Verrica Pharmaceuticals reported Q3 2025 revenue of $14.3 million, a 14% increase from $12.5 million a year earlier, and earnings per share of $0.13, beating analyst consensus of –$0.08 by $0.21. The revenue lift was driven largely by a $10 million milestone payment from Torii Pharmaceutical for YCANTH’s approval in Japan and by a 4.9% sequential rise in YCANTH applicator units sold in the quarter. The earnings beat reflects disciplined cost management, with operating expenses held near $9.4 million, and the company’s ability to convert milestone inflows into cash flow.
The company dispensed 14,093 YCANTH applicator units in Q3, up 4.9% from 13,400 units in Q2. Year‑to‑date, 37,642 units have been dispensed, a 120% increase over the 17,119 units sold in the same period a year earlier. The unit growth underscores accelerating commercial uptake of YCANTH in the molluscum contagiosum market and signals that the product is gaining traction among healthcare professionals.
Verrica received a $10 million milestone payment following the Japanese approval of YCANTH for molluscum contagiosum in September 2025. The company also announced that the European Medicines Agency has indicated YCANTH can be registered in the EU without additional Phase 3 studies, a de‑risking event that could open a large market. In the United States, the FDA provided positive feedback on the design of the VP‑315 Phase 3 program, which involves two studies of roughly 100 subjects each. These regulatory milestones reduce the time and cost required to bring both products to market.
Cash and liquidity remain a concern. As of September 30, 2025, Verrica held $21.1 million in cash and cash equivalents, down from $23.0 million a year earlier and $15.4 million as of June 30, 2025. The company’s net loss narrowed to $1.2 million in Q3 from a $22.9 million loss in Q3 2024, largely due to the milestone payment and reduced operating expenses. CEO Jayson Rieger said, “We are pleased to gain alignment with CHMP regarding the safety and efficacy data for YCANTH in the EU, and we remain confident that the regulatory momentum will translate into commercial success.”
Analysts noted that Verrica’s earnings beat was driven by the milestone payment and disciplined cost control, while the company’s cash runway of less than a year remains a headwind. The positive regulatory feedback from the EMA and FDA, combined with accelerating YCANTH unit growth, are viewed as tailwinds that could support future revenue expansion. However, the reliance on non‑recurring milestone revenue and the current cash position temper enthusiasm for the company’s near‑term prospects.
Management has not revised its full‑year guidance but reiterated confidence in the company’s commercial strategy. Rieger emphasized that the company is “extremely excited to begin our global Phase 3 program in common warts, which has the potential to transform our company by expanding YCANTH’s label to one of the most prevalent skin conditions.” The company’s focus on cost discipline and strategic partnerships signals a cautious but optimistic outlook for the remainder of 2025.
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