Axsome Therapeutics (AXSM) AI Stock Analysis

• Market Cap: $7.70B
• Dividend Yield: N/A
• Average Volume (3M): 511.60K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.84
• Revenue Growth: 65.83%
• EPS Growth: 28.50%
• Country: US
• Employees: 712
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.94
• Shares Outstanding: 50,412,640
• 10 Day Avg. Volume: 476,677
• 30 Day Avg. Volume: 511,600
• PEG Ratio: -1.03
• Price to Book (P/B): 71.10
• Price to Sales (P/S): 10.51
• P/FCF Ratio: -31.50
• Enterprise Value/Market Cap: 0.78
• Enterprise Value/Revenue: 10.63
• Enterprise Value/Gross Profit: 11.58
• Enterprise Value/Ebitda: -28.11
• 1Y Price Target: $179.17
• Price Target Upside: 17.37% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): -3.8
• Revenue Forecast (FY): $628.76M

• Rating: 57 Neutral
• Price Target: $154.00 ▲(0.88% Upside)

Axsome Therapeutics' overall stock score is driven by strong revenue growth and positive technical indicators. However, financial performance is hindered by high leverage, negative profitability, and cash flow challenges. The earnings call provides optimism with strategic R&D advancements and commercial execution, but valuation concerns persist due to ongoing net losses.

Positive Factors

Revenue Growth

Strong revenue growth indicates successful product commercialization and market expansion, supporting long-term financial sustainability.

R&D Pipeline Advancements

Advancements in the R&D pipeline enhance Axsome's future growth potential and competitive position in CNS disorder treatments.

Strategic Acquisition

Acquiring Baergic Bio and its assets strengthens Axsome's portfolio, offering new therapeutic opportunities and potential revenue streams.

Negative Factors

High Leverage

High leverage poses financial risks, potentially limiting operational flexibility and increasing vulnerability to economic downturns.

Negative Cash Flow

Negative cash flow challenges can hinder the company's ability to fund operations and growth initiatives, impacting long-term viability.

Continued Net Loss

Ongoing net losses highlight operational inefficiencies and financial instability, potentially affecting future profitability and investor confidence.

Axsome Therapeutics Business Overview & Revenue Model

Company Description

Axsome Therapeutics, Inc. is a clinical-stage biopharmaceutical company focused on developing innovative therapies for the management of central nervous system (CNS) disorders. The company specializes in the research and development of novel treatments for conditions such as depression, migraine, and pain, leveraging its proprietary drug candidates and innovative delivery methods to address unmet medical needs. Axsome's core products include AXS-05, an investigational treatment for major depressive disorder, and AXS-07, a novel therapy for acute migraine treatment.

How the Company Makes Money

Axsome Therapeutics generates revenue primarily through the commercialization of its pharmaceutical products, particularly after receiving regulatory approvals. The company aims to enhance its revenue streams by advancing its pipeline of drug candidates into later stages of clinical development, leading to potential product launches. Additionally, Axsome may engage in partnerships with other pharmaceutical companies for co-development or licensing agreements, which can provide upfront payments, milestone payments, and royalties on product sales. The company's financial performance is also influenced by grants and funding from government or private institutions that support its research initiatives.

Axsome Therapeutics Financial Statement Overview

Summary

Axsome Therapeutics demonstrates strong revenue growth and gross profit margins, but faces significant profitability and cash flow challenges. High leverage and negative returns on equity highlight financial risks. The company needs to address operational inefficiencies and improve cash flow management to enhance financial stability.

Income Statement

Axsome Therapeutics shows strong gross profit margins consistently above 90%, indicating efficient cost management relative to revenue. However, the company is experiencing significant net losses, with a negative net profit margin of -40.89% in the TTM period. Revenue growth is positive, with a notable 13.38% increase in the TTM, but the persistent negative EBIT and EBITDA margins highlight ongoing operational challenges.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.93 in the TTM, suggesting significant leverage and potential financial risk. Return on equity is negative, reflecting the company's ongoing losses. The equity ratio is not directly provided, but the high leverage and negative ROE indicate financial instability.

Cash Flow

Cash flow analysis shows negative operating and free cash flows, with a declining free cash flow growth rate of -16.50% in the TTM. The operating cash flow to net income ratio is negative, indicating cash flow challenges. The free cash flow to net income ratio is close to 1, suggesting that cash flow is closely aligned with reported net income, albeit negative.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	561.26M	385.69M	270.60M	50.04M	0.00	0.00
Gross Profit	515.60M	352.39M	244.53M	44.84M	0.00	0.00
EBITDA	-212.34M	-272.60M	-224.99M	-175.40M	-124.63M	-100.31M
Net Income	-229.53M	-287.22M	-239.24M	-187.13M	-130.40M	-102.90M
Balance Sheet
Total Assets	669.25M	568.50M	588.24M	331.48M	87.79M	186.13M
Cash, Cash Equivalents and Short-Term Investments	325.27M	315.35M	386.19M	200.84M	86.47M	183.88M
Total Debt	218.60M	192.96M	186.37M	94.68M	49.71M	50.12M
Total Liabilities	595.52M	511.48M	397.26M	221.92M	72.15M	72.34M
Stockholders Equity	73.73M	57.02M	190.98M	109.56M	15.63M	113.79M
Cash Flow
Free Cash Flow	-101.04M	-128.68M	-145.66M	-117.21M	-108.53M	-78.50M
Operating Cash Flow	-100.95M	-128.41M	-145.08M	-116.51M	-108.23M	-78.46M
Investing Cash Flow	-439.00K	-270.00K	-582.00K	-53.70M	-308.00K	-45.89K
Financing Cash Flow	99.32M	57.84M	331.01M	284.58M	11.13M	42.41M

Axsome Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 152.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AXSM, the sentiment is Positive. The current price of 152.65 is above the 20-day moving average (MA) of 148.47, above the 50-day MA of 139.99, and above the 200-day MA of 118.45, indicating a bullish trend. The MACD of 2.39 indicates Positive momentum. The RSI at 62.44 is Neutral, neither overbought nor oversold. The STOCH value of 58.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AXSM.

Axsome Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RNA	62 Neutral	$10.91B	-17.35	-32.44%	―	106.27%	-43.90%
RYTM	59 Neutral	$7.48B	-36.14	-240.36%	―	54.92%	28.47%
AXSM	57 Neutral	$7.70B	-32.66	-275.50%	―	65.83%	28.50%
CYTK	57 Neutral	$7.67B	―	―	―	2609.26%	-17.08%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
LEGN	46 Neutral	$4.05B	―	-22.60%	―	74.91%	31.54%
NUVL	43 Neutral	$7.55B	-19.53	-38.79%	―	―	-52.84%

Axsome Therapeutics Corporate Events

Axsome Therapeutics Reports 63% Revenue Growth in Q3 2025

On November 3, 2025, Axsome Therapeutics reported a significant 63% year-over-year growth in net product revenue for the third quarter of 2025, totaling $171 million. The company also submitted a supplemental NDA for AXS-05 for Alzheimer’s disease agitation, highlighting its strong commercial performance and pipeline progress. The financial results reflect robust sales of AUVELITY, SUNOSI, and the newly launched SYMBRAVO, positioning Axsome for continued growth and innovation in the CNS disorder treatment market.