ARS Pharmaceuticals Inc (NASDAQ:SPRY) Reports Mixed Q2 2025 Earnings with Revenue Beat but Investor Caution Persists

ARS Pharmaceuticals Inc (NASDAQ:SPRY) reported its second-quarter 2025 financial results, delivering mixed performance relative to analyst expectations. The company posted revenue of $15.7 million, surpassing the consensus estimate of $14.1 million, while its net loss per share of $0.46 was slightly better than the anticipated $0.48 loss. Despite the beat on revenue and a narrower-than-expected loss, the stock saw a pre-market decline of approximately 0.96%, suggesting investor caution amid ongoing commercialization efforts for its flagship product, neffy®.

Key Financial Highlights vs. Estimates

• Revenue: Reported $15.7 million, exceeding estimates by ~11.9%. The bulk of this came from U.S. net product revenue of $12.8 million for neffy, alongside milestone payments from European commercialization efforts.
• EPS: Reported a loss of $0.46 per share, slightly better than the estimated $0.48 loss.
• Operating Expenses: SG&A costs surged to $54.3 million, reflecting aggressive marketing and commercialization investments.
• Cash Position: The company maintains a strong liquidity position with $240.1 million in cash and equivalents, projecting a three-year runway.

Market Reaction & Sentiment

Despite the revenue beat, the stock’s pre-market dip suggests investor concerns over the company’s high SG&A spending and the path to profitability. The 52% gross-to-net retention rate indicates steady payor coverage, but the market may be weighing the sustainability of growth against rising expenses. Additionally, while prescription volumes for neffy grew ~180% quarter-over-quarter, the stock’s recent performance (-6.4% over the past week) reflects uncertainty about near-term profitability.

Commercial & Regulatory Progress

• U.S. Launch: neffy continues gaining traction, with 93% commercial coverage achieved and over 9,700 healthcare providers now prescribing the product.
• Global Expansion: Regulatory approvals in the U.K. (MHRA) and a commercial launch in Germany mark key milestones, with additional approvals expected in Canada, Japan, and Australia by early 2026.
• Pipeline Development: A Phase 2b trial for urticaria treatment is underway, potentially expanding neffy’s market beyond anaphylaxis.

Outlook vs. Analyst Expectations

While ARS Pharma did not provide explicit forward guidance, analysts project full-year 2025 sales at $81.1 million, with Q3 estimates at $30.2 million. The company’s aggressive DTC campaign and pediatric co-promotion efforts could drive further prescription growth, but investors appear cautious about the timeline for profitability.

For a deeper dive into ARS Pharmaceuticals’ earnings and estimates, visit the earnings page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research before making any financial decisions.