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Verrica Pharmaceuticals Inc. (VRCA) Fundamental Analysis & AI Grade 2026

VRCA Nasdaq Pharmaceutical Preparations DE CIK: 0001660334
Updated This Month • Analysis: May 14, 2026 • SEC Data: 2026-03-31
Combined AI Grade
B
58% Confidence
N/A
B
58% Conf
Pending
Analysis scheduled

📊 VRCA Key Takeaways

Revenue: $5.0M
Net Margin: -192.8%
Free Cash Flow: $-9.2M
Current Ratio: 2.10x
Debt/Equity: 0.00x
EPS: $-0.45
AI Grade: B with 58% confidence
Verrica Pharmaceuticals Inc. (VRCA) receives a B fundamental grade with 58% confidence from our AI analysis based on SEC 10-K filings. With revenue of $5.0M, net profit margin of -192.8%, and return on equity (ROE) of -60.3%, Verrica Pharmaceuticals Inc. demonstrates mixed fundamentals in the Healthcare sector. Below is our complete VRCA stock analysis for 2026.

Is Verrica Pharmaceuticals Inc. (VRCA) a Good Investment?

Claude

Verrica demonstrates impressive revenue growth of 370% YoY and maintains a solid cash position with zero long-term debt, indicating near-term financial viability. However, the company is deeply unprofitable with operating losses of $9.7M on just $5M revenue and negative free cash flow of $9.2M, providing limited runway without demonstrated progress toward profitability or achievement of major commercialization milestones.

Verrica Pharmaceuticals Inc. Key Strengths (VRCA)

Claude
  • + Strong top-line revenue growth of 370% YoY demonstrates early market traction and product acceptance
  • + Solid cash position of $20.6M representing 53% of total assets with zero long-term debt reduces financial distress risk
  • + Healthy liquidity ratios (current 2.10x, quick 1.98x) provide adequate short-term financial flexibility

VRCA Stock Risks: Verrica Pharmaceuticals Inc. Investment Risks

Claude
  • ! Deeply unprofitable with operating losses of $9.7M exceeding revenue of $5M by 194%, indicating unsustainable unit economics
  • ! Negative free cash flow of $9.2M with approximately 2 years of cash runway at current burn rate without profitability inflection
  • ! Very small absolute revenue base from nascent commercialization makes path to sustainable profitability unclear and subject to execution risk

Key Metrics to Watch

Claude
  • * Operating cash flow trajectory toward break-even and timeline to profitability
  • * Revenue growth sustainability, product adoption rates, and gross margin expansion
  • * Cash burn rate and timing of next financing event or need for capital raise

Verrica Pharmaceuticals Inc. (VRCA) Financial Metrics & Key Ratios

Revenue
$5.0M
Net Income
$-9.7M
EPS (Diluted)
$-0.45
Free Cash Flow
$-9.2M
Total Assets
$38.8M
Cash Position
$20.6M

💡 AI Analyst Insight

Strong liquidity with a 2.10x current ratio provides a solid financial cushion.

VRCA Profit Margin, ROE & Profitability Analysis

Gross Margin N/A
Operating Margin -193.4%
Net Margin -192.8%
ROE -60.3%
ROA -25.0%
FCF Margin -182.4%

VRCA vs Healthcare Sector: How Verrica Pharmaceuticals Inc. Compares

How Verrica Pharmaceuticals Inc. compares to Healthcare sector averages

Net Margin
VRCA -192.8%
vs
Sector Avg 12.0%
VRCA Sector
ROE
VRCA -60.3%
vs
Sector Avg 15.0%
VRCA Sector
Current Ratio
VRCA 2.1x
vs
Sector Avg 2.0x
VRCA Sector
Debt/Equity
VRCA 0.0x
vs
Sector Avg 0.6x
VRCA Sector

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.

Return on Equity
-60.3%
Sector avg: 15%
Net Profit Margin
-192.8%
Sector avg: 12%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.00x
Sector avg: 0.6x

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

Current Ratio
2.10x
Quick Ratio
1.98x
Debt/Equity
0.00x
Debt/Assets
58.6%
Interest Coverage
-2.07x
Long-term Debt
$0.0

VRCA Revenue & Earnings Growth: 5-Year Financial Trend

VRCA 5-year financial data: Year 2021: Revenue $12.0M, Net Income -$42.7M, EPS N/A. Year 2022: Revenue $12.0M, Net Income -$35.1M, EPS $-1.30. Year 2023: Revenue $9.0M, Net Income -$24.5M, EPS $-0.72. Year 2024: Revenue $7.6M, Net Income -$67.0M, EPS $-1.48.
Revenue
Net Income
EPS (right axis)

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

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-182.4%
Free cash flow / Revenue

VRCA Quarterly Earnings & Performance

Quarterly financial performance data for Verrica Pharmaceuticals Inc. including revenue, net income, and earnings per share.
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

Operating Cash Flow
-$9.2M
Cash generated from operations
Dividends
None
No dividend program

VRCA SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for Verrica Pharmaceuticals Inc. (CIK: 0001660334)

📋 Recent SEC Filings

Date Form Document Action
Jun 9, 2026 4 xslF345X06/form4-06092026_040606.xml View →
Jun 9, 2026 4 xslF345X06/form4-06092026_040603.xml View →
Jun 9, 2026 4 xslF345X06/form4-06092026_040601.xml View →
Jun 9, 2026 4 xslF345X06/form4-06092026_040614.xml View →
Jun 9, 2026 4 xslF345X06/form4-06092026_040612.xml View →

Frequently Asked Questions about VRCA

What is the AI rating for VRCA?

Verrica Pharmaceuticals Inc. (VRCA) has an AI grade of B with 58% confidence, based on fundamental analysis of SEC EDGAR filings.

What are VRCA's key strengths?

Claude: Strong top-line revenue growth of 370% YoY demonstrates early market traction and product acceptance. Solid cash position of $20.6M representing 53% of total assets with zero long-term debt reduces financial distress risk.

What are the risks of investing in VRCA?

Claude: Deeply unprofitable with operating losses of $9.7M exceeding revenue of $5M by 194%, indicating unsustainable unit economics. Negative free cash flow of $9.2M with approximately 2 years of cash runway at current burn rate without profitability inflection.

What is VRCA's revenue and growth?

Verrica Pharmaceuticals Inc. reported revenue of $5.0M.

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 $-0.45.

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 grade reflects both perspectives for balanced insights.

What is VRCA's fundamental grade?

Based on our AI fundamental analysis in June 2026, Verrica Pharmaceuticals Inc. has a B grade with 58% confidence. Review the strengths and risks sections above for full context. This is not investment advice.

Is VRCA stock overvalued or undervalued?

Valuation metrics for VRCA: ROE of -60.3% (sector avg: 15%), net margin of -192.8% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.

What is VRCA's AI grade for 2026?

Our dual AI analysis gives Verrica Pharmaceuticals Inc. a combined B grade 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 $-9.2M, with capital expenditures of $0.0. FCF margin is -182.4%.

How does VRCA compare to other Healthcare stocks?

Vs Healthcare sector averages: Net margin -192.8% (avg: 12%), ROE -60.3% (avg: 15%), current ratio 2.10 (avg: 2).

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: May 14, 2026 | Data as of: 2026-03-31 | Powered by Claude AI