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AXSM Stock Analysis - Axsome Therapeutics, Inc. AI Rating

AXSM Nasdaq Pharmaceutical Preparations DE CIK: 0001579428
Recently Updated • Analysis: Mar 20, 2026 • SEC Data: 2025-12-31
AI Rating
SELL
78% Confidence

📊 AXSM Key Takeaways

Revenue: $638.5M
Net Margin: -28.7%
Free Cash Flow: $-93.9M
Current Ratio: 1.55x
Debt/Equity: 1.33x
EPS: $-3.68
AI Rating: SELL with 78% confidence

Investment Thesis

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.

AXSM 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

AXSM 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

Key Metrics to Watch

AXSM Financial Metrics

Revenue
$638.5M
Net Income
$-183.2M
EPS (Diluted)
$-3.68
Free Cash Flow
$-93.9M
Total Assets
$689.8M
Cash Position
$322.9M

💡 AI Analyst Insight

Axsome Therapeutics, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.

AXSM Profitability Ratios

Gross Margin N/A
Operating Margin -26.1%
Net Margin -28.7%
ROE -207.5%
ROA -26.6%
FCF Margin -14.7%

AXSM vs Healthcare Sector

How Axsome Therapeutics, Inc. compares to Healthcare sector averages

Net Margin
AXSM -28.7%
vs
Sector Avg 12.0%
AXSM Sector
ROE
AXSM -207.5%
vs
Sector Avg 15.0%
AXSM Sector
Current Ratio
AXSM 1.6x
vs
Sector Avg 2.0x
AXSM Sector
Debt/Equity
AXSM 1.3x
vs
Sector Avg 0.6x
AXSM Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

AXSM Balance Sheet & Liquidity

Current Ratio
1.55x
Quick Ratio
1.48x
Debt/Equity
1.33x
Debt/Assets
87.2%
Interest Coverage
N/A
Long-term Debt
$117.7M

AXSM 5-Year Financial Trend

AXSM 5-year financial data: Year 2022: Revenue $50.0M, Net Income -$102.9M, EPS $-2.77. Year 2023: Revenue $270.6M, Net Income -$130.4M, EPS $-3.47. Year 2024: Revenue $385.7M, Net Income -$187.1M, EPS $-4.60. Year 2025: Revenue $638.5M, Net Income -$239.2M, EPS $-5.27.
Revenue
Net Income
EPS (right axis)

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 Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-14.7%
Free cash flow / Revenue

AXSM Quarterly Performance

Quarterly financial performance data for Axsome Therapeutics, Inc. including revenue, net income, and earnings per share.
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.

AXSM Capital Allocation

Operating Cash Flow
-$93.4M
Cash generated from operations
Capital Expenditures
$480.0K
Investment in assets
Dividends
None
No dividend program

AXSM SEC Filings

Access official SEC EDGAR filings for Axsome Therapeutics, Inc. (CIK: 0001579428)

📋 Recent SEC Filings

Date Form Document Action
Feb 27, 2026 4 xslF345X05/ownership.xml View →
Feb 27, 2026 4 xslF345X05/ownership.xml View →
Feb 27, 2026 4 xslF345X05/ownership.xml View →
Feb 27, 2026 4 xslF345X05/ownership.xml View →
Feb 27, 2026 4 xslF345X05/ownership.xml View →

Frequently Asked Questions about AXSM

What is the AI rating for AXSM?

Axsome Therapeutics, Inc. (AXSM) has an AI rating of SELL with 78% confidence, based on fundamental analysis of SEC EDGAR filings.

What are AXSM's 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.

What are the risks of investing in AXSM?

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.

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?

Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.

Disclaimer: This analysis is generated by Claude AI based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Mar 20, 2026 | Data as of: 2025-12-31 | Powered by Claude AI