ARS Pharmaceuticals 2025 Q2 Earnings Sharp Revenue Surge Amid Widening Losses

ARS Pharmaceuticals (SPRY) reported its fiscal 2025 Q2 earnings on August 13, 2025, with a significant revenue jump but continued financial losses. The results exceeded expectations on the top line, though net losses widened considerably year over year, with no guidance adjustments provided.

Revenue in Q2 2025 surged 3043.4% year over year to $15.72 million, driven largely by product sales and collaborative agreements. Product revenue, net, amounted to $12.80 million, reflecting strong commercial traction for neffy. Collaborative revenue added $2.59 million, while supply agreements accounted for $323,000, rounding out the total revenue picture.

The company’s net loss widened to $44.88 million in Q2 2025, or $0.46 per share, compared to a loss of $12.52 million, or $0.13 per share, a year ago. This represents a 258.6% increase in the net loss. The continued financial underperformance underscores ongoing operational and market challenges. The widening loss reflects the burden of R&D and commercialization costs, despite strong top-line growth. The performance highlights the need for sustained cost management and revenue diversification to turn profitability around.

The stock of ARS Pharmaceuticals has experienced a downward trend post-earnings, with a 4.12% drop in the latest trading day and a 12.01% decline for the week, continuing a negative momentum of 11.62% month to date. A 30-day buy-and-hold strategy following quarterly earnings releases has historically underperformed, with a 2.74% initial gain but significant losses over longer horizons—-38.70%, -46.46%, and -48.14% for one-, two-, and three-year periods, respectively. These results suggest that timing trades around earnings alone may not be a viable strategy for investors seeking positive returns in this stock.

CEO Richard E. Lowenthal expressed optimism about neffy’s market performance and global potential, emphasizing the product’s 12.8 million in U.S. net product revenue for Q2 2025. He highlighted the 180% increase in two-pack prescriptions between Q1 and Q2, which aligned with expectations, and attributed the growth to direct-to-consumer campaigns, co-promotion with ALK, and the start of peak allergy season. Lowenthal also noted the successful EURneffy launch in Germany and UK approval, with further global regulatory milestones expected in 2025–2026. A Phase IIb trial for chronic urticaria is ongoing, and the company remains confident in its ability to expand neffy’s commercial footprint.

Looking ahead, ARS Pharmaceuticals expects continued growth in neffy prescriptions in Q3 and Q4 2025, driven by expanded DTC campaigns, co-promotion efforts, and the back-to-school season. The company anticipates improved payer access and prescription volume to translate into higher revenue. Gross-to-net (GTN) retention is expected to remain stable at 50%, consistent with Q2 results. Regulatory milestones, including EMA approval for the 1-milligram pediatric dose in H1 2026, are expected to trigger a $5 million milestone payment. Global regulatory decisions in Canada, Australia, Japan, and China are anticipated by year-end 2025 or early 2026, with commercial rollouts planned for 2026. Top-line data from the Phase IIb trial is expected in H1 2026. The company also reported $240.1 million in cash and cash equivalents, providing over three years of operating runway.

Additional News
No significant earnings-related news was reported within the three weeks following the August 13, 2025 earnings release. However, subscribers of the *Online Edition of Shanghai Daily* gained access to real-time downloadable PDFs and unlimited content on ShanghaiDaily.com, including breaking news not featured in the print edition. The online version is distinct from the print edition, with no print delivery included and no refunds offered for digital subscriptions. Subscription packages range from 1 month to 12 months, with the option to include print and digital delivery.