Axsome Therapeutics (AXSM) AI Stock Analysis

• Market Cap: $5.19B
• Dividend Yield: N/A
• Average Volume (3M): 609.22K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.99
• Revenue Growth: 69.83%
• EPS Growth: 22.16%
• Country: US
• Employees: 712
• Sector: Healthcare
• Sector Strength: 40
• Industry: Biotechnology
• EPS (TTM): -0.97
• Shares Outstanding: 49,901,485
• 10 Day Avg. Volume: 637,816
• 30 Day Avg. Volume: 609,221
• 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: 0.98
• Enterprise Value/Revenue: 10.27
• Enterprise Value/Gross Profit: 11.22
• Enterprise Value/Ebitda: -22.60
• 1Y Price Target: $165.53
• Price Target Upside: 57.30% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 17

• Rating: 53 Neutral
• Price Target: $107.00 ▲(1.68% Upside)

Axsome Therapeutics' overall score reflects strong revenue growth and promising product performance, but is weighed down by significant financial challenges, including high leverage and negative profitability. Technical indicators suggest neutral momentum, while valuation concerns persist due to the negative P/E ratio. Recent corporate events provide some positive outlook, but regulatory setbacks and financial losses remain critical issues.

Positive Factors

Analyst Recommendation

Analyst's recommendation for AXSM stock remains 'Outperform'.

Financial Performance

A strong top-line beat, with better than expected revenue for both Auvelity and Sunosi.

Sales Growth

AUVELITY, Axsome's flagship product for treatment of major depressive disorder, showed a 56% increase in prescriptions compared to the year-ago period, and a 15% rise quarter-over-quarter.

Negative Factors

Market Performance

Auvelity prescriptions were slightly down for the week, although this was roughly in-line with the performance of its peers.

Product Launch

Symbravo is tracking below oral CGRP drugs at early launch juncture.

Axsome Therapeutics Business Overview & Revenue Model

Company Description

Axsome Therapeutics, Inc., a biopharmaceutical company, engages in the development of novel therapies for central nervous system (CNS) disorders in the United States. The company's product pipeline includes AXS-05, a therapeutic for the treatment of major depressive disorder and resistant depression disorders; and that is in the Phase III clinical trial to treat Alzheimer's disease agitation, as well as that has completed phase II clinical trial for the treatment of smoking cessation. It is also developing AXS-07, a novel, oral, rapidly absorbed, multi-mechanistic, and investigational medicine that has completed two Phase III trials for the acute treatment of migraine; AXS-12, a selective and potent norepinephrine reuptake inhibitor, which is in Phase III trial to treat narcolepsy; and AXS-14, a novel, oral, and investigational medicine that is in Phase III trial for the treatment of fibromyalgia. Axsome Therapeutics, Inc. has a research collaboration agreement with Duke University for evaluating AXS-05 in smoking cessation. The company was incorporated in 2012 and is based in New York, New York.

How the Company Makes Money

Axsome Therapeutics generates revenue primarily through the commercialization of its pharmaceutical products. The company has received regulatory approvals for its lead product, AXS-05, which contributes to its revenue through sales in the market. Additionally, Axsome may engage in strategic partnerships and collaborations with larger pharmaceutical companies, which can provide upfront payments, milestone payments, and royalties on sales of partnered products. Research grants and government funding for clinical trials may also serve as supplementary revenue sources. As the company advances its pipeline and achieves regulatory milestones, it aims to enhance its revenue streams through the introduction of additional products to the market.

Axsome Therapeutics Financial Statement Overview

Summary

Axsome Therapeutics exhibits strong revenue growth but faces significant financial challenges due to consistent net losses, high leverage, and cash flow deficiencies. The company's financial health is precarious, relying heavily on external funding.

Income Statement

Axsome Therapeutics has shown significant revenue growth over the past few years, highlighted by a substantial increase from $50M in 2022 to $432M TTM (Trailing-Twelve-Months) 2025. However, the company continues to operate at a loss, with negative EBIT and net income margins due to high operating expenses and R&D costs typical in biotech. The gross profit margin remains healthy, reflecting strong product margins. Despite revenue growth, the consistent net losses detract from the overall income statement strength.

Balance Sheet

The company's balance sheet reflects a high level of liabilities compared to equity, with a debt-to-equity ratio indicating significant leverage. Stockholders' equity has been declining, which is concerning. Although cash reserves are substantial, the low equity ratio and negative equity in previous years suggest financial instability. The biotech industry's typical high leverage risk and reliance on external funding are evident here.

Cash Flow

Axsome Therapeutics faces challenges with cash flows, as evidenced by negative operating and free cash flows, compounded by substantial R&D investments. The operating cash flow to net income ratio remains negative, indicating persistent cash flow issues. While financing activities have supplemented cash reserves, the company remains heavily reliant on external financing to sustain operations, highlighting cash flow risk.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	495.03M	385.69M	270.60M	50.04M	0.00	0.00
Gross Profit	452.85M	352.39M	244.53M	44.84M	-1.16M	-77.72K
EBITDA	-224.80M	-272.60M	-224.99M	-174.23M	-123.55M	-99.06M
Net Income	-246.90M	-287.22M	-239.24M	-197.77M	-134.94M	-105.39M
Balance Sheet
Total Assets	639.78M	568.50M	588.24M	331.48M	-338.36M	186.13M
Cash, Cash Equivalents and Short-Term Investments	303.02M	315.35M	386.19M	200.84M	86.47M	183.88M
Total Debt	215.29M	192.96M	186.37M	94.68M	49.71M	50.12M
Total Liabilities	566.71M	511.48M	397.26M	221.92M	70.84M	72.34M
Stockholders Equity	73.08M	57.02M	190.98M	109.56M	-409.20M	-278.80M
Cash Flow
Free Cash Flow	-120.51M	-128.68M	-145.66M	-117.21M	-108.53M	-78.50M
Operating Cash Flow	-120.63M	-128.41M	-145.08M	-116.51M	-108.23M	-78.46M
Investing Cash Flow	-471.00K	-270.00K	-582.00K	-53.70M	-307.55K	-45.89K
Financing Cash Flow	108.46M	57.84M	331.01M	284.58M	11.13M	42.41M

Axsome Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 105.23
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 105.23 is above the 20-day moving average (MA) of 104.89, below the 50-day MA of 105.88, and below the 200-day MA of 105.25, indicating a neutral trend. The MACD of -0.63 indicates Negative momentum. The RSI at 50.67 is Neutral, neither overbought nor oversold. The STOCH value of 62.17 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
KRYS	71 Outperform	$3.98B	27.98	15.61%	―	116.09%	35.29%
VRNA	68 Neutral	$9.05B	―	-36.38%	―	―	34.29%
SRPT	54 Neutral	$1.75B	19.61	-4.76%	―	64.89%	-221.56%
AXSM	53 Neutral	$5.19B	―	-280.68%	―	69.83%	22.16%
Sector *	51 Neutral	$7.40B	-0.29	-44.86%	2.30%	24.10%	0.12%
BPMC	50 Neutral	$8.37B	―	-47.71%	―	99.19%	48.43%
CYTK	46 Neutral	$3.98B	―	435.49%	―	2635.74%	4.66%

Axsome Therapeutics Corporate Events

Axsome Therapeutics Reports Strong Q2 2025 Performance

On August 4, 2025, Axsome Therapeutics reported a significant financial performance for the second quarter of 2025, with a 72% year-over-year increase in net product revenue, reaching $150 million. The company highlighted the successful launch of SYMBRAVO for migraines and the strong sales growth of AUVELITY and SUNOSI. Axsome is progressing with regulatory submissions for AXS-05 and AXS-12, aiming to expand its product pipeline addressing serious psychiatric and neurological conditions. The company also reported a reduced net loss compared to the previous year, indicating improved financial health.

The most recent analyst rating on (AXSM) stock is a Buy with a $190.00 price target. To see the full list of analyst forecasts on Axsome Therapeutics stock, see the AXSM Stock Forecast page.

Axsome Therapeutics Launches SYMBRAVO for Migraine Relief

On June 10, 2025, Axsome Therapeutics announced the commercial availability of SYMBRAVO®, a novel treatment for acute migraine with or without aura in adults. SYMBRAVO offers a multi-mechanistic approach, providing rapid and sustained pain relief, and is supported by comprehensive patient services. This launch addresses a significant unmet need in migraine treatment, potentially benefiting millions of individuals dissatisfied with existing options.

The most recent analyst rating on (AXSM) stock is a Buy with a $175.00 price target. To see the full list of analyst forecasts on Axsome Therapeutics stock, see the AXSM Stock Forecast page.

Axsome Therapeutics Shareholders Approve Key Proposals at Meeting

At the 2025 Annual Meeting of Stockholders held on June 6, Axsome Therapeutics presented four proposals, all of which were approved by the shareholders. These included the election of a Class I director, approval of the 2025 Long-Term Incentive Plan, ratification of Deloitte & Touche LLP as the independent auditor for 2025, and a non-binding advisory vote on executive compensation. The approval of these proposals reflects strong shareholder support and positions the company for continued strategic growth and governance stability.

The most recent analyst rating on (AXSM) stock is a Buy with a $175.00 price target. To see the full list of analyst forecasts on Axsome Therapeutics stock, see the AXSM Stock Forecast page.

FDA Refuses Axsome’s NDA for Fibromyalgia Drug

On June 9, 2025, Axsome Therapeutics announced that the FDA issued a Refusal to File letter for its NDA for AXS-14, a drug intended for fibromyalgia management. The FDA found one of the trials inadequate due to its design, prompting Axsome to plan an additional trial in late 2025 to meet FDA requirements, reflecting the company’s commitment to addressing unmet needs in fibromyalgia treatment.

The most recent analyst rating on (AXSM) stock is a Buy with a $175.00 price target. To see the full list of analyst forecasts on Axsome Therapeutics stock, see the AXSM Stock Forecast page.

Axsome Therapeutics Settles Patent Litigation on SUNOSI

On May 27, 2025, Axsome Therapeutics announced a settlement agreement with Hetero Labs Ltd. to resolve patent litigation regarding Axsome’s product SUNOSI (solriamfetol). The agreement allows Hetero to sell a generic version of SUNOSI in the U.S. starting in 2040, contingent on FDA approval and other conditions. This settlement is subject to review by U.S. regulatory authorities, and similar litigation with other parties remains pending.

The most recent analyst rating on (AXSM) stock is a Buy with a $175.00 price target. To see the full list of analyst forecasts on Axsome Therapeutics stock, see the AXSM Stock Forecast page.

Axsome Therapeutics Secures $570M Loan with Blackstone

On May 8, 2025, Axsome Therapeutics entered into a $570 million loan agreement with Blackstone, replacing its previous loan with Hercules Capital. This agreement, which includes a term loan and revolving credit facility, is expected to reduce interest expenses and support Axsome’s growth and profitability goals. The company also completed a private placement of common stock with Blackstone, raising approximately $15 million. These financial moves aim to enhance Axsome’s operational and financial agility, supporting its mission to improve patient outcomes in CNS disorders.

The most recent analyst rating on (AXSM) stock is a Buy with a $175.00 price target. To see the full list of analyst forecasts on Axsome Therapeutics stock, see the AXSM Stock Forecast page.