Axsome Therapeutics (NASDAQ:AXSM) Posts Quarterly Earnings Results, Misses Estimates By $0.10 EPS

Axsome Therapeutics (NASDAQ:AXSM) issued its quarterly earnings data on Monday. The company reported ($0.99) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.89) by ($0.10), FiscalAI reports. Axsome Therapeutics had a negative net margin of 24.68% and a negative return on equity of 275.76%. The business had revenue of $218.38 million during the quarter, compared to the consensus estimate of $221.11 million.

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

• Second-quarter revenue rose 46% year over year to $218 million, led by AUVELITY sales of $180.3 million, up 51%, and SUNOSI revenue growth of 20%.
• AUVELITY’s launch in Alzheimer’s disease agitation and expanded sales force are showing encouraging early indicators, including a 126% increase in new-to-brand prescriptions among patients aged 65 and older during the first eight weeks and 89% overall payer coverage.
• SYMBRAVO demand increased 30% sequentially to approximately 23,500 prescriptions, while SUNOSI prescriptions grew 14% year over year and 8% sequentially, both outpacing their respective markets.
• The FDA accepted the NDA for AXS-12 in narcolepsy cataplexy with a May 1, 2027 action date; Axsome also plans to begin its AXS-05 smoking-cessation trial and expects binge-eating-disorder data from solriamfetol in the fourth quarter of 2026.
• The company reported a $51.3 million quarterly net loss, while SG&A increased to $208.1 million due to commercialization investments; AUVELITY and SUNOSI gross-to-net discounts remained near 50%, and SYMBRAVO discounts temporarily rose into the high-80% range.

Axsome Therapeutics Price Performance

AXSM stock opened at $215.77 on Wednesday. The company has a quick ratio of 1.32, a current ratio of 1.39 and a debt-to-equity ratio of 2.27. The firm has a market cap of $11.10 billion, a price-to-earnings ratio of -57.54 and a beta of 0.65. The company’s fifty day simple moving average is $236.64 and its 200 day simple moving average is $204.60. Axsome Therapeutics has a 12-month low of $103.40 and a 12-month high of $260.19.

Insider Activity

In other Axsome Therapeutics news, Director Mark Coleman sold 643 shares of the stock in a transaction that occurred on Wednesday, June 10th. The stock was sold at an average price of $249.00, for a total transaction of $160,107.00. Following the transaction, the director directly owned 30,389 shares in the company, valued at approximately $7,566,861. This represents a 2.07% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Roger Jeffs sold 286 shares of the firm’s stock in a transaction that occurred on Wednesday, June 10th. The stock was sold at an average price of $246.18, for a total transaction of $70,407.48. Following the sale, the director directly owned 58,653 shares of the company’s stock, valued at approximately $14,439,195.54. This trade represents a 0.49% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders sold 200,766 shares of company stock worth $46,685,646. 20.60% of the stock is owned by insiders.

Institutional Investors Weigh In On Axsome Therapeutics

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Invesco Ltd. grew its stake in shares of Axsome Therapeutics by 28.6% in the 4th quarter. Invesco Ltd. now owns 1,273,494 shares of the company’s stock valued at $232,591,000 after buying an additional 282,937 shares during the period. Strive Financial Group LLC bought a new position in Axsome Therapeutics in the fourth quarter worth approximately $62,000. Ameriflex Group Inc. acquired a new stake in Axsome Therapeutics in the fourth quarter valued at approximately $37,000. Mercer Global Advisors Inc. ADV grew its stake in Axsome Therapeutics by 64.2% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 3,222 shares of the company’s stock valued at $588,000 after acquiring an additional 1,260 shares during the period. Finally, Empowered Funds LLC acquired a new stake in Axsome Therapeutics in the fourth quarter valued at approximately $238,000. 81.49% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

Several research firms have recently issued reports on AXSM. Jefferies Financial Group reaffirmed a “buy” rating and set a $380.00 price target on shares of Axsome Therapeutics in a research note on Thursday, June 11th. BMO Capital Markets initiated coverage on shares of Axsome Therapeutics in a research note on Monday, July 20th. They issued an “outperform” rating and a $310.00 price objective on the stock. Zacks Research downgraded Axsome Therapeutics from a “hold” rating to a “strong sell” rating in a report on Monday, July 20th. UBS Group assumed coverage on Axsome Therapeutics in a research report on Tuesday. They set a “market perform” rating for the company. Finally, Deutsche Bank Aktiengesellschaft set a $280.00 target price on Axsome Therapeutics in a report on Tuesday, May 5th. Two research analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, two have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $267.10.

Axsome Therapeutics News Roundup

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

• Positive Sentiment: Auvelity continues to drive growth. Second-quarter net product revenue increased 46% year over year, led primarily by Auvelity sales. Growth benefited from the product’s expanded use in Alzheimer’s disease agitation and a larger commercial sales force. Axsome’s Q2 Earnings Meet Estimates, Auvelity Drives Y/Y Revenues
• Positive Sentiment: Pipeline ambitions support the long-term outlook. Management said it expects to file approximately one new drug application annually through 2030. AXS-12 is currently targeting a May 1, 2027 PDUFA date, providing a potential future catalyst. Axsome signals one NDA per year through 2030
• Positive Sentiment: Needham raised its price target. Needham increased its target from $267 to $268 and maintained a Buy rating, implying substantial upside based on the cited reference price. Needham raises Axsome price target
• Neutral Sentiment: Reported short-interest data appear unreliable. The update lists zero short interest both currently and in the prior period, along with a zero-day days-to-cover ratio, so it provides no meaningful signal about investor positioning.
• Negative Sentiment: Quarterly results missed on both key measures. Axsome reported a loss of $0.99 per share versus the $0.89 consensus estimate and revenue of $218.38 million versus expectations of $221.11 million. The company remains unprofitable, with rising SG&A expenses offsetting much of its commercial progress. Axsome second-quarter earnings results
• Negative Sentiment: Valuation and execution concerns remain. Analysts and investors are questioning whether management’s roughly $8 billion peak-sales target for Auvelity is achievable, particularly as commercialization costs rise and profitability remains elusive.

About Axsome Therapeutics

Axsome Therapeutics, Inc is a clinical-stage biopharmaceutical company dedicated to developing novel therapies for central nervous system (CNS) disorders. The company focuses on small-molecule drugs designed to address unmet medical needs in areas such as depression, migraine, narcolepsy and fibromyalgia. Axsome employs a precision medicine approach, leveraging pharmacologic innovation to target underlying mechanisms of disease and improve patient outcomes.

Axsome’s pipeline includes several late-stage and approved product candidates.