Axsome Therapeutics 2025 Q1 Earnings Strong Performance as Net Loss Narrows by 13%

Axsome Therapeutics (AXSM) reported its fiscal 2025 Q1 earnings on May 5th, 2025. The company posted a notable 62% increase in revenue, reaching $121.46 million, surpassing analysts' expectations of $119.28 million. Axsome maintained its guidance and projected revenue growth, with plans to expand access for key products. Despite ongoing losses, the narrowing net loss signifies financial headway amidst strategic advancements.

Revenue
Axsome Therapeutics experienced a robust revenue surge in the first quarter of 2025, with a 62% year-over-year increase totaling $121.46 million, compared to $75 million in the same period of 2024. Product sales, net, constituted the bulk of this growth, generating $120.36 million, while royalty revenue added $1.10 million to the total. This revenue expansion underscores the strong market demand for Axsome's innovative therapeutic offerings.

Earnings/Net Income
Axsome Therapeutics reported a reduction in net loss to $59.41 million in Q1 2025, showing a 13.1% improvement from the prior year's loss of $68.36 million. Earnings per share also improved, narrowing to a loss of $1.22 per share from $1.44 per share, reflecting a positive trend despite the third consecutive year of quarterly losses.

Price Action
The stock price of Axsome Therapeutics has edged up 2.11% during the latest trading day, has jumped 8.63% during the most recent full trading week, and has climbed 6.14% month-to-date.

Post-Earnings Price Action Review
Investors following the strategy of buying Axsome Therapeutics shares post-earnings and holding for 30 days have experienced a return of 29.75% over the past five years, albeit significantly underperforming the benchmark return of 80.97%. This strategy's excess return was noted at -51.23%, with a compound annual growth rate of 5.41%. Despite providing some growth, the approach comes with substantial risk and volatility, as evidenced by a maximum drawdown of -48.18% and a Sharpe ratio of 0.12. The volatility stood at 45.63%, highlighting the unpredictable nature of the stock's performance in comparison to broader market trends.

CEO Commentary
Herriot Tabuteau, CEO of Axsome Therapeutics, expressed confidence in the company’s strong momentum, highlighting a 62% year-over-year revenue growth driven by demand for Auvelity and Sunosi. He emphasized the recent FDA approval of Symbravo as a testament to Axsome's commitment to innovation in treating serious CNS conditions. Tabuteau outlined strategic priorities, including advancing three novel NDA-stage product candidates and executing multiple Phase III clinical programs to broaden product potential. He noted the resilience and adaptability of the business despite monitoring trade policy developments, affirming that Axsome is well-positioned for a catalyst-rich 2025 with the potential for five marketed products across six indications by 2026.

Guidance
Axsome Therapeutics anticipates a decision on the NDA acceptance for AXS-14 for fibromyalgia in Q2 2025 and plans to submit the sNDA for AXS-05 in Alzheimer's disease agitation in Q3 2025. The company projects potential revenue of $121.5 million for Q1 2025, with expectations for continued growth as they expand access and coverage for Auvelity and Sunosi. Axsome aims for cash flow positivity based on current operations and expects total product revenues to grow throughout the year, maintaining net product sales in the mid-50% gross-to-net range.

Additional News
In recent developments, Axsome Therapeutics resolved a patent litigation with Hikma Pharmaceuticals USA, related to Hikma’s generic version of SUNOSI, securing exclusivity until at least 2040. Additionally, Axsome presented significant clinical trial results at the 2025 American Academy of Neurology Annual Meeting, showcasing advancements in their CNS treatment pipeline. The company also announced plans to initiate a pivotal Phase 2/3 trial for AXS-05 in smoking cessation later in 2025, reflecting its ongoing commitment to expanding therapeutic offerings and addressing unmet needs in CNS disorders.