Phathom Pharmaceuticals, Inc. (PHAT) reported fourth‑quarter 2025 revenue of $57.6 million, up 94% from $29.7 million in Q4 2024, and a full‑year 2025 revenue of $175.1 million, a 217% increase over the $55.3 million recorded in 2024. The company posted a net loss of $0.08 per share, beating the consensus estimate of $‑0.09 and improving on the $0.38 loss forecasted by analysts. The EPS beat was largely driven by disciplined cost control, which reduced operating expenses to $312.5 million from $324.7 million in 2024 and eliminated several one‑time charges that had weighed on the prior year’s results.
The gross margin for 2025 was 87%, matching the margin reported for the full year and the fourth quarter. Management clarified that the company’s 2026 guidance anticipates a gross margin of approximately 80%, reflecting a shift in product mix and pricing strategy as VOQUEZNA expands into new indications. The company also reiterated its guidance for operating profitability in the third quarter of 2026 and cash‑flow positivity in 2027, underscoring confidence in the trajectory of its gastroenterology‑focused strategy.
Phathom highlighted a successful sales‑force realignment that is expected to deepen engagement with gastroenterologists and increase prescription depth. The company’s cost‑control program, which cut operating expenses by $12.2 million year‑over‑year, was a key factor in narrowing the net loss. In addition, a February 2026 term‑loan modification extended the maturity to February 2029, reduced interest costs, and lowered the principal amount, strengthening the balance sheet and providing additional financial flexibility.
The company also reported progress in its Phase 2 pHalcon‑EoE‑201 trial evaluating VOQUEZNA for eosinophilic esophagitis (EoE). The trial was initiated in Q4 2025, with topline results expected in 2027, positioning Phathom for a potential new growth avenue beyond its current GERD indication.
Investors responded positively to the results, citing the EPS beat, revenue beat, and clear path to profitability. The market reaction was driven by the company’s strong execution on cost discipline, robust revenue growth, and the confidence expressed in the 2026 guidance.
The company’s earnings release confirms a trajectory toward profitability and underscores the effectiveness of its gastroenterology‑focused strategy, with VOQUEZNA continuing to drive revenue growth and the company’s capital structure positioned for future expansion.
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