Note 14. Revenues

The Company sells AUVELITY, SUNOSI, and SYMBRAVO in the United States through the Distributors. The Company also sells SUNOSI to Distributors in Canada and on a product supply basis to Pharmanovia. SUNOSI is subsequently sold by Pharmanovia in certain ex-U.S. markets. For the year ended December 31, 2025, the Company’s three largest customers represented approximately 35%, 31%, and 25% of the Company’s gross product sales.

License revenue consists of the recognition of the upfront payment the Company received from Pharmanovia in February 2023, royalty revenue related to the sales of SUNOSI by Pharmanovia in certain ex-U.S. markets, and a milestone revenue of $0.5 million related to an achievement of a regulatory milestone in China for SUNOSI from SK recorded in the fourth quarter of 2024.

The following table presents a summary of total revenues by product:

 

 

 

Year ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

Product sales, net

 

 

 

 

 

 

 

 

 

Auvelity

 

$

507,093

 

 

$

291,378

 

 

$

130,072

 

Sunosi

 

 

120,093

 

 

 

90,299

 

 

 

72,388

 

Symbravo

 

 

6,610

 

 

 

 

 

 

 

Total product sales, net

 

 

633,796

 

 

 

381,677

 

 

 

202,460

 

Sunosi license revenue

 

 

 

 

 

 

 

 

65,735

 

Sunosi royalty and milestone revenue

 

 

4,700

 

 

 

4,016

 

 

 

2,405

 

Total revenues

 

$

638,496

 

 

$

385,693

 

 

$

270,600

 

 

The following table presents a summary of total revenues by geographic location:

 

 

 

Year ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

Product sales, net

 

 

 

 

 

 

 

 

 

United States

 

$

628,617

 

 

$

378,159

 

 

$

197,224

 

Outside of the United States

 

 

5,179

 

 

 

3,518

 

 

 

5,236

 

Total product sales, net

 

 

633,796

 

 

 

381,677

 

 

 

202,460

 

License revenue

 

 

 

 

 

 

 

 

 

Outside of the United States

 

 

 

 

 

 

 

 

65,735

 

Royalty and milestone revenue

 

 

 

 

 

 

 

 

 

Outside of the United States

 

 

4,700

 

 

 

4,016

 

 

 

2,405

 

Total revenues

 

$

638,496

 

 

$

385,693

 

 

$

270,600

 

For the year ended December 31, 2025, product sales, net, include adjustments for provisions for product sales made in previous fiscal years resulting from changes in estimates of $1.0 million for AUVELITY and $0.9 million for SUNOSI. For the year ended December 31, 2024, product sales, net, include adjustments for provisions for product sales made in previous fiscal years resulting from changes in estimates of $0.8 million for AUVELITY and $0.6 million for SUNOSI.

Historical Timeline

Fiscal YearFiled
2025Feb 23, 2026Showing above
2024Feb 18, 2025
2023Feb 23, 2024

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.