Why Is Axsome (AXSM) Up 19.2% Since Last Earnings Report?

It has been about a month since the last earnings report for Axsome Therapeutics (AXSM). Shares have added about 19.2% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Axsome due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Axsome Therapeutics, Inc. before we dive into how investors and analysts have reacted as of late.

Axsome’s Q2 Loss Narrower Than Expected, Auvelity Drives Revenues Y/Y

Axsome incurred an adjusted loss of 97 cents per share in the second quarter of 2025, narrower than the Zacks Consensus Estimate of a loss of $1.00. The company had incurred a loss of $1.67 per share in the year-ago quarter.

Axsome’s total revenues surged 72% year over year to $150 million in the second quarter, beating the Zacks Consensus Estimate of $140 million. The year-over-year increase in revenues can be attributed to strong sales of Auvelity (AXS-05).

Quarter in Detail

Total revenues in the second quarter consisted of product revenues from Auvelity, Sunosi and the newest drug, Symbravo, as well as royalty revenues.

Net product revenues were $148.9 million in the quarter compared with $86.5 million reported in the year-ago period. Royalty revenues totaled $1.1 million in the quarter, reflecting royalties on Sunosi’s sales in out-licensed territories.

Product revenues in the second quarter benefited from the strong sales uptake of  Auvelity,  and Sunosi for narcolepsy.

Auvelity recorded sales of $119.6 million, up 84% year over year and 24% sequentially. Sales of the drug beat our model estimate of $111.8 million.

Per Axsome, around 192,000 prescriptions were recorded for Auvelity in the reported quarter, reflecting a sequential increase of 15% and a year-over-year increase of 56%.

Sunosi’s net product sales were $30 million in the second quarter, up 35% from the year-ago quarter’s level. Total prescriptions for Sunosi in the United States grew 13% year over year to 50,000. Sunosi total prescriptions increased 9% on a sequential basis.

Symbravo recorded sales worth $0.4 million in this partial quarter since its launch. The drug was launched in June.

Research and development expenses (including stock-based compensation) were $49.5 million, down 0.8% from the year-ago quarter’s level. The decrease was due to the completion of the label expansion studies of Sunosi and AXS-05 as a treatment for agitation in Alzheimer’s disease (AD).

Selling, general and administrative expenses (including stock-based compensation) totaled $130.3 million, up 25.8% year over year. The increase was due to higher commercial activities for Auvelity and the ongoing launch activities for Symbravo and other costs.

As of June 30, 2025, Axsome had cash and cash equivalents worth $303 million compared with $300.9 million as of March 31, 2025.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates review.

VGM Scores

Currently, Axsome has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. However, the stock has a score of F on the value side, putting it in the lowest quintile for value investors.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Axsome has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Axsome belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Regeneron (REGN), has gained 1.4% over the past month. More than a month has passed since the company reported results for the quarter ended June 2025.

Regeneron reported revenues of $3.68 billion in the last reported quarter, representing a year-over-year change of +3.6%. EPS of $12.89 for the same period compares with $11.56 a year ago.

For the current quarter, Regeneron is expected to post earnings of $9.52 per share, indicating a change of -23.6% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.6% over the last 30 days.

Regeneron has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.

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This article originally published on Zacks Investment Research (zacks.com).

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