DERM

Commercial & Prescription Growth for Amrozi

• Total Amrozi prescriptions reached ~36,000 in Q2 2026, a 20% sequential increase over Q1 2026, which is an acceleration from the 11% sequential growth seen in Q1.
• New prescriptions hit an all-time monthly high of 5,300 in June 2026, up from a 4,700 monthly average in the prior three months.
• Unique dermatology prescribers for Amrozi grew to over 4,500 as of Q2 2026, a more than 40% increase from 3,200 at the end of 2025.
• The company added 5 new experienced dermatology sales professionals in late Q2, who were deployed to new/underpenetrated territories in July to expand market penetration.

Payer & Pricing Progress

• All top 3 US group purchasing organizations (GPOs) have signed agreements for Amrozi, bringing planned access to 169 million of the 192 million total US covered commercial lives.
• The percentage of commercial lives with high-quality (single step-edit or better) formulary coverage increased from 34% in Q1 to 38% in Q2, and a large national health plan added Amrozi to its formulary in early August 2026.
• Average selling price (ASP) for Amrozi increased sequentially in Q2 following a Q1 increase, driven by the growing share of reimbursed prescriptions in the business mix.

Pipeline & Strategic Development

• The company recently launched Urox Cream, a nonsteroidal, nonhistaminic, fragrance-free anti-itch dermatology product, which is now the third promoted product in its portfolio.
• Management continues to pursue out-licensing of commercial rights to the company's patented products (including Amrozi) for non-US territories, while also evaluating in-licensing opportunities to expand its US dermatology product portfolio.
• Upcoming new journal publications for Amrozi are expected in coming quarters, and management is working toward inclusion of Amrozi in rosacea consensus treatment guidelines.

Financial Performance

• Total company revenue grew 23% YoY to $18.5 million in Q2 2026, with all growth driven by Amrozi demand.
• Gross margin held steady at 67% YoY. SG&A expenses decreased to $10.9 million from $11.9 million YoY, as the prior year quarter included higher Amrozi launch-related spending.
• GAAP net loss narrowed significantly to $0.3 million ($0.01 per share) from $3.8 million ($0.16 per share) in Q2 2025. Non-GAAP EBITDA and adjusted EBITDA were both positive in Q2 2026 and for the first half of 2026.
• The company ended Q2 with $25.6 million in cash, up from $24.1 million at the end of 2025.

• Management reaffirms that 2026 will be a breakout year for Journey Medical, with expected strong revenue growth and full-year positive profitability, and expects to sustain positive EBITDA for the remainder of 2026.
• Management expects sequential increases in Amrozi ASP through the second half of 2026, driven by ongoing expansion of high-quality formulary coverage and growing share of reimbursed prescriptions.
• SG&A as a percentage of revenue is expected to remain consistent in the second half of 2026, with only a moderate step-up in absolute spending to support new marketing programs and the Urox Cream launch.
• Management expects continued growth in Amrozi prescription volume and prescriber count through the second half of 2026, with accelerating adoption trends expected to continue into future quarters.

Journey Medical has three primary product segments: 1. Amrozi: Generated $8.1 million in net revenue for Q2 2026, accounting for ~43.8% of the company's total $18.5 million net revenue. 2. QBREXZA: This is the company's second promoted product, generating annual revenue of approximately $25-26 million, with minor quarterly revenue decline in Q2 2026 that management attributes to temporary payer mix and residual deductible reset effects rather than long-term decline. 3. Urox Cream: A newly launched niche dermatology product, launched in late Q2 2026 (commercial rollout began in July 2026), positioned as the third promoted product in the company's portfolio. No revenue contribution figures were provided for this segment in the quarter.

• Forward-looking statements regarding future revenue, profitability, regulatory progress, and commercial adoption are inherently uncertain, and actual results may differ materially from expectations due to unforeseen risks. Key risks are detailed in the company's periodic SEC filings (Form 10, Form 10-Q, and recent Form 8-K).
• Payer formulary negotiation timelines are unpredictable, and removal of access friction may take longer than currently expected, which could slow ASP growth and prescription adoption relative to forecasts.
• Out-licensing transactions for international territories require extended negotiation timelines, depend on favorable market and regulatory conditions in target regions, and there is no guarantee that any transactions will be completed on terms favorable to the company.
• Seasonal or quarterly variability in payer mix and patient demand can cause quarterly revenue fluctuations for existing products like QBREXZA.

Q: Scott Henry of Alliance Global Partners asked about QBREXZA's long-term trajectory after a slight Q2 revenue decline, and whether the product should be expected to flatten or decline over the next 4-6 quarters. / A: Management noted QBREXZA is the company's second-promoted product behind Amrozi, and the slight Q2 decline stemmed from temporary quarterly payer mix shifts and residual effects of early-year insurance deductible resets. Demand has picked up in the 2026 summer hyperhidrosis season, with prescriptions growing to nearly 15,000 in July, and patient satisfaction remains very high. Management expects QBREXZA to maintain consistent annual contributions of $25-26 million as it has in prior years.

Q: Mayank Mamtani of B. Riley Securities asked for an update on the company's ex-U.S. out-licensing efforts for Amrozi, including any IP-related factors impacting progress. / A: Journey Medical holds global patent rights for Amrozi and all its brands, with existing out-licensing deals already in place for other products in Asian markets. Active negotiations for Amrozi out-licensing are ongoing across Europe, Canada, Asia, and Australia, with robust IP and strong market opportunity in all regions. The process takes time to align on deal terms and account for regional regulatory and legislative changes, and the company's primary focus remains on growing Amrozi in the U.S. market. Updates will be provided once definitive agreements are reached.

Q: Brandon Folkes of H.C. Wainwright asked what remaining access friction exists for Amrozi today, and how much of that friction can be removed over the next 12 months. / A: Currently 169 million commercial lives have basic access to Amrozi via GPO agreements, but only 38% (≈72 million) have high-quality single-step or better formulary access, leaving 80-90 million lives still facing higher barriers like prior authorization or double-step edits. Rosacea is a lower-priority category for payers relative to high-cost drug classes, so negotiations take time, but the company's strong head-to-head clinical and value proposition versus existing treatments is resonating. Management expects to steadily reduce these barriers through the end of 2026 and into 2027, increasing the share of lives with low-friction access and driving further ASP growth.

Q: Brandon Folkes also asked for more detail on the newly launched Urox Cream and its expected growth trajectory. / A: Urox Cream is a nonsteroidal, nonhistaminic, fragrance-free anti-itch product with an enhanced formulation that Journey Medical developed after acquiring the asset. The commercial team was trained in June 2026, and the product launched in July 2026, positioned as the third-promoted product in the portfolio (after Amrozi and QBREXZA). It is too early to track full performance, but initial physician feedback has been positive, and the product is included in the sales team compensation plan to drive promotion. Management did not provide specific revenue guidance for the product at this stage.