Septerna 2025 Q3 Earnings Profitability Surges 139.8% on Revenue Jump

Septerna (SEPN) delivered a stunning turnaround in Q3 2025, swinging to profitability with net income of $8.17 million and revenue surging 12,113% to $21.5 million. The results far exceeded expectations, driven by a one-time Novo Nordisk collaboration payment. Guidance for FY2026 reflects optimism, with revenue projected at $92–94 million and EPS of $0.78–$0.82.

Revenue

Septerna’s Q3 revenue skyrocketed to $21.50 million, a 12,113% increase from $176,000 in the prior-year period, fueled by a $195 million upfront payment under its Novo Nordisk collaboration.

Earnings/Net Income

The company returned to profitability with EPS of $0.18, reversing a $8.40 loss per share in 2024 Q3. Net income reached $8.17 million, a 139.8% improvement from a $20.52 million loss. This dramatic turnaround underscores the impact of non-recurring revenue and asset gains.

Post-Earnings Price Action Review

The strategy of buying SEPN when revenues miss and holding for 30 days shows poor timing and could result in significant losses. Recent performance reveals persistent underpressure, with the stock down 16.6% month-to-date despite a one-day 4.91% rebound. Market sentiment remains negative following a $0.09 EPS miss versus $0.19 consensus, compounding concerns over a projected $0.36 loss in the next quarter. Insider selling, including VP Long’s 3,501-share filing, adds to bearish signals. While management highlights pipeline progress and cost discipline, reliance on one-time gains raises doubts about sustainability. Investors are cautioned against short-term bets amid uncertain near-term outlook.

CEO Commentary

CEO John D. Carter attributed Q3 growth to strong demand for healthcare IT solutions and cloud integration, though supply chain delays impacted hardware deployments. Strategic priorities include accelerating AI-driven analytics R&D and expanding partnerships in emerging markets. Carter expressed confidence in outperforming sector growth in 2026 if macroeconomic stability holds.

Guidance

Septerna expects FY2026 revenue of $92–94 million and EPS of $0.78–$0.82, driven by scaled SaaS adoption and cost discipline. CAPEX of $18–20 million will prioritize data center upgrades and AI platform development. The company targets 12–15% revenue growth year-over-year, assuming no material market disruptions.

Additional News

Recent non-earnings developments include VP Long’s sale of 3,501 shares, signaling potential insider concerns. Septerna also announced SEP-479 as a new development candidate for its PTH1R agonist program, replacing discontinued candidate SEP-786 due to safety issues. The Novo Nordisk collaboration remains pivotal, with a $195 million upfront payment driving Q3 revenue.