Vistagen 2026 Q2 Earnings Widening Losses as Net Income Drops 49.8%

Vistagen (VTGN) reported fiscal 2026 Q2 earnings on Nov 14, 2025, with revenue rising 41% to $258,000 but net losses expanding sharply. The stock edged higher on the day but declined weekly and monthly, reflecting mixed investor sentiment.

The company’s total revenue for Q2 2026 reached $258,000, driven entirely by sublicensing and other revenue streams, marking a 41.0% increase from the $183,000 recorded in the prior-year quarter. This growth, however, was overshadowed by a 49.8% year-over-year expansion in net losses to $19.42 million, or $0.54 per share.

The EPS of -$0.54 reflects a deteriorating financial outlook, with losses expanding significantly year-over-year. The strategy of buying VTGN shares on earnings release dates and holding for 30 days showed mixed performance over the past three years. While the approach generated a 28.95% total return over 36 quarters, volatility was pronounced, with a standard deviation of 20.46%. Cumulative returns surged in the first post-earnings quarter but declined in the second, a pattern observed consistently. Annualized returns ranged from a high of 48.67% to a low of -15.23%, underscoring the strategy’s high-risk profile. Positive returns occurred in 19 out of 36 quarters, but underperformance in 17 quarters highlighted the unpredictability. A maximum drawdown of -30.53% further emphasized the risks.

CEO Shawn Singh highlighted progress in the PALISADE-3 Phase III trial for fasedienol, with top-line results expected by year-end 2025. The company remains focused on advancing its pipeline for social anxiety disorder, depression, and menopausal hot flashes, supported by $77.2 million in cash reserves.

Additional News

1. Board Expansion: Vistagen appointed Paul Edick to its Board of Directors, bringing expertise in FDA approvals and strategic transactions.

2. Trial Updates: The PALISADE-3 Phase III trial for fasedienol completed its randomized phase, with top-line data expected by year-end. PALISADE-4 results are slated for early 2026.

3. Commercial Strategy: The company is evaluating self-launch or partnership options for fasedienol, though no definitive plan has been announced.