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Axsome (AXSM) Up 5.3% Since Last Earnings Report: Can It Continue?

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It has been about a month since the last earnings report for Axsome Therapeutics (AXSM - Free Report) . Shares have added about 5.3% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Axsome due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

Axsome Q3 Loss Wider Than Expected, Revenues Surge Y/Y on Auvelity Sales

Axsome incurred a loss of 94 cents per share in the third quarter of 2025, wider than the Zacks Consensus Estimate of a loss of 82 cents. The company had incurred a loss of $1.34 per share in the year-ago quarter.

Axsome’s total revenues surged 63% year over year to $171 million in the third quarter, beating the Zacks Consensus Estimate of $164 million. The year-over-year increase in revenues can be attributed to strong sales of Auvelity.

Quarter in Detail

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

Net product revenues were $169.8 million in the quarter, reflecting an increase of 63.7% year over year. Royalty revenues totaled $1.2 million in the quarter, reflecting royalties on Sunosi’s sales in out-licensed territories.

Product revenues in the third quarter benefited from the strong sales uptake of Auvelity and Sunosi.

Auvelity recorded sales of $136.1 million, up 69% year over year and 14% sequentially. Sales of the drug beat our model estimate of $127.7 million.

Per Axsome, around 209,000 prescriptions were recorded for Auvelity in the third quarter, reflecting a sequential increase of 9% and a year-over-year increase of 46%.

Sunosi’s net product sales were $32.8 million in the third quarter, up 35% from the year-ago quarter’s level. Total prescriptions for Sunosi in the United States grew 12% year over year to 53,000. Sunosi's total prescriptions increased 5% on a sequential basis.

Symbravo recorded sales worth $2.1 million in the first full quarter since its launch.

Research and development expenses (including stock-based compensation) were $40.2 million, down 11.5% from the year-ago quarter’s level. The decrease was due to the completion of the label expansion studies of Sunosi.

Selling, general and administrative expenses (including stock-based compensation) totaled $150.2 million, up 57.1% 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 Sept. 30, 2025, Axsome had cash and cash equivalents worth $325.3 million compared with $303 million as of June 30, 2025.

How Have Estimates Been Moving Since Then?

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

The consensus estimate has shifted -23.81% due to these changes.

VGM Scores

At this time, Axsome has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock has a score of D on the value side, putting it in the bottom 40% 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, Gilead Sciences (GILD - Free Report) , has gained 0.7% over the past month. More than a month has passed since the company reported results for the quarter ended September 2025.

Gilead reported revenues of $7.77 billion in the last reported quarter, representing a year-over-year change of +3%. EPS of $2.47 for the same period compares with $2.02 a year ago.

For the current quarter, Gilead is expected to post earnings of $1.86 per share, indicating a change of -2.1% from the year-ago quarter. The Zacks Consensus Estimate has changed -2.6% over the last 30 days.

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


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