Overview

* Dermata reports Q3 net loss of $1.7 mln, with decreased R&D expenses

* Company shifts focus to OTC dermatology products, plans 2026 product launch

* Cash reserves increased to $4.7 mln, expected to fund operations into Q2 2026

Outlook

* Dermata plans to launch its first OTC acne kit in mid-2026

* Company expects to fund operations into Q2 2026 with current cash

* Dermata working on brand identity for OTC product portfolio

Result Drivers

* STRATEGIC PIVOT - Dermata shifed focus to OTC skincare to meet consumer demand for accessible dermatologic solutions

* Research and development expenses were $0.5 million for the quarter ended September 30, 2025, compared to $2.4 million for the quarter ended September 30, 2024.

* CLINICAL SUCCESS - Positive results from XYNGARI Phase 3 trial support OTC product development

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Net -$1.69

Income mln

Q3 Basic -$1.65

EPS

Q3 $1.76

Operatin mln

g

Expenses

Q3 -$1.76

Operatin mln

g Income

Analyst Coverage

* The one available analyst rating on the shares is "buy"

* The average consensus recommendation for the biotechnology & medical research peer group is "buy"

* Wall Street's median 12-month price target for Dermata Therapeutics Inc ( DRMA ) is $10.00, about 68.6% above its November 13 closing price of $3.14

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)