Sage Therapeutics 2025 Q1 Earnings Revenue Up 75% as Net Loss Narrows
Wednesday, Apr 30, 2025 5:50 am ET
3min read Sage Therapeutics (SAGE) reported its fiscal 2025 Q1 earnings on Apr 29th, 2025. sage therapeutics narrowly missed revenue expectations, reporting $14.06 million, slightly below the forecast of $14.14 million. Net loss was reduced to $62.2 million from $108.5 million in Q1 2024. The company maintains its guidance, projecting continued growth driven by ZURZUVAE demand. With cash reserves of $424 million, sage expects to sustain operations through mid-2027.
Revenue
Sage Therapeutics saw a 75% increase in total revenue for Q1 2025, reaching $13.83 million compared to $7.90 million the previous year. Collaboration revenue, primarily from the ZURZUVAE agreement, contributed significantly, while other revenue added $236,000, bringing total revenues to $14.06 million.
Earnings/Net Income
Sage Therapeutics improved its earnings per share by reducing losses to $1.01 per share in 2025 Q1 from a loss of $1.80 per share in 2024 Q1, marking a 43.9% improvement. The net loss narrowed by 42.7% to $62.21 million in 2025 Q1 from $108.48 million in 2024 Q1. Despite improvement, EPS performance remains weak.
Post-Earnings Price Action Review
Following the earnings report, Sage Therapeutics' stock demonstrated mixed reactions. Although revenue grew, it fell short of expectations, leading to a 2.19% decline in aftermarket trading. The stock's performance typically correlates positively with revenue beats, as seen on April 7, 2025, when the stock rose by 1.6% following a substantial revenue increase. The net loss and EPS, both slightly missing forecasts, further contributed to investor disappointment. While Sage's stock has generally outperformed the market this year, its sustainability may rely on meeting future earnings expectations. Overall, revenue growth is positively correlated with stock price movements, but misses can result in negative sentiment, while net losses and EPS misses tend to negatively impact stock performance.
CEO Commentary
Barry Greene, Chief Executive Officer, highlighted a strong start to 2025, emphasizing the significant impact of ZURZUVAE on women with postpartum depression (PPD). He reported a 22% increase in shipments to over 3,000 women and a collaboration revenue of $13.8 million, attributing growth to enhanced healthcare provider engagement and a paradigm shift in PPD treatment. Greene underscored the strategic focus on neuropsychiatry and neurodevelopmental disorders, believing this recalibrated approach will yield substantial shareholder value. He expressed confidence in the company’s trajectory, stating, "we believe we are well-positioned toward our goal of creating value for our shareholders."
Guidance
Sage Therapeutics anticipates continued quarter-to-quarter growth in ZURZUVAE demand and revenue, projecting that existing cash and marketable securities of $424 million will support operations through mid-2027. The CEO reiterated expectations for ZURZUVAE to become cash flow positive by the end of 2026, with the potential for significant investments to enhance growth.
Additional News
Sage Therapeutics is actively reviewing strategic alternatives following its rejection of Biogen's unsolicited acquisition proposal earlier this year. The board of directors unanimously declined the $469 million offer, deeming it insufficient for shareholder value. Sage is exploring various options, including potential strategic transactions, business combinations, or sales, to maximize shareholder value. This strategic review process remains ongoing, with no specific timetable set for completion. Additionally, Sage announced a transition in its R&D leadership as it continues to focus on advancing its diverse pipeline and enhancing its market presence.
Revenue
Sage Therapeutics saw a 75% increase in total revenue for Q1 2025, reaching $13.83 million compared to $7.90 million the previous year. Collaboration revenue, primarily from the ZURZUVAE agreement, contributed significantly, while other revenue added $236,000, bringing total revenues to $14.06 million.
Earnings/Net Income
Sage Therapeutics improved its earnings per share by reducing losses to $1.01 per share in 2025 Q1 from a loss of $1.80 per share in 2024 Q1, marking a 43.9% improvement. The net loss narrowed by 42.7% to $62.21 million in 2025 Q1 from $108.48 million in 2024 Q1. Despite improvement, EPS performance remains weak.
Post-Earnings Price Action Review
Following the earnings report, Sage Therapeutics' stock demonstrated mixed reactions. Although revenue grew, it fell short of expectations, leading to a 2.19% decline in aftermarket trading. The stock's performance typically correlates positively with revenue beats, as seen on April 7, 2025, when the stock rose by 1.6% following a substantial revenue increase. The net loss and EPS, both slightly missing forecasts, further contributed to investor disappointment. While Sage's stock has generally outperformed the market this year, its sustainability may rely on meeting future earnings expectations. Overall, revenue growth is positively correlated with stock price movements, but misses can result in negative sentiment, while net losses and EPS misses tend to negatively impact stock performance.
CEO Commentary
Barry Greene, Chief Executive Officer, highlighted a strong start to 2025, emphasizing the significant impact of ZURZUVAE on women with postpartum depression (PPD). He reported a 22% increase in shipments to over 3,000 women and a collaboration revenue of $13.8 million, attributing growth to enhanced healthcare provider engagement and a paradigm shift in PPD treatment. Greene underscored the strategic focus on neuropsychiatry and neurodevelopmental disorders, believing this recalibrated approach will yield substantial shareholder value. He expressed confidence in the company’s trajectory, stating, "we believe we are well-positioned toward our goal of creating value for our shareholders."
Guidance
Sage Therapeutics anticipates continued quarter-to-quarter growth in ZURZUVAE demand and revenue, projecting that existing cash and marketable securities of $424 million will support operations through mid-2027. The CEO reiterated expectations for ZURZUVAE to become cash flow positive by the end of 2026, with the potential for significant investments to enhance growth.
Additional News
Sage Therapeutics is actively reviewing strategic alternatives following its rejection of Biogen's unsolicited acquisition proposal earlier this year. The board of directors unanimously declined the $469 million offer, deeming it insufficient for shareholder value. Sage is exploring various options, including potential strategic transactions, business combinations, or sales, to maximize shareholder value. This strategic review process remains ongoing, with no specific timetable set for completion. Additionally, Sage announced a transition in its R&D leadership as it continues to focus on advancing its diverse pipeline and enhancing its market presence.
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