Axsome Therapeutics Reports Increased Third Quarter Revenue Amid Wider Loss
## Third Quarter 2025 Financial Performance Review
**Axsome Therapeutics (NASDAQ: AXSM)** reported its financial results for the third quarter of 2025, detailing a wider net loss than anticipated by analysts, yet showcasing substantial revenue growth driven by its commercialized product portfolio. The company recorded a net loss of **$0.94** per share, exceeding the Zacks Consensus Estimate of a **$0.82** loss per share. This figure, however, represents an improvement from the **$1.34** per share loss reported in the corresponding period of the previous year.
Total revenues for the quarter surged by **63%** year-over-year, reaching **$171 million**, comfortably surpassing the Zacks Consensus Estimate of **$164 million**. This robust top-line performance was largely attributed to the strong market adoption and sales trajectory of its major depressive disorder treatment, **Auvelity**.
## Product Portfolio Drives Revenue Expansion
**Auvelity** continued to be the primary revenue generator for **Axsome**, with sales totaling **$136.1 million** in the third quarter of 2025. This marks a significant **69%** increase year-over-year and a **14%** sequential rise from the second quarter of 2025. Prescription volumes for **Auvelity** also demonstrated substantial growth, with approximately **209,000** prescriptions recorded, reflecting a **46%** year-over-year increase and a **9%** sequential increase. Payer coverage for **Auvelity** currently extends to approximately **85%** of all lives covered across commercial and government channels.
The company's other commercial products also contributed to the overall revenue growth. **Sunosi** reported net product sales of **$32.8 million**, representing a **35%** increase from the prior year, with total U.S. prescriptions growing **12%** year-over-year to **53,000**. **Symbravo**, in its first full quarter on the market, generated **$2.1 million** in net sales.
## Advancements in Research and Development Pipeline
**Axsome** advanced its developmental pipeline during the quarter, signaling potential future growth drivers. The company submitted a supplemental New Drug Application (**sNDA**) to the FDA for **AXS-05** for the treatment of agitation in Alzheimer's disease. This submission aligns with prior positive regulatory discussions and could represent a significant expansion opportunity for **AXS-05**.
Furthermore, **Axsome** plans to initiate a pivotal Phase 2/3 trial for **AXS-05** in smoking cessation in the fourth quarter of 2025. Previous research indicated that **AXS-05** demonstrated a **25%** greater reduction in daily smoking compared to bupropion, with patients showing a **8.49** cigarettes per day reduction versus **6.79** for bupropion, alongside a more than **50%** reduction in expired carbon monoxide levels.
Research and development expenses decreased by **11.5%** year-over-year to **$40.2 million**, primarily due to the completion of label expansion studies for **Sunosi**. Conversely, selling, general, and administrative expenses increased by **57.1%** to **$150.2 million**, reflecting heightened commercial activities for **Auvelity** and launch efforts for **Symbravo**.
## Financial Position and Analyst Outlook
As of September 30, 2025, **Axsome Therapeutics** maintained a solid financial position with cash and cash equivalents totaling **$325.3 million**, an increase from **$303 million** at the end of the second quarter of 2025 and **$315.4 million** at December 31, 2024. The company stated its belief that its current cash reserves are sufficient to fund anticipated operations into cash flow positivity.
Analyst sentiment remains largely positive following the report. Joseph Thome, an analyst at TD Cowen, maintained a "Buy" rating on **AXSM** with a price target of **$190.00**. Needham also reiterated a "Buy" rating with a **$154.00** price target. The submission of the **sNDA** for **Auvelity** in Alzheimer's agitation is seen as a significant growth opportunity, with analysts highlighting the potential for substantial stock appreciation if the application is accepted and granted priority review. Corporate insider buying activity also indicated positive internal sentiment towards the stock.
## Looking Ahead
Investors will continue to monitor **Axsome**'s commercial performance, particularly the growth trajectory of **Auvelity**, and the progress of its late-stage pipeline assets. Key catalysts in the near term include potential FDA action on the **AXS-05 sNDA** for Alzheimer's agitation and the initiation of the pivotal Phase 2/3 trial for **AXS-05** in smoking cessation. The company's ability to manage its operating expenses while driving revenue growth will be crucial for achieving its stated goal of cash flow positivity and sustained shareholder value creation.
