Apellis 2025 Q3 Earnings Strong Turnaround as Net Income Surges 475.5%

Apellis (APLS) reported fiscal 2025 Q3 earnings on October 30, 2025, with results exceeding expectations. The company’s revenue and earnings per share (EPS) outperformed Wall Street forecasts, while its 2026 guidance signaled optimism.

Revenue

Apellis’s total revenue surged 133.0% year-over-year to $458.58 million in Q3 2025, driven by a $280.82 million licensing and other revenue segment, which dwarfed the $177.75 million in product revenue. The licensing component, reflecting partnerships and milestone payments, underscored the company’s strategic shift toward diversified revenue streams. Product revenue, though lower in proportion, demonstrated resilience, with SYFOVRE contributing $150.93 million and EMPAVELI adding $26.83 million.

Earnings/Net Income

The company achieved a dramatic turnaround, reporting a net income of $215.72 million in Q3 2025, a 475.5% increase from a $57.45 million net loss in the prior-year period. EPS jumped to $1.71 from a $0.46 loss, marking a 471.7% improvement. This reversal highlights effective cost management and licensing-driven profitability, though the company has historically faced multi-year losses in this quarter.

Post-Earnings Price Action Review

Despite the positive earnings report, Apellis’s stock price experienced significant post-earnings volatility. Shares plummeted 16.58% on the latest trading day, 27.54% over the prior week, and 8.40% month-to-date. The sharp decline contrasts with the company’s strong financial performance, suggesting market skepticism about sustainability or broader sector pressures. Analysts attributed the drop to concerns over operational challenges, including manufacturing delays and slow adoption rates for complement inhibitors in geographic atrophy.

CEO Commentary

John Orwin, CEO of Apellis, emphasized the company’s strategic focus on expanding its complement inhibitor portfolio, particularly in rare diseases. He acknowledged manufacturing bottlenecks but highlighted progress in R&D, including late-stage trials and AI-driven tools for geographic atrophy. Orwin expressed cautious optimism, underscoring long-term value creation through innovation and operational discipline.

Guidance

Apellis raised its 2026 revenue guidance to $550-570 million, up from prior estimates, with EPS expected to reach $2.10-2.25. The company also aims to file a Biologics License Application for a new indication by mid-2026 and will maintain R&D investment at 30-35% of revenue.

Additional News

Recent non-earnings developments include FDA approval for Mpati, expanding treatment access for 5,000 patients with C3 glomerulopathy. The company also announced a $275 million upfront payment from Sobi and launched AI tools to enhance geographic atrophy treatment. Additionally, Apellis transitioned to prefilled syringes for SYFOVRE, aiming to improve physician adoption.

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Key Non-Earnings Developments

1. Product Expansion: FDA approval of Mpati for C3 glomerulopathy and primary immune complex membranoproliferative glomerulonephritis, broadening Apellis’s patient reach.

2. Strategic Partnerships: A $275 million licensing deal with Sobi, boosting non-product revenue.

3. Operational Innovations: Development of AI tools and prefilled syringes to address geographic atrophy challenges and streamline administration.

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