Sign in
OT

Ovid Therapeutics Inc. (OVID)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 delivered a major top-line surprise: license and royalty revenue rose to $6.27M vs $0.17M a year ago, driving EPS to -$0.06 vs consensus of -$0.16; the beat was primarily due to monetization of ganaxolone royalties and stronger royalty inflows .*
  • Operating discipline continued: total OpEx fell 45% YoY to $11.35M, with R&D down 49% and G&A down 40% following the 2024 restructuring .
  • Pipeline milestones are approaching: OV329 Phase 1 topline PD/safety readout in Q3 2025; OV350 Phase 1 safety/tolerability data in Q4 2025; OV4071 first-in-human targeted for Q2 2026 .
  • Cash runway extended: $38.35M cash and marketable securities at quarter-end, expected to fund operations into early 2H 2026; strengthened by a $7.0M non-dilutive royalty sale to Immedica in June .
  • Watch listing risk: OVID transferred to Nasdaq Capital Market and received a new 180-day compliance period to regain the $1.00 bid minimum; a reverse split is under consideration if needed .

What Went Well and What Went Wrong

What Went Well

  • Royalty monetization and revenue inflection: “$7.0 million royalty monetization agreement… delivers capital to the Company from a non-pipeline asset,” contributing to Q2 revenue of $6.27M and supporting the runway .
  • Cost control: Total OpEx down to $11.35M from $20.69M YoY due to restructuring and cost-reduction efforts .
  • Pipeline momentum with near-term catalysts: “We are on track to share Phase 1 safety, tolerability, and biomarker data for OV329… We expect to read out safety and tolerability data for OV350… before the end of the year,” highlighting de-risking potential for novel CNS mechanisms .

What Went Wrong

  • Nasdaq minimum bid non-compliance persists: OVID required a transfer to the Nasdaq Capital Market to obtain an additional 180-day cure period; management may consider a reverse split to regain compliance .
  • Core operations still loss-making: Q2 net loss of $4.68M despite revenue surge; other income fell sharply vs the prior year’s one-time benefit, highlighting ongoing funding needs until clinical validation .
  • Limited recurring revenue visibility: Revenue driven by royalties and monetization rather than product sales; Q1 revenue was just $0.13M, underscoring volatility until pipeline progresses .

Financial Results

Income Statement Summary (GAAP)

MetricQ4 2024Q1 2025Q2 2025
Revenue ($USD)$76,000 $130,000 $6,272,000
Research & Development ($USD)$5,923,000 $6,659,000 $6,465,000
General & Administrative ($USD)$4,878,000 $6,021,000 $4,880,000
Total Operating Expenses ($USD)$10,801,000 $12,680,000 $11,345,000
Other Income (Expense), net ($USD)$1,444,000 $2,315,000 $389,000
Net Income (Loss) ($USD)$(9,281,000) $(10,235,000) $(4,684,000)
EPS (basic & diluted, $)$(0.13) $(0.14) $(0.06)
Net Income Margin %-12,213% (calc from )-7,873% (calc from )-75% (calc from )

Notes: Net income margin computed as Net Income / Revenue using cited values.

Balance Sheet KPIs

MetricQ4 2024Q1 2025Q2 2025
Cash, Cash Equivalents & Marketable Securities ($USD)$53,075,000 $42,996,000 $38,347,000
Working Capital ($USD)$45,418,000 $36,614,000 $33,165,000
Total Assets ($USD)$92,167,000 $81,654,000 $77,428,000
Stockholders’ Equity ($USD)$68,226,000 $59,276,000 $55,789,000

Revenue Composition

Revenue TypeQ4 2024Q1 2025Q2 2025
License and other revenue ($USD)$76,000 $130,000 $6,272,000

Guidance Changes

MetricPeriodPrevious Guidance (Q1 2025)Current Guidance (Q2 2025)Change
Cash runwayThrough 2H 2026“support… into the 2H of 2026” “support… into early 2H 2026” Maintained (slight clarification)
OV329 Phase 1 topline PD/safetyQ3 2025On track for Q3 2025 On track for late Q3 2025 Maintained (timing narrowed)
OV350 Phase 1 safety/tolerabilityQ4 2025“expected before year-end” (Q4 2025) Q4 2025 Maintained
OV4071 first-in-humanQ2 2026PoC initiation H1/Q2 2026 Initiate Phase 1/1b early 2026; PoC Q2 2026 Maintained (clarified first-in-human and PoC)
Listing statusN/AN/ATransfer to Nasdaq Capital Market; 180-day extension to Feb 9, 2026 to cure bid price deficiency New disclosure

Earnings Call Themes & Trends

Note: A Q2 2025 earnings call transcript was not located.

TopicPrevious Mentions (Q4 2024 and Q1 2025)Current Period (Q2 2025)Trend
OV329 progress & biomarkersAdded higher-dose cohort; PD biomarkers (TMS/MRS/QEEG); no SAEs reported Late Q3 2025 topline PD/safety readout; well tolerated to date; Phase 2a planned in DRE Consistent progress toward PD readout
KCC2 activators (OV350/OV4071)OV350 dosed in Phase 1; OV4071 IND-enabling; PoC targeted H1/Q2 2026 OV350 safety/tolerability data Q4 2025; OV4071 IND-enabling completing; first-in-human early 2026 Steady advancement; timelines reiterated
Cash runway & financing strategyRunway into 2H 2026; exploring partnerships/co-dev Runway into early 2H 2026; non-dilutive $7M royalty sale; evaluating strategic options Runway reinforced; BD activity evidenced
Regulatory/listingNot discussedTransfer to Nasdaq Capital Market; potential reverse split consideration New risk disclosure
Revenue driversMinimal royalties; non-recurring other income in prior year Royalty revenue $6.27M; monetization transaction Material step-up; volatile mix likely

Management Commentary

  • “We are on track to share Phase 1 safety, tolerability, and biomarker data for OV329… Simultaneously, our KCC2 program is advancing well… Collectively, these milestones may provide compelling de-risking evidence for drugging and directly activating a new target in the brain” — Dr. Jeremy Levin, Chairman & CEO .
  • “We’ve… initiated human trials of our first-in-class KCC2 direct activator… and anticipate that OV4071… will be submitted to initiate clinical development by year end” — Dr. Jeremy Levin .

Q&A Highlights

  • No formal Q2 2025 earnings call transcript was available; therefore, no Q&A session highlights could be reviewed [ListDocuments returned none].

Estimates Context

  • Q2 2025 EPS: Actual -$0.06 vs consensus -$0.16; a beat of $0.10 per share.*
  • Q2 2025 Revenue: Actual $6.27M vs consensus $0.093M; a beat of $6.18M (+~6,630%).*
    Values retrieved from S&P Global.

Consensus vs Actual (Quarterly)

MetricQ1 2025Q2 2025Q3 2025
EPS Consensus Mean ($)-0.14 (actual) / -0.14*-0.06 (actual) / -0.16*-0.17 (actual)* / -0.15*
Revenue Consensus Mean ($USD)$130,000 (actual) / $25,000*$6,272,000 (actual) / $93,170*$132,000 (actual)* / $170,380*

Values retrieved from S&P Global. Actuals cited to company filings/press releases; consensus shown with asterisks.*

Key Takeaways for Investors

  • The quarter’s outsized top-line beat was largely driven by royalty inflows and monetization rather than core product sales; expect revenue volatility until clinical assets mature .
  • Cost discipline is real and sustained, with OpEx down 45% YoY, improving cash burn ahead of OV329 data and KCC2 readouts .
  • Near-term catalysts (OV329 PD/safety in Q3; OV350 Phase 1 data in Q4) may de-risk the platform and could be meaningful stock drivers; timing reiterated by management .
  • Balance sheet remains adequate for planned milestones into early 2H 2026, aided by the $7.0M non-dilutive cash infusion; still, capital markets or BD optionality may be needed post-readouts .
  • Listing compliance risk persists; monitor potential reverse split and related technical impacts on trading .
  • Given the magnitude of the EPS and revenue beats vs consensus, expect sell-side estimate revisions post-quarter; however, the quality and sustainability of revenue is a key debate for medium-term thesis.*
  • Tactical trade setup: upcoming clinical data readouts are primary catalysts; positioning should reflect binary outcomes typical of early-stage CNS assets .

*Values retrieved from S&P Global.