Verrica Pharmaceuticals Inc. (VRCA) AI Stock Analysis

Verrica Pharmaceuticals Inc. is a dedicated dermatology therapeutics company focused on advancing treatments for skin diseases across the United States. Its lead product candidate is VP-102, designed for the treatment of molluscum contagiosum, which has completed Phase II trials for external genital warts and is undergoing Phase II trials for common warts. Verrica is also developing VP-103, a cantharidin-based candidate for plantar warts. The company maintains a collaboration agreement with Torii Pharmaceutical Co., Ltd. to develop and commercialize candidates in Japan, as well as a license agreement with Lytix Biopharma AS to develop LTX-315 for dermatological oncology indications.

Between FY2021 and FY2025, Verrica posted a 5-year revenue CAGR of 24.3%. Annual revenue was $12.0M in FY2021, $9.0M in FY2022, and $5.1M in FY2023, before rising 47.7% to $7.6M in FY2024 and expanding 370.2% to $35.6M in FY2025. Gross margin was 90.3% in FY2025, while operating margin improved to -33.6% from -871.3% in FY2024. Net income was -$17.9M in FY2025 with an EPS of -$1.29. Research and development expense totaled $8.9M in FY2025. In the latest quarter ended June 30, 2026, quarterly revenue fell 53.9% year-over-year, and trailing twelve-month revenue reached $30.3M with an operating margin of -194.5% and EPS of -$1.75.

As of June 30, 2026, Verrica held $11.2M in cash and short-term investments alongside total debt of $1.8M, producing net cash of $9.4M. Shareholders' equity was $4.3M against total assets of $36.0M, resulting in a debt-to-equity ratio of 0.42 and a current ratio of 1.45. Operating cash flow in FY2025 was -$17.6M, and free cash flow was -$17.6M. The company does not conduct share buybacks or pay dividends, while its share count increased 674.2% over 5 years.

Verrica trades at an enterprise value of $70.8M and a market capitalization of $61.8M. Its price-to-sales ratio is 2.0x, which is below the 4.1x median of its US-listed Healthcare peers, while its enterprise value-to-revenue ratio is 2.3x. Price-to-book stands at 18.6x. Over the past year, the stock fell 15.0%, trailing the S&P 500 (SPY) return of 16.8%. Over five years, the stock dropped 97.3% compared to an 83.0% gain for the S&P 500. Year-to-date return is -56.7%, and the stock sits 38.4% below its 200-day average.

Consensus ratings include 6 Strong Buy and 1 Hold recommendations, with no Buy, Sell, or Strong Sell ratings. The mean price target is $13.83, representing 284.8% upside from the last close of $3.60. For the fiscal year ending December 31, 2026, analysts estimate revenue of $24.8M and an EPS of -$1.97. For next fiscal year, 4 analysts project revenue of $39.2M (up 58.0%) and an EPS of -$1.48. Verrica beat EPS estimates in 3 of the last 4 quarters, with next earnings scheduled for November 13, 2026.

This page is an AI-written research summary of Verrica Pharmaceuticals Inc. (VRCA). 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.

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