Executive Summary

Dermata reported a smaller net loss of $1.70M and diluted EPS of ($1.66) in Q2 2025; EPS was better than S&P consensus by $1.24 (consensus ($2.90)), driven by a sharp YoY decline in R&D as STAR-1 costs fell. Revenue remained $0, in line with expectations .*
Cash runway improved: management now expects liquidity to fund operations into Q2 2026 (vs Q1 2026 previously), aided by $8.8M in H1 2025 financings; cash was $6.48M at quarter-end .
Clinical narrative strengthened: full Phase 3 STAR-1 dataset confirmed statistically significant co-primary endpoints at weeks 4 and 12, with detailed lesion reductions and IGA response supportive of efficacy claims .
Strategic watch items/catalysts: decision/timing for STAR-2 initiation (currently “evaluating next steps”), potential XYNGARI partnership, and execution of the Revance hyperhidrosis Phase 2a; also note listing risk alleviated with Nasdaq compliance regained Aug 22, 2025 .

What Went Well and What Went Wrong

What Went Well

Positive STAR-1 completion and full data readout: “XYNGARI™ achieved statistically significant results for its three co-primary endpoints at weeks 4 and 12,” reinforcing rapid onset and durability (CEO quote) .
Operating discipline as trials wind down: R&D fell to $0.62M in Q2 from $2.01M YoY, lowering total OpEx to $1.77M from $2.88M YoY .
Balance sheet de-risking: $8.8M gross proceeds raised across H1 2025; runway extended to Q2 2026; Nasdaq minimum bid deficiency resolved on Aug 22, 2025 .

What Went Wrong

STAR-2 timing not reaffirmed: management is “evaluating next steps” for STAR-2 versus Q1 guidance to initiate by year-end 2025—raising timing uncertainty on the registrational path .
Ongoing going-concern risk: despite runway extension, the company still flags substantial doubt and expects continued losses until additional financing/partnerships are secured .
Supply chain exposure: sole-source Spongilla material from a Russian counterparty remains a geopolitical risk despite current inventory sufficient for two Phase 3 studies .

Financial Results

Results vs Estimates (Q2 2025)

Metric	Q2 2025 Actual	S&P Consensus	Surprise
Revenue ($M)	$0.00	$0.00*	In line
Diluted EPS ($)	($1.66)	($2.90)*	+$1.24 (beat)

*Values retrieved from S&P Global.

Quarterly P&L and Per-Share Metrics

Metric	Q2 2024	Q1 2025	Q2 2025
Research & Development ($M)	$2.01	$1.28	$0.62
General & Administrative ($M)	$0.87	$1.06	$1.15
Total Operating Expenses ($M)	$2.88	$2.34	$1.77
Net Loss ($M)	($2.83)	($2.30)	($1.70)
Diluted EPS ($)	($41.82)	($0.45)	($1.66)
Weighted Avg Shares (000s)	67.7	5,154.7	1,026.5

Notes: Per-share figures retroactively reflect the 1-for-10 reverse split effected Aug 1, 2025 .

Liquidity

Metric	Q2 2024	Q1 2025	Q2 2025
Cash & Cash Equivalents ($M)	—	$9.72	$6.48

Clinical KPIs (STAR-1 – Efficacy Highlights)

KPI (Week 12 unless noted)	XYNGARI	Placebo	p-value
IGA Success Rate (%)	29.4%	15.2%	<0.001
Inflammatory Lesion Reduction (Abs)	-16.8	-13.1	<0.001
Noninflammatory Lesion Reduction (Abs)	-17.3	-12.4	<0.001
IGA Success (%) Week 4 / 8	11.9 / 21.6	6.2 / 8.0	—

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Cash Runway	Company runway	Funded into Q1 2026	Funded into Q2 2026	Raised
XYNGARI STAR-2 Start	Initiation timing	Plan to initiate by YE 2025	Evaluating next steps	Timing under evaluation
DMT410 + DAXXIFY Phase 2a (Revance)	Next step	Finalize design/start-up	Continue collaboration & start-up prep	Maintained
Nasdaq Compliance	Listing	Exception to Aug 14, 2025	Regained compliance Aug 22, 2025	Resolved

Earnings Call Themes & Trends

Note: No Q2 2025 earnings call transcript was available in company documents; themes below reflect disclosures in the 8-K/10-Q and prior quarter releases.

Topic	Previous Mentions (Q4’24 and Q1’25)	Current Period (Q2’25)	Trend
XYNGARI Efficacy	Expected STAR-1 topline by Mar-25 -; announced positive topline in Mar/Apr	Full dataset confirms sig. co-primary endpoints; rapid onset at week 4	Strengthening
Regulatory Path	STAR-2 + extension required before NDA	STAR-2 under evaluation; extension to follow	Timing less certain near-term
Manufacturing/Supply	—	Additional manufacturing initiated for STAR-2 ; Spongilla sourced from Russia with stock for two Phase 3s	Watch risk; inventory adequate
Financing/Runway	$2.55M PIPE Jan-25; runway into Q3’25	$8.8M H1 raises; runway to Q2’26	Improved
Nasdaq Listing	—	Exception granted to Aug 14, 2025 ; compliance regained Aug 22, 2025	Resolved
DMT410/Revance	Collaboration signed Jan-25	Phase 2a design/start-up ongoing	On track

Management Commentary

“We are very excited to have received the full data set from our Phase 3 STAR-1 trial of XYNGARI™ showing that XYNGARI™ achieved statistically significant results for its three co-primary endpoints at weeks 4 and 12.” – Gerald T. Proehl, CEO .
“We believe these data show that… it also works as early as week four… our team continues to work hard to make this happen.” – CEO .
Prior quarter context: “It was an exciting quarter… positive topline results… achieving statistically significant results of its three co-primary endpoints at all time points.” – CEO (Q1) .

Q&A Highlights

No earnings call transcript was available in the filing set; no Q&A items to report based on company documents reviewed.

Estimates Context

Q2 2025 EPS beat: Actual ($1.66) vs S&P consensus ($2.90), a $1.24 beat; revenue $0 in line with consensus $0, noting only one covering estimate for each metric .*
Potential estimate implications: With STAR-1 completion, R&D run-rate was lower YoY; however, management reiterates it anticipates continued losses and future OpEx tied to STAR-2 and DMT410 activities, which could limit downward revisions to out-quarter loss forecasts .