📊 VRCA Key Takeaways
Is Verrica Pharmaceuticals Inc. (VRCA) a Good Investment?
Despite exceptional 370% YoY revenue growth, Verrica exhibits fundamental financial distress with -$17.6M operating cash burn, -50.3% net margins, and negative returns on equity (-72.3%). With $30.1M cash reserves against current annual burn rates, the company has limited runway unless it rapidly achieves profitability or secures capital, making the growth trajectory unsustainable at current cost structure.
Why Buy Verrica Pharmaceuticals Inc. Stock? VRCA Key Strengths
- Exceptional 370% YoY revenue growth indicates strong market validation of product
- Fortress balance sheet with $30.1M cash, zero long-term debt, and healthy liquidity ratios (2.59x current ratio)
- Improving profitability trajectory with net loss declining 76.6% YoY and EPS improving 88.6% YoY
VRCA Stock Risks: Verrica Pharmaceuticals Inc. Investment Risks
- Severe cash burn of $17.6M annually with negative operating cash flow despite high revenue growth, indicating broken unit economics or unsustainable cost structure
- Extreme profitability deficit: -50.3% net margin, -34.2% operating margin, -72.3% ROE indicates value destruction even as revenues scale
- Limited cash runway of approximately 1.7 years at current burn rate without achieving positive cash flow or raising capital
- No insider stock purchases in last 90 days despite high growth period, suggesting management lacks confidence
- Pharmaceutical sector execution risk: high R&D and commercialization costs may not scale efficiently with revenue
Key Metrics to Watch
- Quarterly operating cash flow trajectory and timing to cash flow breakeven
- Quarterly gross margin and SG&A expense ratio trends to assess operational leverage
- Quarterly revenue growth rate deceleration and cash balance to model remaining runway
Verrica Pharmaceuticals Inc. (VRCA) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.59x current ratio provides a solid financial cushion.
VRCA Profit Margin, ROE & Profitability Analysis
VRCA vs Healthcare Sector: How Verrica Pharmaceuticals Inc. Compares
How Verrica Pharmaceuticals Inc. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Verrica Pharmaceuticals Inc. Stock Overvalued? VRCA Valuation Analysis 2026
Based on fundamental analysis, Verrica Pharmaceuticals Inc. has mixed fundamental signals relative to the Healthcare sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Verrica Pharmaceuticals Inc. Balance Sheet: VRCA Debt, Cash & Liquidity
VRCA Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Verrica Pharmaceuticals Inc.'s revenue has declined by 37% over the 5-year period, indicating business contraction. The most recent EPS of $-14.78 indicates the company is currently unprofitable.
VRCA Revenue Growth, EPS Growth & YoY Performance
VRCA Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2025 | $5.2M | $204.0K | $0.02 |
| Q1 2025 | $3.4M | -$9.7M | $-0.10 |
| Q3 2024 | -$1.8M | -$6.6M | $-0.49 |
| Q2 2024 | $182.0K | -$6.6M | $-0.24 |
| Q1 2024 | $37.0K | -$6.6M | $-0.15 |
| Q3 2023 | $2.9M | $83.0K | $0.00 |
| Q2 2023 | $182.0K | -$6.6M | $-0.24 |
| Q1 2023 | $37.0K | -$6.6M | $-0.15 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Verrica Pharmaceuticals Inc. Dividends, Buybacks & Capital Allocation
VRCA SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Verrica Pharmaceuticals Inc. (CIK: 0001660334)
📋 Recent SEC Filings
❓ Frequently Asked Questions about VRCA
What is the AI rating for VRCA?
Verrica Pharmaceuticals Inc. (VRCA) has an AI rating of SELL with 70% confidence, based on fundamental analysis of SEC EDGAR filings.
What are VRCA's key strengths?
Claude: Exceptional 370% YoY revenue growth indicates strong market validation of product. Fortress balance sheet with $30.1M cash, zero long-term debt, and healthy liquidity ratios (2.59x current ratio).
What are the risks of investing in VRCA?
Claude: Severe cash burn of $17.6M annually with negative operating cash flow despite high revenue growth, indicating broken unit economics or unsustainable cost structure. Extreme profitability deficit: -50.3% net margin, -34.2% operating margin, -72.3% ROE indicates value destruction even as revenues scale.
What is VRCA's revenue and growth?
Verrica Pharmaceuticals Inc. reported revenue of $35.6M.
Does VRCA pay dividends?
Verrica Pharmaceuticals Inc. does not currently pay dividends.
Where can I find VRCA SEC filings?
Official SEC filings for Verrica Pharmaceuticals Inc. (CIK: 0001660334) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is VRCA's EPS?
Verrica Pharmaceuticals Inc. has a diluted EPS of $-1.68.
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.
Is VRCA a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Verrica Pharmaceuticals Inc. has a SELL rating with 70% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is VRCA stock overvalued or undervalued?
Valuation metrics for VRCA: ROE of -72.3% (sector avg: 15%), net margin of -50.3% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy VRCA stock in 2026?
Our dual AI analysis gives Verrica Pharmaceuticals Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is VRCA's free cash flow?
Verrica Pharmaceuticals Inc.'s operating cash flow is $-17.6M, with capital expenditures of $0.0. FCF margin is -49.5%.
How does VRCA compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin -50.3% (avg: 12%), ROE -72.3% (avg: 15%), current ratio 2.59 (avg: 2).