Verrica Posts $12.4 Million Third-Quarter Loss as YCANTH Revenue Grows
Key Facts
Verrica Pharmaceuticals reported a net loss of $12.4 million, or $0.58 per share, for the third quarter ended September 30, 2026, compared with a loss of $0.3 million, or $0.03 per share, in the same period of 2025. The result put the net loss at the forefront of the company's quarterly results, while its YCANTH product recorded sales growth during the quarter. The company said U.S. product revenue was $5.7 million. This came despite total revenue declining to $6.9 million from $14.3 million a year earlier. Analyst estimates cited in other reports were not verified, so these results are not being characterized as a miss against market expectations.
YCANTH's U.S. net revenue rose 11.9% from the second quarter of 2026 and 57.9% from the third quarter of 2025, according to a Verrica statement. The company attributed the increase to higher volumes delivered to distribution partners and an improved net realization as spending on patient co-pay assistance programs declined. Product growth coincided with a year-over-year decline in total revenue, making commercial sales performance a key focus in assessing the results. Chief Executive Jason Rieger said the company was shifting its focus to increasing the conversion of written prescriptions into prescriptions filled and securing appropriate insurance coverage. He added that the company was beginning to see improvement in the gap between gross and net revenue.
General and administrative expenses totaled $10.4 million in the third quarter of 2026, compared with $9.4 million in the same quarter a year earlier, according to the company statement. Verrica said these expenses were broadly similar between the periods after excluding stock-based compensation. The comparison puts the reported expense increase in context, but does not change the widening gap between the net loss of $12.4 million in the current quarter and the loss of $0.3 million a year earlier. In the second quarter of 2026, the company reported a net loss of $13.2 million, or $0.62 per share. In the second quarter of 2025, it posted net income of $0.2 million, or $0.02 per share, according to that quarter's results statement.
Part of the spending backdrop for the Phase 3 program for common warts stems from Verrica's agreement with Torii. The company said Torii would pay the first $40 million of program costs, equivalent to about 90% of the studies' currently estimated costs. Verrica added that these payments do not affect its cash balance. On clinical progress, the company announced that it had completed enrollment in the first pivotal Phase 3 trial for common warts. Enrollment has also exceeded 50% of the current patient target in the second pivotal trial, according to the company.
Verrica expects preliminary results from the first trial in the first quarter of 2027 and from the second trial in mid-2027, according to its statement. These timelines relate to the two-trial Phase 3 program, for which the company said enrollment is complete in one trial and has surpassed half of the target in the other. The company also said Torii's funding covers about 90% of the program's currently estimated costs, with the partner paying the first $40 million. Verrica said these payments do not affect its cash balance, while it continues to focus commercially on converting written prescriptions into prescriptions filled and improving insurance coverage. The two 2027 readouts are the next milestones the company has set for the program.