Verrica Pharmaceuticals Inc. Common Stock (VRCA)

FairStock Score: 51/100 — MIXED

Key Financials

AI Analysis

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

I look for businesses that earn consistent profits and sell at a sensible price. Verrica does not fit that description today. It has a real dermatology product, YCANTH, and a pipeline asset, VP-315, but in fiscal 2025, the year ended 2025-12-31, revenue was $35.6M and net income was -$17.9M. That was an improvement from fiscal 2024, the year ended 2024-12-31, when revenue was $7.6M and net loss was $76.6M. Yet the latest trend is troubling: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $5.9M and net loss was $13.2M, or -$0.62 per diluted share. A year earlier, in fiscal Q2 2025, the quarter ended 2025-06-30, revenue was $12.7M and net income was $204,000. So sales fell sharply and profits swung to a large loss. Fiscal Q1 2026, the quarter ended 2026-03-31, also showed revenue of $5.0M and a net loss of $9.7M. Free cash flow was -$13.3M over the trailing twelve months, a FairStock calculation, and the FCF yield was -21.7%. The Altman Z-Score of -12.90, also a FairStock calculation, points to financial distress. At the 2026-10-13 close of $3.58, FairStock shows a P/E of -2.06 and P/B of 14.32. Paying a high multiple of book for a loss-making company with negative cash flow offers little margin of safety. The product gives Verrica a chance, but I see no durable moat or consistent earning power. Until the numbers stabilize, this looks speculative, not investment-grade.

In plain English: Verrica Pharmaceuticals is a small drug company that sells a skin treatment called YCANTH and is testing another medicine. The business is weak right now: it has lost money in each of the last four years, and the most recent quarter showed revenue falling and losses growing. At the 2026-10-13 closing price of $3.58, the stock looks expensive compared with those weak results and cash losses.

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