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

Axsome Therapeutics (NASDAQ:AXSM) issued its quarterly earnings data on Monday. The company reported ($0.25) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.63) by $0.38, FiscalAI reports. Axsome Therapeutics had a negative return on equity of 218.52% and a negative net margin of 18.18%. The firm had revenue of $259.69 million during the quarter, compared to the consensus estimate of $249.19 million. During the same period in the previous year, the firm posted ($0.94) EPS. The company’s quarterly revenue was up 51.9% compared to the same quarter last year.

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 Trading Up 2.6%

NASDAQ AXSM opened at $139.61 on Wednesday. The company’s 50 day moving average price is $182.01 and its 200 day moving average price is $198.55. Axsome Therapeutics has a one year low of $123.00 and a one year high of $260.19. The company has a debt-to-equity ratio of 1.52, a quick ratio of 1.34 and a current ratio of 1.43.

Analysts Set New Price Targets

A number of research firms recently commented on AXSM. UBS Group decreased their price objective on Axsome Therapeutics from $256.00 to $239.00 and set a “buy” rating on the stock in a research note on Tuesday. Morgan Stanley boosted their price objective on shares of Axsome Therapeutics from $247.00 to $249.00 and gave the company an “equal weight” rating in a research report on Tuesday. Piper Sandler reduced their price objective on shares of Axsome Therapeutics from $258.00 to $238.00 and set an “overweight” rating on the stock in a research note on Monday, October 26th. Royal Bank Of Canada decreased their target price on shares of Axsome Therapeutics from $295.00 to $273.00 and set an “outperform” rating on the stock in a research report on Tuesday. Finally, BMO Capital Markets began coverage on shares of Axsome Therapeutics in a research note on Monday, July 20th. They issued an “outperform” rating and a $310.00 target price for the company. One investment analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $269.89.

Insider Activity

In other news, COO Mark Jacobson sold 10,000 shares of the 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 completion of the sale, the chief operating officer owned 10,000 shares in the company, valued at approximately $2,086,500. This trade represents a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Herriot Tabuteau sold 4,660 shares of the stock in a transaction that occurred on Thursday, August 6th. The shares were sold at an average price of $213.95, for a total transaction of $997,007.00. Following the completion of the sale, the chief executive officer directly owned 7,229 shares of the company’s stock, valued at $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. 20.60% of the stock is owned by corporate insiders.

Key Headlines Impacting Axsome Therapeutics

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

• Positive Sentiment: Axsome reported Q3 revenue of $259.7 million, up 51.9% year over year and above estimates, and a loss of $0.25 per share versus a consensus loss of roughly $0.63. The results point to continued commercial growth and a narrower loss. Q3 results and business update
• Positive Sentiment: Bank of America reportedly considers the stock’s nearly 20% month-long decline excessive, suggesting potential recovery if investor concerns ease. BofA view on the selloff
• Neutral Sentiment: Analyst views remain broadly constructive but targets have been trimmed: RBC, Guggenheim, Baird and UBS lowered targets while retaining positive ratings; Morgan Stanley raised its target slightly but kept an equal-weight rating. The changes may reflect more cautious assumptions, despite substantial upside implied by the targets.
• Neutral Sentiment: Axsome plans to participate in several November investor conferences. These appearances could provide updates, but the announcement itself does not change the company’s outlook. Investor conference announcement
• Negative Sentiment: Investors remain concerned that Auvelity’s launch for Alzheimer’s disease agitation is progressing slowly. Commentary also questioned how much of Q3’s growth came from sustainable prescription volume, noting contributions from under-65 depression prescriptions and one-time or gross-to-net factors. Those concerns may temper the headline earnings beat. Auvelity launch concerns

Axsome Therapeutics Company Profile

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.