Zevra Therapeutics (ZVRA) stock is facing a sharp pre-market decline of 12.76% on Wednesday, following the release of its mixed second-quarter 2025 earnings report. The significant drop comes as investors react to the company's earnings per share (EPS) miss, overshadowing a strong revenue performance.

For the quarter ended June 30, Zevra reported impressive 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 fell short of the consensus estimate of $1.50 per share, disappointing investors who had anticipated stronger bottom-line results.

Despite the revenue beat and a completed $150 million Priority Review Voucher (PRV) sale that strengthened the company's financial position, the market seems to be focusing on the earnings miss. Zevra's management stated that the company has sufficient resources to execute its strategic priorities independent from the capital markets, with cash, cash equivalents, and securities totaling $217.7 million at the end of June. However, this assurance appears insufficient to calm investor concerns, as reflected in the stock's significant pre-market decline.