📊 AXSM Key Takeaways
Is Axsome Therapeutics, Inc. (AXSM) a Good Investment?
Axsome demonstrates strong revenue growth of 65.5% YoY but remains deeply unprofitable with -33.8% net margins and negative operating cash flow of -$20.7M, indicating a pre-profitability biotech company consuming shareholder value at scale. High leverage (Debt/Equity 2.16x) combined with inability to cover interest expenses (-20.5x coverage) and negative returns on equity (-118.2%) create material financial risk, despite adequate cash reserves providing ~14 years of runway.
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
- Strong top-line revenue growth of 65.5% YoY demonstrates market traction and demand
- Substantial cash position of $305.1M provides significant operational runway for continued investment
- Capital-light business model with minimal CapEx ($121K) reduces ongoing funding needs
- 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 operating losses (-$63.4M) and negative operating margins (-33.1%) despite revenue scale indicate unit economics do not support profitability
- Negative free cash flow (-$20.8M) demonstrates company is destroying value and not self-sustaining despite revenue growth
- High financial leverage (Debt/Equity 2.16x) with negative interest coverage (-20.5x) creates refinancing risk and debt sustainability concerns
- Severe shareholder value destruction evidenced by negative ROE (-118.2%) and ROA (-9.0%)
- No visibility to path toward profitability; company reinvesting losses rather than moving toward breakeven
- 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
- Operating margin trend toward positive territory and path to profitability
- Operating cash flow recovery and cash burn rate deceleration
- Revenue growth sustainability and contribution margin expansion
- Debt-to-equity ratio and debt refinancing schedule given negative interest coverage
- 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 |
|---|---|---|---|
| Q1 2026 | $121.5M | -$59.4M | $-1.22 |
| 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 |
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: Strong top-line revenue growth of 65.5% YoY demonstrates market traction and demand. Substantial cash position of $305.1M provides significant operational runway for continued investment. 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 operating losses (-$63.4M) and negative operating margins (-33.1%) despite revenue scale indicate unit economics do not support profitability. Negative free cash flow (-$20.8M) demonstrates company is destroying value and not self-sustaining despite revenue growth. 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 $191.2M.
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 $-1.26.
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 May 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 -118.2% (sector avg: 15%), net margin of -33.8% (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 $-20.7M, with capital expenditures of $121.0K. FCF margin is -10.9%.
How does AXSM compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin -33.8% (avg: 12%), ROE -118.2% (avg: 15%), current ratio 1.39 (avg: 2).
Is Axsome Therapeutics, Inc. carrying too much debt?
AXSM has a debt-to-equity ratio of 2.16x, which is above the Healthcare sector average of 0.6x. However, the current ratio of 1.39 suggests adequate short-term liquidity.