Phathom 2025 Q2 Earnings Net Loss Narrows 17.1%

Phathom (PHAT) reported its Q2 2025 earnings on August 7, 2025, showing a significant improvement in its financial performance. The company’s revenue surged 439.4% year-over-year and it narrowed its net loss by 17.1%, reflecting progress in cost management and product adoption.

Phathom delivered better-than-expected results, with revenue jumping to $39.50 million in Q2 2025 from $7.32 million in the same period in 2024. The company also reduced its net loss to $-75.81 million, a 17.1% improvement compared to $-91.45 million in Q2 2024. The company has provided full-year 2025 revenue guidance and expects continued cost discipline to support a path toward profitability.

Revenue

Phathom’s Q2 revenue was driven entirely by its product revenue, which totaled $39.50 million. This represents a dramatic increase from the $7.32 million reported a year earlier, reflecting strong adoption of its flagship product, VOQUEZNA.

Earnings/Net Income

Phathom narrowed its net loss to $-75.81 million in Q2 2025, a 17.1% reduction compared to the $-91.45 million loss in Q2 2024. On a per-share basis, the company reduced its loss to $1.05 from $1.56, representing a 32.7% improvement. Despite this progress, the company remains unprofitable and continues to report negative earnings.

Price Action

The stock price of Phathom edged up 2.06% during the latest trading day, jumped 10.07% for the week, and climbed 4.21% month-to-date. The recent performance indicates growing investor confidence, though the stock remains volatile.

Post-Earnings Price Action Review

The strategy of buying Phathom shares following a revenue increase quarter-over-quarter on the earnings report date and holding for 30 days yielded moderate returns but underperformed the benchmark. The strategy delivered a compound annual growth rate (CAGR) of 4.22%, significantly trailing the benchmark by 38.70%. With a maximum drawdown of 0.00% and a Sharpe ratio of 0.04, the strategy demonstrated low risk but limited return potential, indicating a cautious market reaction.

CEO Commentary

Steven Basta, CEO of Phathom Pharmaceuticals, highlighted Q2 2025 as a pivotal quarter, noting the 39% revenue growth driven by VOQUEZNA’s adoption. He emphasized the company’s strategic shift to refocus sales efforts on gastroenterologists (GIs), who prescribe at twice the rate of primary care physicians. Basta expressed optimism about long-term growth, stating that increased call frequency with GIs would accelerate revenue in the coming quarters. He also underlined the company’s exclusivity through 2032 and the Phase II EoE trial as key drivers of value extension. Basta noted cost-cutting efforts, including a $12 million reduction in non-GAAP operating expenses in Q2, and expressed confidence in achieving profitability in 2026 without additional financing.

Guidance

Phathom provided full-year 2025 revenue guidance of $165 million to $175 million, reflecting strong confidence in its growth trajectory. The company expects non-GAAP operating expenses to remain below $60 million in Q3 and below $55 million in Q4. With continued cost discipline and revenue growth, Phathom aims to achieve profitability by 2026.

Additional News

On August 7, 2025, the Nigerian newspaper *Punch* reported on several developments across the country, though no direct earnings-related news from Phathom was included. Among the notable non-earnings news items was the Kano State government’s allocation of N1.3 billion for the conversion of an orphanage to a drug reformatory institute. Additionally, Germany announced it would suspend arms exports to Israel over concerns regarding control in the Gaza region. Another significant report detailed the first sighting of a lioness in the Central African Republic’s park in six years, noted by an NGO. These updates highlight ongoing economic and social developments in Nigeria and the broader African region.