Axsome Therapeutics (NASDAQ:AXSM) Releases Earnings Results, Beats Estimates By $0.38 EPS

Axsome Therapeutics (NASDAQ:AXSM) released its quarterly earnings data on Monday. The company reported ($0.25) EPS for the quarter, topping analysts’ consensus estimates of ($0.63) by $0.38, FiscalAI reports. The company had revenue of $259.69 million for the quarter, compared to the consensus estimate of $249.19 million. Axsome Therapeutics had a negative return on equity of 265.55% and a negative net margin of 24.68%. The company’s quarterly revenue was up 51.9% compared to the same quarter last year. During the same period last year, the business posted ($0.94) EPS.

Here are the key takeaways from Axsome Therapeutics’ conference call:

• Commercial revenue reached $259.7 million, up 52% year over year and 19% sequentially, pushing the portfolio above a $1 billion annualized run rate. Net loss narrowed to $12.9 million from $47.2 million a year earlier, indicating improving operating leverage.
• AUVELITY remained the primary growth driver, with third-quarter sales of $207.6 million, up 53% year over year and more than 15% sequentially. Demand growth accelerated in both major depressive disorder and Alzheimer’s disease agitation, including a 211% year-over-year increase in new patient starts among patients aged 65 and older.
• Management reported strong early adoption of AUVELITY’s Alzheimer’s agitation indication, with broad payer coverage, positive prescription fill rates, and no major distribution or prescribing-system bottlenecks identified. The company expects continued growth from refills, primary-care adoption, long-term-care facilities, and sales-force productivity.
• The late-stage pipeline continues to advance, with solriamfetol binge-eating-disorder data expected in the first quarter of 2027 and an FDA decision on AXS-12 for narcolepsy targeted for May 1, 2027. Additional phase III readouts and trial starts are planned across ADHD, shift-work disorder, smoking cessation, fibromyalgia, schizophrenia, and epilepsy.
• Despite revenue growth, selling, general and administrative expenses rose to $203.1 million, while gross-to-net discounts remained substantial: in the mid-to-high 40% range for AUVELITY and high-40% range for SUNOSI, with modest worsening expected in the fourth quarter. SYMBRAVO is growing rapidly but currently has only about 57% payer coverage and an approximately mid-80% gross-to-net discount.

Axsome Therapeutics Stock Performance

NASDAQ:AXSM opened at $136.01 on Tuesday. The firm has a 50-day moving average of $183.33 and a two-hundred day moving average of $198.74. The company has a debt-to-equity ratio of 1.52, a current ratio of 1.43 and a quick ratio of 1.34. The stock has a market cap of $7.12 billion, a P/E ratio of -36.27 and a beta of 0.86. Axsome Therapeutics has a 1-year low of $123.00 and a 1-year high of $260.19.

Analyst Ratings Changes

A number of analysts have recently issued reports on the company. Royal Bank Of Canada reiterated an “outperform” rating on shares of Axsome Therapeutics in a report on Wednesday, October 14th. Weiss Ratings restated a “sell (d-)” rating on shares of Axsome Therapeutics in a report on Thursday, October 15th. HC Wainwright restated a “buy” rating on shares of Axsome Therapeutics in a report on Friday, September 25th. Deutsche Bank Aktiengesellschaft reduced their price target on shares of Axsome Therapeutics from $280.00 to $267.00 and set a “buy” rating on the stock in a research report on Tuesday, September 29th. Finally, Needham & Company LLC boosted their price objective on shares of Axsome Therapeutics from $267.00 to $268.00 and gave the stock a “buy” rating in a research note on Tuesday, August 11th. One research analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $273.63.

Insider Transactions at Axsome Therapeutics

In related news, COO Mark Jacobson sold 10,000 shares of the business’s stock in a transaction dated Thursday, September 3rd. The stock was sold at an average price of $208.65, for a total value of $2,086,500.00. Following the transaction, the chief operating officer owned 10,000 shares in the company, valued at approximately $2,086,500. The trade was a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Herriot Tabuteau sold 4,660 shares of the business’s stock in a transaction dated Thursday, August 6th. The stock was sold at an average price of $213.95, for a total value of $997,007.00. Following the completion of the transaction, the chief executive officer owned 7,229 shares in the company, valued at approximately $1,546,644.55. This trade represents a 39.20% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 59,664 shares of company stock worth $12,624,805. Corporate insiders own 20.60% of the company’s stock.

Axsome Therapeutics News Roundup

Here are the key news stories impacting Axsome Therapeutics this week:

• Positive Sentiment: Q3 results exceeded expectations: Axsome reported revenue of $259.7 million, up 51.9% year over year and ahead of the approximately $249.2 million consensus estimate. Its loss narrowed to $0.25 per share, versus analyst expectations for a loss of roughly $0.63 per share and a $0.94 loss in the prior-year quarter. Axsome Q3 earnings flash
• Positive Sentiment: Broad commercial and pipeline progress: Sales increased across key brands, while management highlighted additional pipeline milestones expected in 2027, supporting the longer-term growth outlook. Axsome Q3 sales and pipeline update
• Neutral Sentiment: Mixed earnings quality: Analysts noted that some of the quarter’s sales improvement reflected one-time items and better gross-to-net adjustments rather than fully sustainable prescription-volume growth. Axsome post-earnings analysis
• Negative Sentiment: Auvelity launch concerns dominate: The Alzheimer’s-care launch is reportedly progressing more slowly than hoped, with incremental growth coming primarily from depression prescriptions among patients under 65 rather than from the new Alzheimer’s indication. Those concerns have outweighed the Q3 beat and pushed AXSM toward fresh 52-week lows. AXSM Auvelity launch concerns
• Negative Sentiment: Analyst price targets were reduced: UBS lowered its target to $239 from $256, while Piper Sandler cut its target to $235 from $238, reflecting more cautious expectations for the launch and near-term growth. UBS lowers Axsome price target

About Axsome Therapeutics

Axsome Therapeutics, Inc is a biopharmaceutical company focused on developing and commercializing therapies for central nervous system (CNS) disorders. Founded in 2012 and headquartered in New York, the company develops medicines for conditions with significant unmet medical needs, including depression, narcolepsy, excessive daytime sleepiness, and other neurological disorders.

Axsome’s commercial products include Auvelity (dextromethorphan and bupropion), an oral treatment approved in the United States for major depressive disorder in adults, and Sunosi (solriamfetol), a therapy for excessive daytime sleepiness associated with narcolepsy or obstructive sleep apnea.