Q1 2026 earnings snapshot

Septerna (SEPN) opened 2026 with Q1 revenue of US$26.5 million and a basic EPS loss of US$0.19, as net income excluding extra items came in at a loss of US$8.6 million, against a trailing twelve month loss of US$36.0 million on US$72.3 million of revenue. The company has seen quarterly revenue move from US$0.2 million in Q1 2025 to US$26.5 million in Q1 2026, while basic EPS has shifted from a loss of US$0.49 to a loss of US$0.19 over the same period. This frames a business that is still loss making but now operating at a much larger top line. With the stock at US$24.84, the latest report keeps attention on how quickly margins can move toward a more sustainable footing.

See our full analysis for Septerna.

With the headline numbers on the table, the next step is to set these results against the main stories investors follow around Septerna to see which narratives hold up and which are challenged by the new data.

TTM losses at US$36.0 million

• Over the last twelve months, Septerna reported revenue of US$72.3 million and a net loss of US$36.0 million, with basic EPS over that period at a loss of US$0.81.
• What stands out for a more cautious view is that losses have been widening over a five year horizon, deteriorating at about 43.9% per year. This aligns with concerns about a business model that has yet to show sustained profitability.
  • Critics highlight that even with higher trailing revenue compared with earlier periods, earnings have not moved into positive territory and remain loss making.
  • Those same investors point to the forecast earnings decline of around 30.5% per year over the next three years as consistent with the recent history of larger losses.

P/S of 15.5x versus industry 4.8x

• At a share price of US$24.84, Septerna trades on a P/S of 15.5x, compared with 4.8x for the broader US Pharmaceuticals industry and 8.5x for its peer group.
• Bears argue this richer multiple is hard to justify given forecasts that revenue may decline about 0.7% per year and earnings are projected to fall roughly 30.5% per year. On this view, the current valuation leans heavily on expectations rather than recent profitability.
  • The company remains unprofitable over the trailing twelve months, with a US$36.0 million loss on US$72.3 million of revenue, which limits the usual earnings based support for valuation.
  • Given that no explicit near term rewards are identified in the trailing data, skeptics focus on the combination of a high sales multiple and ongoing losses as a key risk.

On these numbers, some investors may want a deeper look at how the cautious case lines up against potential upside before taking a view on the stock. 🐻 Septerna Bear Case

Quarterly loss narrowed to US$8.6 million

• In Q1 2026, Septerna reported a net loss of US$8.6 million and a basic EPS loss of US$0.19, compared with a Q4 2025 loss of US$10.7 million and a basic EPS loss of US$0.24.
• Supporters looking for reasons to stay interested often point to this narrower quarterly loss alongside Q1 revenue of US$26.5 million. However, the broader data set still shows the business unprofitable over the last twelve months and forecast to remain so, which keeps the long term picture firmly in focus.
  • The trailing twelve month net loss of US$36.0 million, even after Q1, indicates that short term improvements do not yet change the overall loss making profile.
  • Forecast declines in both revenue and earnings over the coming three years sit in clear tension with any bullish hope that the recent quarter alone marks a sustained inflection.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Septerna's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

If the combination of widening losses, a rich P/S ratio and cautious forecasts seems concerning, consider reviewing the underlying numbers now and stress testing your thesis against the 2 important warning signs.

See What Else Is Out There

Septerna is still reporting losses, carries a relatively high P/S multiple versus peers and faces cautious revenue and earnings forecasts that keep risk front and center.

If that mix of ongoing losses and valuation risk feels uncomfortable, you can quickly refocus on companies with steadier profiles by checking out 69 resilient stocks with low risk scores today.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.