Journey Medical's Rosacea Drug Emrosi™ Fuels 10% Revenue Growth in 2025

SCOTTSDALE, AZ – March 25, 2026 – Journey Medical Corporation (Nasdaq: DERM) today announced a landmark year in its 2025 financial results, reporting a 10% surge in total revenues to $61.9 million. The impressive growth was overwhelmingly driven by the successful launch and rapid market adoption of Emrosi™, a novel oral treatment for rosacea, which has quickly established itself as the company's new growth engine. The strong performance not only boosted the top line but also improved key financial health metrics, including a narrowed net loss and a significant increase in profitability on an adjusted basis, marking a pivotal turnaround for the Scottsdale-based pharmaceutical firm.

The Emrosi™ Effect: A New Growth Engine

The story of Journey Medical’s 2025 is unequivocally the story of Emrosi™. Launched commercially in early April, the treatment for inflammatory lesions of rosacea in adults generated $14.7 million in net revenues in just nine months on the market. This immediate impact was underscored by the approximately 53,000 prescriptions filled for the drug during the fiscal year, signaling strong demand from both physicians and patients.

Emrosi™ (minocycline hydrochloride modified-release capsules) is positioned as a differentiated therapy in a competitive space. Its clinical data, published in the prestigious Journal of the American Medical Association - Dermatology, demonstrated superior efficacy in reducing inflammatory lesions compared to both placebo and doxycycline, a common alternative. This clinical backing has been a cornerstone of its market introduction.

A critical component of the launch's success has been the rapid expansion of payer access. Journey Medical reported that by July 2025, Emrosi™ was available to over 100 million U.S. commercial lives, nearly doubling its coverage from just 54 million lives two months prior. This broad reimbursement framework has been instrumental in removing access barriers and facilitating the drug's swift uptake.

Claude Maraoui, Journey Medical’s Co-Founder, President, and Chief Executive Officer, commented on the year's performance in the company's press release. “We delivered a year of meaningful commercial progress, highlighted by the successful launch and rapid uptake of Emrosi™, which is driving solid revenue growth and expanding our presence in medical dermatology,” he stated. “Emrosi™ achieved strong prescription momentum and broader payer access throughout the year, and its differentiated clinical profile further reinforces our confidence in the product’s long-term potential as a key growth driver for our Company.”

Navigating a Competitive Portfolio

While Emrosi™ painted a picture of robust growth, the company’s full-year results also highlighted the strategic challenges of managing a diverse product portfolio in the pharmaceutical industry. The revenue gains from the new launch were partially offset by a $6.5 million decline in revenue from Accutane®, the company's branded version of isotretinoin for severe acne.

This decline was attributed to "continued competitive pressures," a reflection of the harsh realities of the generic drug market. The original patents for isotretinoin expired years ago, flooding the market with lower-cost generic alternatives that now dominate prescribing patterns. Journey Medical’s strategy appears to be one of managed decline for such legacy products while aggressively investing in and promoting innovative, higher-margin therapies.

This strategic pivot is evident in the company's improving gross margin, which climbed to 66.2% in 2025 from 62.8% in 2024. The company directly attributed this enhancement to the revenue mix shifting towards higher-margin products, namely Emrosi™ and Qbrexza®, a treatment for excessive underarm sweating. This demonstrates a successful execution of a classic pharmaceutical strategy: using new, patented products to fuel growth and profitability as older drugs face generic erosion.

A Strengthening Financial Position

Beyond the headline revenue number, Journey Medical's financial statements reveal a company strengthening from its core. The net loss for 2025 was reduced to $11.4 million, or $(0.47) per share, a notable improvement from the $14.7 million, or $(0.72) per share, loss reported in 2024.

More telling is the performance in Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), a non-GAAP measure that management uses to gauge core operational performance. For 2025, Adjusted EBITDA stood at a positive $2.9 million, a more than threefold increase from the $0.8 million reported in the prior year. This figure strips out non-cash expenses and other items, providing a clearer view of the company's ability to generate cash from its commercial operations.

The company's balance sheet also reflects this newfound strength. Cash and cash equivalents grew to $24.1 million at the end of 2025, up from $20.3 million a year earlier. This increase, achieved while funding a major product launch, indicates strong cash management and operational efficiency. The rise in selling, general, and administrative (SG&A) expenses by 10% to $44.4 million was directly linked to the necessary investments in marketing and commercial activities to support the successful rollout of Emrosi™.

The Road Ahead in a Dynamic Dermatology Market

Journey Medical's 2025 performance positions it well within a rapidly evolving global dermatology market, which is projected to grow at over 8% annually for the next decade. The industry is seeing a significant shift towards targeted therapies and precision medicine, a trend that Emrosi™ fits squarely into. Its success validates the company's strategy of focusing on innovative therapies that address clear unmet needs for patients with dermatologic conditions.

Looking forward, the company has signaled that Emrosi™ is just the beginning of its next growth phase. Management has indicated plans to launch one or two additional dermatology products in the second half of 2026, leveraging the commercial infrastructure built for its current portfolio. As a company founded by Fortress Biotech, Journey Medical may also benefit from a broader pipeline of potential product candidates to in-license or develop.

The challenge ahead will be to maintain the momentum generated by Emrosi™, continue to manage the life cycles of its older products effectively, and successfully execute on its future product launches. For now, the successful launch has not only reshaped the company's financial trajectory but has also solidified its standing as a formidable player in the competitive medical dermatology landscape.