Supernus Pharmaceuticals's (NASDAQ:SUPN) Q4 CY2025: Strong Sales

Specialty pharmaceutical company Supernus Pharmaceuticals (NASDAQ:SUPN) reported revenue ahead of Wall Street’s expectations in Q4 CY2025, with sales up 21.5% year on year to $211.6 million. On the other hand, the company’s full-year revenue guidance of $855 million at the midpoint came in 0.7% below analysts’ estimates. Its GAAP loss of $0.07 per share was 66.7% above analysts’ consensus estimates.

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"We made significant progress in 2025 against our strategic objectives, with record total revenues, including strong growth in combined revenues of our growth products, the successful acquisition of Sage Therapeutics, Inc., and the U.S. Food and Drug Administration's approval and launch of ONAPGO for Parkinson's disease," said Jack Khattar, President and CEO of Supernus.

Company Overview

With a diverse portfolio of eight FDA-approved medications targeting neurological conditions, Supernus Pharmaceuticals (NASDAQ:SUPN) develops and markets treatments for central nervous system disorders including epilepsy, ADHD, Parkinson's disease, and migraine.

Revenue Growth

Examining a company’s long-term performance can provide clues about its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Unfortunately, Supernus Pharmaceuticals’s 5.6% annualized revenue growth over the last five years was mediocre. This fell short of our benchmark for the healthcare sector and is a tough starting point for our analysis.

We at StockStory place the most emphasis on long-term growth, but within healthcare, a half-decade historical view may miss recent innovations or disruptive industry trends. Supernus Pharmaceuticals’s annualized revenue growth of 12.5% over the last two years is above its five-year trend, suggesting its demand recently accelerated.

This quarter, Supernus Pharmaceuticals reported robust year-on-year revenue growth of 21.5%, and its $211.6 million of revenue topped Wall Street estimates by 8.4%.

Looking ahead, sell-side analysts expect revenue to grow 19.8% over the next 12 months, an improvement versus the last two years. This projection is admirable and indicates its newer products and services will catalyze better top-line performance.

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Operating Margin

Supernus Pharmaceuticals was profitable over the last five years but held back by its large cost base. Its average operating margin of 4.6% was weak for a healthcare business.

Analyzing the trend in its profitability, Supernus Pharmaceuticals’s operating margin decreased by 23 percentage points over the last five years. The company’s two-year trajectory also shows it failed to get its profitability back to the peak as its margin fell by 7.7 percentage points. This performance was poor no matter how you look at it - it shows its expenses were rising and it couldn’t pass those costs onto its customers.

This quarter, Supernus Pharmaceuticals generated an operating margin profit margin of negative 1.9%, down 14.2 percentage points year on year. This contraction shows it was less efficient because its expenses grew faster than its revenue.

Earnings Per Share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

Sadly for Supernus Pharmaceuticals, its EPS declined by 18% annually over the last five years while its revenue grew by 5.6%. This tells us the company became less profitable on a per-share basis as it expanded.

Diving into the nuances of Supernus Pharmaceuticals’s earnings can give us a better understanding of its performance. As we mentioned earlier, Supernus Pharmaceuticals’s operating margin declined by 23 percentage points over the last five years. Its share count also grew by 6.7%, meaning the company not only became less efficient with its operating expenses but also diluted its shareholders.

In Q4, Supernus Pharmaceuticals reported EPS of negative $0.07, down from $0.27 in the same quarter last year. Despite falling year on year, this print easily cleared analysts’ estimates. Over the next 12 months, Wall Street is optimistic. Analysts forecast Supernus Pharmaceuticals’s full-year EPS of negative $0.68 will flip to positive $1.22.

Key Takeaways from Supernus Pharmaceuticals’s Q4 Results

It was good to see Supernus Pharmaceuticals beat analysts’ EPS expectations this quarter. We were also excited its revenue outperformed Wall Street’s estimates by a wide margin. On the other hand, its full-year revenue guidance slightly missed, but adjusted operating profit guidance was in line. Zooming out, we think this was a good print with some key areas of upside. The stock traded up 4.7% to $55.75 immediately after reporting.

Supernus Pharmaceuticals put up rock-solid earnings, but one quarter doesn’t necessarily make the stock a buy. Let’s see if this is a good investment. What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).