Aquestive 2025 Q1 Earnings Misses Targets as Net Income Drops 78.7%

Aquestive Therapeutics (AQST) reported its fiscal 2025 Q1 earnings on May 12th, 2025. The company fell short of expectations as revenue dropped significantly by 27.6% to $8.72 million compared to the previous year. The net loss widened to $22.93 million, a substantial increase of 78.7% from the $12.83 million loss in Q1 2024. Aquestive adjusted its full-year 2025 guidance downward following changes in regulatory status for Libervant and paused its sales and marketing activities. Investors are advised to proceed with caution due to the negative sentiment and financial performance.

Revenue

Aquestive's revenue for Q1 2025 declined by 27.6% compared to the same period last year. Manufacture and supply revenue amounted to $7.19 million, while license and royalty revenue totaled $790,000. Co-development and research fees contributed $418,000, and proprietary product revenue, net, added $319,000, bringing the total revenue to $8.72 million.

Earnings/Net Income

Aquestive's losses widened considerably, with EPS at -$0.24 compared to -$0.17 in the previous year, signaling a deeper financial struggle.

Post-Earnings Price Action Review

The strategy of purchasing Aquestive Therapeutics (AQST) stock following a revenue miss and holding for 30 days is deemed high-risk, with potential for significant loss. The company's recent financial performance has been lackluster, marked by a 27.6% revenue decline in Q1 2025 compared to the prior year. This decline signals potential operational challenges. Despite a consensus "Buy" rating, analysts exhibit caution, setting a lower average price target and indicating a bearish short-term outlook. Moreover, AQST has underperformed the market, with shares losing about 21.6% year-to-date, contrasting with the S&P 500's 3.8% decline. While the company has made strides in product development, its long-term financial health remains uncertain. Given the current negative sentiment, investors should be wary of further stock price declines in the short term.

CEO Commentary

Daniel Barber, President and CEO, expressed optimism about the NDA submission for Anaphylm, highlighting its potential as the first oral treatment for severe allergic reactions. The company is focusing on Anaphylm's pre-commercial efforts and will not appeal the Libervant court decision.

Guidance

Aquestive expects to receive FDA notice regarding the NDA submission for Anaphylm in Q2 2025. The company plans for a commercial launch in the first half of 2026, pending approval. Regulatory submissions in Europe and Canada will follow, with a Phase 2a clinical trial for AQST-108 set for early 2026.

Additional News

Besides earnings, Aquestive has been actively engaging with the investor community. The company announced its participation in the Citizens Life Sciences Conference held in early May 2025 in New York City, where management conducted a fireside chat and engaged in one-on-one meetings with investors. Additionally, Aquestive presented new findings on Anaphylm at the 2025 AAAAI Annual Meeting, showcasing its resilience under extreme conditions and consistent pharmacokinetic performance. These events highlight Aquestive's ongoing efforts to bolster investor relations and scientific credibility amidst challenging financial performance.