Journey Medical Corporation Q3 FY2025 earnings call

• Amrozi saw significant growth in revenue from Q2 to Q3, with prescriptions increasing from 7,394 in Q2 to 18,198 in Q3, a 146% growth. • The company has contracted with two of the three major GPOs, with the third expected to be completed early next year. • Physician feedback on Amrozi is positive, and initial refill rates for Amrozi are strong, with a one - to - one ratio of refills to new prescriptions. • The number of unique dermatology prescribers for Amrozi has increased by approximately 50% to over 2,700. • Journey Medical Corporation presented Amrozi data at dermatology conferences, highlighting its clinical benefits. • EBITDA continued to improve, and the company expects to be sustainably EBITDA positive in the fourth quarter. • Total revenues grew due to the successful U.S. commercial launch of Amrozi.

In the third quarter of 2025, Journey Medical Corporation achieved a 21% year - over - year revenue growth. Amrozi, the best - in - class oral treatment for rosacea, contributed $4.9 million to the top line in Q3, a 75% increase compared to Q2. The legacy and core products including QBREXZA, Accutane, Amzeeq, and ZILXI had an aggregate year - over - year revenue decline of 16% mainly due to Accutane generic competition. Total revenues for the quarter were $17.6 million, up from $14.9 million in 2024. Gross margin was 67.4% in Q3, showing steady quarter - over - quarter improvement from 63.5% in Q1. SG&A expenses totaled $12.1 million, up approximately 6% from the prior year quarter. GAAP net loss was $2.3 million, while non - GAAP EBITDA improved with adjusted EBITDA reaching $1.7 million in 2025 compared to $300,000 in 2024.

• Journey Medical Corporation expects to become sustainably EBITDA positive in the fourth quarter of 2025. • Amrozi has the potential to achieve peak annual net sales of over $200 million in the U.S. and over $300 million globally. • The company anticipates less reliance on the patient co - pay assistance program in 2026 as payer reimbursements increase. • The company will focus on disciplined expense management and margin expansion as Amrozi's commercial footprint scales.

• There is a potential further impact from Accutane generic competition if competitors adjust prices. • Downstream health plan formulary adoption and implementation may be delayed, which could slow Amrozi's growth. • In the short term, the company is dependent on the patient co - pay assistance program until payer reimbursements are fully established.

Q: How to view the usage of the patient assistance program on Amrozi at this stage of the launch and expectations for improvement?

A: Claude Maraoui stated that two of the three major GPOs are onboard, with the last expected in early 2026. The co - pay assistance program reliance will decrease as reimbursements increase, with more significant gains seen in 2026.

Q: Focus between breadth and depth of prescribers for Amrozi?

A: Claude Maraoui mentioned focusing on 3,200 physicians initially, with over 2,700 unique prescribers now. There is a snowball effect as physicians see positive results, leading to more prescriptions, and the NRx to TRx ratio is expected to improve.

Q: Accutane franchise outlook?

A: Claude Maraoui said Accutane is stable in Q4, with indications it has stabilized from their vantage point though generic competitors could impact it.

Q: OpEx growth expectation next year?

A: Joseph M. Benesch noted that OpEx growth is expected to be in line with revenue growth, leveraging current infrastructure for operating leverage.