414 thousand R&D funding liability, and $19,296 thousand of other current and noncurrent liabilities.

Compared with December 31, 2025, cash declined from $30,147 thousand to $11,198 thousand, while stockholders’ equity declined from $24,743 thousand to $4,307 thousand. Total liabilities increased from $22,388 thousand to $31,710 thousand over the same dates.

8-K Event Classification

2 items: 2.02, 9.01

2 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, and exhibit attachments filed with this report.

Key Figures

Q2 2026 total revenue: $5.9 million Q2 2026 U.S. YCANTH net product revenue: $5.1 million Q2 2026 net (loss): $(13,153) thousand +5 more

8 metrics

Q2 2026 total revenue $5.9 million Quarter ended June 30, 2026

Q2 2026 U.S. YCANTH net product revenue $5.1 million Up 18.7% quarter-over-quarter and 12.3% year-over-year

Q2 2026 net (loss) $(13,153) thousand Net loss for the three months ended June 30, 2026

Six months 2026 net loss $(22,835) thousand Net loss for the six months ended June 30, 2026

Cash balance 11,198 (in thousands) Cash at June 30, 2026

New credit facility capacity $27.5 million Facility with entity controlled by Verrica’s chairman and largest shareholder

YCANTH applicator units Q2 2026 19,626 units Dispensed units, up 28.3% sequentially and 46.1% year-over-year

Stockholders’ equity 4,307 (in thousands) Equity at June 30, 2026

Key Terms

non-GAAP, abscopal effect, molluscum contagiosum, Phase 3 program, +2 more

6 terms

non-GAAP financial

"Non-GAAP (loss) income from operations, non-GAAP net (loss) income"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

abscopal effect medical

"showing evidence of a meaningful abscopal effect in untreated lesions"

A rare immune-driven reaction where treating a tumor in one spot—often with targeted radiation—leads to shrinkage of tumors elsewhere in the body that weren’t directly treated. Investors should care because it suggests a local therapy can produce broader, systemic benefits, potentially improving clinical trial results, increasing treatment value, and expanding market opportunities; think of fixing one small leak and discovering it helps reduce damage throughout the whole house.

molluscum contagiosum medical

"approved by the FDA to treat adult and pediatric patients two years of age and older with molluscum contagiosum"

Molluscum contagiosum is a common viral skin infection that causes small, painless bumps or lesions on the skin. While it primarily affects children and healthy adults, it can spread easily through skin contact. For investors, understanding health conditions like this highlights the importance of healthcare companies involved in treatments and the potential impact of infectious diseases on public health and economic stability.

Phase 3 program medical

"Topline data from our global Phase 3 program is currently expected in mid-2027"

A phase 3 program is the final, large-scale testing of a drug or therapy in many patients to confirm it works, to track side effects, and to compare it with existing treatments before regulators decide on approval. For investors, the outcome of a phase 3 program is crucial because positive results greatly increase the chance of market authorization and future sales, while negative results can halt a product’s commercial prospects—think of it as a full-scale field test before launch.

legal settlement, net of insurance recovery financial

"Legal settlement, net of insurance recovery | 1,698"

oncolytic peptide medical

"Phase 2 data for our novel oncolytic peptide, VP-315"

An oncolytic peptide is a short, protein-like molecule engineered to attack and destroy cancer cells directly, often by disrupting their outer membrane and sometimes by alerting the immune system to the tumor. Investors care because these molecules represent a distinct therapeutic approach that can create new treatment options, drive clinical and regulatory value, and carry specific development and manufacturing risks—think of them as precision tools that could unlock a new market if proven safe and effective.

Earnings Snapshot

Total revenue Q2 2026: $5.9 million · Guidance included

Quarter and six months ended June 30, 2026

Total revenue Q2 2026 $5.9 million Q2 2025 total revenue was $12,702 thousand.

Net (loss) income Q2 2026 $(13,153) thousand Q2 2025 net income was $204 thousand.

Net loss six months 2026 $(22,835) thousand Six months 2025 net loss was $(9,538) thousand.

GAAP EPS Q2 2026 $(0.62) basic and diluted Q2 2025 GAAP EPS was $0.02.

Guidance

The Company states its cash runway could extend into 2028 based on its current operating plan and assuming full availability of its new $27.5 million credit facility.

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FAQ

How much revenue did Verrica (VRCA) generate in Q2 2026 and from YCANTH?

Verrica reported $5.9 million in total revenue for Q2 2026, including U.S. YCANTH net product revenue of $5.1 million. Management noted YCANTH revenue grew 18.7% sequentially and 12.3% year-over-year in the quarter.

What was Verrica (VRCA)’s profitability in Q2 2026?

Verrica recorded a Q2 2026 net loss of $(13,153) thousand, or $(0.62) per basic and diluted share. This compares with net income of $204 thousand and EPS of $0.02 in the same quarter of 2025.

How is demand for YCANTH trending for Verrica (VRCA)?

YCANTH demand is rising, with Q2 2026 dispensed applicator units reaching 19,626. That represents growth of 28.3% over the previous quarter and 46.1% year-over-year, marking Verrica’s highest quarterly total since launch.

What is the status of Verrica (VRCA)’s Phase 3 program for common warts?

Verrica is running a global Phase 3 program evaluating YCANTH for common warts. It continues enrolling the pivotal COVE-2 study, with first patients in the U.S. and Japan dosed in COVE-3, and expects topline data in mid-2027.

What are Verrica (VRCA)’s cash position and credit facility details?

As of June 30, 2026, Verrica had cash of 11,198 (in thousands). A new credit facility for up to $27.5 million with an entity controlled by its chairman could, under the company’s assumptions, extend its cash runway into 2028.

How is Verrica (VRCA) progressing VP-315 for skin cancer?

Verrica reports encouraging Phase 2 data for VP-315, noting potential effects on treated basal cell carcinoma lesions and an abscopal effect on untreated lesions. The company states it is continuing Phase 3 readiness activities for this asset.

What non-GAAP results did Verrica (VRCA) report for Q2 2026?

For Q2 2026, Verrica’s non-GAAP loss from operations was $(10,186) thousand and non-GAAP net loss was $(10,242) thousand, or $(0.48) per share, excluding stock-based compensation and the legal settlement, net of insurance recovery.

false 0001660334 0001660334 2026-08-06 2026-08-06

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 6, 2026

Verrica Pharmaceuticals Inc.

(Exact Name of Registrant as Specified in its Charter)

Delaware		001-38529		46-3137900
(State or Other Jurisdiction of Incorporation)		(Commission File Number)		(IRS Employer Identification No.)

44 W. Gay St., Suite 400
West Chester, PA		19380
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s telephone number, including area code: (484) 453-3300

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:

Title of each class		Trading symbol		Name of each exchange on which registered
Common Stock		VRCA		The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On August 6, 2026, Verrica Pharmaceuticals Inc. (the “Registrant”) issued a press release announcing its financial results for the quarter and six months ended June 30, 2026, as well as information regarding a conference call to discuss these financial results and the Registrant’s recent corporate highlights. This press release has been furnished as Exhibit 99.1 to this Current Report on Form 8-K.

In accordance with General Instruction B.2. of Form 8-K, the information in this Item 2.02, and Exhibit 99.1 hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference in any of the Registrant’s filings under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date hereof, regardless of any incorporation language in such a filing, except as expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit Number		Exhibit Description
99.1		Press Release, dated August 6, 2026
104		Cover Page Interactive Data File (formatted as inline XBRL).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

						Verrica Pharmaceuticals Inc.
Date: August 6, 2026						/s/ John J. Kirby
						John J. Kirby
						Interim Chief Financial Officer

Exhibit 99.1

Verrica Pharmaceuticals Reports Second Quarter 2026 Financial Results

– Company reports record demand for YCANTH^® as dispensed applicator units grew to 19,626 in

Q2 2026, up 28.3% over the previous quarter and 46.1% year-over-year –

– Topline data from global Phase 3 program studying common warts currently expected in mid-2027 –

– The Company’s cash runway could extend into 2028 based on its current operating plan and

assuming full availability of its new credit facility –

– Company reports total revenue of $5.9 million in Q2 2026, including U.S. YCANTH net product

revenue of $5.1 million, up 18.7% over the previous quarter and 12.3% year-over-year –

– Conference call scheduled for today, August 6, 2026, at 4:30 pm ET –

WEST CHESTER, PA – Aug 6, 2026 (GLOBE NEWSWIRE) – Verrica Pharmaceuticals Inc. (“Verrica” or the “Company”) (Nasdaq: VRCA), a therapeutics company developing and commercializing medications for the treatment of dermatological diseases, including skin cancers, today announced financial results for the second quarter ended June 30, 2026.

“Demand for YCANTH continues to accelerate, with dispensed applicator units reaching 19,626 for the quarter, up approximately 28% sequentially and 46% on a year-over-year basis, and representing our highest quarterly total since launch. We believe that our commercial strategy is working well and provides us with a growing confidence that YCANTH can become the standard of care for patients suffering from molluscum,” said Jayson Rieger, PhD, MBA, President and Chief Executive Officer of Verrica.

“In addition to our commercial efforts, we also continue to make progress with our work to expand the label for YCANTH to include common warts, an indication that is more than three times the six million patients estimated to be suffering from molluscum. Topline data from our global Phase 3 program is currently expected in mid-2027, as our studies are recruiting well. We continue to enroll patients in the first pivotal study, COVE-2, and first patients in the U.S. and Japan were dosed in the second pivotal trial, COVE-3, during the quarter,” Dr. Rieger continued. “With respect to our basal cell carcinoma program, we remain highly encouraged by the Phase 2 data for our novel oncolytic peptide, VP-315. At the Society for Investigative Dermatology Annual Meeting in May, VP-315 demonstrated a potential ability to impact both treated lesions, as well as showing evidence of a meaningful abscopal effect in untreated lesions. Based on the unique and promising profile of this Phase 3-ready asset, we are continuing our Phase 3 readiness activities.”

Dr. Rieger concluded, “Finally, our new credit facility for up to $27.5 million with an entity controlled by Paul B. Manning, Verrica’s Chairman and largest shareholder, gives us access to additional non-dilutive capital to support YCANTH’s continued commercialization and advance our ongoing Phase 3 common warts program. Based on our current operating plan, we believe the full $27.5 million that may be available under the facility could extend our cash runway into 2028. We believe this quarter’s progress across our YCANTH business for molluscum and our pipeline programs, along with this extended cash runway, positions Verrica well to deliver long-term value for patients and shareholders.”

Conference Call and Webcast Information

The Company will host a conference call on Thursday, August 6, 2026, at 4:30 pm, to discuss its second 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: 1-800-225-9448

International Dial-In Number: 1-203-518-9708

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=1766684&tp_key=a08a369194

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 second quarter of 2026, YCANTH dispensed applicator units totaled 19,626, representing a year-over-year increase of approximately 46% from the second quarter of 2025. On a sequential basis, YCANTH dispensed applicator units increased approximately 28% from the prior quarter.

• On June 22, 2026, the Company announced that the first U.S. patient was dosed in the second pivotal clinical trial (COVE-3) in its global Phase 3 program evaluating YCANTH^® (VP-102) for the treatment of common warts in the US and Japan. Based upon current projections, the Company expects to present topline data from the program in mid-2027.

VP-315

• On May 5, 2026, the Company announced the presentation of Phase 2 clinical data highlighting the potential abscopal effects of its novel oncolytic peptide, VP-315 (ruxotemitide), for the treatment of basal cell carcinoma (BCC) at the 2026 Society for Investigative Dermatology (SID) Annual Meeting.

Corporate

• On August 6, 2026, the Company announced that it has entered into a credit agreement (the “Facility”) with an entity controlled by Paul B. Manning, Verrica’s Chairman and largest shareholder for up to $27.5 million.

• On July 21, 2026, the Company announced an exclusive distribution, marketing and supply agreement with Medomie Pharma Ltd., regarding commercial rights to YCANTH^® for the treatment of molluscum contagiosum in Israel.

Financial Results

Second Quarter 2026 Financial Results

• Total revenue for the three months ended June 30, 2026, was $5.9 million compared to total revenue of $12.7 million for the three months ended June 30, 2025.

• U.S. YCANTH product revenue, net was $5.1 million for the quarter ended June 30, 2026, compared to net product revenue of $4.5 million for the quarter ended June 30, 2025. The increase in product revenue, net, was primarily related to increased deliveries of YCANTH to our distribution partners.

• License and collaboration revenue was $0.8 million for the quarter ended June 30, 2026, consisting primarily of commercial supply for Torii’s YCANTH launch in Japan, compared to license and collaboration revenue from Torii of $8.2 million for the three months ended June 30, 2025, which included $8.0 million of one-time milestone revenue.

• Costs of product revenue were $0.4 million for the quarter ended June 30, 2026, compared to $0.3 million for the quarter ended June 30, 2025, consisting primarily of product costs related to the sale of YCANTH.

• Selling, general and administrative expenses were $10.3 million for the quarter ended June 30, 2026, compared to $8.9 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 $6.0 million for the quarter ended June 30, 2026, compared to $1.8 million for the same period in 2025. Excluding the impact of stock-based compensation, the increase of $4.1 million 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.

• Expense of $1.7 million was recognized during the quarter ended June 30, 2026, as an agreement in principle was reached to settle legal proceedings related to a class action brought against the Company in 2022. The expense represents Verrica’s share of the settlement after the insurance recovery.

• Interest income was $0.1 million for the quarter ended June 30, 2026, compared to $0.2 million for the quarter ended June 30, 2025. The decrease in interest income was primarily due to lower cash balances.

• Interest expense was $0.2 million for the quarter ended June 30, 2026, compared to $2.1 million for the same period in 2025. The decrease of $2.0 million was related to the settlement and termination of the Company’s OrbiMed debt facility in November 2025.

• For the quarter ended June 30, 2026, net loss was $13.2 million, or $0.62 per share, compared to a net income of $0.2 million, or $0.02 per share, for the same period in 2025.

• For the quarter ended June 30, 2026, non-GAAP net loss was $10.2 million, or $0.48 per share, compared to a non-GAAP net income of $1.2 million, or $0.12 per share, for the same period in 2025.

Year-to-date Financial Results

• Product revenue, net was $9.4 million for the six months ended June 30, 2026, compared to $8.0 million for the six months ended June 30, 2025.

• License and collaboration revenue was $1.5 million for the six months ended June 30, 2026, compared to $8.2 million for the six months ended June 30, 2025. License and collaboration revenue for the six months ended June 30, 2026 consisted of supplies and development activity with Torii. License and collaboration revenue for the six months ended June 30, 2025 consisted of a one-time $8.0 million milestone payment from Torii as well as supplies and development activity.

• Costs of product revenue were $1.0 million for the six months ended June 30, 2026, compared to $0.8 million for the six months ended June 30, 2025.

• Selling, general and administrative expenses were $20.3 million in the six months ended June 30, 2026, compared to $17.7 million for the same period in 2025. Excluding the impact of stock compensation, the increase of $2.6 million was primarily due to increased commercial spend related to the expansion of the sales force.

• Research and development expenses were $9.9 million in the six months ended June 30, 2026, compared to $4.1 million for the same period in 2025. Excluding the impact of stock compensation, the increase of $5.6 million was primarily due to increased costs related to the Program for common warts.

• Expense of $1.7 million was recognized during the six months ended June 30, 2026, as an agreement in principle was reached to settle legal proceedings related to a class action brought against the Company in 2022. The expense represents Verrica’s share of the settlement after the insurance recovery.

• Interest income was $0.3 million for the six months ended June 30, 2026, compared to $0.6 million for the same period in 2025. The decrease of $0.3 million was primarily due to a lower cash balance.

• Interest expense was $0.3 million for the six months ended June 30, 2026, and $4.3 million for the same period in 2025. The decrease of $4.0 million was related to the settlement of the OrbiMed Loan Facility and the termination of the OrbiMed Credit Agreement in November 2025.

• For the six months ended June 30, 2026, net loss was $22.8 million, or $1.07 per share, compared to a net loss of $9.5 million, or $1.01 per share, for the same period in 2025.

• For the six months ended June 30, 2026, non-GAAP net loss was $19.0 million, or $0.89 per share, compared to a non-GAAP net loss of $7.1 million, or $0.75 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) income from operations, non-GAAP net (loss) income and non-GAAP net (loss) income 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 and legal settlement, net of insurance recovery. Non-GAAP (loss) income from operations, non-GAAP net (loss) income and non-GAAP

net (loss) income 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) income from operations, non-GAAP net (loss) income and non-GAAP net (loss) income 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. YCANTH is also approved for the treatment of molluscum contagiosum in Japan and is being studied in a global phase 3 program in the US and Japan for the treatment of common warts.

Approximately 250 million lives are eligible to receive YCANTH covered by insurance. Commercially insured patients pay just $25 per YCANTH treatment visit, for up to two applicators. Other uninsured patients may be eligible to receive YCANTH at a reduced cost if certain eligibility requirements are met for patient assistance. Please visit YCANTHPro.com for additional information.

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, the timing of release of clinical data from the Phase 3 studies of YCANTH for common warts, Verrica’s ability to borrow funds under the Facility, Verrica’s achievement of milestones set forth in the Facility, and the commercial performance of YCANTH in Israel. 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 Report on Form 10-Q for the quarter ended June 30, 2026 to be filed with the SEC on August 6, 2026 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)

(unaudited)

		Three Months Ended June 30,
		2026				2025
Revenue
Product revenue, net		$	5,093			$	4,534
License and Collaboration revenue			769				8,168
Total revenue			5,862				12,702
Operating Expenses:
Cost of product revenue			435				340
Cost of collaboration revenue			443				154
Selling, general and administrative			10,349				8,852
Research and development			6,034				1,846
Legal settlement, net of insurance recovery			1,698				—
Total expenses			18,959				11,192
(Loss) income from operations			(13,097	)			1,510
Interest income			111				228
Interest expense			(164	)			(2,131	)
Change in fair value of derivative liability			—				598
Other expense			(3	)			(1	)
Net (loss) income		$	(13,153	)		$	204
Net (loss) income per share
Basic		$	(0.62	)		$	0.02
Weighted average common shares outstanding
Basic			21,305,025				9,488,055
Net (loss) income per share
Diluted		$	(0.62	)		$	0.02
Weighted average common shares outstanding
Diluted			21,305,025				9,490,600

VERRICA PHARMACEUTICALS INC.

Selected Statements of Operations Data

(in thousands except share and per share data)

(unaudited)

		Six Months Ended June 30,
		2026				2025
Revenue
Product revenue, net		$	9,383			$	7,956
License and Collaboration revenue			1,502				8,185
Total revenue			10,885				16,141
Operating Expenses:
Cost of product revenue			979				763
Cost of collaboration revenue			788				168
Selling, general and administrative			20,338				17,700
Research and development			9,894				4,130
Legal settlement, net of insurance recovery			1,698				—
Total expenses			33,697				22,761
Loss from operations			(22,812	)			(6,620	)
Interest income			312				565
Interest expense			(324	)			(4,334	)
Change in fair value of derivative liability			—				852
Other expense			(11	)			(1	)
Net loss		$	(22,835	)		$	(9,538	)
Net loss per share
Basic and diluted		$	(1.07	)		$	(1.01	)
Weighted average common shares outstanding
Basic and diluted			21,305,025				9,485,907

VERRICA PHARMACEUTICALS INC.

Selected Balance Sheets Data

(in thousands)

(unaudited)

		June 30, 2026				December 31, 2025
Cash		$	11,198			$	30,147
Accounts receivable			11,090				5,397
Deferred R&D services, current portion			2,718				1,958
Insurance recovery asset			2,302				—
Inventory			2,712				2,236
Prepaid expenses and other assets			2,619				2,801
Total current assets			32,639				42,539
Deferred R&D services, non-current portion			706				2,354
PP&E, Lease right-of-use asset, other			2,672				2,238
Total assets		$	36,017			$	47,131
Legal settlement liability			4,000				—
R&D funding liability			8,414				5,066
Other current and noncurrent liabilities			19,296				17,322
Total liabilities			31,710				22,388
Total stockholders’ equity			4,307				24,743
Total Liabilities & Stockholders’ Equity		$	36,017			$	47,131

VERRICA PHARMACEUTICALS INC.

Reconciliation of Non-GAAP Financial Measures (unaudited)

(in thousands, except share and per share data)

		Three Months Ended June 30, 2026
		Loss from Operations				Net loss				Net loss per share (basic and diluted)
GAAP		$	(13,097	)		$	(13,153	)		$	(0.62	)
Non-GAAP Adjustments:
Stock-based compensation - Selling, General & Admin (a)			799				799				0.04
Stock-based compensation - Research & Development (a)			396				396				0.02
Stock-based compensation - Cost of Product (a)			8				8				0.00
Stock-based compensation - Cost of Collaboration (a)			10				10				0.00
Legal settlement, net of insurance recovery (b)			1,698				1,698				0.08
Adjusted		$	(10,186	)		$	(10,242	)		$	(0.48	)

		Three Months Ended June 30, 2025
		Income from Operations				Net income				Net income per share
GAAP		$	1,510			$	204			$	0.02
Non-GAAP Adjustments:
Stock-based compensation - Selling, General & Admin (a)			588				588				0.06
Stock-based compensation - Research & Development (a)			300				300				0.03
Derivative liability change in value (b)			—				(598	)			(0.06	)
Non-cash interest expense (b)			—				691				0.07
Adjusted		$	2,398			$	1,185			$	0.12

(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 legal settlement, net of insurance recovery, change in derivative liability and non-cash interest expense are excluded because Verrica believes such exclusions facilitate comparisons to peer group companies and is reflective of how management internally manages the business. Verrica also believes that the exclusion of non-cash interest expense facilitates an understanding of the effects of the debt service obligations on the Company’s liquidity.

VERRICA PHARMACEUTICALS INC.

Reconciliation of Non-GAAP Financial Measures (unaudited)

(in thousands, except share and per share data)

		Six Months Ended June 30, 2026
		Loss from Operations				Net loss				Net loss per share (basic and diluted)
GAAP		$	(22,812	)		$	(22,835	)		$	(1.07	)
Non-GAAP Adjustments:
Stock-based compensation - Selling, General & Admin (a)			1,392				1,392				0.07
Stock-based compensation - Research & Development (a)			672				672				0.03
Stock-based compensation - Cost of Product (a)			22				22				0.00
Stock-based compensation - Cost of Collaboration (a)			24				24				0.00
Legal settlement, net of insurance recovery (b)			1,698				1,698				0.08
Adjusted		$	(19,004	)		$	(19,027	)		$	(0.89	)

		Six Months Ended June 30, 2025
		Loss from Operations				Net loss				Net loss per share
GAAP		$	(6,620	)		$	(9,538	)		$	(1.01	)
Non-GAAP Adjustments:
Stock-based compensation - Selling, General & Admin (a)			1,373				1,373				0.14
Stock-based compensation - Research & Development (a)			541				541				0.06
Derivative liability change in value (b)			—				(852	)			(0.09	)
Non-cash interest expense (b)			—				1,359				0.14
Adjusted		$	(4,706	)		$	(7,117	)		$	(0.75	)

(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 legal settlement, net of insurance recovery, change in derivative liability and non-cash interest expense are excluded because Verrica believes such exclusions facilitate comparisons to peer group companies and is reflective of how management internally manages the business. Verrica also believes that the exclusion of non-cash interest expense facilitates an understanding of the effects of the debt service obligations on the Company’s liquidity.

FOR MORE INFORMATION, PLEASE CONTACT:

Investors:

John Kirby

Interim Chief Financial Officer

jkirby@verrica.com

Kevin Gardner

LifeSci Advisors

kgardner@lifesciadvisors.com

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