Septerna (SEPN) just closed out FY 2025 with Q4 revenue of US$24.1 million, a basic EPS loss of US$0.24 and quarterly net income excluding extra items showing a loss of US$10.7 million, while trailing twelve month revenue reached US$46.0 million and EPS was a loss of US$1.10. Over the past few quarters, the company has seen revenue move from US$0.21 million in Q4 FY 2024 to US$24.1 million in Q4 FY 2025. Basic EPS ranged from a loss of US$0.64 in Q4 FY 2024 to a profit of US$0.18 in Q3 FY 2025, before returning to a loss of US$0.24 in the latest quarter. This keeps the focus on how quickly margins can tighten from current loss making levels.

See our full analysis for Septerna.

With the headline numbers on the table, the next step is to see how this mix of rapid revenue expansion and persistent losses lines up with the most widely held narratives around Septerna and where those stories might need a reset.

LTM loss of US$48.9 million despite revenue jump

• Over the last twelve months, Septerna booked US$46.0 million of revenue but recorded a net loss of US$48.9 million and a trailing EPS loss of US$1.10, so the business is still spending more than it is bringing in.
• Bears argue that the company’s unprofitable status and an earnings decline forecast of about 28.9% per year over the next three years are a serious concern. That view lines up with the trailing loss as:
  • LTM net income excluding extra items was a loss of US$48.9 million even after the very large year over year revenue increase, so recent top line growth has not yet translated into profits.
  • The forecast that Septerna will remain unprofitable over the next three years sits alongside this loss profile and suggests that, for now, the bearish focus on profitability risk is heavily supported by the reported figures.

If those loss figures have you focusing on downside risk first, you may want to see how skeptics set up their case in more detail: 🐻 Septerna Bear Case

Q3 profit stands out against three loss making quarters

• Within FY 2025, net income excluding extra items swung from a loss of US$21.5 million in Q1 to a loss of US$24.8 million in Q2, then to a profit of US$8.2 million in Q3 before moving back to a loss of US$10.7 million in Q4, so Q3 is the only profitable quarter in the set.
• What is interesting for a more optimistic angle is that Q3’s profit arrived in the same year as heavy losses in the surrounding quarters, which gives bullish investors some talking points:
  • Q3 revenue of US$21.5 million came after Q1 and Q2 revenue that was below US$0.3 million, which means most of FY 2025’s reported top line was concentrated in the back half of the year.
  • That single quarter of profit against a backdrop of losses may be seen by bulls as evidence that earnings can improve at least temporarily when revenue steps up, although the return to a US$10.7 million loss in Q4 makes that argument less clear cut.

Bulls often point to that one profitable quarter as a sign there could be more under the surface, so it can be useful to see their full argument in context: 🐂 Septerna Bull Case

High 27.4x P/S against slower 3.7% growth outlook

• Septerna is trading on a P/S of 27.4x while forecast revenue growth is 3.7% per year, compared with a 10.4% forecast for the broader US market, so the shares carry a richer multiple alongside slower modeled growth.
• Critics highlight that combination of a high sales multiple and modest forecast growth as a key tension, and the recent fundamentals add some extra color to that concern:
  • Revenue over the past year increased from a very low base to US$46.0 million, which helps explain the very large year over year growth rate but also means the current P/S is being applied to a relatively small revenue pool.
  • With the current share price at US$28.02 and the company still loss making over the trailing twelve months, the emphasis for bears on valuation risk based on sales rather than earnings is closely linked to the numbers reported so far.

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 this mix of bullish and bearish arguments has you unsure what to think, it is worth looking at the numbers yourself and forming your own view quickly. You can start with 1 key reward and 2 important warning signs.

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Septerna’s mix of continuing losses, a high 27.4x P/S multiple and only one profitable quarter in FY 2025 leaves plenty of questions around risk.

If that risk profile feels a bit heavy for your taste, you can quickly compare it with companies screened for steadier profiles using 68 resilient stocks with low risk scores right now.

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.