Journey Medical Corporation Q4 FY2025 earnings call

• 2025 was a milestone year with launch of MROSI, achieving $14.7M net sales over three quarters. - Delivered 11% total net product revenue growth and improved gross margin by ~3.5 percentage points. - Generated positive adjusted EBITDA and EBITDA in Q4 2025. - Strong prescription volume for MROSI, with ~53,000 total prescriptions since April 2025 launch, Q4 volume up nearly 50% sequentially. - Over 3,500 unique dermatology prescribers for MROSI. - Progress in managed care and market access with ~100M commercial covered lives having access, on track to contract with third major GPO by late Q1/early Q2 2026. - Expect to announce up to three new journal publications on MROSI in 2026 and plan to attend dermatology conferences to build brand awareness. - Plan to launch one or two additional incremental dermatology products in 2026.

In 2025, total revenues were $61.9 million, a 10% increase from 2024. Gross margin was 66.2% in 2025 compared to 62.8% in 2024. SG&A expenses were $44.4 million in 2025, up ~10% from 2024. Net loss was $11.4 million in 2025 vs. $14.7 million in 2024. Non-GAAP EBITDA and adjusted EBITDA improved, with adjusted EBITDA positive $2.9 million in 2025 vs. $800,000 in 2024. MROSI had net sales of $14.7 million over three quarters of 2025. Total Ambrosie prescriptions were ~53,000 since launch in April 2025, with Q4 2025 volume up nearly 50% sequentially. Over 3,500 unique dermatology prescribers had written at least one script for MROSI by end of 2025. Approximately 100 million commercial covered lives had access to MROSI, with contracts in place with two top GPOs and on track to contract with third by late Q1/early Q2 2026.

• Expect to remain adjusted EBITDA positive in 2026 and foreseeable future. - Plan to offer more detailed financial guidance later in 2025 once clarity on downstream health plan adoption of MROSI is better known. - Anticipate contracting with third major GPO by late Q1 or early Q2 2026. - Expect improved reimbursement rates, reduced reliance on co-pay bridging program, and increase in MROSI sales and operating margin expansion as coverage expands and formulary policies mature in 2026.

Q: Scott Henry asked about Q1 prescriptions trends, momentum, and revenue per script.

A: Q1 impacted by insurance deductible resets, severe storms, shorter months, but March came back strong, expect Q1 total prescriptions to surpass Q4, momentum building with Q2 expected stronger than Q1. Revenue per script affected by mix of reimbursed and co-pay bridging program scripts, improvement expected as coverage expands with GPO contracts.

Q: Mayank Mamdani asked about gross net with GPOs and quantification.

A: Ramzi Alush stated progress in GPO contracting, expect incremental growth in gross to net due to reimbursement improvement as coverage expands, with phase one nearly complete for GPO contracting and focus on formulary coverage.

Q: Brandon Foulkes asked about inventory movement and gross-to-nets.

A: Inventory on track with units sold and prescriptions, gross-to-nets on track within expectations, expect upward pressure on gross-to-nets due to reimbursement progress.

Q: Thomas Flatton asked about accounts receivable and gross margins with MROSI growth.

A: Accounts receivable in Q4 was timing issue, expected to impact first quarter. Expect better gross margins as MROSI becomes bigger component of revenue line due to product sales mix and cost optimization.