Acadia (ACAD) Q2 Revenue Rises 9%

Key Points

• Earnings per share (GAAP) came in at $0.16, beating expectations by $0.02 (GAAP) but down from $0.20 per share (GAAP) in Q2 2024.

• Revenue (GAAP) rose 9% to $264.6 million, topping GAAP estimates, with steady growth in both NUPLAZID and DAYBUE product sales.

• The company raised the low end of its full-year 2025 guidance for NUPLAZID net product sales to $665 million but kept total revenue and DAYBUE targets unchanged.

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Acadia Pharmaceuticals (NASDAQ:ACAD), a neuroscience-focused biopharma company behind treatments for central nervous system diseases, reported its earnings for Q2 2025 on August 6, 2025. The most notable news was a slight beat on both GAAP earnings and revenue, driven by ongoing growth in its NUPLAZID and DAYBUE product lines. Earnings per share (GAAP) reached $0.16, ahead of the analyst expectation of $0.14 (GAAP), while revenue (GAAP) stood at $264.6 million, above the $262.0 million GAAP consensus. Compared to Q2 2024, revenue (GAAP) increased by 9.3%, though GAAP net income declined due to higher tax and selling expenses. The quarter demonstrated operational progress, steady product sales growth, and cautious optimism for the remainder of FY2025.

Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.

Business Overview and Recent Focus

Acadia Pharmaceuticals develops medicines for central nervous system disorders, focusing mainly on neurological and rare diseases. Its primary commercial products are NUPLAZID, a treatment for hallucinations and delusions related to Parkinson’s disease psychosis, and DAYBUE, a therapy for Rett syndrome, a rare genetic neurological disorder.

The company’s recent strategy centers on maximizing these two drug franchises in the U.S, expanding internationally, and advancing a pipeline of new drug candidates. Success depends on continued prescription growth, product persistence—meaning how long patients stay on therapy—and expansion into new markets. Strong intellectual property protection and navigating regulatory approvals are also crucial to maintaining and growing its market positions.

Quarter Highlights: Growth and Shifting Expense Structure

The quarter showed both revenue and sales growth in key products, with GAAP total revenues increasing. NUPLAZID, a specialty psychiatric drug for Parkinson’s disease psychosis, brought in $168.5 million in net product sales—7.0% higher than the prior year period. Most of this expansion was due to increased volume, with management citing strong execution and direct-to-consumer outreach. Buoyed by this trend, Acadia raised the low end of its annual sales guidance for NUPLAZID to $665 million for full year 2025, with the upper end unchanged at $690 million for full year 2025.

Sales of DAYBUE, a rare-disease therapy for Rett syndrome, rose to $96.1 million (GAAP), This represented an increase of 14% compared to the second quarter of 2024. The company shipped its product to 987 unique U.S. patients, a record for the therapy since launch. Management attributed DAYBUE’s continued momentum to its expanded salesforce and persistent addition of new patients. Retention—how long patients remain on therapy—remained stable at just over 50% at the one-year mark, with management reporting that the majority of patients on treatment for longer than a year continue therapy beyond that point. These factors place Acadia well within its stated guidance range of $380 million to $405 million for DAYBUE net sales in FY2025.

Expenses increased, particularly in selling, general, and administrative costs, which rose by 14.0% compared to Q2 2024 (GAAP). This growth was mostly due to investment in expanding commercial operations for both NUPLAZID and DAYBUE. Research and development spending (GAAP) also rose by 2.4% year-over-year. These investments reflect the company’s commitment to pipeline growth, commercial expansion, and new patient outreach initiatives.

Despite higher revenues, net income (GAAP) dropped to $26.7 million, down from $33.4 million in Q2 2024. The decline was due mainly to increased income tax expense, which rose from $3.8 million in Q2 2024 to $13.5 million (GAAP), and higher operating costs. Management pointed to reduced use of tax credits as a key reason for the higher tax charge.

The company’s cash and investments stood at $762.0 million as of June 30, 2025.

Pipeline Progress, Market Position, and Strategic Developments

Overall, Acadia’s drug pipeline now features nine disclosed experimental programs. Seven are expected to enter Phase 2 or Phase 3 studies over the next two years, with multiple clinical readouts by 2027. This diverse portfolio builds on its experience in rare diseases and neuroscience, aiming to provide new treatments for unmet needs such as Alzheimer’s disease psychosis.

Acadia strengthened NUPLAZID’s market protection through recent patent litigation victories. Its core patents extend product exclusivity until at least 2030, with certain claims lasting through 2038. This blocks generic competitors for several years and supports ongoing investment in the brand.

The company also progressed its international plans, initiating named-patient access to DAYBUE in Europe and select global markets. Regulatory submissions in Europe are under review, with commercial launch activities ramping up ahead of anticipated approvals in 2026. These efforts aim to broaden DAYBUE’s potential patient base and establish footholds outside the U.S. market.

Looking Ahead: 2025 Guidance and Investor Considerations

Management updated its full-year 2025 financial outlook and raised the lower bound of projected revenue and NUPLAZID net product sales guidance, signaling confidence in current commercial trends. Guidance for total U.S. revenue (GAAP) in FY2025 stands at $1.045 billion to $1.095 billion. Expectations for DAYBUE sales and expense categories remain unchanged. The company maintained R&D expense guidance at $330 million to $350 million for full year 2025 and SG&A expense guidance at $535 million to $565 million for full year 2025.

As the year progresses, investors should monitor the ramp-up of DAYBUE in new patients and retention rates, NUPLAZID’s ability to maintain or grow market share, and the progress of key late-stage development programs such as ACP-101. The company’s international expansion plans—especially pending regulatory approvals in Europe—could impact future revenue. Trends in operating expenses and tax rates remain important, as they affect short-term profitability even amid top-line growth.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.

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