Sarepta Therapeutics (NASDAQ:SRPT) Surprises With Q1 Sales But Stock Drops 22.8%

Yahoo

07-05-2025

Biotech company Sarepta Therapeutics (NASDAQ:SRPT) reported revenue ahead of Wall Street's expectations in Q1 CY2025, with sales up 80.2% year on year to $744.9 million. Its non-GAAP loss of $3.42 per share was significantly below analysts' consensus estimates.
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Sarepta Therapeutics (SRPT) Q1 CY2025 Highlights:
Revenue: $744.9 million vs analyst estimates of $693.5 million (80.2% year-on-year growth, 7.4% beat)
Adjusted EPS: -$3.42 vs analyst estimates of -$0.65 (significant miss)
Adjusted EBITDA: -$249.6 million vs analyst estimates of -$371 million (-33.5% margin, 32.7% beat)
2025 guidance: total product revenue lowered to $2.45 billion (from ($3.0 billion prior) while combined R&D and SG&A expense raised to $2.0 billion (from $1.25 billion prior)
Operating Margin: -40.3%, down from 8.4% in the same quarter last year
Market Capitalization: $6.26 billion
'In the first quarter, we achieved net product revenue of $611.5 million, a 70% increase over the same quarter prior year; our PMO franchise performed well at $236.5 million; and ELEVIDYS achieved $375.0 million, growing at 180% over the same quarter prior year. However, we also faced headwinds in the quarter. While we are taking a variety of actions to address and resolve these challenges, we have adjusted our guidance for 2025 to $2.3 billion to $2.6 billion,' said Doug Ingram, president and chief executive officer, Sarepta Therapeutics.
Company Overview
Pioneering treatments for a devastating childhood muscle-wasting disease that primarily affects boys, Sarepta Therapeutics (NASDAQ:SRPT) develops and commercializes RNA-targeted therapies and gene therapies for rare genetic disorders, primarily Duchenne muscular dystrophy.
Sales Growth
Reviewing a company's long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Luckily, Sarepta Therapeutics's sales grew at an incredible 40.5% compounded annual growth rate over the last five years. Its growth beat the average healthcare company and shows its offerings resonate with customers.
Sarepta Therapeutics Quarterly Revenue
Long-term growth is the most important, but within healthcare, a half-decade historical view may miss new innovations or demand cycles. Sarepta Therapeutics's annualized revenue growth of 51.3% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated.
Sarepta Therapeutics Year-On-Year Revenue Growth
We can better understand the company's revenue dynamics by analyzing its most important segment, . Over the last two years, Sarepta Therapeutics's revenue averaged 50.8% year-on-year growth.