Ovid Therapeutics 2025 Q2 Earnings Sharp Earnings Decline Amid Revenue Surge

Ovid Therapeutics (OVID) reported its fiscal 2025 Q2 earnings on Aug 13, 2025. The company posted a significant revenue increase but swung to a net loss. The results reflect a challenging quarter for profitability despite strong top-line growth.

Revenue
Ovid Therapeutics reported total revenue of $6.27 million in Q2 2025, representing a staggering 3611.2% increase compared to $169,000 in the same period the prior year. License revenue alone accounted for the entirety of the reported revenue, with both license and other revenue also totaling $6.27 million. This sharp rise in revenue underscores a one-time or limited-scope licensing event, which appears to have driven the company’s top-line performance for the quarter.

Earnings/Net Income
The company swung to a loss of $0.06 per share in Q2 2025, compared to a profit of $0.12 per share in Q2 2024, marking a 150.0% negative change. Ovid Therapeutics reported a net loss of $4.68 million for the quarter, a 155.0% deterioration from a net income of $8.52 million in the prior-year period. The sharp decline in profitability suggests significant increases in expenses or a drag from R&D or operational costs.

Price Action
The stock price of Ovid Therapeutics has experienced a dramatic upward trend in recent trading periods, surging 52.61% during the latest trading day, 67.74% during the most recent full trading week, and 133.15% month-to-date. This indicates strong investor sentiment, likely driven by the company’s pipeline progress and forward-looking guidance.

Post Earnings Price Action Review
The historical strategy of buying Ovid Therapeutics shares after a revenue report equalled quarter-over-quarter results on the earnings release date and holding for 30 days has underperformed significantly over the past three years. This strategy yielded a compound annual growth rate of -46.13%, with an excess return of -129.66%, far below the benchmark return of 46.32%. Additionally, the strategy exhibited a maximum drawdown of 0.00% and a Sharpe ratio of -0.59, highlighting its high-risk profile with limited downside protection.

CEO Commentary
Dr. Jeremy Levin, D.Phil., MB BChir., Chairman and CEO of Ovid Therapeutics, emphasized the company’s advancing pipeline and key upcoming milestones. Ovid expects to report topline results for the OV329 Phase 1 trial in Q3 2025, with a Phase 2a trial in adults with treatment-resistant focal seizures pending those results. The CEO also highlighted progress in the KCC2 program, including anticipated first-in-human data for OV350 by year-end and IND-enabling work for OV4071, with plans to initiate a Phase 1/1b study in Q2 2026. These developments signal a forward-looking strategy focused on leveraging validated mechanisms to address unmet needs in neurological disorders.

Guidance
Ovid Therapeutics holds $38.3 million in cash, cash equivalents, and marketable securities as of June 30, 2025, which is expected to fund operations through early 2026. The company remains focused on its R&D pipeline and expects to deliver key data points in the near term.

Additional News
Recent news from Nigeria highlighted a range of developments impacting various sectors. The Nigerian government announced plans to unlock $150 billion in dormant land capital to boost economic growth, a move expected to stimulate infrastructure and real estate activity. Meanwhile, Lagos State introduced a new tenancy bill aiming to reduce estate agent fees to 5%, signaling efforts to protect tenants from exploitation. In health, the Federal Government’s 80-bed Mother and Child Specialist Hospital in Oyo State was vandalized, raising concerns about the security of public assets. Additionally, a new partnership between the Petroleum Technology Development Fund (PTDF) and the Nigerian National Petroleum Company (NNPCL) was announced to drive innovation in oil and renewable energy sectors.