Journey Medical Corp 10-Q for FY2026 Q3

Journey Medical Corp (DERM)

10-Q 2026-11-12 For: 2026-09-30

Added on November 12, 2026

About this 10-Q

Journey Medical Corp filed this 10-Q on November 12, 2026, covering the quarter ended September 30, 2026 (FY2026 Q3).

Headline figures

Quarter ended September 30, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $18.97M; up 7.6% from $17.63M a year earlier
Net loss: $1.32M; compared with a net loss of $2.32M a year earlier
Diluted EPS: -$0.05; compared with -$0.09 a year earlier

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Delaware		47-1879539
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)



Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.0001 per share	DERM	NASDAQ Capital Market


Large Accelerated Filer	☐	Accelerated Filer	☐
Non-accelerated Filer	☒	Smaller Reporting Company	☒
Emerging growth company	☒



Class of Common Stock		Outstanding Shares as of November 12, 2026
Common Stock Class A, $0.0001 par value		6,000,000
Common Stock, $0.0001 par value		22,230,645


PART I.	FINANCIAL INFORMATION
Item 1.	Condensed Consolidated Financial Statements (unaudited)	1
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	18
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	26
Item 4.	Controls and Procedures	26

PART II.	OTHER INFORMATION
Item 1.	Legal Proceedings	27
Item 1A.	Risk Factors	27
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	27
Item 3.	Defaults Upon Senior Securities	27
Item 4.	Mine Safety Disclosures	27
Item 5.	Other Information	27
Item 6.	Exhibits	28

SIGNATURES		29



☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934



☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934



		September 30,			December 31,
		2026			2025
ASSETS
Current assets
Cash and cash equivalents		$	22,323		$	24,090
Accounts receivable, net of reserves			47,387			29,783
Inventory			7,772			9,624
Prepaid expenses and other current assets			1,782			3,376
Total current assets			79,264			66,873

Intangible assets, net			24,541			27,605
Operating lease right-of-use asset, net			41			111
Total assets		$	103,846		$	94,589

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable		$	9,396		$	8,851
Due to related party			812			455
Accrued expenses			35,352			27,567
Accrued interest			416			398
Income taxes payable			—			70
Term loan, short-term			7,500			—
Operating lease liability, short-term			44			101
Total current liabilities			53,520			37,442

Term loan, long-term, net of discount			18,077			25,277
Operating lease liability, long-term			—			18
Total liabilities			71,597			62,737

Commitments and contingencies (Note 13)

Stockholders’ equity
Common stock, $.0001 par value, 50,000,000 shares authorized, 22,225,645 and 21,144,655 shares issued and outstanding as of September 30, 2026 and December 31, 2025, respectively			2			2
Common stock - Class A, $.0001 par value, 50,000,000 shares authorized, 6,000,000 shares issued and outstanding as of September 30, 2026 and December 31, 2025			1			1
Additional paid-in capital			134,561			130,307
Accumulated deficit			(102,315)			(98,458)
Total stockholders’ equity			32,249			31,852
Total liabilities and stockholders’ equity		$	103,846		$	94,589



		Three-Month Periods Ended						Nine-Month Periods Ended
		September 30,						September 30,
		2026			2025			2026			2025
Revenue:
Product revenue, net		$	18,925		$	17,025		$	52,685		$	45,173
Other revenue			42			606			753			606
Total revenue			18,967			17,631			53,438			45,779

Operating expenses
Cost of goods sold – (excluding amortization of acquired intangible assets)			5,884			5,755			18,245			15,484
Amortization of acquired intangible assets			969			1,064			3,064			3,193
Research and development			51			287			105			326
Selling, general and administrative			12,593			12,054			33,590			34,505
Total operating expenses			19,497			19,160			55,004			53,508
Loss from operations			(530)			(1,529)			(1,566)			(7,729)

Other expense (income)
Interest income			(140)			(154)			(451)			(441)
Interest expense			919			937			2,717			2,765
Foreign exchange transaction losses			6			3			10			71
Total other expense			785			786			2,276			2,395
Loss before income taxes			(1,315)			(2,315)			(3,842)			(10,124)

Income tax expense			—			—			15			60
Net loss		$	(1,315)		$	(2,315)		$	(3,857)		$	(10,184)

Net loss per common share:
Basic and diluted		$	(0.05)		$	(0.09)		$	(0.14)		$	(0.43)
Weighted average number of common shares:
Basic and diluted			28,069,125			24,959,114			27,625,414			23,628,921



											Total
	Common Stock			Common Stock A			Additional		Accumulated		Shareholders’
	Shares	Amount		Shares	Amount		Paid-in Capital		Deficit		Equity
Balance as of December 31, 2025	21,144,655	$	2	6,000,000	$	1	$	130,307	$	(98,458)	$	31,852
Share-based compensation	—		—	—		—		3,759		—		3,759
Exercise of stock options for cash	102,964		—	—		—		275		—		275
Issuance of common stock for vested restricted stock units	939,838		—	—		—		—		—		—
Issuance of common stock under ESPP	38,188		—	—		—		220		—		220
Net loss	—		—	—		—		—		(3,857)		(3,857)
Balance as of September 30, 2026	22,225,645	$	2	6,000,000	$	1	$	134,561	$	(102,315)	$	32,249



	Estimated
	Useful Lives			September 30,			December 31,
($’s in thousands)	(Years)			2026			2025
Intangible assets - product licenses		3-15		$	52,925		$	52,925
Accumulated amortization					(25,241)			(22,177)
Accumulated impairment loss					(3,143)			(3,143)
Total intangible assets				$	24,541		$	27,605



For the years ended	Total Amortization
Remainder of 2026	$	969
December 31, 2027		3,338
December 31, 2028		3,159
December 31, 2029		3,159
December 31, 2030		3,159
Thereafter		10,757
Total	$	24,541



		September 30, 2026
($’s in thousands)		Level 1		Level 2		Level 3		Total
Assets
Cash and cash equivalents		$	22,323	$	—	$	—	$	22,323
Total		$	22,323	$	—	$	—	$	22,323



		December 31, 2025
($’s in thousands)		Level 1		Level 2		Level 3		Total
Assets
Cash and cash equivalents		$	24,090	$	—	$	—	$	24,090
Total		$	24,090	$	—	$	—	$	24,090



($’s in thousands)
Remainder of 2026	$	27
2027		18
Total lease payments		45
Less: present value discount		(1)
Total operating lease liabilities	$	44



		September 30,			December 31,
($’s in thousands)		2026			2025
Finished goods		$	5,966		$	7,389
Work-in-process			540			174
Raw materials			2,307			3,057
Inventory at cost			8,813			10,620
Inventory reserves			(1,041)			(996)
Total inventories		$	7,772		$	9,624



		September 30,			December 31,
($’s in thousands)		2026			2025
Accrued coupons and rebates		$	24,510		$	16,547
Accrued compensation			2,984			5,589
Return reserve			3,329			2,177
Accrued royalties payable			2,210			1,805
Accrued marketing and market access			1,155			850
Accrued legal, accounting and tax			951			274
Other			213			325
Total accrued expenses		$	35,352		$	27,567



	September 30,		December 31,
($’s in thousands)	2026		2025
Short-term portion of principal balance	$	7,500	$	—
Long-term portion of principal balance		17,500		25,000
Principal balance	$	25,000	$	25,000
Plus: Exit fee		1,250		1,250
Less: Debt discount and fees		(673)		(973)
Net carry amount	$	25,577	$	25,277



Years ending December 31,		Term Loan
Remainder of 2026		$	—
2027			10,000
2028			16,250
Total			26,250
Debt discount			(673)
Total, net			25,577
Current portion			(7,500)
Term-loan (long-term)		$	18,077



		Three-Month Periods Ended September 30,						Nine-Month Periods Ended September 30,
($’s in thousands)		2026			2025			2026			2025
Research and development		$	—		$	—		$	—		$	—
Selling, general and administrative			1,333			1,854			3,759			4,513
Total non-cash share-based compensation expense		$	1,333		$	1,854		$	3,759		$	4,513



										Weighted
				Weighted						average
		Number		average			Aggregate			remaining
		of		exercise			intrinsic			contractual
		Shares		price			value			life (years)
Outstanding options at December 31, 2025		1,509,544		$	3.50		$	6,359,288		6.21
Granted		528,755			5.12			—		—
Exercised		(102,964)			2.67			—		—
Forfeited		(59,567)			4.59			—		—
Expired		(2,900)			6.31			—		—
Outstanding options at September 30, 2026		1,872,868		$	3.96		$	5,388,037		6.48
Options vested and exercisable at September 30, 2026		1,027,143		$	2.76		$	4,187,521		4.26




				Weighted
		Number of		average grant
		units		date Fair value
Unvested balance at December 31, 2025		1,848,140		$	5.03
Granted		587,804			5.75
Vested		(939,838)			4.64
Forfeited		(68,208)			4.76
Unvested balance at September 30, 2026		1,427,898		$	5.59



		Three-Month Periods Ended September 30,						Change
($’s in thousands)		2026			2025			$			%
Revenue:
Product revenue, net		$	18,925		$	17,025		$	1,900		11	%
Other revenue			42			606			(564)		(93)	%
Total revenue			18,967			17,631			1,336		8	%

Operating expenses
Cost of goods sold – (excluding amortization of acquired intangible assets)			5,884			5,755			129		2	%
Amortization of acquired intangible assets			969			1,064			(95)		(9)	%
Research and development			51			287			(236)		(82)	%
Selling, general and administrative			12,593			12,054			539		4	%
Total operating expenses			19,497			19,160			337		2	%
Loss from operations			(530)			(1,529)			999		(65)	%

Other expense (income)
Interest income			(140)			(154)			14		(9)	%
Interest expense			919			937			(18)		(2)	%
Foreign exchange transaction losses			6			3			3		100	%
Total other expense			785			786			(1)		—	%
Loss before income taxes			(1,315)			(2,315)			1,000		(43)	%
Income tax expense			—			—			—		—	%
Net loss		$	(1,315)		$	(2,315)		$	1,000		(43)	%



								Managed
								Care
($’s in thousands)		Returns			Coupons			Rebates			Other			Total
Balance as of June 30, 2026		$	2,930		$	13,438		$	4,804		$	1,456		$	22,628
Current provision related to sales in the current period			1,050			56,764			8,704			1,829			68,347
Checks/credits issued to third parties			(651)			(51,781)			(8,647)			(2,061)			(63,140)
Balance as of September 30, 2026		$	3,329		$	18,421		$	4,861		$	1,224		$	27,835



	Nine-Month Periods Ended September 30,					Increase
($’s in thousands)	2026		2025			(Decrease)
Net cash used in operating activities	$	(2,262)	$	(6,157)		$	3,895
Net cash provided by investing activities		—		—			—
Net cash provided by financing activities		495		10,800			(10,305)
Net change in cash and cash equivalents	$	(1,767)	$	4,643		$	(6,410)



		Payments by Period
					Remainder of
		Total			2026			2027			2028

		($’s in thousands)
Interest		$	4,600		$	815		$	2,746		$	1,039
Principal			25,000			—			10,000			15,000
Exit fee			1,250			—			—			1,250
Total		$	30,850		$	815		$	12,746		$	17,289


Exhibit No.		Description
3.1		Fourth Amended and Restated Certificate of Incorporation, filed as Exhibit 3.1 to Form 8-K, filed on June 26, 2025 and incorporated herein by reference.
3.2		Amended and Restated Bylaws of Journey Medical Corporation, filed as Exhibit 3.2 to Form 10-K, filed on March 28, 2022 and incorporated herein by reference.
4.1		Form of Common Stock Certificate, filed as Exhibit 4.1 to Form S-1, filed on October 22, 2021 and incorporated herein by reference.
31.1		Certification of Chief Executive Officer of Journey Medical Corporation pursuant to Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, dated November 12, 2026.**
31.2		Certification of Principal Financial Officer of Journey Medical Corporation pursuant to Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, dated November 12, 2026.**
32.1		Certification of Chief Executive Officer of Journey Medical Corporation pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, dated November 12, 2026.***
32.2		Certification of Principal Financial Officer of Journey Medical Corporation pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, dated November 12, 2026.***
101		The following financial information from the Company’s quarterly report on Form 10-Q for the period ended September 30, 2026, formatted in Inline Extensible Business Reporting Language (XBRL): (i) the Condensed Consolidated Balance Sheets, (ii) the Condensed Consolidated Statements of Operations, (iii) the Condensed Consolidated Statements of Stockholders’ Equity, (iv) the Condensed Consolidated Statements of Cash Flows, and (v) Notes to the Condensed Consolidated Financial Statements (filed herewith).**
104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).**


	Journey Medical Corporation
	(Registrant)

Date: November 12, 2026	By:	/s/ Claude Maraoui
	Claude Maraoui
	President and Chief Executive Officer
	(Principal Executive Officer)


Date: November 12, 2026	By:	/s/ Joseph Benesch
	Joseph Benesch
	Chief Financial Officer
	(Principal Financial Officer)