Soleno Therapeutics Posts Strong Q2 Earnings, Expects Continued Growth Despite Challenges.

Soleno Therapeutics reported Q2 net revenue of $32.7 million, a significant leap from zero revenue in the same period last year. The company successfully launched Vykat XR for hyperphagia in Prader-Willi Syndrome and achieved broad payer coverage, with approximately 33% of all insured lives covered. Soleno also bolstered its financial position by raising an additional $230 million, bringing its total cash balance to over $500 million. Despite potential challenges with inventory and revenue normalization, the overall sentiment remains optimistic.

Soleno Therapeutics (SLNO) reported its earnings for the second quarter of 2025, marking a significant leap from zero revenue in the same period last year. The company achieved a net revenue of $32.7 million, a substantial increase from the previous year [1]. This impressive performance can be attributed to the successful launch of Vykat XR, the first FDA-approved treatment for hyperphagia in Prader-Willi Syndrome (PWS).

The company's earnings per share (EPS) of -$0.09 exceeded expectations, with a positive surprise of 85.94%, and revenue reached $32.7 million, more than doubling the anticipated $15.35 million, resulting in a 113.03% revenue surprise [1]. These strong financial results highlight Soleno’s effective execution and market strategy.

Following the earnings release, Soleno Therapeutics' stock experienced a slight decline of 0.54% in after-hours trading, closing at $81.19. Despite the minor dip, the stock's beta of -2.56 indicates it often moves counter to market trends [1]. Analyst price targets range from $97 to $145, suggesting potential upside, though current analysis indicates the stock may be trading above its Fair Value.

Soleno Therapeutics bolstered its financial position by raising an additional $230 million, bringing its total cash balance to over $500 million. The company also achieved broad payer coverage, with approximately 33% of all insured lives covered for Vykat XR [1].

Looking ahead, Soleno Therapeutics is optimistic about reaching cash flow positivity in the near term. The company projects annual cash operating expenses of $120-130 million, with a potential modest increase to $140 million. Soleno is also exploring opportunities for a European launch of Vykat XR and considering future portfolio diversification [1].

The company's new product, Vykat XR, has been well-received in the market, and the company is exploring opportunities for European market expansion. However, market entry barriers in Europe could delay product expansion, and potential increases in operating expenses may impact profitability. Macroeconomic factors and healthcare policy changes could also affect market dynamics [1].

References:
[1] https://www.investing.com/news/transcripts/earnings-call-transcript-soleno-therapeutics-beats-q2-2025-forecasts-with-strong-revenue-93CH-4175171