Journey Medical Corporation Q1 FY2026 earnings call

• Commercial Performance of Ambrosie

  • Ambrosie delivered 11% sequential prescription volume growth quarter-over-quarter from Q4 2025 to Q1 2026, reaching 30,000 total prescriptions in Q1 2026 (up from 27,000 in Q4 2025), despite seasonal headwinds and severe winter weather on the U.S. East Coast.
  • Unique prescriber count grew to over 3,700 as of Q1 2026, up from approximately 3,200 at the end of 2025. The refill-to-new prescription ratio improved to ~1.5:1, up from 1:1 at year-end 2025, indicating strong patient satisfaction and retention.
  • Ambrosie revenue per prescription increased 26% sequentially from Q4 2025 to Q1 2026, driving revenue growth faster than prescription volume growth.

• Payer and Reimbursement Progress

  • In April 2026, Journey Medical secured a contract with the third of the three largest PBM-affiliated group purchasing organizations (GPOs) in the U.S., giving Ambrosie access to over 169 million of the 192 million total U.S. commercial lives. These GPO contracts provide a framework for broader downstream health plan formulary adoption.
  • Management is actively engaged with national and regional health plans to secure favorable formulary positioning, including improved tier placement, reduced step edit requirements, and more flexible prior authorization criteria, supported by third-party validations including published Phase III results in JAMA Dermatology and citations in National Rosacea Society treatment guidance.

• Operational Updates

  • The company plans to add up to 5 new sales professionals to its commercial team, who will be trained and active in the field by early Q3 2026, to support Ambrosie growth, promotion of the existing portfolio, and the planned launch of up to two new niche dermatology products in late 2026.
  • New marketing programs targeting existing Oratia and generic Oratia patients, plus a switching trial program for hesitant dermatologists, will launch in mid-to-late 2026 to accelerate Ambrosie adoption.
  • The company ended Q1 2026 with a $27.2 million cash balance, up from $24.1 million at the end of 2025, and delivered positive adjusted EBITDA of $600,000, an improvement from a negative $900,000 adjusted EBITDA in Q1 2025.

• Strategic Activities

  • Management continues to pursue out-licensing of commercial rights for its patented products in non-U.S. territories, as well as in-licensing additional dermatology assets to expand the product portfolio and increase shareholder value.

Journey Medical has two core reporting segments: the lead rosacea treatment product Ambrosie (also referred to as MROSI), and the legacy/other dermatology product portfolio. Total company net revenue for Q1 2026 was $16 million, a 21% year-over-year increase from $13.1 million in Q1 2025. Ambrosie generated $6.3 million in net revenue for Q1 2026, up from $2.1 million in the prior year period, accounting for 39.4% of total Q1 2026 revenue. The legacy/other dermatology product segment generated $9.7 million in net revenue for Q1 2026, accounting for 60.6% of total Q1 2026 revenue, and management notes this segment has remained steady and consistent despite product positioning adjustments.

• Management will not release full detailed formal guidance until later in 2026, but confirms that the business is expected to deliver positive adjusted EBITDA and positive GAAP EBITDA for the remainder of 2026 and for the foreseeable future.
• Legacy dermatology products are expected to deliver steady, consistent performance in 2026, with up to two new niche products adding incremental revenue in the second half of the year.
• Ambrosie is expected to deliver full-year 2026 revenue above 2025's $61 million result, with continued sequential growth in prescription volumes, refill-to-new prescription ratios, average selling prices, and formulary coverage quality throughout 2026.
• Additional sales team expenses and marketing program costs are expected to be heavily weighted to the second half of 2026, with profitability expected to increase incrementally as the year progresses. Revenue per prescription (ASP) is expected to grow further from Q1 2026's $202 as quality formulary coverage expands.

• Forward-looking performance, including revenue growth, profitability, and regulatory and formulary adoption outcomes, is subject to risks that could cause actual results to differ materially from management expectations, as detailed in the company's recent SEC filings (Form 10-K, Form 10-Q, and Form 8-K).
• Full conversion of GPO access to downstream formulary coverage is not guaranteed; individual health plans conduct independent reviews and P&T evaluations that may not result in favorable positioning for Ambrosie.
• ASP for Ambrosie will remain variable for 18 to 24 months post-launch as reimbursement coverage matures, creating near-term uncertainty for revenue and profitability projections.
• Launch of new niche products creates incremental SG&A expense, though management maintains this investment is appropriately timed and will not distract from the core priority of Ambrosie growth.

Q: With management holding off on full formal guidance until later in 2026, what is the directional 2026 growth trajectory for Ambrosie and legacy products, and how is progress on quality insurance coverage progressing? / A: Legacy portfolio performance will remain steady in 2026, with up to two new niche products adding incremental revenue. Ambrosie is the company's core growth priority, and 2026 full-year revenue will exceed 2025's $61 million result. Now that all three major GPO contracts are secured, the company is in deep discussions with large national formularies for quality coverage; currently ~34% of U.S. commercial lives (≈60 million) have access to Ambrosie with a single step edit or better, with more positive coverage updates expected throughout 2026.

Q: Ambrosie revenue growth has outpaced prescription volume growth in Q1, with improving ASP. What are the current trends for refills and ASP, and how do new sales team hires and product launches impact profitability? / A: The refill-to-new prescription ratio has improved to 1.4:1 in Q1, and is expected to keep growing quarter-over-quarter. Expanded quality coverage will reduce reliance on the co-pay bridging program and continue to increase ASP sequentially. Additional sales hires will complete training and enter the field in July 2026, so incremental expenses will be heavily weighted to the second half of 2026, with profitability expected to increase as the year progresses. New marketing programs targeting Oratia patients will also ramp up in the second half.

Q: How will the planned addition of up to two new niche products impact the sales force's focus on the still-growing Ambrosie franchise? / A: Ambrosie remains the company's top priority, with legacy product Cubrexa as the second focus, and new niche products will only be positioned as a third priority for the sales force. Compensation structures will not change to pull focus away from the top two products. The new products will fill unmet needs in the dermatology space, one in the anti-itch category and one to support lifecycle management of an existing brand, and will deliver incremental revenue to the base business without distracting from Ambrosie growth.

Q: Q1 Ambrosie revenue per script recovered to $202 after a Q4 2025 drop. Can this metric grow further, and does GPO access improve profitability on existing scripts? / A: $202 has meaningful upside as additional quality formulary coverage is secured, with 20-40% net upside expected for revenue per script once the market stabilizes. GPO contracts not only add new covered lives and new prescriptions, but also improve profitability on existing scripts: when plans add coverage, less cost is covered by the company's co-pay bridging program, increasing net revenue per script. Management noted that April 2026 prescriptions hit an all-time high of 11,400, with momentum continuing into May 2026.