Verrica Pharmaceuticals (NASDAQ:VRCA) Announces Quarterly Earnings Results, Misses Expectations By $0.08 EPS

by · The Markets Daily

Verrica Pharmaceuticals (NASDAQ:VRCA – Get Free Report) announced its quarterly earnings results on Wednesday. The company reported ($0.51) earnings per share for the quarter, missing the consensus estimate of ($0.43) by ($0.08), FiscalAI reports. The company had revenue of $5.09 million during the quarter, compared to the consensus estimate of $4.52 million.

Here are the key takeaways from Verrica Pharmaceuticals’ conference call:

  • YCANTH commercial traction: Verrica reported >130% YoY revenue growth for YCANTH in 2025, dispensed applicator units rose 99% to 51,196 for the year, inventories are normalized, and February 2026 reached a record monthly high in dispensed units per selling day.
  • Improved financial position: The company completed a $50 million PIPE, retired outstanding debt, recorded $30.1 million in cash as of 12/31/2025, and reduced SG&A by over 40%, extending runway into 2027.
  • Common warts Phase 3 program underway with Torii: Verrica dosed the first patient in a global Phase 3 for YCANTH (common warts) in Dec 2025, received $18 million in milestone payments, and Torii will fund the first $40 million (~90% of current budget) with Verrica retaining rights outside Japan.
  • VP-315 shows promising Phase 2 data and FDA alignment: The oncolytic peptide demonstrated a 97% objective response rate and an 86% tumor size reduction in Phase 2, with reported abscopal effects and FDA agreement on a streamlined Phase 3 design (two ~100-subject placebo-controlled studies).
  • Remaining execution and funding uncertainty: Management did not provide 2026 revenue guidance and is actively seeking funding/partnerships to support VP-315 Phase 3 and other programs, meaning additional capital raises or dilution could be required despite the current runway.

Verrica Pharmaceuticals Stock Performance

Shares of NASDAQ VRCA traded down $0.23 during mid-day trading on Thursday, reaching $6.03. 72,618 shares of the company’s stock were exchanged, compared to its average volume of 145,484. The company’s 50-day moving average is $6.75 and its 200-day moving average is $5.87. The firm has a market capitalization of $96.36 million, a price-to-earnings ratio of -1.77 and a beta of 1.47. Verrica Pharmaceuticals has a 52-week low of $3.28 and a 52-week high of $9.82.

Wall Street Analyst Weigh In

A number of research firms recently weighed in on VRCA. Brookline Capital Acquisition raised Verrica Pharmaceuticals from a “hold” rating to a “buy” rating and set a $17.00 price target for the company in a report on Thursday, December 18th. TD Cowen reissued a “buy” rating on shares of Verrica Pharmaceuticals in a research note on Wednesday, January 7th. Loop Capital set a $17.00 price objective on shares of Verrica Pharmaceuticals in a report on Thursday, December 18th. Wall Street Zen cut shares of Verrica Pharmaceuticals from a “buy” rating to a “hold” rating in a research note on Saturday, February 7th. Finally, Zacks Research cut Verrica Pharmaceuticals from a “strong-buy” rating to a “hold” rating in a report on Monday. Two research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Verrica Pharmaceuticals has a consensus rating of “Hold” and an average price target of $17.00.

View Our Latest Research Report on Verrica Pharmaceuticals

Institutional Trading of Verrica Pharmaceuticals

Several hedge funds have recently modified their holdings of the stock. State Street Corp boosted its holdings in shares of Verrica Pharmaceuticals by 14.1% in the fourth quarter. State Street Corp now owns 23,481 shares of the company’s stock valued at $195,000 after acquiring an additional 2,900 shares during the period. Man Group plc acquired a new stake in shares of Verrica Pharmaceuticals during the fourth quarter worth about $94,000. Quadrature Capital Ltd purchased a new position in shares of Verrica Pharmaceuticals during the fourth quarter worth about $99,000. Beck Mack & Oliver LLC purchased a new stake in Verrica Pharmaceuticals during the 4th quarter valued at approximately $100,000. Finally, Bridgeway Capital Management LLC purchased a new stake in Verrica Pharmaceuticals during the 3rd quarter valued at approximately $52,000. 42.45% of the stock is currently owned by institutional investors and hedge funds.

About Verrica Pharmaceuticals

(Get Free Report)

Verrica Pharmaceuticals Inc is a clinical‐stage biopharmaceutical company focused on the development and commercialization of topical therapies for dermatological conditions. Its lead investigational product, VP-102, is a standardized formulation of cantharidin in a pre-measured applicator designed to treat molluscum contagiosum and common warts. Verrica’s approach emphasizes consistency of dosing and patient convenience, aiming to improve upon off‐label use of existing treatments.

Beyond VP-102, Verrica is advancing VP-103, a next‐generation topical candidate intended to optimize tolerability while maintaining efficacy against viral skin lesions.

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