What's driving AQST's volatile EPS performance in 2024?

Aquestive Therapeutics (AQST) has experienced a volatile EPS performance in 2024, with a significant loss in the fourth quarter. The company's EPS was -$0.51 for the year, with losses in all quarters except for Q2, where there was a slight improvement. The fluctuating EPS can be attributed to several factors:

|code|Ticker|Name|Date|Diluted EPS YoY|Diluted EPS|market_code|
|---|---|---|---|---|---|---|
|AQST|AQST.O|Aquestive|2024 Q1|-254.5454545454546|-0.17|185|
|AQST|AQST.O|Aquestive|2024 Q2|70|-0.03|185|
|AQST|AQST.O|Aquestive|2024 Q3|-333.33333333333337|-0.13|185|

1. **Research and Development Expenses**: AQST's R&D expenses have increased significantly, from $3.5 million in Q1 2023 to $5.9 million in Q1 2024. This increase is due to the ongoing development of the Anaphylm program. The company's investment in R&D has been a significant expense, impacting its net income and, consequently, its EPS.
2. **Selling, General, and Administrative Expenses**: There has been a rise in SG&A expenses, from $7.5 million in Q1 2023 to $10.7 million in Q1 2024. These expenses are associated with the company's growing operational and administrative costs, which can negatively affect profitability.
3. **Non-GAAP Adjusted EBITDA Loss**: AQST has reported a non-GAAP adjusted EBITDA loss of $7.2 million in Q1 2024, compared to a loss of $3.9 million in Q1 2023. This indicates that the company has been losing more money on a quarterly basis, which would naturally lead to a lower EPS.
4. **Revenue Recognition**: AQST has surpassed consensus revenue estimates three times over the last four quarters. However, the company's revenue growth has not yet translated into profitability, as evidenced by the EPS losses. This could be due to the timing of revenue recognition or the cost structure of the company.

In summary, AQST's volatile EPS performance in 2024 is primarily driven by the company's significant investments in R&D and SG&A, coupled with revenue recognition that has not yet led to profitability.