Why Is Axsome (AXSM) Down 6.6% Since Last Earnings Report?

A month has gone by since the last earnings report for Axsome Therapeutics (AXSM). Shares have lost about 6.6% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Axsome due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Axsome Therapeutics, Inc. before we dive into how investors and analysts have reacted as of late.

Axsome’s Q4 Loss Wider Than Expected, Revenues Surge Y/Y

Axsome incurred a loss of 71 cents per share in the fourth quarter of 2025, wider than the Zacks Consensus Estimate of a loss of 70 cents. The company had incurred a loss of 96 cents per share in the year-ago quarter.

Axsome’s total revenues surged 65% year over year to $196 million in the fourth quarter, beating the Zacks Consensus Estimate of $193 million. The year-over-year increase in revenues can be primarily attributed to strong sales of Auvelity as well as other marketed drugs.

Quarter in Detail

Total revenues in the fourth quarter consisted of product revenues from Auvelity, Sunosi and the newest drug, Symbravo, as well as royalty and milestone revenues.

Net product revenues were $194.7 million in the quarter, reflecting an increase of 66% year over year. Royalty revenues totaled $1.3 million in the quarter, reflecting royalties on Sunosi’s sales in out-licensed territories.

Product revenues in the fourth quarter benefited from the strong sales uptake of Auvelity and Sunosi.

Auvelity recorded sales of $155.1 million, up 68% from the year-ago quarter’s level. Sales of the drug beat the Zacks Consensus Estimate of $151 million.

Per Axsome, around 225,000 prescriptions were recorded for Auvelity in the fourth quarter, reflecting a sequential increase of 8% and a year-over-year increase of 42%.

Sunosi’s net product sales were $36.7 million in the fourth quarter, up 40% from the year-ago quarter’s level. Total prescriptions for Sunosi in the United States grew 11% year over year to 54,000. Sunosi's total prescriptions increased 3% on a sequential basis.

Symbravo recorded sales worth $4.1 million in the fourth quarter, up from $2.1 million recorded in the third quarter of 2025.

Research and development expenses (including stock-based compensation) were $48.8 million, down 11.3% from the year-ago quarter’s level. The decrease was due to the completion of the label expansion studies of Sunosi and AXS-05 in Alzheimer’s disease agitation.

Selling, general and administrative expenses (including stock-based compensation) totaled $169.3 million, up 49.4% year over year. The increase was due to higher commercial activities for Auvelity and the ongoing launch activities for Symbravo and other costs.

As of Dec. 31, 2025, Axsome had cash and cash equivalents worth $322.9 million compared with $325.3 million as of Sept. 30, 2025.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended downward during the past month.

The consensus estimate has shifted -49.28% due to these changes.

VGM Scores

At this time, Axsome has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for value investors.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Axsome has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.

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Axsome Therapeutics, Inc. (AXSM): Free Stock Analysis Report

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