Journey Medical reported higher second-quarter revenue and improved profitability, driven by continued prescription growth and improving payer reimbursement for its rosacea treatment Emrosi.
Chief Executive Officer Claude Maraoui said the company generated positive EBITDA in the second quarter and continues to expect 2026 to be a “breakout year” for both revenue growth and profitability. Total net product revenue rose 23% year over year, while operating expenses increased by less than 1%, according to management.
Revenue Growth Led by Emrosi
Emrosi prescriptions totaled approximately 36,000 in the second quarter, compared with about 30,000 in the first quarter, representing roughly 20% sequential growth. Maraoui said the quarterly increase accelerated from 11% sequential prescription growth in the prior quarter.
New prescriptions also increased. The company recorded more than 5,300 new Emrosi prescriptions in June, compared with an average of about 4,700 during the prior three months. Management described June as an all-time monthly high for new prescriptions. In July, Maraoui said Symphony data showed approximately 14,000 Emrosi prescriptions, up from roughly 13,000 in June.
The number of unique dermatology prescribers for Emrosi exceeded 4,500, up from approximately 3,700 at the end of the first quarter and 3,200 at the end of 2025. Maraoui said the company sees substantial opportunity to expand that base, citing more than 15,000 dermatologists in the U.S.
Journey Medical added five dermatology sales professionals during the second quarter. The representatives joined in late July and were deployed in the field, with most assigned to previously uncovered territories and some placed in areas where management split existing territories due to dermatologist concentration and market penetration.
Payer Access and Pricing Trends
Management said Emrosi’s calculated average selling price increased in the second quarter from the first quarter, following an increase in the first quarter from the fourth quarter of 2025. Maraoui attributed the trend to a growing portion of prescriptions receiving reimbursement.
During the question-and-answer session, Maraoui said there were no inventory movements that affected the second-quarter average selling price. He said the company expects sequential pricing gains to continue as its payer strategy produces more reimbursement through insurance plans.
Journey Medical completed agreements with the three largest group purchasing organizations earlier this year, providing plan access for Emrosi across more than 169 million of 192 million covered commercial lives in the U.S. The company is now focused on securing what it considers high-quality formulary coverage, defined as a single-step edit or better.
The share of commercial lives with that level of coverage increased to approximately 38% from 34% in the first quarter. Ram Alloush, Journey Medical’s chief operating officer and general counsel, said a large national health plan added Emrosi to its formulary in early August. He said the addition should increase the number of patients with lower-friction access and support average selling price improvement.
Alloush said remaining access barriers can include prior authorization requirements or double-step therapy requirements. The company is working with plans to reduce those barriers, arguing that Emrosi’s clinical and financial profile supports less restrictive coverage.
Profitability Improves
Journey Medical reported a 67% gross margin in the second quarter, unchanged from the prior-year quarter. Selling, general and administrative expense declined to $10.9 million from $11.9 million a year earlier, which Benesch said primarily reflected launch-related Emrosi spending in the prior-year period.
The company’s GAAP net loss narrowed to $300,000, or $0.01 per basic and diluted share, from a loss of $3.8 million, or $0.16 per basic and diluted share, a year earlier.
- EBITDA was positive at $1.4 million in the second quarter, versus a $1.9 million loss in the prior-year quarter.
- Adjusted EBITDA was positive at $2.9 million, compared with a $500,000 loss a year earlier.
- Cash totaled $25.6 million at June 30, compared with $24.1 million at Dec. 31, 2025.
Benesch said some marketing and advertising programs could increase SG&A in the second half, though he expects SG&A as a percentage of revenue to remain generally consistent.
Other Products and Business Development
Maraoui said Qbrexza remains a meaningful product for the company and is the second priority for its field sales force after Emrosi. He said Qbrexza has historically generated approximately $25 million to $26 million and that quarterly performance may fluctuate based on patient and payer mix. Demand increased in June and July, with prescriptions surpassing 14,500 in June and nearing 15,000 in July, according to management.
The company also launched Eurax Cream, a 10% crotamiton anti-itch treatment, in July after training its commercial team in June. Maraoui said the non-steroidal, non-histaminic and fragrance-free product is now the third promotional priority behind Emrosi and Qbrexza. While management said early physician feedback has been positive, it did not provide revenue guidance for Eurax.
Journey Medical is also exploring out-licensing opportunities for patented products outside the U.S. Alloush said the company holds global rights and patent portfolios for Emrosi, Qbrexza, Amzeeq and Zilxi. He said discussions regarding additional international partnerships are ongoing, particularly for Emrosi, although reaching agreements can take time.
Maraoui said Emrosi remains the company’s highest commercial priority and that Journey Medical intends to continue pursuing revenue growth, expanded payer access and sustainable profitability.
About Fortress Biotech (NASDAQ:FBIO)
Fortress Biotech, Inc is a clinical?stage biopharmaceutical company focused on acquiring, developing and commercializing novel pharmaceutical and biotechnology products. Headquartered in New York, the company operates through a network of majority?owned subsidiaries that target areas of high unmet medical need, including oncology, rare diseases and dermatology. Fortress Biotech’s business model emphasizes in?licensing or acquiring promising drug candidates and coordinating their development through specialized affiliate companies, allowing for flexible capital allocation and focused management of individual programs.
Through its portfolio of subsidiaries, Fortress Biotech advances a diversified pipeline spanning small molecules, biologics and cell therapies.
