📊 AXSM Key Takeaways
Is Axsome Therapeutics, Inc. (AXSM) a Good Investment?
Axsome exhibits strong revenue growth of 65.5% YoY, demonstrating market traction for its pharmaceutical products. However, the company is deeply unprofitable with -28.7% net margins, substantial operating losses of -$166.8M, and negative free cash flow of -$93.9M, indicating the business is not yet self-sustaining. While the $322.9M cash position provides runway, the current burn rate and path to profitability remain concerning for investors.
Axsome Therapeutics is showing strong commercial momentum, with revenue up 65.5% year over year and EPS losses improving materially, which suggests operating scale is building. However, the company remains meaningfully unprofitable, is burning cash, and has a thin equity base relative to liabilities, so the growth story still needs to translate into durable margin improvement and stronger balance sheet resilience.
Why Buy Axsome Therapeutics, Inc. Stock? AXSM Key Strengths
- Exceptional revenue growth of 65.5% YoY demonstrates strong market demand and successful commercialization
- Solid liquidity position with $322.9M cash and 1.55x current ratio providing financial flexibility
- Improving diluted EPS trend with 38.6% YoY improvement despite continued losses shows cost discipline
- Revenue growth of 65.5% YoY indicates strong demand and expanding commercial execution
- Cash and equivalents of $322.93M provide a meaningful liquidity cushion relative to ongoing losses
- Current ratio of 1.55x and quick ratio of 1.48x suggest near-term obligations are manageable
AXSM Stock Risks: Axsome Therapeutics, Inc. Investment Risks
- Chronic unprofitability with -$183.2M net income and -$93.9M operating cash flow indicating unsustainable business model
- High leverage with 1.33x debt-to-equity ratio and $117.7M long-term debt while company is cash flow negative
- Significant cash burn rate of $93.9M in free cash flow could deplete $322.9M reserves within 3-4 years without profitability
- Operating margin of -26.1% and net margin of -28.7% show the business is still far from sustained profitability
- Negative operating cash flow of $-93.41M and free cash flow of $-93.89M indicate continued cash burn
- Very low equity base of $88.30M against $601.51M of liabilities and debt/equity of 1.33x weakens financial flexibility
Key Metrics to Watch
- Path to operating profitability and timeline to positive operating cash flow
- Cash runway and burn rate trajectory given current spending levels
- Revenue growth sustainability and gross margin expansion as volumes scale
- Operating margin trend and net loss reduction
- Operating cash flow burn relative to cash balance
Axsome Therapeutics, Inc. (AXSM) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Axsome Therapeutics, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
AXSM Profit Margin, ROE & Profitability Analysis
AXSM vs Healthcare Sector: How Axsome Therapeutics, Inc. Compares
How Axsome Therapeutics, Inc. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Axsome Therapeutics, Inc. Stock Overvalued? AXSM Valuation Analysis 2026
Based on fundamental analysis, Axsome Therapeutics, Inc. shows some fundamental concerns relative to the Healthcare sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Axsome Therapeutics, Inc. Balance Sheet: AXSM Debt, Cash & Liquidity
AXSM Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Axsome Therapeutics, Inc.'s revenue has grown significantly by 1,176% over the 5-year period, indicating strong business expansion. The most recent EPS of $-5.27 indicates the company is currently unprofitable.
AXSM Revenue Growth, EPS Growth & YoY Performance
AXSM Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $104.8M | -$47.2M | $-0.94 |
| Q2 2025 | $87.2M | -$48.0M | $-0.97 |
| Q1 2025 | $75.0M | -$59.4M | $-1.22 |
| Q3 2024 | $57.8M | -$11.2M | $-1.32 |
| Q2 2024 | $46.7M | -$11.2M | $-1.54 |
| Q1 2024 | $75.0M | -$11.2M | $-0.26 |
| Q3 2023 | $16.8M | -$11.2M | $-1.07 |
| Q2 2023 | $8.8M | -$11.2M | $-1.06 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Axsome Therapeutics, Inc. Dividends, Buybacks & Capital Allocation
AXSM SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Axsome Therapeutics, Inc. (CIK: 0001579428)
📋 Recent SEC Filings
❓ Frequently Asked Questions about AXSM
What is the AI rating for AXSM?
Axsome Therapeutics, Inc. (AXSM) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are AXSM's key strengths?
Claude: Exceptional revenue growth of 65.5% YoY demonstrates strong market demand and successful commercialization. Solid liquidity position with $322.9M cash and 1.55x current ratio providing financial flexibility. ChatGPT: Revenue growth of 65.5% YoY indicates strong demand and expanding commercial execution. Cash and equivalents of $322.93M provide a meaningful liquidity cushion relative to ongoing losses.
What are the risks of investing in AXSM?
Claude: Chronic unprofitability with -$183.2M net income and -$93.9M operating cash flow indicating unsustainable business model. High leverage with 1.33x debt-to-equity ratio and $117.7M long-term debt while company is cash flow negative. ChatGPT: Operating margin of -26.1% and net margin of -28.7% show the business is still far from sustained profitability. Negative operating cash flow of $-93.41M and free cash flow of $-93.89M indicate continued cash burn.
What is AXSM's revenue and growth?
Axsome Therapeutics, Inc. reported revenue of $638.5M.
Does AXSM pay dividends?
Axsome Therapeutics, Inc. does not currently pay dividends.
Where can I find AXSM SEC filings?
Official SEC filings for Axsome Therapeutics, Inc. (CIK: 0001579428) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is AXSM's EPS?
Axsome Therapeutics, Inc. has a diluted EPS of $-3.68.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is AXSM a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Axsome Therapeutics, Inc. has a SELL rating with 76% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is AXSM stock overvalued or undervalued?
Valuation metrics for AXSM: ROE of -207.5% (sector avg: 15%), net margin of -28.7% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy AXSM stock in 2026?
Our dual AI analysis gives Axsome Therapeutics, Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is AXSM's free cash flow?
Axsome Therapeutics, Inc.'s operating cash flow is $-93.4M, with capital expenditures of $480.0K. FCF margin is -14.7%.
How does AXSM compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin -28.7% (avg: 12%), ROE -207.5% (avg: 15%), current ratio 1.55 (avg: 2).