VANDA PHARMACEUTICALS INC (NASDAQ:VNDA) Reports Q3 2025 Earnings Miss on Revenue, Beat on EPS

VANDA PHARMACEUTICALS INC (NASDAQ:VNDA) recently disclosed its financial results for the third quarter of 2025, presenting a mixed picture that has elicited a distinct reaction from investors. The company's performance against analyst expectations and its subsequent stock movement highlight the market's current assessment of the biopharmaceutical firm's trajectory.

Earnings and Revenue Performance

Vanda's third-quarter financials revealed a significant divergence between its top-line revenue and bottom-line earnings per share when measured against Wall Street forecasts. The company reported revenue of $56.26 million, falling short of the analyst consensus estimate of $59.91 million. This revenue miss of approximately 6% suggests potential headwinds in commercial execution or market demand for the company's product portfolio.

However, the earnings picture tells a different story. Vanda reported a non-GAAP loss per share of $0.38, which actually surpassed analyst expectations of a $0.46 loss per share. This better-than-expected EPS performance, despite the revenue shortfall, indicates that the company may be exercising improved cost control or benefiting from favorable product mix dynamics that helped mitigate the impact of lower sales on its profitability.

Market Reaction and Recent Performance

The market's immediate response to these earnings has been decidedly negative, with the stock trading down approximately 6.5% in after-hours activity following the announcement. This price action suggests investors are focusing more heavily on the revenue miss than the EPS beat, potentially reflecting concerns about growth sustainability or competitive pressures in Vanda's core markets.

The recent trading history shows:

• Last week: +5.5%
• Last two weeks: +6.7%
• Last month: +11.8%

This positive momentum leading into the earnings report indicates that market participants may have been anticipating stronger results, making the disappointment reflected in the after-hours decline more pronounced.

Operational Highlights and Pipeline Development

According to the company's press release, Vanda's commercial product Fanapt® demonstrated substantial growth, with third-quarter 2025 net product sales increasing by 31% to $31.2 million compared to the same period in 2024. This robust performance for one of the company's flagship products represents a bright spot in an otherwise mixed quarter.

The release also highlighted regulatory progress for Bysanti™ (milsaperidone), noting the submission of a New Drug Application for both bipolar I disorder and schizophrenia. This pipeline advancement represents a potential future growth driver for the company, though the commercial impact remains dependent on regulatory approval and subsequent market acceptance.

Forward Outlook and Analyst Expectations

Looking ahead, analysts have established expectations for the coming quarters that Vanda will need to navigate. For the fourth quarter of 2025, the consensus estimates project:

• Revenue: $64.74 million
• EPS: -$0.40

For the full year 2025, analyst projections include:

• Revenue: $229.48 million
• EPS: -$1.84

These estimates suggest analysts anticipate a significant revenue acceleration in the fourth quarter alongside a modest reduction in per-share losses. The absence of formal guidance from Vanda in the press release leaves investors to weigh the company's actual performance against these external benchmarks without the context of management's internal expectations.

For detailed historical earnings data and additional analyst estimates, review the Vanda Pharmaceuticals earnings and estimates page.

Disclaimer: This article presents factual information and analysis based on publicly available data and should not be construed as investment advice or a recommendation to buy or sell any security. Investors should conduct their own research and consult with financial advisors before making investment decisions.