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Dermata Therapeutics, Inc. (DRMA)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 delivered a clinical milestone: XYNGARI™ Phase 3 STAR-1 met all three co-primary endpoints with highly statistically significant efficacy, strengthening the acne program narrative and partnership optionality .
  • Financially, operating expenses declined YoY and versus Q3 2024, driving a narrower net loss and EPS; cash increased to $9.7M, extending runway into Q1 2026 .
  • EPS significantly beat sparse Street expectations: actual EPS of -$0.45 vs consensus -$4.50*, revenue in-line at $0.00*; note limited coverage (one estimate) and shifting share count reduces comparability (likely the primary reason for the magnitude of “beat”)* .
  • Execution catalysts: STAR-2 initiation targeted by end of 2025 and Phase 2a DMT410-DAXXIFY® trial preparation continued, plus Q1 fundraises of $8.8M improved liquidity—key drivers for near-term stock narrative .

What Went Well and What Went Wrong

What Went Well

  • Phase 3 success: STAR-1 met all primary endpoints at Week 12; management reinforced rapid onset by achieving significant separation from placebo by Week 4 .
  • Strengthened cash runway: cash rose to $9.7M, with runway now guided into Q1 2026, supported by ~$8.5M financing proceeds in Q1 .
  • Strategic momentum: collaboration with Revance to study DMT410 with DAXXIFY® for axillary hyperhidrosis broadens the platform’s potential .

Selected quotes

  • “We believe the consistent results from our previous clinical studies and this Phase 3 trial derisks the planned second Phase 3 trial…” — CEO Gerry Proehl .
  • “Once-weekly topical… could lead to improved patient compliance.” — Dr. Sunil Dhawan (clinical investigator) .
  • “The clinical response observed… gives us confidence that XYNGARI™… could alter the current treatment paradigm in acne.” — Christopher Nardo, Ph.D. (CDO) .

What Went Wrong

  • No commercial revenue; the Opex-only P&L continues, keeping results dependent on financing and cost control .
  • R&D cadence still tied to trial timelines; while Q1 Opex fell YoY, the program requires continued spend to initiate STAR-2 and complete extension study .
  • Limited Street coverage (one estimate) and evolving share count risk misinterpretation of EPS beats/misses and complicate comp sets and valuation comparability* .

Financial Results

Summary P&L and Liquidity (USD, thousands unless noted)

Periods ordered oldest → newest

MetricQ3 2024Q4 2024Q1 2025
Revenue ($USD)$0.00*$0.00*$0.00*
Total Operating Expenses$3,225 $3,200*$2,339
Net Loss$(3,173) $(3,151)*$(2,303)
Diluted EPS$(2.04) $(9.17)*$(0.45)
Cash and Equivalents$6,144 $3,162 $9,719

Values marked with an asterisk (*) retrieved from S&P Global.

Operating Expense Detail (USD, thousands)

MetricQ3 2024Q4 2024Q1 2025
Research & Development$2,401 N/A$1,281
General & Administrative$824 N/A$1,058
Stock-based comp (R&D)$5 N/A$8
Stock-based comp (G&A)$16 N/A$29

YoY Comparison (Q1 2025 vs Q1 2024)

MetricQ1 2024Q1 2025YoY Change
Research & Development ($USD)$1,600 $1,281 -$319
General & Administrative ($USD)$1,603 $1,058 -$545
Net Loss ($USD)$(3,134) $(2,303) +$831
Diluted EPS ($)$(7.06) $(0.45) +$6.61
Weighted Avg Shares443,998 5,154,698 +4,710,700

Note: EPS comparability impacted by share count changes .

KPIs (Selected)

KPIQ3 2024Q4 2024Q1 2025
Accounts Payable$864 $808 $1,395
Accrued Liabilities$1,082 $1,165 $1,308
Total Assets$6,687 $3,534 $10,005
Equity$4,741 $1,561 $7,302

Estimates vs Actuals (Q1 2025)

MetricConsensus (Q1 2025)Actual (Q1 2025)Result
Revenue ($USD)$0.00*$0.00*In line*
EPS ($)-$4.50*-$0.45 Beat*

Values marked with an asterisk (*) retrieved from S&P Global.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Cash RunwayCorporateInto Q3 2025 Into Q1 2026 Raised
XYNGARI™ STAR-2 InitiationProgram“Second half 2025 planned” “By end of 2025” Maintained timing window; specificity increased
DMT410-DAXXIFY® Phase 2a PrepProgramOngoing prep Ongoing prep Maintained

No quantitative revenue/margin/OpEx/tax guidance provided .

Earnings Call Themes & Trends

Note: No Q1 2025 earnings call transcript was available; themes reflect disclosed press releases and 8-Ks.

TopicPrevious Mentions (Q3 2024, Q4 2024)Current Period (Q1 2025)Trend
Clinical progress (acne)Nearing/Completed enrollment; topline by Q1’25 STAR-1 met all primary endpoints; Week 4 separation Improving momentum
DMT410 botulinum toxinPartnership discussions ongoing Revance collaboration signed; Phase 2a prep Executing partnerships
Financing/LiquidityRaised $5.1M in 3Q’24; runway into 2Q’25 Raised $8.8M in Q1’25; runway into Q1’26 Strengthened runway
Regulatory pathTwo Phase 3 + extension required for NDA Reinforced plan; STAR-2 by end-2025 Clearer near-term steps
Cost disciplineQ3 G&A lower YoY; insurance reductions G&A down YoY; audit fees and SBC lower Opex efficiency improving

Management Commentary

  • “We… are happy to see that hard work has paid off with such positive results… well positions XYNGARI™ to potentially be the first once-weekly, natural, topical treatment for moderate-to-severe acne, if approved.” — Gerry Proehl, CEO .
  • “Having a once-weekly topical… like XYNGARI™ would be a great addition… could lead to improved patient compliance.” — Dr. Sunil Dhawan .
  • “The clinical response… gives us confidence that XYNGARI™… could alter the current treatment paradigm in acne.” — Christopher Nardo, Ph.D. .
  • “We see a lot of potential uses for our DMT410 program… with a long-lasting botulinum toxin, like DAXXIFY®…” — Gerry Proehl .

Q&A Highlights

No Q1 2025 earnings call transcript or Q&A published/found; the company communicated via press release and 8-K .

Estimates Context

  • Coverage thin (one estimate), consensus EPS -$4.50* and revenue $0.00* for Q1 2025; actual EPS -$0.45, revenue consistent with zero .
  • The large “beat” on EPS is primarily a function of capital structure/share count changes and lower Opex (audit fees and SBC reductions), rather than revenue upside; investors should normalize for share-count dynamics before concluding sustainable EPS momentum .
    Values marked with an asterisk (*) retrieved from S&P Global.

Key Takeaways for Investors

  • XYNGARI™ Phase 3 success materially de-risks the acne program and enhances partnering potential; watch for STAR-2 initiation by end-2025 and extension study design .
  • Liquidity improved and runway extended into Q1 2026, reducing near-term financing overhang; financing remains a lever as development continues .
  • Opex discipline drove a narrower loss and better-than-expected EPS; monitor sustainability of G&A savings (audit fees/SBC) and R&D cadence into STAR-2 .
  • With no revenue and limited coverage, valuation hinges on clinical/regulatory milestones and partnership economics rather than traditional multiples .
  • Short-term trading: Phase 3 data and runway extension are positive catalysts; headline risk remains tied to STAR-2 timelines and any regulatory interactions .
  • Medium-term thesis: Once-weekly profile and compliance angle can differentiate XYNGARI™ if approved; DMT410-DAXXIFY® opens optionality across hyperhidrosis and aesthetics .
  • Maintain focus on update cadence: STAR-2 manufacturing campaign, trial start, and any commercial rights/partnering updates could reset expectations and drive stock narrative .