Axsome Therapeutics reported Q2 2025 revenue of $150.0 million, marking a substantial year-over-year rise of 72.1% and quarter-over-quarter growth of 23.5%. The quarter featured an exceptionally high gross margin of approximately 91% (gross profit of $136.6 million on $150.0 million revenue), underscoring favorable product mix and limited cost of goods sold. Despite top-line strength, Axsome recorded a net loss of $47.97 million and an operating loss of $36.71 million for the quarter, driven by elevated operating expenses (R&D of $49.54 million and SG&A of $130.28 million). Earnings per share stood at a negative $0.97, with 49.44 million weighted shares outstanding.
The company demonstrated solid liquidity, ending the period with $303.0 million in cash and equivalents against total debt of $215.3 million, producing a net debt position of $(87.7) million. Operating cash flow was negative at $(32.42) million for the quarter, while free cash flow was also $(32.42) million. Financing activities contributed $34.54 million from common stock issuances, delivering a modest net cash uptick of $2.11 million for the period. Axsome continues to fund a CNS portfolio — notably AXS05 (Phase III in Alzheimer’s disease agitation and other indications), AXS07 (migraine, Phase III), AXS12 (narcolepsy, Phase III), and AXS14 (fibromyalgia, Phase III) — with several near-term milestones that could influence operating leverage and funding needs.
With no formal quarterly guidance disclosed in the results release, the investment thesis hinges on pipeline advancement, potential strategic partnerships, and the management of cash burn. Investors should monitor upcoming trial readouts, regulatory developments, potential collaborations, and the company’s ability to extend the cash runway through operating improvements or additional financing.