Journey Medical Corp

Previous wording

We are a commercial-stage pharmaceutical company founded in October 2014 that primarily focuses on the selling and marketing of U.S. Food and Drug Administration (“FDA”) approved prescription pharmaceutical products for the treatment of dermatological conditions. Our current portfolio includes eight FDA-approved prescription drugs for dermatological conditions that are marketed in the U.S. and a majority of our revenues derive from our branded, patent protected products. We are managed by experienced life science executives with a track record of creating value for their stakeholders and bringing novel medicines to the market, enabling patients to experience increased quality of life and physicians and other licensed medical professionals to provide better care for their patients. We acquire rights to products and product candidates by licensing or otherwise acquiring an ownership interest in, funding the research and development of, and eventually commercializing the products through our field sales organization. We are a controlled subsidiary of Fortress Biotech, Inc. (“Fortress” or “Parent”).

Current wording

We are a commercial-stage pharmaceutical company founded in October 2014 that primarily focuses on the selling and marketing of U.S. Food and Drug Administration (“FDA”) approved prescription pharmaceutical products for the treatment of dermatological conditions. Our current portfolio includes nine FDA-approved prescription drugs for dermatological conditions that are marketed in the U.S. and a majority of our revenues derive from our branded, patent protected products. We are managed by experienced life science executives with a track record of creating value for their stakeholders and bringing novel medicines to the market, enabling patients to experience increased quality of life and physicians and other licensed medical professionals to provide better care for their patients. We acquire rights to products and product candidates by licensing or otherwise acquiring an ownership interest in, funding the research and development of, and eventually commercializing the products through our field sales organization. We are a controlled subsidiary of Fortress Biotech, Inc. (“Fortress” or “Parent”).

Previous wording

Net product revenue increased $2.8 million, or 21.0%, to $15.9 million for the three-month period ended March 31, 2026 compared to the three-month period ended March 31, 2025. The increase is primarily driven by sales of Emrosi in the first quarter of 2026 of $6.3 million compared to $2.1 million in the first quarter of 2025. The Company launched Emrosi in the first quarter of 2025. This is partially offset by a decrease in Accutane of $0.3 million, the foam franchise products of $0.5 million, and our legacy products of $0.5 million due to continued competitive pressures.

Current wording

Net product revenue increased $2.8 million, or 19.0%, to $17.8 million for the three-month period ended June 30, 2026 compared to the three-month period ended June 30, 2025. The increase is primarily driven by sales of Emrosi in the second quarter of 2026 of $8.1 million compared to $2.8 million in the second quarter of 2025. We launched Emrosi in the first quarter of 2025. This is partially offset by a decrease in Qbrexza of $1.8 million primarily due to coverage mix and a decrease in our legacy products of $0.5 million due to continued generic competition.

Previous wording

Other revenue for the three-month period ended March 31, 2026 reflects sales-based royalties on Cutia’s net sales of Amzeeq, pursuant to the Cutia Agreement. In August 2025, we began supplying Cutia with finished licensed products for Cutia’s commercial use.

Current wording

Other revenue for the three-month period ended June 30, 2026 reflects payments to us for supplying Amzeeq to Cutia as well as sales-based royalties payable to us on Cutia’s net sales of Amzeeq, pursuant to the Cutia Agreement. In August 2025, we began supplying Cutia with Amzeeq for Cutia’s commercial use.

Previous wording

Gross-to-net sales accruals are primarily a function of product sales volume, mix of products sold, and contractual discounts or rebates. Our reserves for gross-to-net sales allowances were $17.3 million at March 31, 2026, compared to $18.7 million at December 31, 2025, a decrease of $1.4 million. The decrease is due primarily to the timing of sales throughout the first quarter of 2026 as well as coverage mix.

Current wording

Gross-to-net sales accruals are primarily a function of product sales volume, mix of products sold, and contractual discounts or rebates. Our reserves for gross-to-net sales allowances were $22.6 million at June 30, 2026, compared to $17.3 million at March 31, 2026, an increase of $5.3 million. The increase is due primarily to Emrosi coupon rebates related to the continued growth of the product and the timing of sales throughout the quarter.

Previous wording

Amortization of acquired intangible assets increased less than $0.1 million, or 6%, to $1.1 million for the three-month period ended March 31, 2026, from $1.1 million for the three-month period ended March 31, 2025, driven by the start of amortization on the anti-itch acquired intangible asset during the first quarter of 2026, offset by the completion of amortization on the Accutane intangible asset during the first quarter of 2026.

Current wording

Amortization of acquired intangible assets decreased less than $0.1 million, or 9%, to $1.0 million for the three-month period ended June 30, 2026, from $1.1 million for the three-month period ended June 30, 2025, driven by the start of amortization on the Eurax acquired intangible asset during the first quarter of 2026, offset by the completion of amortization on the Accutane intangible asset during the first quarter of 2026.

Previous wording

Selling, general and administrative expenses decreased by $0.5 million, or 4%, to $10.1 million for the three-month period ended March 31, 2026, from $10.6 million for the three-month period ended March 31, 2025. The decrease is primarily due to a reduction in Emrosi launch costs from the prior year quarter.

Current wording

Selling, general and administrative expenses decreased by $1.0 million, or 8%, to $10.9 million for the three-month period ended June 30, 2026, from $11.9 million for the three-month period ended June 30, 2025. The decrease is primarily due to a reduction in Emrosi launch costs from the prior year quarter.

Previous wording

Cost of goods sold - (excluding amortization of acquired intangible assets) increased by $1.4 million, or 30%, to $6.2 million for the three-month period ended March 31, 2026, from $4.8 million for the three-month period ended March 31, 2025, driven primarily by a $1.3 million non-cash charge related to inventory acquired in the 2021 Qbrexza asset acquisition as well an increase in royalties driven by the incremental net revenue recognized for Emrosi during the first quarter of 2026 as compared to the first quarter of 2025.

Current wording

Cost of goods sold - (excluding amortization of acquired intangible assets) increased by $2.6 million, or 27%, to $12.4 million for the six-month period ended June 30, 2026, from $9.7 million for the six-month period ended June 30, 2025, driven primarily by a $1.3 million non-cash charge related to inventory acquired in the 2021 Qbrexza asset acquisition as well an increase in product royalties payable driven by the incremental net revenue recognized for Emrosi.

Previous wording

At March 31, 2026, we had cash and cash equivalents on hand of approximately $27.2 million as compared to $24.1 million of cash and cash equivalents at December 31, 2025, and working capital of $27.1 million at March 31, 2026, compared to $29.4 million at December 31, 2025.

Current wording

At June 30, 2026, we had cash and cash equivalents on hand of approximately $25.6 million as compared to $24.1 million of cash and cash equivalents at December 31, 2025, and working capital of $27.0 million at June 30, 2026, compared to $29.4 million of working capital at December 31, 2025.

Previous wording

Cash Flows for the Three -Month Periods Ended March 31, 2026 and 2025

Current wording

Cash Flows for the Six -Month Periods Ended June 30, 2026 and 2025

Previous wording

Net cash flows provided by operating activities for the three-month period ended March 31, 2026 increased by $5.7 million, to $2.9 million, from net cash flows used in operating activities of $2.8 million for the three-month period ended March 31, 2025. The increase was driven primarily by the decrease in our net loss period-to-period as well as changes in net working capital, primarily related to net collections of accounts receivable.

Current wording

Net cash flows provided by operating activities for the six-month period ended June 30, 2026 increased by $4.9 million, to $1.2 million, from net cash flows used in operating activities of $3.8 million for the six-month period ended June 30, 2025. The increase was driven primarily by the decrease in our net loss period-to-period as well as changes in net working capital.

Previous wording

Net cash flows provided by financing activities for the three-month period ended March 31, 2026 decreased by $3.4 million, to $0.2 million, from $3.6 million of cash flows provided by financing activities for the three-month period ended March 31, 2025. The Company received proceeds from the exercise of stock options and the issuance of common stock under the employee stock purchase of $0.2 million during the three-month period ended March 31, 2026. The Company received proceeds from the issuance of common stock under the ATM program of $4.0 million, offset by a payment of $0.6 million for a license installment note payable during the three-month period ended March 31, 2025.

Current wording

Net cash flows provided by financing activities for the six-month period ended June 30, 2026 decreased by $3.4 million, to $0.4 million, from $3.8 million of cash flows provided by financing activities for the six-month period ended June 30, 2025. The Company received proceeds from the exercise of stock options and the issuance of common stock under the employee stock purchase plan of $0.4 million during the six-month period ended June 30, 2026. The Company received proceeds from the sale of common stock under the ATM program of $4.0 million, offset by a payment of $0.6 million for a license installment note payable, during the six-month period ended June 30, 2025.