Journey Medical Corporation (DERM) AI Stock Analysis

Headquartered in Scottsdale, Arizona, Journey Medical Corporation develops and distributes pharmaceutical products tailored for dermatological conditions across the United States. Its commercial portfolio includes Qbrexza, a medicated cloth towelette designed to treat primary axillary hyperhidrosis, and Accutane, an oral isotretinoin medication for severe recalcitrant acne. The company also markets oral antibiotics Targadox and Ximino for acne, Exelderm cream and solution for topical dermatologic use, and generic therapies including doxycycline hyclate tablets, minocycline hydrochloride capsules, and sulconazole nitrate cream and solution.

Journey Medical's revenue grew at a 5-year CAGR of 6.8% from FY2020 to FY2025. Annual revenue expanded from $63.1M in FY2021 to $79.2M in FY2023, before falling 29.1% to $56.1M in FY2024. In FY2025, revenue recovered 10.2% to $61.9M, accompanied by a gross margin of 59.3% and an operating margin of -13.2%. Net income remained negative across all five years, finishing at -$11.4M in FY2025 with an EPS of -$0.47. In the latest quarter ended June 30, 2026, quarterly revenue grew 23.3% year-over-year, bringing trailing twelve-month revenue to $68.2M with an operating margin of 2.5% and a net profit margin of -8.9%.

As of June 30, 2026, Journey Medical held $25.6M in cash and short-term investments alongside total debt of $25.5M, yielding net cash of $102,000. Total assets stood at $98.4M against shareholders' equity of $32.1M. The company reported a current ratio of 1.59 and a debt-to-equity ratio of 0.80. Operating cash flow in FY2025 was -$12.4M, matching a free cash flow of -$12.4M. Over a 5-year period, the company's share count increased 107.6%.

At a last close price of $4.96 on October 16, 2026, Journey Medical carries a market capitalization of $140.1M and an enterprise value of $183.6M. The stock trades at a forward P/E of 10.2x, below the 17.3x median of its US-listed Healthcare peers. Its price-to-sales multiple is 2.1x compared to the peer median of 4.1x, while its EV/EBITDA of 108.0x is well above the peer median of 12.0x. Over the past year, DERM fell 32.9%, trailing the S&P 500 (SPY) return of 16.8%.

Wall Street coverage consists of 4 Strong Buy ratings, with 0 Buy, 0 Hold, 0 Sell, and 0 Strong Sell ratings. The mean price target is $13.75, representing a 176.9% upside from the last close of $4.96. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $80.1M and an EPS of -$0.07. For the following fiscal year, 4 analysts estimate revenue of $130.1M and positive EPS of $0.67. DERM has beaten EPS estimates in 1 of the last 4 quarters, and its next earnings date is November 11, 2026.

This page is an AI-written research summary of Journey Medical Corporation (DERM). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: DERM income statement, DERM balance sheet, DERM key metrics, DERM analyst forecast, DERM chart. See the DERM stock overview for the latest quote and news.