Verrica Pharmaceuticals Inc.

Verrica reported Q2 2026 total revenue of $5.9 million versus $12.7 million in Q2 2025. U.S. YCANTH net product revenue was $5.1 million, up 18.7% from Q1 2026, and license/collaboration revenue was $0.8 million. Gross product margin was approximately 91.5% versus 92.5% a year ago. R&D expense was $6.0 million versus $1.8 million in Q2 2025, SG&A was $10.3 million versus $8.9 million, GAAP net loss was $13.2 million, or $0.62 per share, versus GAAP net income of $0.2 million, or $0.02 per share, and non-GAAP net loss was $10.2 million, or $0.48 per share, versus non-GAAP net income of $1.2 million, or $0.12 per share. Cash was $11.2 million at June 30, 2026. Management said the new credit facility could extend runway into 2028 if fully available, with up to $27.5 million total, $12.5 million immediately available, and the balance contingent on milestones. For the common warts program, the company now expects top-line data in mid-2027.

Jayson Rieger framed the quarter as a meaningful inflection point for YCANTH, saying unit growth more than doubled sequentially and reflects both market demand and better execution by the commercial team. He emphasized the company’s view that molluscum remains underpenetrated and that YCANTH can become the standard of care, while also highlighting expansion efforts outside the U.S. through Japan and Israel. He was similarly upbeat on the pipeline, citing VP-315’s Phase II results and the continued progress of the Phase III common warts program.

John Kirby focused on the financial bridge between current cash and future operating needs. He detailed the quarter’s revenue mix, the 91.5% gross margin, the $6.0 million of R&D spend tied largely to common warts, and the $10.3 million of SG&A driven by commercial expansion. He also noted the $1.7 million legal settlement expense, the $11.2 million cash balance, and said the new facility could extend runway into 2028; later management described the credit terms as SOFR plus 8% with a 4.5% floor, no scheduled principal or interest until maturity, a 1% prepayment fee for certain prepayments, and a 16% IRR catch-up payment upon repayment.

Analysts pressed on whether YCANTH’s prescription growth can keep inflecting through the summer, what is driving adoption, and where net pricing may settle. Management said growth should continue, though seasonal summer effects could be a headwind, and pointed to field-force retargeting, improved fulfillment, and co-pay/refill support as the main drivers; they declined to comment directly on gross-to-net but said yield should accrete over time. Questions also focused on COVE enrollment and the credit facility; management said enrollment in COVE-2, COVE-3 and COVE-4 is progressing well and reiterated mid-2027 top-line data, while also clarifying that the facility is delayed-draw, secured against substantially all assets, and can be used selectively rather than all at once.