Journey Medical Corporation Common Stock (DERM)

FairStock Score: 27/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses with durable earnings and a margin of safety. Journey Medical is a commercial-stage dermatology company with 58 employees and products such as Qbrexza, Accutane, and Amzeeq, but the record shows no annual profit. In fiscal 2025, the year ended 2025-12-31, revenue was $61.2 million and net loss was $11.4 million, or $0.47 per diluted share. In fiscal 2024, revenue was $55.1 million and net loss was $14.7 million, or $0.72 per diluted share. In fiscal 2023, revenue was $59.7 million and net loss was $3.9 million, or $0.21 per diluted share. So sales have moved around and losses persist. The latest quarter is better: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $17.8 million, net loss was only $312,000, and diluted EPS was -$0.01, versus revenue of $15.0 million and net loss of $3.8 million in fiscal Q2 2025. That is progress, but one quarter does not make a moat. The business has little pricing power or scale that I can identify, and specialty dermatology is competitive. Financial health is weak: trailing free cash flow is -$7.5 million, the FairStock FCF yield is -4.8%, debt-to-equity is 0.80, and the FairStock Altman Z-Score is 0.51, which points to distress. At the 2026-10-13 close of $5.68, FairStock calculations show a negative P/E of -25.82, P/B of 4.90, EV/EBITDA of 82.40, ROE of -23.77%, and a FairStock Score of 27/100. The Piotroski F-Score is 4/9. Growth is encouraging, but I see no margin of safety and no consistent earning power yet. As Graham might say, the stock is not cheap when profits are absent.

In plain English: Journey Medical sells skin-related prescription medicines in the United States. It has been growing sales recently, but it has still been losing money and using cash. Compared with its losses and cash flow, the stock price looks expensive rather than cheap.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer