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Phathom Pharmaceuticals, Inc. reported a quarterly loss of $0.15 per share, beating the Zacks Consensus Estimate of $0.30. This improved from last year’s loss of $1.32 per share. The earnings surprise was +50.00%.
In the prior quarter, the expected loss was $0.76 per share, but the actual loss was $0.79, resulting in a -3.95% surprise. Over the past four quarters, the company exceeded consensus EPS estimates twice.
Phathom posted quarterly revenues of $49.5 million, topping the Zacks Consensus Estimate by 0.64%. This is an increase from last year’s $16.35 million. The company has surpassed consensus revenue estimates four times in the last four quarters.
Phathom shares have increased about 66.6% since the start of the year, while the S&P 500 gained 17.2%. Phathom Pharmaceuticals currently holds a Zacks Rank #3 (Hold).
The consensus EPS estimate for the upcoming quarter is -$0.17 with revenues of $55.35 million, and -$2.31 with revenues of $172.56 million for the fiscal year. The Medical – Biomedical and Genetics industry, where Phathom operates, is in the top 38% of over 250 Zacks industries.
VistaGen Therapeutics, another industry player, is projected to report a quarterly loss of $0.51 per share.
We see that Phathom’s quarterly loss was half of what was expected, which is a strong positive surprise. Revenue also grew significantly compared to this time in 2024, beating estimates. The high uncertainty before this report is now gone, so we expect options prices to become cheaper as implied volatility falls.
Given the stock’s impressive 66.6% gain so far in 2025, this positive report could provide another boost. For traders who believe the stock will hold its current levels or climb higher, selling out-of-the-money put options could be a viable strategy. This approach allows us to collect premium while benefiting from the expected drop in volatility.
The massive revenue jump from $16.35 million to $49.5 million year-over-year is largely tied to the strong uptake of their key products. Recent prescription data we’ve reviewed from the third quarter of 2025 showed a 25% increase in new scripts, confirming strong market adoption. This fundamental growth supports a continued positive outlook for the underlying stock.
However, we must also consider that the company is not yet profitable and carries a neutral “Hold” rating. This suggests the stock might trade within a range after the initial earnings reaction. A strategy like an iron condor could be appropriate, as it profits from the stock staying between two price levels while also taking advantage of the post-earnings drop in volatility.
All eyes will now be on management’s forward guidance and the earnings estimates for the upcoming quarter, which predict another loss. We saw a similar pattern back in the early 2020s with companies in the post-product launch phase, where initial revenue excitement was later tempered by the long road to profitability. Therefore, any sign of accelerating losses or slowing revenue growth in their forecast could quickly reverse the current positive sentiment.
