Verrica Pharmaceuticals Past Earnings Performance
Past criteria checks 0/6
Verrica Pharmaceuticals's earnings have been declining at an average annual rate of -6.5%, while the Pharmaceuticals industry saw earnings growing at 10.7% annually. Revenues have been growing at an average rate of 30.5% per year.
Key information
-6.49%
Earnings growth rate
14.08%
EPS growth rate
| Pharmaceuticals Industry Growth | 5.95% |
| Revenue growth rate | 30.53% |
| Return on equity | -111.03% |
| Net Margin | -47.97% |
| Last Earnings Update | 31 Mar 2026 |
Recent past performance updates
Recent updates
Narrative Update • Aug 17
In-office Dermatology Access And Global Trials Will Shape Markets
A notable downward revision in forecasted revenue growth and a substantial decline in future P/E have driven analysts to lower their price target for Verrica Pharmaceuticals from $25.00 to $15.00. What's in the News Verrica Pharmaceuticals was notified by Nasdaq of non-compliance with the $1.00 minimum bid price requirement and faces potential delisting; the company has requested a hearing, which stays the suspension or delisting process.
New Narrative • Apr 10
Turnaround Plan Will Commercialize YCANTH And Advance Pipeline
Cost reductions and focus on YCANTH commercialization could improve future revenues and net margins, aiding the turnaround plan.Analysis Article • Oct 03
The Price Is Right For Verrica Pharmaceuticals Inc. (NASDAQ:VRCA) Even After Diving 49%
To the annoyance of some shareholders, Verrica Pharmaceuticals Inc. ( NASDAQ:VRCA ) shares are down a considerable 49...Analysis Article • Aug 17
Verrica Pharmaceuticals Inc. (NASDAQ:VRCA) Analysts Are Cutting Their Estimates: Here's What You Need To Know
Verrica Pharmaceuticals Inc. ( NASDAQ:VRCA ) investors will be delighted, with the company turning in some strong...Analysis Article • Aug 16
With A 67% Price Drop For Verrica Pharmaceuticals Inc. (NASDAQ:VRCA) You'll Still Get What You Pay For
The Verrica Pharmaceuticals Inc. ( NASDAQ:VRCA ) share price has fared very poorly over the last month, falling by a...Analysis Article • Jul 21
Is Verrica Pharmaceuticals (NASDAQ:VRCA) Using Debt In A Risky Way?
Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it seems the smart money knows that...Analysis Article • Jan 11
Is Verrica Pharmaceuticals (NASDAQ:VRCA) Using Debt In A Risky Way?
Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it might be obvious that you need to...Analysis Article • Jun 28
Here's Why We're Not At All Concerned With Verrica Pharmaceuticals' (NASDAQ:VRCA) Cash Burn Situation
Even when a business is losing money, it's possible for shareholders to make money if they buy a good business at the...Analysis Article • Feb 05
We're Hopeful That Verrica Pharmaceuticals (NASDAQ:VRCA) Will Use Its Cash Wisely
Just because a business does not make any money, does not mean that the stock will go down. For example, biotech and...Seeking Alpha • Aug 31
Vectoring Back In On Verrica Pharmaceuticals
Summary Shares of dermatology disease concern Verrica Pharmaceuticals Inc. plunged 64% on May 25, 2022 after the company received its third CRL for its molluscum candidate, VP-102. However, the two most recent CRLs have to do with a deficient contract manufacturer, forcing the company to engage another one to get VP-102 across the finish line. With significant insider and beneficial owner buying on its dilutive June 2022 secondary offering, Verrica merited a deeper dive. A full investment analysis and recommendation follow in the paragraphs below. Sometimes I wonder whether the world is being run by smart people who are putting us on or by imbeciles who really mean it.”― Laurence J. Peter, The Peter Principle Today, we look at a small cap name I have not put under the microscope in a year and a half. The company recently suffered a setback at the hands of the FDA, but one that might be able to be rectified. The stock has seen some recent insider buying within a secondary offering as well. An analysis follows below. Seeking Alpha Company Overview: Verrica Pharmaceuticals Inc. (VRCA) is a West Chester, Pennsylvania-based clinical-stage drug concern focused on the development of therapeutics for the treatment of dermatological diseases. It has two assets undergoing evaluation for four indications and another one in the preclinic. The company also has the dubious distinction of having received three complete response letters ((CRLs)) from the FDA for the same new drug application ((NDA)). Verrica was formed in 2013 and went public in 2018, raising net proceeds of $78.4 million at $15 per share. Its stock trades just over $3.50 a share, translating to a market cap of $130 million. Pipeline VP-102. The cause of all the consternation for Verrica shareholders – at least those holding its stock after the close of the market on May 24, 2022 – is VP-102. It is a formulation of cantharidin, which is an odorless, colorless fatty substance secreted by male blister beetles that has been employed topically to remove warts and tattoos. In higher concentrations it is extremely flammable, and if ingested at doses as small as 10mg is potentially fatal. As an aside, it is the active ingredient in the aphrodisiac Spanish fly. The company has developed cantharidin into a 0.7% drug solution administered through its single-use precision applicator that is being evaluated in the treatment of molluscum contagiosum (molluscum), as well as both common and external genital warts. Neither of the first two indications has an FDA-approved therapy, with curettage, cryotherapy, laser surgery, natural remedies, off-label drugs, and compounded unstandardized cantharidin currently employed. To describe VP-102’s journey through the FDA approval process as a long, drawn-out affair would be an understatement. The odyssey began in 2019, after the compound in two Phase 3 trials (CAMP-1 and CAMP-2) demonstrated efficacy in the treatment of molluscum, a highly contagious and physically unattractive skin disease characterized by multiple raised flesh-colored papules that are manifestations of a pox virus – not too different from the current outbreak of monkey pox. If left untreated, the disorder can take more than two years to resolve. Verrica estimates the U.S. prevalence of molluscum at six million, with the greatest incidence in children under 14 years of age. Management places the total addressable domestic market at over $1 billion. Returning to the approval process, after the two trials totaling over 500 patients demonstrated complete clearance of disease at day 84 in half the VP-102 population versus 16% on placebo (p<0.0001), Verrica submitted an NDA for its candidate in the treatment of molluscum and received a PDUFA date of July 13, 2020. However, the company received a CRL in July 2020 citing potential manufacturing issues as well as concerns that its device could be inadvertently misused (known as human factors). Verrica thought it had addressed these issues and resubmitted the NDA and received a PDUFA date in June 2021, which was later extended to September 23, 2021. However, another CRL was issued citing general quality deficiencies at its contract manufacturer (Sterling Pharmaceutical Services) after an FDA inspection. With the inspection classified as Voluntary Action Indicated ((VAI)) – meaning objectionable conditions or practices found at the facility but no administrative or regulatory action taken – and nothing specific to VP-102, management presumed the issue resolved and again resubmitted its application and received a May 24, 2022 PDUFA date. But again, the FDA issued a CRL, owing to the fact it placed Sterling on Official Action Indicated ((OAI)) status – the most severe violation meaning no new drug manufacturing – after another inspection of its plant. The latest CRL and management’s surprised response regarding its issuance had some calling into question its competency. Either way, the flummoxed brass held a Type A meeting with the FDA on June 27, 2022 to discuss a path forward. As a potential solution, Verrica is engaging another contract manufacturer to provide VP-102 in the event that Sterling can’t satisfy all the deficiencies related to its OAI status. An NDA re-re-resubmission is now anticipated in 1Q23. If approved, it will be marketed under the trade name YCANTH and will essentially shut out the manufacturers of the "unapproved" compounded cantharidin. These delays have had a significant impact on: Verrica’s stock price, which plunged 64% in the trading session after its most recent CRL; its balance sheet, which will be discussed in more detail below; and its operations, as the approval delays retard its ability to advance other clinical programs. For example, VP-102 is also being evaluated as a therapy for both external genital and common warts. External genital warts (EGW) are caused by the human papilloma virus (HPV) and comprise ~17% of the 4.1 million annual doctor office visits for warts. Although there are FDA-approved remedies including HPV vaccines, immune response modifier imiquimod, cell mitosis inhibitor podofilox, and botanical green tea drug product sinecatechins, owing to EGW’s similarity to molluscum, Verrica believes that VP-102 can be a safe and effective treatment. After a Phase 2 study demonstrated statistical significance (with 35.1% of patients showing complete clearance of warts at day 84 versus 2.4% on vehicle (p<0.0001)) the company was set to initiate a Phase 3 trial in 2H22 with first patient expected to be dosed in 1H23. However, due to the setbacks related to the molluscum indication, the trial’s starting date has been pushed back to 1H24 as Verrica conserves capital. Like EGW, common warts are caused by HPV. Management believes the total U.S. incidence is 22 million with only 1.5 million diagnosed annually. With no FDA-approved therapies and similarities to molluscum, the company embarked on a clinical program for VP-102 in the treatment of common warts with a two-cohort, 56-patient Phase 2 trial demonstrating clinically meaningful efficacy with 51.4% in Cohort 2 achieving complete clearance at day 84. However, when Verrica met with the FDA to lay out its Phase 3 trial protocol, the feedback suggested a second Phase 2 study would be necessary before advancing to a pivotal trial. With the molluscum-related issues putting the company in a bind, it is likely that this program is suspended until financial conditions improve. LTX-315. The temporary de-prioritization of this program is related to the company’s other clinical asset, LTX-315. It is an oncolytic peptide designed to induce immunogenic cell death after direct injection into a tumor. In-licensed from Lytic Biopharma in 2020, it is being assessed in a Phase 2 trial for the treatment of basal cell carcinoma with the first patient injected in April 2022. As part of its deal with Lytic, Verrica is potentially obligated to pay as much as $110 million in milestones, as well as royalties in the low double digits to mid-teens. The indication is potentially significant with ~5.4 million diagnoses of non-melanoma skin cancers such as basal and squamous cell carcinomas in the U.S. annually. VP-103. Verrica was also determining when to enter the clinic with VP-103, a second cantharidin-based compound for the treatment of plantar warts, which comprise nearly one-third of all doctor visits for warts in the U.S. That timeline is currently under reevaluation. Out-licensing Agreement Between VP-102’s first and second CRLs, Verrica was able to ink a development and commercial deal with Torii Pharmaceutical Co. (TRXPF) for Japan. Under the terms of the agreement, Verrica has received $12 million to date with eligibility for an additional $58 million in milestones, in addition to tiered transfer price payments for supply of product equaling mid-30s to mid-40s percentage of net sales. Balance Sheet & Analyst Commentary: When VP-102’s approval appeared a slam dunk in 2020, Verrica was able to line up financing totaling $50 million, of which it tapped $40 million. However, the loan was predicated on the company achieving a minimum sales thresholds for VP-102. Owing to the CRLs, Verrica was compelled to renegotiate the financing terms and move the $40 million outstanding into the restricted cash line on its balance sheet, creating a liquidity crunch. With only enough unrestricted cash to get the company into 3Q22, it was forced to execute a highly dilutive secondary offering, raising net proceeds of $26.8 million at $2.10 a share on June 29, 2022. The company had approximately $55 million of cash and marketable securities on hand prior to the capital raise.Seeking Alpha • Jul 06
Verrica Pharmaceuticals reports insider buying
Verrica Pharmaceuticals (NASDAQ:VRCA) shows stock buying by insiders on July 5: 10% owner, Perceptive Advisors bought ~1.43M shares at $2.10 worth $3M; this bring his total share holding to 5.04M shares. President and CEO, Ted White bought 23,809 shares at $2.1 worth ~$50K; total share holding of 29,466. 10% owner, director Paul B Manning bought 4.76M shares at $2.1 worth $10M; bringing total share holding to ~13.6M shares. Director, John A III Stalfort, bought 238K shares at $2.1 worth $700K The stock has declined about 76% over the last one year.Seeking Alpha • Jun 29
Verrica Pharmaceuticals stock slides on proposed share offering
Verrica Pharmaceuticals (NASDAQ:VRCA) shares dropped ~8% in extended trading hours after the dermatology therapeutics company proposed public offering of common stock. Terms of the offering are yet to be determined. Underwriter may be granted a 30-day option to purchase up to an additional 15% of the shares issued in the offering.Revenue & Expenses Breakdown
Revenue & Expenses Breakdown
How Verrica Pharmaceuticals makes and spends money. Based on latest reported earnings, on an LTM basis.
Earnings and Revenue History
| Date | Revenue | Earnings | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 31 Mar 26 | 37 | -18 | 36 | 0 |
| 31 Dec 25 | 36 | -18 | 35 | 0 |
| 30 Sep 25 | 31 | -26 | 36 | 0 |
| 30 Jun 25 | 15 | -49 | 43 | 0 |
| 31 Mar 25 | 7 | -66 | 51 | 0 |
| 31 Dec 24 | 8 | -77 | 59 | 0 |
| 30 Sep 24 | 9 | -85 | 66 | 0 |
| 30 Jun 24 | 14 | -87 | 70 | 0 |
| 31 Mar 24 | 9 | -81 | 59 | 0 |
| 31 Dec 23 | 5 | -67 | 47 | 0 |
| 30 Sep 23 | 3 | -48 | 33 | 0 |
| 30 Jun 23 | 9 | -23 | 17 | 0 |
| 31 Mar 23 | 9 | -23 | 17 | 0 |
| 31 Dec 22 | 9 | -24 | 17 | 0 |
| 30 Sep 22 | 9 | -28 | 19 | -13 |
| 30 Jun 22 | 1 | -41 | 23 | -9 |
| 31 Mar 22 | 0 | -43 | 26 | -5 |
| 31 Dec 21 | 12 | -35 | 27 | 0 |
| 30 Sep 21 | 12 | -39 | 32 | 15 |
| 30 Jun 21 | 12 | -36 | 28 | 16 |
| 31 Mar 21 | 12 | -34 | 26 | 16 |
| 31 Dec 20 | 0 | -43 | 25 | 16 |
| 30 Sep 20 | 0 | -37 | 19 | 17 |
| 30 Jun 20 | 0 | -33 | 18 | 15 |
| 31 Mar 20 | 0 | -31 | 16 | 16 |
| 31 Dec 19 | 0 | -28 | 15 | 15 |
| 30 Sep 19 | 0 | -28 | 14 | 16 |
| 30 Jun 19 | 0 | -28 | 13 | 17 |
| 31 Mar 19 | 0 | -26 | 12 | 16 |
| 31 Dec 18 | 0 | -21 | 9 | 13 |
| 30 Sep 18 | 0 | -20 | 6 | 9 |
| 30 Jun 18 | 0 | -15 | 3 | 7 |
| 31 Mar 18 | 0 | -11 | 2 | 4 |
| 31 Dec 17 | 0 | -10 | 1 | 4 |
Quality Earnings: VRCA is currently unprofitable.
Growing Profit Margin: VRCA is currently unprofitable.
Free Cash Flow vs Earnings Analysis
Past Earnings Growth Analysis
Earnings Trend: VRCA is unprofitable, and losses have increased over the past 5 years at a rate of 6.5% per year.
Accelerating Growth: Unable to compare VRCA's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: VRCA is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (-6%).
Return on Equity
High ROE: VRCA has a negative Return on Equity (-111.03%), as it is currently unprofitable.
Return on Assets
Return on Capital Employed
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Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2026/07/20 20:24 |
| End of Day Share Price | 2026/07/17 00:00 |
| Earnings | 2026/03/31 |
| Annual Earnings | 2025/12/31 |
Data Sources
The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.
| Package | Data | Timeframe | Example US Source * |
|---|---|---|---|
| Company Financials | 10 years |
| |
| Analyst Consensus Estimates | +3 years |
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| Market Prices | 30 years |
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| Ownership | 10 years |
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| Management | 10 years |
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| Key Developments | 10 years |
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* Example for US securities, for non-US equivalent regulatory forms and sources are used.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.
Analysis Model and Snowflake
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Industry and Sector Metrics
Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.
Analyst Sources
Verrica Pharmaceuticals Inc. is covered by 12 analysts. 6 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.
| Analyst | Institution |
|---|---|
| Jason Matthew Gerberry | BofA Global Research |
| Brian Kemp Dolliver | Brookline Capital Markets |
| Raghuram Selvaraju | H.C. Wainwright & Co. |