Verrica Pharmaceuticals Inc. (VRCA), a commercial-stage dermatology therapeutics company, reported a narrower net loss for the fourth quarter and full year 2025, driven by revenue growth from its lead product, YCANTH(VP-102).
Despite the positive news, VRCA is down 5.27% to $5.93 in after-hours trading.
For the fourth quarter, Net loss narrowed to $8.07 million, or $0.57 per share, from $16.20 million, or $2.41 per share a year ago.
Adjusted net loss shrank to $7.2 million, or $0.51 per share, from $12.2 million, or $1.81 per share, in the prior year.
Total revenue increased to $5.09 million from $0.34 million in the prior year.
Net product revenue was $3.72 million compared to $0.32 million in the prior year.The increase in product revenue was based on higher demand for YCANTH.
For the full year 2025, net loss narrowed to $17.89 million, or $1.68 per share, from $76.57 million, or $14.78 per share, in the prior year.
Adjusted net loss shrank to $13.2 million, or $1.24 per share, from $64.6 million, or $12.47 per share.
Total revenue increased to $35.57 million from $7.56 million in the prior year.
Net product revenue for 2025 increased 130% to $15.28 million from $6.57 million, primarily driven by increased demand for YCANTH.
Verrica ended December 2025 debt-free, with $30.14 million in cash and cash equivalents and an expected runway into the first quarter of 2027.
Verrica's product YCANTH (VP-102) (cantharidin) is the first treatment approved by the FDA for adult and pediatric patients 2 years of age and older with molluscum contagiosum, a highly contagious viral skin infection affecting approximately 6 million people in the United States, primarily children.
YCANTH (VP-102) is a drug-device combination product that delivers cantharidin via a single-use applicator for precise topical dosing to treat molluscum contagiosum, and the firm is currently pursuing commercialisation.
In addition, YCANTH (VP-102) is also under development for the treatment of verruca vulgaris, or common warts, a condition affecting approximately 22 million cases in the United States. Verrica announced that the first patient was dosed in December 2025 in the global Phase 3 program evaluating YCANTH (VP-102) for the treatment of common warts. The Phase 3 program was initiated based on the clinically meaningful activity observed for the primary endpoint of complete clearance in the Phase 2 COVE-1 study.
On February 9, 2026, Verrica commercially launched YCANTH in Japan by Torii for the treatment of molluscum contagiosum.
The company expects to initiate the second Phase 3 study to further evaluate VP-102 in the US and Japan with Torii Pharmaceutical in mid-2026.
VP-315 (ruxotemitide) is Verrica's licensed product from Lytix Biopharma AS for non-melanoma skin cancers, including basal cell carcinoma and squamous cell carcinoma.
VP-315, formerly known as LTX-315, is a potential oncolytic chemotherapeutic peptide administered directly to the tumour to induce immunogenic cell death, offering a potential non-surgical option for patients with skin cancer.
The company is advancing VP-315 toward a Phase 3 program for basal cell carcinoma in 2026.
"With the opportunity to grow YCANTH in the United States, enter new markets and develop transformative medicines, we are tremendously excited about what 2026 has in store for Verrica and our patients", said Jayson Rieger, President and Chief Executive Officer of Verrica.
VRCA has traded between $3.28 and $9.82 in the prior year. The stock closed Wednesday's trade at $6.26, up 4.68%.
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