Axsome Therapeutics Inc. Common Stock (AXSM)

FairStock Score: 33/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Axsome with Graham's caution and Buffett's desire for durable economics. The company is a CNS biotech with commercial products, not a pre-revenue dream. Sales are moving: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $218.4 million, up from $150.0 million in fiscal Q2 2025, the quarter ended 2025-06-30. Net loss was $51.3 million, or diluted EPS -$0.99, versus a $48.0 million loss in the year-earlier period. For fiscal 2025, revenue reached $638.5 million against $385.7 million in fiscal 2024, but net loss was still $183.2 million. Fiscal 2023 revenue was $270.6 million with a $239.2 million loss. So the top line is growing, but profits remain elusive. That fails Graham's earnings test. The balance sheet gives me pause: FairStock's D/E is 2.70, ROE -245.10%, ROCE -16.31%, and trailing FCF is -$72.0 million. At the 2026-10-13 close of $156.32, FairStock's P/B is 98.31 and FCF yield -0.9%; the negative P/E of -41.80 simply says there are no positive earnings to value. The FairStock Score is 33/100. Some positives: Piotroski 6/9 and Altman Z 5.00. A CNS franchise can have clinical and regulatory barriers, but I see no demonstrated durable moat without sustained profits. The price already discounts substantial future success. This looks more like a speculative growth story than a value investment.

In plain English: Axsome Therapeutics makes medicines for brain and mental-health conditions such as depression and excessive sleepiness. Sales are growing quickly, but the company still loses money, spends more cash than it brings in, and carries a lot of debt. At $156.32 on 2026-10-13, the stock looks expensive compared with its sales and lack of profits, so it depends heavily on future drug success.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer