Zevra Therapeutics (ZVRA) stock plummeted 12.76% in Wednesday's trading session, following a pre-market decline triggered by the release of its mixed second-quarter 2025 earnings report. The sharp drop reflects investor disappointment despite the company's revenue beat, as earnings per share fell short of expectations.

For Q2 2025, Zevra reported revenue of $25.9 million, surpassing analyst expectations of $22.5 million and marking a substantial increase from $4.5 million in the same quarter last year. The revenue growth was primarily driven by MIPLYFFA, which generated $21.5 million in net revenue. However, the company's adjusted earnings of $1.21 per share missed the consensus estimate of $1.50 per share, likely contributing to the negative market reaction.

Despite some positive aspects, including a completed $150 million Priority Review Voucher (PRV) sale that strengthened the company's financial position, investors seemed to focus on the earnings miss. Zevra's management stated that the company has sufficient resources to execute its strategic priorities, with cash, cash equivalents, and securities totaling $217.7 million at the end of June. However, this assurance appeared insufficient to allay investor concerns, as evidenced by the significant stock decline during the trading session.