Apellis 2025 Q3 Earnings Profitability Surges 475% as Revenue Jumps 133%

Apellis Pharmaceuticals (APLS) delivered a stunning turnaround in Q3 2025, surpassing Wall Street’s expectations with a 133% revenue increase and a 475.5% net income improvement. The stock, however, faced post-earnings volatility, dropping 24.8% in a single day, reflecting mixed market sentiment.

Revenue

Apellis’s total revenue soared to $458.58 million in Q3 2025, a 133% year-over-year increase from $196.83 million. This growth was driven by $177.75 million in product revenue, primarily from flagship therapies EMPAVELI and SYFOVRE, and $280.82 million in licensing and other revenue. The expansion of SYFOVRE’s label and a $275 million upfront payment from Sobi significantly contributed to the licensing segment’s 1,286% year-over-year surge.

Earnings/Net Income

The company returned to profitability with EPS of $1.71, reversing a $0.46 loss in the prior-year period. Net income reached $215.72 million, compared to a $57.45 million loss in 2024 Q3. This dramatic turnaround underscores Apellis’s operational efficiency and strategic revenue diversification. The 475.5% net income swing highlights the company’s ability to convert licensing milestones into profitability.

Post-Earnings Price Action Review

Following the earnings release, Apellis’s stock plummeted 24.8% to $22.59, marking its sharpest decline in recent months. The drop reflected investor skepticism despite strong financial results, with concerns over slow market adoption of geographic atrophy treatments and elevated costs for free goods and co-pay assistance. While the company’s revenue and EPS exceeded estimates, the stock’s performance suggests lingering doubts about sustainability and scalability.

CEO Commentary

Cedric Francois, CEO, emphasized strategic advancements during the earnings call, including the development of AI tools to enhance geographic atrophy treatment and the introduction of a pre-filled syringe for SYFOVRE. He highlighted confidence in steady growth for EMPAVELI in C3G and primary ICMPGN, with David Watson, General Counsel, noting initial launch success and optimism for 2026.

Guidance

Apellis provided cautious forward-looking guidance, projecting modest growth in total injection demand while acknowledging headwinds from free goods and co-pay assistance. The company aims to reduce the 4–6 week treatment initiation timeframe for EMPAVELI and expand SYFOVRE’s market share through improved practice flow.

Additional News

1. FDA Approval for Mpati: Apellis secured FDA approval for Mpati, expanding access to 5,000 patients with C3 glomerulopathy and primary immune complex membranoproliferative glomerulonephritis.

2. Product Innovation: The company is advancing AI-driven tools and a pre-filled syringe for SYFOVRE to improve patient outcomes and convenience.

3. Insider Selling Concerns: Eleven insider transactions in the past three months, totaling 406,194 shares sold, raised red flags about leadership confidence.

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