Thu, May 15, 10:13 AM (34 days ago)
**Journey Medical Corp (DERM) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $13.1 million, a 1% increase from Q1 2024 ($13.0 million). - **Net Loss:** $4.1 million, a 61% improvement from Q1 2024 ($10.4 million). - **Operating Expenses:** $16.5 million, a 29% decrease from Q1 2024 ($23.1 million). - **Cash Flow:** Positive cash flow from financing activities ($3.6 million), offset by negative operating cash flow ($2.8 million). **Key Metrics:** - **Gross Margin:** Improved due to lower cost of goods sold. - **Operating Margin:** Improved significantly due to reduced operating expenses. - **Cash Position:** $21.1 million in cash and cash equivalents, a slight increase from Q4 2024 ($20.3 million). **Earnings Changes & Trends:** - **Revenue Growth:** Driven by the launch of Emrosi, offset by decreased sales of Accutane due to market competition. - **Expense Management:** Significant reduction in research and development costs and selling, general, and administrative expenses. - **Cash Flow:** Improved due to better management of working capital and increased financing activities. **Uncertainties & Future Operations:** - **Market Competition:** Continued competition from generic and branded products. - **Regulatory Environment:** Potential impact of healthcare reforms and pricing regulations. - **Financial Covenants:** Compliance with SWK Credit Facility covenants. - **Going Concern:** Substantial doubt exists about the company's ability to continue as a going concern for at least twelve months from the date of issuance of these financial statements. **Future Outlook:** - **Product Launch:** Continued commercialization of Emrosi. - **Financial Strategy:** Evaluation of market conditions, liquidity profile, and financing alternatives. - **Risk Management:** Monitoring of trade policies, tariffs, and healthcare reforms. **Ticker:** DERM **Note:** Amounts are in thousands, 000s.