Zevra Therapeutics, Inc. (ZVRA) AI Stock Analysis
ZVRA AI stock analysis summary
AI ResearchZevra Therapeutics, Inc. (ZVRA) is a biopharmaceutical company focused on developing proprietary prodrug therapies and commercializing specialty treatments. In FY2025, revenue increased 350.9% to $106.5M, shifting the business to net income of $83.2M. Over the trailing twelve months, the company generated $136.1M in revenue with a profit margin of 42.8%.
- Market cap
- $590.3M
- Revenue (TTM)
- $136.1M
- P/E
- 10.8x fwd 10.7x
- 1Y return
- -12.7% S&P 500 16.8%
- Avg. target
- $25.00 151.5% vs last close
Bull case
- Trailing twelve months operating margin reached 42.3%, well above the US-listed Healthcare peer median of 14.0%.
- The balance sheet maintains strong liquidity with $220.1M in net cash and a low debt-to-equity ratio of 0.01.
- Analyst coverage is positive with 9 total Buy or Strong Buy ratings and an average price target of $25.00.
Bear case
- Quarterly earnings fell 88.4% year-over-year in the period ended June 30, 2026.
- Cash flow generation remains negative, with free cash flow of -$2.4M recorded in FY2025.
- The company's share count expanded by 73.5% over a 5-year period, diluting existing shareholders.
What Zevra Therapeutics does
Zevra Therapeutics, Inc. is a biopharmaceutical company that discovers and develops proprietary prodrugs to treat severe medical conditions across the United States. Utilizing its Ligand Activated Therapy platform, the company develops treatments with advanced drug delivery systems. Its clinical pipeline features KP1077 in Phase 2 and Phase 1/2 trials for idiopathic hypersomnia and narcolepsy, Celiprolol in Phase 1/2 trials for vascular Ehlers Danlos syndrome, and Arimoclomol for Niemann-Pick disease type C. Commercial products include AZSTARYS for attention deficit hyperactivity disorder and OLPRUVA for urea cycle disorders. Headquartered in Celebration, Florida, the company also maintains strategic collaborations with Commave Therapeutics SA, Acer, and Relief Therapeutics, Inc.
Growth and profitability
Zevra Therapeutics experienced substantial revenue expansion between FY2021 and FY2025, achieving a 5-year revenue CAGR of 51.6%. After revenue fell 14.0% to $23.6M in FY2024, it rose 350.9% to $106.5M in FY2025, driven by an 84.5% gross margin. Annual net income improved from -$105.5M in FY2024 to $83.2M in FY2025, delivering an EPS of $0.06. In the latest quarter ended June 30, 2026, quarterly revenue increased 53.3% year-over-year, while quarterly earnings fell 88.4%. Over the trailing twelve months, revenue reached $136.1M with an operating margin of 42.3% and EPS of $0.92.
Balance sheet and cash flow
As of June 30, 2026, Zevra Therapeutics reported $221.6M in cash and short-term investments alongside total debt of $1.5M, resulting in net cash of $220.1M. The current ratio stood at 5.17 and the debt-to-equity ratio was 0.01 against shareholders' equity of $217.7M. During FY2025, operating cash flow was -$1.6M and free cash flow was -$2.4M, with capital expenditures totaling $835,000. Over a 5-year period, the company's share count increased by 73.5%.
Valuation and performance
With a market cap of $590.3M and an enterprise value of $451.6M, Zevra Therapeutics trades at a trailing P/E of 10.8x and a forward P/E of 10.7x. These multiples compare to 24.6x and 17.3x, respectively, for the median of its US-listed Healthcare peers. Its EV to EBITDA ratio is 5.9x, compared to the peer median of 12.0x, while its price-to-sales ratio is 4.3x versus the peer median of 4.1x. Over the past year, the stock declined 12.7%, while the S&P 500 gained 16.8%.
What analysts expect
Wall Street coverage consists of 7 Strong Buy and 2 Buy recommendations, with no Hold or Sell ratings. The mean price target is $25.00, which is 151.5% above the October 16, 2026 close of $9.94. For the fiscal year ending December 31, 2026, consensus expectations project revenue of $153.3M and an EPS of $1.17. The company beat EPS estimates in each of the last 4 quarters, and its next earnings date is November 4, 2026.
Key risks and what to watch
- Short interest represents 12.2% of the company's float, indicating noticeable market skepticism.
- FY2026 consensus EPS of $1.17 reflects an estimated earnings contraction of 13.6% for the current fiscal year.
- Longer-term share performance has lagged the broader market, gaining 1.7% over 5 years versus 83.0% for the S&P 500.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this ZVRA AI stock analysis
This page is an AI-written research summary of Zevra Therapeutics, Inc. (ZVRA). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: ZVRA income statement, ZVRA balance sheet, ZVRA key metrics, ZVRA analyst forecast, ZVRA chart. See the ZVRA stock overview for the latest quote and news.
ZVRA AI stock analysis FAQ
What commercial products does Zevra Therapeutics offer?
Zevra Therapeutics commercializes AZSTARYS for attention deficit hyperactivity disorder in patients aged six years and older, as well as OLPRUVA for the treatment of urea cycle disorders.
How did Zevra Therapeutics perform financially in FY2025?
In FY2025, revenue increased 350.9% to $106.5M, and the company reported positive net income of $83.2M compared to a net loss of $105.5M in FY2024.
What is Zevra Therapeutics' cash and debt position?
As of June 30, 2026, the company held $221.6M in cash and short-term investments against $1.5M in total debt, yielding net cash of $220.1M and a current ratio of 5.17.
Does Zevra Therapeutics pay a dividend?
Zevra Therapeutics does not pay a dividend on its common stock.