Ovid's Q3 Loss Narrows, Cash Infusion Boosts Outlook

TL;DR

**OVID's cash burn is still a concern, but the $75.7M private placement is a game-changer, buying them crucial time to hit development milestones and address Nasdaq compliance.**

AI Summary

Ovid Therapeutics Inc. reported a net loss of $12.2 million for the three months ended September 30, 2025, and a net loss of $27.1 million for the nine months ended September 30, 2025. This compares to net losses of $14.0 million and $17.2 million for the corresponding periods in 2024, respectively. Revenue for the nine months ended September 30, 2025, significantly increased to $6.5 million from $0.5 million in the prior year, primarily from license and other revenue. Research and development expenses decreased to $19.0 million for the nine months ended September 30, 2025, from $30.8 million in 2024, a 38.4% reduction. General and administrative expenses also decreased to $17.7 million from $20.8 million, a 14.9% decrease. The company's cash, cash equivalents, and marketable securities stood at $25.6 million as of September 30, 2025, down from $53.1 million at December 31, 2024. A subsequent private placement on October 6, 2025, raised net proceeds of $75.7 million, which the company believes will fund operations for over 12 months. Ovid is also addressing a Nasdaq minimum bid price compliance issue, having received an extension until February 9, 2026.

Why It Matters

Ovid's ability to secure $75.7 million in a private placement post-quarter-end is a critical lifeline, addressing immediate liquidity concerns and extending its cash runway beyond 12 months. This capital infusion is vital for investors, as it reduces the near-term risk of dilution from further equity offerings and allows the company to continue its biopharmaceutical development in a highly competitive market. For employees and customers, continued funding means stability and the potential for new therapies for brain conditions. The Nasdaq compliance extension until February 9, 2026, provides a temporary reprieve, but failure to regain compliance could lead to delisting, impacting investor confidence and market access.

Risk Assessment

Risk Level: medium — Ovid Therapeutics Inc. reported an accumulated deficit of $331.4 million as of September 30, 2025, and net cash used in operating activities of $27.9 million for the nine months ended September 30, 2025, indicating ongoing operational losses. The company also faces a Nasdaq minimum bid price compliance issue, with an extension until February 9, 2026, to regain compliance, which poses a delisting risk.

Analyst Insight

Investors should monitor Ovid's progress in utilizing the $75.7 million private placement proceeds to advance its pipeline and achieve clinical milestones. Pay close attention to the stock's trading price to ensure it regains Nasdaq compliance by February 9, 2026, as delisting could severely impact liquidity and investor value.

Financial Highlights

debt To Equity

0.43

revenue

$6,534,000

operating Margin

-462.7%

total Assets

$63,848,000

total Debt

$19,150,000

net Income

-$27,077,000

eps

-$0.37

gross Margin

N/A

cash Position

$25,603,000

revenue Growth

+1231.4%

Revenue Breakdown

Key Numbers

• $27.1M — Net Loss (Increased from $17.2M in prior year for nine months ended Sept 30, 2025)
• $6.5M — Total Revenue (Significantly increased from $0.5M in prior year for nine months ended Sept 30, 2025)
• $19.0M — Research and Development Expenses (Decreased 38.4% from $30.8M in prior year for nine months ended Sept 30, 2025)
• $17.7M — General and Administrative Expenses (Decreased 14.9% from $20.8M in prior year for nine months ended Sept 30, 2025)
• $25.6M — Cash, Cash Equivalents and Marketable Securities (As of September 30, 2025, before private placement)
• $75.7M — Net Proceeds from Private Placement (Received on October 6, 2025, extending cash runway)
• $331.4M — Accumulated Deficit (As of September 30, 2025, indicating historical losses)
• 71,212,353 — Common Stock Shares Outstanding (As of November 7, 2025)

Key Players & Entities

• Ovid Therapeutics Inc. (company) — biopharmaceutical company
• Nasdaq Stock Market LLC (regulator) — listing exchange
• Takeda Pharmaceutical Company Limited (company) — partner in RLT Agreement
• $12.2 million (dollar_amount) — net loss for Q3 2025
• $27.1 million (dollar_amount) — net loss for nine months ended Sept 30, 2025
• $6.5 million (dollar_amount) — total revenue for nine months ended Sept 30, 2025
• $19.0 million (dollar_amount) — research and development expenses for nine months ended Sept 30, 2025
• $75.7 million (dollar_amount) — net proceeds from private placement on Oct 6, 2025
• February 9, 2026 (date) — deadline for Nasdaq compliance
• $1.00 (dollar_amount) — Nasdaq minimum bid price requirement

FAQ

Risk Factors

• Cash Burn and Future Funding Needs [high — financial]: The company reported a net loss of $27.1 million for the nine months ended September 30, 2025, and had $25.6 million in cash, cash equivalents, and marketable securities as of that date. While a subsequent private placement raised $75.7 million, the company's ability to continue operations beyond 12 months is dependent on successful execution of its business plan and potentially further financing.
• Nasdaq Minimum Bid Price Compliance [high — regulatory]: Ovid Therapeutics received an extension until February 9, 2026, to regain compliance with Nasdaq's minimum bid price requirement. Failure to meet this requirement could result in delisting from the Nasdaq Stock Market, significantly impacting liquidity and investor confidence.
• Dependence on Drug Development Success [high — operational]: As a biopharmaceutical company, Ovid's success is heavily reliant on the successful development, regulatory approval, and commercialization of its drug candidates. Clinical trial failures or delays can have a material adverse effect on the company's financial condition and prospects.
• Competitive Landscape [medium — market]: The biopharmaceutical industry is highly competitive, with many companies developing therapies for similar indications. Ovid faces competition from established pharmaceutical companies and emerging biotechnology firms, which could impact market share and pricing power.
• Accumulated Deficit [medium — financial]: The company has an accumulated deficit of $331.4 million as of September 30, 2025. This indicates a history of net losses and a significant reliance on external funding to support operations and research and development activities.

Industry Context

Ovid Therapeutics operates in the highly competitive biopharmaceutical sector, focusing on developing novel therapies. The industry is characterized by long development cycles, significant R&D investment, and stringent regulatory hurdles. Success hinges on clinical trial outcomes, intellectual property protection, and the ability to navigate complex market access and reimbursement landscapes.

Regulatory Implications

Ovid faces significant regulatory scrutiny common to all biopharmaceutical companies, particularly concerning clinical trial data integrity and drug approval processes. Additionally, the company must address its compliance with Nasdaq's minimum bid price requirement, with a deadline of February 9, 2026, to avoid potential delisting.

What Investors Should Do

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Key Dates

• 2025-09-30: End of Q3 2025 — Reported net loss of $12.2 million for the quarter and $27.1 million year-to-date, with cash reserves of $25.6 million.
• 2025-10-06: Private Placement — Raised $75.7 million in net proceeds, significantly bolstering the company's cash position and extending its operational runway beyond 12 months.
• 2026-02-09: Nasdaq Bid Price Compliance Deadline — Deadline to regain compliance with Nasdaq's minimum bid price rule, crucial for maintaining stock exchange listing.

Glossary

Accumulated deficit

The cumulative net losses of a company since its inception, minus any cumulative net income. It represents the total losses that have not been offset by profits. (Indicates the company's historical unprofitability, with Ovid having an accumulated deficit of $331.4 million as of September 30, 2025.)

Marketable securities

Short-term, highly liquid investments that can be readily converted into cash. They are typically held by companies to earn a return on excess cash. (Ovid held $4.99 million in marketable securities as of September 30, 2025, contributing to its overall liquidity.)

Right-of-use asset, net

An asset representing a lessee's right to use an identified asset for a specified period, typically arising from lease agreements under accounting standards like ASC 842. (Ovid has a right-of-use asset of $11.9 million, reflecting its obligations under operating leases.)

Deferred revenue

Revenue that has been received by a company for goods or services that have not yet been delivered or rendered. It is recorded as a liability until earned. (Ovid reported $718,000 in deferred revenue as of September 30, 2025, indicating payments received for future services or licenses.)

Year-Over-Year Comparison

Ovid Therapeutics has seen a significant increase in total revenue for the nine months ended September 30, 2025, rising to $6.5 million from $0.5 million in the prior year, primarily driven by license and other revenue. Despite this revenue growth, the company's net loss widened to $27.1 million from $17.2 million year-over-year. Operating expenses have been reduced, with R&D expenses down 38.4% to $19.0 million and G&A expenses down 14.9% to $17.7 million, reflecting cost management efforts. However, cash reserves have decreased to $25.6 million from $53.1 million at year-end 2024, necessitating a substantial capital raise.

Key Financial Figures

• $0.001 — ich registered Common Stock, par value $0.001 per share OVID The Nasdaq Stock Market
• $1.00 — tock was below the closing bid price of $1.00 per share during the last 31 consecutiv

Filing Documents

• ovid-20250930.htm (10-Q) — 1362KB
• ovidexhibit3112025-q3.htm (EX-31.1) — 10KB
• ovidexhibit3122025-q3.htm (EX-31.2) — 10KB
• ovidexhibit3212025-q3.htm (EX-32.1) — 6KB
• ovid-20250930_g1.jpg (GRAPHIC) — 142KB
• 0001636651-25-000012.txt ( ) — 7339KB
• ovid-20250930.xsd (EX-101.SCH) — 52KB
• ovid-20250930_cal.xml (EX-101.CAL) — 63KB
• ovid-20250930_def.xml (EX-101.DEF) — 233KB
• ovid-20250930_lab.xml (EX-101.LAB) — 653KB
• ovid-20250930_pre.xml (EX-101.PRE) — 446KB
• ovid-20250930_htm.xml (XML) — 854KB

Financial Statements (Unaudited)

Financial Statements (Unaudited) 3 Condensed Consolidated Balance Sheets 3 Condensed Consolidated Statements of Operations 4 Condensed Consolidated Statements of Comprehensive Loss 5 Condensed Consolidated Statements of Stockholders' Equity 6 Condensed Consolidated Statements of Cash Flows 7 Notes to Unaudited Condensed Consolidated Financial Statements 8 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 26 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 34 Item 4.

Controls and Procedures

Controls and Procedures 35 PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 36 Item 1A.

Risk Factors

Risk Factors 36 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 71 Item 5. Other Information 71 Item 6. Exhibits 72

Signatures

Signatures Table of Contents SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. All statements other than statements of historical fact are "forward-looking statements" for purposes of this Quarterly Report on Form 10-Q. In some cases, you can identify forward-looking statements by terminology such as "aim," "anticipate," "assume," "believe," "contemplate," "continue," "could," "design," "due," "estimate," "expect," "goal," "intend," "may," "objective," "plan," "positioned," "potential," "predict," "project," "should," "target," "will," "would" or the negative or plural of those terms, and similar expressions.

Forward-looking statements include, but are not limited to, statements about

Forward-looking statements include, but are not limited to, statements about: our ability to identify additional novel compounds with significant commercial potential to acquire or in-license; our ability to successfully acquire or in-license additional drug candidates on reasonable terms; the potential use, development and therapeutic potential of the drug candidates in our pipeline; our ability to develop medical therapies that deliver preferable safety and tolerability profiles to approved drugs; our expectations regarding the duration of our cash runway and the expectation that it will support our operations and development programs; our estimates regarding expenses, future revenue including any royalty or milestone payments, capital requirements and needs for additional financing; our ability to obtain regulatory approval of our current and future drug candidates; our expectations regarding the timing of initiation, completion, and results and data from clinical trials and potential regulatory filings; our expectations regarding the potential market size for drug candidates and the rate and degree of market acceptance of such drug candidates; our ability to fund our working capital requirements; the implementation of our business model and strategic plans for our business and drug candidates, including the programs in our planned pipeline; developments or disputes concerning our intellectual property or other proprietary rights; our ability to maintain and establish collaborations or obtain additional funding; our expectations regarding government and third-party payor coverage and reimbursement; our ability to compete in the markets we serve; the impact of government laws and regulations; developments relating to our competitors and our industry; interim topline and preliminary data from our clinical trials that we announce or publish from time to time may change as more patient data becomes available and are subject to audit and verification

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. OVID THERAPEUTICS INC. Condensed Consolidated Balance Sheets (in thousands, except share and per share data) September 30, 2025 December 31, 2024 Assets (unaudited) Current assets: Cash and cash equivalents $ 20,611 $ 26,301 Marketable securities 4,992 26,774 Prepaid expenses and other current assets 3,221 2,865 Total current assets 28,824 55,940 Long-term equity investments 20,908 20,974 Restricted cash 1,931 1,931 Right-of-use asset, net 11,916 12,797 Property and equipment, net 269 433 Other noncurrent assets — 92 Total assets $ 63,848 $ 92,167 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 1,710 $ 3,192 Accrued expenses 2,959 5,994 Current portion, lease liability 1,409 1,336 Deferred revenue 718 — Total current liabilities 6,796 10,522 Long-term liabilities: Lease liability 12,354 13,419 Total liabilities 19,150 23,941 Stockholders' equity: Preferred stock, $ 0.001 par value; 10,000,000 shares authorized; Series A convertible preferred stock, 10,000 shares designated, 1,250 shares issued and outstanding at September 30, 2025 and December 31, 2024 — — Common stock, $ 0.001 par value; 125,000,000 shares authorized; 71,151,981 and 71,009,866 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively 71 71 Additional paid-in-capital 376,129 372,489 Accumulated other comprehensive loss ( 126 ) ( 35 ) Accumulated deficit ( 331,376 ) ( 304,299 ) Total stockholders ' equity 44,698 68,226 Total liabilities and stockholders ' equity $ 63,848 $ 92,167 See accompanying notes to these unaudited condensed consolidated financial statements 3 Table of Contents OVID THERAPEUTICS INC. Condensed Consolidated Statements of Operations (unaudited) (in thousands, except share and per share data) For The Three Months Ended September 30, 2025 For The Three Months Ended September 30, 2024 For The Nine Months Ended September 30, 2025 For The Ni