This article first appeared on GuruFocus .
-
Total Revenue:$18.5 million in Q2 2026, a 23% increase from $15 million in Q2 2025.
-
Emrosi Revenue:$8.1 million in Q2, up significantly year-over-year and sequentially.
-
Gross Margin:67% for Q2 2026, consistent with the prior year quarter.
-
SG&A Expenses:$10.9 million in Q2 2026, down from $11.9 million in Q2 2025.
-
GAAP Net Loss:Narrowed to $300,000, or $0.01 per share, compared to a net loss of $3.8 million, or $0.16 per share, in Q2 2025.
-
EBITDA:Positive at $1.4 million for Q2 2026, compared to a net loss of $1.9 million in the prior year quarter.
-
Adjusted EBITDA:Positive at $2.9 million for Q2 2026, compared to a net loss of $500,000 in Q2 2025.
-
Cash Position:$25.6 million as of June 30, 2026, up from $24.1 million at the end of 2025.
-
Emrosi Prescriptions:Approximately 36,000 in Q2, up 20% sequentially from about 30,000 in Q1.
-
Emrosi Prescribers:Over 4,500 unique dermatology prescribers, a 40% increase from 3,200 at the end of 2025.
Release Date: August 12, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
-
Emrosi revenues surged to $8.1 million in Q2 2026, up significantly year-over-year and sequentially, driven by a 20% sequential increase in total prescriptions and an all-time monthly high of over 5,300 new prescriptions in June.
-
The company achieved positive EBITDA and adjusted EBITDA for both the second quarter and first half of 2026, with GAAP net loss narrowing to just $300,000 from $3.8 million in the prior year quarter.
-
The prescriber base for Emrosi expanded by over 40% since the end of 2025, reaching more than 4,500 unique dermatology prescribers, indicating growing adoption and loyalty.
-
Payer access improved, with Emrosi added to a major national health plan's formulary in early August, and the percentage of commercial lives with high-quality formulary coverage increased from 34% in Q1 to approximately 38%.
-
The company successfully launched Eurax Cream in July 2026, adding a new revenue stream and expanding its dermatology portfolio, while also hiring five new sales representatives to drive further market penetration.
-
Total revenue grew 23% year-over-year to $18.5 million, while operating expenses increased by less than 1%, demonstrating strong operating leverage and cost discipline.
Negative Points
-
The company remains unprofitable on a GAAP basis, reporting a net loss of $300,000 for Q2 2026, though significantly narrowed from the prior year.
-
QBREXZA, a key secondary product, experienced a slight revenue decline in the quarter, attributed to patient and payer mix, as well as residual effects from insurance deductible resets.
-
Despite progress, only 38% of commercial lives have high-quality formulary coverage (single step edit or better), leaving significant friction in payer access for the remaining lives.
-
The company faces ongoing challenges in negotiating favorable formulary placements, with some plans requiring prior authorizations or double step edits, which can impede prescription growth.
-
The launch of Eurax Cream is still in early stages, with no clear revenue guidance provided, and its contribution to overall growth remains uncertain.
-
The company's cash position of $25.6 million is modest, and continued investment in sales force expansion and marketing programs may pressure liquidity if revenue growth does not sustain.
Q & A Highlights
Q: Claude, you gave a lot of color on ASP. Were there any inventory movements in the quarter that can sometimes inflate or even deflate that ASP on a specific quarter? And it sounds like you're looking for sequential gains in ASP over the next couple of quarters as well. Is that the correct interpretation? A: Claude Maraoui (CEO): There were no inventory movements in the quarter. We expect to continue to see good progress in ASP from Q4 last year through Q1 and Q2, and we anticipate this trend to continue as more reimbursement from our payer strategy gets implemented and more prescriptions are processed through insurance companies.
Q: Maybe on the operating leverage, if I could start there. Your SG&A stayed unchanged while obviously you are reporting on very strong commercial KPIs. I was wondering in second half with all the corporate developments you talked about, including niche launch, should we expect a step up in SG&A starting with 3Q? A: Joseph Benesch (CFO): The answer is yes, somewhat. You're not going to see any surprises, but we do have some marketing programs and advertising programs that we'll probably implement in the third and fourth quarter. However, overall, I expect to see the percentage of revenue from SG&A remain pretty consistent.
Q: You talked about the major national plan added in early August. I was obviously wondering how that impacts net ASP in second half or what you have seen already relative to this nice improvement you've seen in first and second quarter. And I was also wondering on the refill rate that continues to climb up, is there a year-end number that's in your mind? A: Claude Maraoui (CEO) & Ramsey Alloush (COO): Refill rates are very important, and we have been very committed to being on message regarding our Phase III clinical trials. The month of July was an all-time high with 14,000 prescriptions, and our refill rate for that particular month is at 1.5 plus the regular fill, so you're at about 2.5 right now. Regarding the new national health plan, it's a very large national formulary that we were able to get Emrosi on. We expect this to increase our quality of lives from the current 38% of the 192 million covered lives, and we expect good milestones to be hit throughout Q3 into Q4.
Q: Staying on Emrosi, you look to be making very good progress here on the gross to net and obviously on volume. But maybe just where is the remaining friction in access today, including payer access, especially that friction that you believe you could remove or loosen over the next 12 months? A: Ramsey Alloush (COO): If you look at the delta between our quality of lives (38%, or 72 million lives) and our access (169 million lives), you're going to see that the roughly 80-90 million more lives that potentially have access to Emrosi might have a larger barrier in terms of friction. That could be a prior auth or a double step that's in place. Our job is identifying where those bottlenecks are and speaking with those plans to see what it takes to get Emrosi down to our benchmark of a quality single-step therapy or better. With our head-to-head data showing our drug works in essentially half the time as Oracea, this is resonating very well with the payers, and we're going to continue to work on removing those barriers through Q3, Q4, and into 2028.
Q: With respect to the new reps that were hired, can I assume those were white space hires? Or are you already territory splitting? A: Claude Maraoui (CEO): Out of the five, most of them are in white space, but we do have some areas where the number of dermatologists and the penetration is better well-served with splitting it. So you have a little mix of both.
Q: With respect to physician utilization, have they cued in on a specific element of your efficacy? I mean, time or overall resolution erythema, that's the driving reason for their use? A: Claude Maraoui (CEO): In terms of physician feedback, it is astounding how they are looking at the efficacy. The superiority factor that the FDA gave us is resonating well with patients. We're doing what Oracea did in half the time, and I think that's really a major part of it. Plus, the other factor is the fantastic safety profile that is very tolerable. They're not getting that pushback they could have had with other formulations, so they like what they're getting and building confidence.
Q: And then back to the physicians again, if I may. Are there specific subtypes of rosacea patients that they're primarily using it on? Or are they kind of using it more broadly than having identified a subtype? A: Claude Maraoui (CEO): We're indicated for papulopustular rosacea, so certainly that severe, moderate-to-severe. Our indication allows us to go broader, but you're talking about moderate and severe patients, I would say, are what they're putting Emrosi in that category. That would be where the niche is for the brand right now.
Q: QBREXZA was down a little bit in the quarter. How do you see that product? Is that a flattish product? Or should we think about that as a declining product? Just wanted to hear your thoughts on the big picture, long-term view on QBREXZA in these next four to six quarters. A: Claude Maraoui (CEO): QBREXZA is a fantastic product and very meaningful to the company. It brings in roughly about $25 million to $26 million. You'll see some up and down quarters with the brand, and this past one was a little bit light. I would contribute that to patient mix and payer mix. We are going into a very good, strong season for hyperhidrosis, the hotter summer months. We hit over 14,500 prescriptions in June, and we're just shy of the 15,000 mark for July. So demand is increasing, and patient satisfaction with the brand is extremely high. I would expect consistency that you've seen over the last couple of years with this.
Q: On the ex-US out-licensing efforts, including for Emrosi, is there anything IP-related or of sorts like that may also be playing a role there? Or is it just these things can take a little while, especially ex-US where dynamics are very different? A: Ramsey All
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
