Verrica Pharmaceuticals Inc.
VRCA Healthcare Biotechnology
Verrica Pharmaceuticals Inc.’s revenue for fiscal 2025 (year ended December 2025) was $35.6 million, up 370.2% from fiscal 2024. In the quarter to June 2026, revenue fell 53.9%, EPS fell 3,200.0%, free cash flow grew 7.63% and total debt fell 97.9%, each against the same quarter a year earlier. Insiders bought in the last twelve months.
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Verrica Pharmaceuticals Inc. (VRCA) Altman Z-score
Verrica Pharmaceuticals Inc.'s Altman Z-score for fiscal 2025 is −6.71, in the distress zone (below 1.81).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | −6.71 | 4.27 |
| FY2024 | −10.99 | (8.55) |
| FY2023 | −2.44 | (8.93) |
| FY2022 | 6.49 | 6.49 |
| FY2021 | −0.00 | — |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.55 | — | 0.66 | |
| Retained earnings / total assets | (6.89) | — | −9.65 | |
| EBIT / total assets | (0.26) | — | −0.85 | |
| Market value of equity / total liabilities | 3.95 | — | 2.37 | |
| Sales / total assets | 0.75 | — | 0.75 | |
| Altman Z-score | Distress zone | −6.71 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Distress zone | −19.42 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| XBIT XBiotech Inc. compare | 11.7× |
| SPRO Spero Therapeutics, Inc. compare | 1.0× |
| CSBR Champions Oncology, Inc. compare | 0.0× |
| FBIO Fortress Biotech, Inc. compare | −5.5× |
| HYFT MindWalk Holdings Corp. compare | −5.6× |
| VRCA Verrica Pharmaceuticals Inc. | −6.7× |
| NMAD Nomad Power Solutions, Inc. compare | — |
| CING Cingulate Inc. compare | — |
| OSTX OS Therapies Incorporated compare | — |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets