Q3 FY2026
Filed Nov 10, 2026Veradermics reports Q3 2026 net loss of $21.0 million with positive Phase 3 and Phase 2 data for VDPHL01 and cash of $798.4 million
Clinical and regulatory progress is reported as positive and cash of $798.4 million is stated to fund operations into 2030. The P&L shows no revenue line, a net loss of $21.0 million versus $20.1 million a year earlier, and G&A that rose from $2.3 million to $12.7 million, so the financial read is mixed.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Research and development (R&D) expenses, Q3 2026GAAP | $16.1M | – | decrease of $2.0 million |
| General and administrative (G&A) expenses, Q3 2026GAAP | $12.7M | – | increase of $10.5 million |
| Total operating expenses, Q3 2026 (three months ended Sep 30)GAAP | $28.78M | – | – |
| Loss from operations, Q3 2026 (three months ended Sep 30)GAAP | −$28.78M | – | – |
| Interest income, Q3 2026 (three months ended Sep 30)GAAP | $5.10M | – | – |
| Other income, Q3 2026 (three months ended Sep 30)GAAP | $2.68M | – | – |
| Total other income, Q3 2026 (three months ended Sep 30)GAAP | $7.78M | – | – |
| Loss before income taxes, Q3 2026 (three months ended Sep 30)GAAP | −$21.00M | – | – |
| Income tax benefit, Q3 2026 (three months ended Sep 30)GAAP | — | – | – |
| Net loss, Q3 2026GAAP | $21M | – | – |
| Research and development (R&D) expenses, nine months ended Sep 30, 2026GAAP | $55.61M | – | – |
| General and administrative (G&A) expenses, nine months ended Sep 30, 2026GAAP | $32.59M | – | – |
| Total operating expenses, nine months ended Sep 30, 2026GAAP | $88.19M | – | – |
| Loss from operations, nine months ended Sep 30, 2026GAAP | −$88.19M | – | – |
| Interest income, nine months ended Sep 30, 2026GAAP | $12.41M | – | – |
| Other income, nine months ended Sep 30, 2026GAAP | $4.05M | – | – |
| Total other income, nine months ended Sep 30, 2026GAAP | $16.46M | – | – |
| Loss before income taxes, nine months ended Sep 30, 2026GAAP | −$71.73M | – | – |
| Net loss, nine months ended Sep 30, 2026GAAP | −$71.73M | – | – |
| Cash, cash equivalents, and marketable securities, as of Sep 30, 2026GAAP | $798.4M | – | – |
Capital returns
- No share repurchases, dividends or other capital returns are reported in the filing.
What drove it
- Company explanation for the R&D decrease: the $2.0 million decrease was primarily due to decreases in clinical development and other development expenses of VDPHL01, partially offset by an increase in payroll and personnel-related costs, including an increase in stock-based compensation of $0.8 million.
- Company explanation for the G&A increase: the $10.5 million increase was primarily due to an increase in payroll and personnel-related costs, including an increase of $3.1 million in stock-based compensation. G&A also increased due to additional commercial readiness costs and other professional fees.
- Interest income rose to $5,096 thousand in Q3 2026 from $71 thousand in Q3 2025, and to $12,415 thousand for the nine months from $656 thousand. The filing does not state the reason for this increase.
- Clinical milestones reported in the period: positive topline results from Phase 3 Study '304' (October 2026), positive 12-month data from Phase 2/3 Study '302' (November 2026), positive topline Phase 2 results from open-label Study '207' (July 2026), and enrollment completed in Study '306' (August 2026).
Concerns
- The filing reports no revenue line and no product approved for commercial sale.
- Net loss was $21.0 million for Q3 2026 versus $20.1 million for Q3 2025, and the nine-month net loss was $(71,733) thousand versus $(48,148) thousand.
- G&A expenses were $12.7 million for Q3 2026 versus $2.3 million for Q3 2025, and the company cites added commercial readiness costs among the drivers.
- The company states that its success depends on the approval and successful commercialization of VDPHL01, and that adverse events or side effects could arise from its product candidates.
What to watch
- Topline data from Phase 2/3 Study '306' in female pattern hair loss, expected in the first half of 2027.
- Progress toward a potential FDA submission and approval of VDPHL01, which the company describes as potentially the first oral treatment approved for pattern hair loss in nearly 30 years.
- The trajectory of G&A expense as commercial launch preparations continue.
- Whether cash, cash equivalents and marketable securities of $798.4 million fund operations into 2030 as stated.
Balance sheet and cash flow
- Cash, cash equivalents, and marketable securities of $798.4 million as of September 30, 2026, shown in the balance sheet as $798,350 thousand, compared with $141,862 thousand as of December 31, 2025.
- Total assets of $807,215 thousand as of September 30, 2026, compared with $152,619 thousand as of December 31, 2025.
- Total liabilities of $10,744 thousand as of September 30, 2026, compared with $9,156 thousand as of December 31, 2025.
- Total stockholders' equity and redeemable convertible preferred stock of $796,471 thousand as of September 30, 2026, compared with $143,463 thousand as of December 31, 2025.
- The company states that its cash is expected to fund operations into 2030 through multiple Phase 3 readouts and potential commercial launch of VDPHL01.
- No cash flow statement is included in the filing, so operating and free cash flow are not reported.
Analysis
Veradermics reported a third quarter 2026 with no revenue line in the filing and operating expenses of $28,779 thousand, against $20,348 thousand a year earlier. Research and development fell to $16.1 million from $18.1 million, which the company attributes mainly to lower clinical and other development spending on VDPHL01, partly offset by higher personnel costs and $0.8 million of higher stock-based compensation. General and administrative expense rose to $12.7 million from $2.3 million, which the company attributes mainly to payroll and personnel costs, including $3.1 million of higher stock-based compensation, plus commercial readiness costs and professional fees. G&A is now the second largest operating line, and its increase is the main reason the operating loss widened.
Below the operating line, interest income rose to $5,096 thousand from $71 thousand and total other income to $7,780 thousand from $245 thousand. The filing does not explain the interest income increase. These items offset part of the operating loss, so the net loss was $21.0 million against $20.1 million a year earlier, a much smaller widening than the operating loss alone. For the nine months, the operating loss was $(88,194) thousand against $(49,336) thousand, and the net loss was $(71,733) thousand against $(48,148) thousand.
The balance sheet shows cash, cash equivalents and marketable securities of $798,350 thousand at September 30, 2026, up from $141,862 thousand at December 31, 2025, with total assets of $807,215 thousand and total liabilities of $10,744 thousand. The filing does not include a cash flow statement, share count, per-share figure or any capital return. The company states that this cash is expected to fund operations into 2030 through multiple Phase 3 readouts and a potential commercial launch.
The clinical update carries most of the narrative. Phase 3 Study '304' met its primary and secondary endpoints in October 2026, and 12-month data from Phase 2/3 Study '302' were reported in November 2026, with mean non-vellus target area hair count increases of 43.9 hairs/cm2 (BID) and 29.7 hairs/cm2 (QD) at Month 12. Study '306' in women completed enrollment, with topline data guided for the first half of 2027. The filing gives no numeric financial guidance, so there is no basis in this document for judging results against a prior outlook.
Taken together, the reported figures show an unchanged absence of revenue, a higher G&A base tied to commercial readiness, and a cash position that the company describes as sufficient into 2030. The clinical items are described as positive by the company. The financial figures are reported without any guidance to compare them with.
Management, verbatim
These accomplishments bring us closer to addressing a significant unmet need in pattern hair loss for both men and women.
Reid Waldman, M.D., Chief Executive Officer
We remain well capitalized to continue the development of VDPHL01
Reid Waldman, M.D., Chief Executive Officer
Not in the filing
stated, not guessed- No revenue or product sales line is printed in the filing.
- No gross margin or cost of sales is printed, since the company reports no product revenue.
- No income tax rate or income tax expense figure beyond the printed income tax benefit dash.
- No earnings per share (GAAP or non-GAAP) is printed.
- No non-GAAP measures are printed.
- No numeric financial guidance is printed for revenue, operating expenses, tax rate or other metrics.
- No prior-quarter (Q2 2026) comparison is printed for any income statement line.
- Year-over-year percentage changes for total operating expenses, loss from operations and other income lines are not printed.
- The prior-period comparison for cash, cash equivalents and marketable securities is December 31, 2025, not a prior quarter; no same-quarter prior balance is printed.
- No cash flow statement, so operating cash flow, investing cash flow and free cash flow are not reported.
- No share repurchases, dividends or other capital returns are reported.
- No share count or weighted average share data is printed.
- No segment or geographic revenue breakdown is provided.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.