📊 DERM Key Takeaways
Investment Thesis
Journey Medical Corp demonstrates severe fundamental weakness with consistent unprofitability, negative free cash flow of -$21.2M, and declining net margins of -22.2%. Despite $24.9M in cash, the company is burning capital at an unsustainable rate with no path to profitability evident from current operations.
DERM Strengths
- Adequate liquidity position with $24.9M cash and 1.42x current ratio
- Modest revenue growth of 1.8% YoY in a competitive pharmaceutical sector
- Manageable debt-to-equity ratio of 0.97x provides some financial flexibility
DERM Risks
- Severe cash burn with -$21.2M free cash flow limiting runway with existing cash reserves
- Persistently negative profitability across all metrics (operating margin -16.9%, net margin -22.2%)
- Negative interest coverage ratio of -3.2x indicates inability to service debt from operations
- Deteriorating EPS of -$0.43 with -242.9% YoY decline signals worsening per-share economics
- Large capital expenditures of $15.0M against negative operating cash flow suggests investments not yet generating returns
- High long-term debt of $25.2M relative to equity base creates refinancing risk
Key Metrics to Watch
- Quarterly operating cash flow trend and path to cash flow breakeven
- Gross margin expansion and operating leverage as revenue scales
- Cash runway and timeline until additional funding becomes necessary
- Product-level profitability and customer acquisition costs
- Debt maturity schedule and refinancing requirements
DERM Financial Metrics
💡 AI Analyst Insight
Journey Medical Corp presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
DERM Profitability Ratios
DERM vs Healthcare Sector
How Journey Medical Corp compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
DERM Balance Sheet & Liquidity
DERM 5-Year Financial Trend
5-Year Trend Summary: Journey Medical Corp's revenue has remained relatively flat over the 5-year period, with a 5% decline. The most recent EPS of $-0.21 indicates the company is currently unprofitable.
DERM Growth Metrics (YoY)
DERM Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $14.6M | -$2.3M | $-0.09 |
| Q2 2025 | $14.9M | -$3.4M | $-0.16 |
| Q1 2025 | $13.0M | -$4.1M | $-0.18 |
| Q3 2024 | $14.6M | -$1.7M | $-0.09 |
| Q2 2024 | $14.9M | -$3.4M | $-0.17 |
| Q1 2024 | $12.2M | -$10.1M | $-0.53 |
| Q3 2023 | $15.3M | -$1.7M | $-0.09 |
| Q2 2023 | $17.0M | -$7.5M | $-0.43 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
DERM Capital Allocation
DERM SEC Filings
Access official SEC EDGAR filings for Journey Medical Corp (CIK: 0001867066)
📋 Recent SEC Filings
❓ Frequently Asked Questions about DERM
What is the AI rating for DERM?
Journey Medical Corp (DERM) has an AI rating of STRONG SELL with 92% confidence, based on fundamental analysis of SEC EDGAR filings.
What are DERM's key strengths?
Claude: Adequate liquidity position with $24.9M cash and 1.42x current ratio. Modest revenue growth of 1.8% YoY in a competitive pharmaceutical sector.
What are the risks of investing in DERM?
Claude: Severe cash burn with -$21.2M free cash flow limiting runway with existing cash reserves. Persistently negative profitability across all metrics (operating margin -16.9%, net margin -22.2%).
What is DERM's revenue and growth?
Journey Medical Corp reported revenue of $45.8M.
Does DERM pay dividends?
Journey Medical Corp does not currently pay dividends.
Where can I find DERM SEC filings?
Official SEC filings for Journey Medical Corp (CIK: 0001867066) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is DERM's EPS?
Journey Medical Corp has a diluted EPS of $-0.43.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.