Verrica Pharmaceuticals — Second Quarter 2026 Earnings Summary

Financial Performance

• Total revenue for Q2 2026 was $5.9 million, a decrease from $12.7 million in Q2 2025.
• U.S. YCANTH net product revenue was $5.1 million, up 18.7% sequentially and 12.3% year-over-year from $4.5 million in Q2 2025.
• License and collaboration revenue was $0.8 million for Q2 2026, down from $8.2 million in Q2 2025 which included $8.0 million in one-time milestone revenue.
• Costs of product revenue were $0.4 million for Q2 2026 compared to $0.3 million in Q2 2025.
• Selling, general and administrative (SG&A) expenses were $10.3 million for Q2 2026, up from $8.9 million in Q2 2025; excluding stock-based compensation, the increase was $1.3 million due to expanded sales force commercial spend.
• Research and development (R&D) expenses were $6.0 million for Q2 2026, up from $1.8 million in Q2 2025; excluding stock-based compensation, the increase was $4.1 million primarily due to the Phase 3 common warts program.
• A $1.7 million expense was recognized for a legal settlement related to a 2022 class action, net of insurance recovery.
• Interest income was $0.1 million for Q2 2026, down from $0.2 million in Q2 2025 due to lower cash balances.
• Interest expense was $0.2 million for Q2 2026, down from $2.1 million in Q2 2025 following the settlement and termination of the OrbiMed debt facility.
• Net loss for Q2 2026 was $13.2 million ($0.62 per share), compared to net income of $0.2 million ($0.02 per share) in Q2 2025.
• Non-GAAP net loss for Q2 2026 was $10.2 million ($0.48 per share), compared to non-GAAP net income of $1.2 million ($0.12 per share) in Q2 2025.
• Year-to-date (YTD) product revenue was $9.4 million for the six months ended June 30, 2026, up from $8.0 million in the same period in 2025.
• YTD license and collaboration revenue was $1.5 million for the six months ended June 30, 2026, down from $8.2 million in 2025.
• YTD SG&A expenses were $20.3 million for the six months ended June 30, 2026, up from $17.7 million in 2025.
• YTD R&D expenses were $9.9 million for the six months ended June 30, 2026, up from $4.1 million in 2025.
• YTD net loss was $22.8 million ($1.07 per share), compared to a net loss of $9.5 million ($1.01 per share) in 2025.
• YTD non-GAAP net loss was $19.0 million ($0.89 per share), compared to a non-GAAP net loss of $7.1 million ($0.75 per share) in 2025.
• Cash balance was $11.2 million as of June 30, 2026, down from $30.1 million as of December 31, 2025.
• Total assets were $36.0 million as of June 30, 2026, down from $47.1 million as of December 31, 2025.
• Total liabilities were $31.7 million as of June 30, 2026, up from $22.4 million as of December 31, 2025.
• Total stockholders' equity was $4.3 million as of June 30, 2026, down from $24.7 million as of December 31, 2025.

Guidance and Future Outlook

• Topline data from the global Phase 3 program for common warts is expected in mid-2027.
• The company believes its cash runway could extend into 2028 based on the current operating plan and assuming full availability of the new credit facility.
• The company is continuing Phase 3 readiness activities for the VP-315 asset.

Business Segments and Product Lines

• YCANTH dispensed applicator units totaled 19,626 in Q2 2026, up 28.3% sequentially and 46.1% year-over-year, representing the highest quarterly total since launch.
• The first U.S. patient was dosed in the second pivotal clinical trial (COVE-3) for YCANTH in the treatment of common warts in the U.S. and Japan.
• Patients were dosed in the first pivotal study (COVE-2) for YCANTH common warts during the quarter.
• VP-315 Phase 2 data presented at the Society for Investigative Dermatology Annual Meeting in May 2026 showed potential to impact treated lesions and evidence of a meaningful abscopal effect in untreated lesions.
• The Phase 3 common warts program costs did not impact Verrica's cash balance, as the first $40 million of payments will be made by Torii.
• An exclusive distribution, marketing, and supply agreement was announced with Medomie Pharma Ltd. for YCANTH commercial rights in Israel.

Market and Competitive Landscape

• YCANTH is the first and only healthcare professional-administered product approved by the FDA to treat molluscum contagiosum in patients two years of age and older.
• The common warts indication is estimated to affect more than three times the number of patients (over 6 million) as molluscum.
• Approximately 250 million lives are eligible to receive YCANTH covered by insurance.

Risks and Challenges

• The company recognized a $1.7 million expense for a legal settlement related to a 2022 class action.
• Forward-looking statements regarding clinical data timing, commercialization success, and cash runway availability involve risks and uncertainties that could cause actual results to differ materially.

Management Commentary and Tone

• CEO Jayson Rieger stated that demand for YCANTH continues to accelerate and the commercial strategy is working well, providing growing confidence that YCANTH can become the standard of care for molluscum.
• Management expressed being "highly encouraged" by the Phase 2 data for VP-315.
• Management noted the new credit facility provides access to additional non-dilutive capital to support commercialization and the common warts program.

Other Key Points

• The company entered into a new credit facility for up to $27.5 million with an entity controlled by Paul B. Manning, Verrica's Chairman and largest shareholder.
• The OrbiMed debt facility was settled and terminated in November 2025, resulting in a significant decrease in interest expense.
• Conference call scheduled for August 6, 2026, at 4:30 pm ET to discuss results.