Travere Therapeutics Stock (TVTX) Great Growth and Good Value in Q1 2025

Travere Therapeutics (NASDAQ: TVTX) has emerged as a standout performer in the biotech sector, delivering impressive growth and capturing investor attention. With a focus on rare kidney and metabolic diseases, the company's recent financial results and strategic advancements suggest a promising trajectory. In this article we will dive into Travere’s recent earnings, stock performance, growth potential, and the risks investors should consider.​

1. About Travere Therapeutics

Founded in 2011 as Retrophin and headquartered in San Diego, California, Travere Therapeutics is a biopharmaceutical company dedicated to developing therapies for rare diseases. Its flagship product, FILSPARI (sparsentan), is approved for treating IgA nephropathy (IgAN) and is undergoing further development for focal segmental glomerulosclerosis (FSGS). Additionally, the company is advancing pegtibatinase for classical homocystinuria (HCU) and offers commercial products like Thiola and Thiola EC for cystinuria.

2. Travere Financial Performance

Travere Therapeutics delivered robust growth in its Q1 2025 financial performance, with revenue reaching $81.73 million, an impressive 97.54% increase from $41.37 million in Q1 2024. The company also significantly narrowed its quarterly loss, reporting an earnings per share (EPS) of -$0.47 compared to -$1.76 a year earlier, marking a 73.3% reduction in loss. On a trailing twelve-month (TTM) basis, revenue rose to $273.53 million, up 75.65% from $155.72 million in the same period last year.

However, TTM EPS declined to -$2.78 from -$2.11, reflecting a 31.75% increase in loss. Despite this, Travere improved its free cash flow per share to -$1.97, a 47.47% improvement from -$3.75 in Q1 2024, indicating more efficient cash management. The company maintains a gross profit margin of 17.42% and a net profit margin of -82.88%, and holds a solid cash position with $322.24 million in cash and short-term investments. Given its quarterly burn rate of $42.19 million, Travere has a cash runway of approximately 7.6 quarters, which offers a cushion as it moves toward profitability in 2026.

Over the past five years, Travere Therapeutics has not been profitable, with revenue momentum beginning to grow again starting in 2024. However, this condition could accelerate as its flagship product, FILSPARI, begins to expand sales.

3. Travere 2025 & 2026 Financial Forecast

Looking ahead, analysts forecast revenue of $397.59 million for 2025, a 70.51% increase from 2024, with a non-GAAP EPS improving significantly to -$0.13 from -$3.05. By 2026, revenue is expected to climb 45% to $576.54 million, with non-GAAP EPS turning positive at $1.38, signaling a potential inflection point for the company. Analysts are bullish on the stock, with a consensus price target of $33.31 with Strong Buy rating, representing a potential upside of 57.49% from current levels.

4. TVTX Stock Price Performance and Valuation

At the time this article was created, Travere Therapeutics' stock price was $21.41. Over the past year, Travere Therapeutics' stock has increased an impressive 243.3%. Over the past five years, however, the stock is up 44.1%, which, while positive, trails the broader market's 100.42% gain, because of its bad financial performance in the past. 

From a valuation standpoint, Travere trades at a trailing twelve-month (TTM) price-to-sales (P/S) ratio of 6.32, with a forward P/S ratio of 4.72. Moreover, the company’s 2026 non-GAAP forward price-to-earnings (P/E) ratio is projected at 15.32, indicating a potentially attractive valuation if earnings targets are met in 2026.

5. Company Growth Potential

Travere's growth prospects are bolstered by several factors which is:

• FILSPARI Commercial Success
  FILSPARI (sparsentan) has emerged as the primary growth driver for Travere, with Q1 2025 U.S. sales reaching $55.9 million, representing an extraordinary 182% year-over-year increase. This remarkable growth demonstrates strong market acceptance and expanding physician adoption following the FDA's full approval for IgA nephropathy (IgAN). Total net product sales climbed to $75.9 million, a 92% increase compared to Q1 2024, underscoring the company's successful commercialization strategy.
  The rapid revenue expansion for FILSPARI indicates that Travere has successfully positioned the product in the nephrology market, capturing significant market share and establishing a strong foundation for continued growth. The drug's commercial momentum appears to be accelerating rather than plateauing, suggesting substantial remaining market opportunity.
• FSGS Indication Expansion
  A crucial near-term growth catalyst for Travere is the potential approval of FILSPARI for focal segmental glomerulosclerosis (FSGS). The company has submitted a supplemental New Drug Application (sNDA) to the FDA seeking priority review for this indication, with a decision anticipated in September 2025. This regulatory milestone represents a significant opportunity to expand FILSPARI's addressable market.
  The sNDA submission is supported by robust clinical data from the Phase 3 DUPLEX and Phase 2 DUET studies, which demonstrated sparsentan's superior efficacy in reducing proteinuria compared to irbesartan in patients with FSGS. The DUPLEX study showed that significantly more sparsentan recipients achieved FSGS partial remission endpoint (FPRE) compared to irbesartan (42.0% vs 26.0%) (higher is better). These compelling results strengthen the likelihood of regulatory approval.
• Global Market Expansion
  Travere Therapeutics is accelerating the global expansion of FILSPARI, following its recent full regulatory approvals for IgA nephropathy in both the European Union and the UK in early 2025. The drug has already launched in key European markets such as Germany, Austria, and Switzerland, with broader EU rollout plans underway, and the company expects a $17.5 million milestone payment from CSL Vifor as part of this progress.
  In parallel, Travere is advancing FILSPARI’s entry into Japan and other Asian markets through its partnership with Renalys Pharma, with pivotal registration studies ongoing and topline results expected in the second half of 2025. These international efforts, combined with robust U.S. demand and the potential for new indications like FSGS, are projected to drive FILSPARI sales toward $300 million annually by 2026, reinforcing Travere’s position as a leader in rare kidney disease therapeutics worldwide.

6. Risks to Consider

While Travere presents a promising investment, there are potential risk:

• Regulatory Approval Uncertainty
  Travere Therapeutics submitted a supplemental New Drug Application (sNDA) to the FDA in March 2025 for FILSPARI to treat focal segmental glomerulosclerosis (FSGS), with the FDA expected to decide on accepting the application and setting a review timeline by May 2025. If approved, FILSPARI would become the first and only FDA-approved treatment for FSGS, addressing a significant unmet need for over 40,000 patients in the U.S.
  However, there is no guarantee of approval, and any delay or negative outcome from the FDA would limit Travere’s ability to expand FILSPARI’s market and revenue potential. Additionally, while some regulatory requirements have been eased, such as the removal of REMS for embryo-fetal toxicity, other aspects like liver monitoring remain under review and could still pose challenges.
• Commercial Execution and Competition
  Travere is making substantial investments to expand its commercial infrastructure, including growing its sales and marketing teams, to support the ongoing launch of FILSPARI and prepare for additional product indications. The company’s ability to effectively scale these operations is critical, as strong commercial execution will determine how well it can capture new patient starts and drive revenue growth in a competitive market.
  If Travere cannot execute its commercial strategy efficiently or respond to competitive pressures, its ability to achieve long-term sales targets and profitability may be at risk.
• Dependence on Partnerships and Milestones
  Travere Therapeutics relies on milestone payments from key partners such as CSL Vifor and Renalys Pharma to help fund its operations and support ongoing growth initiatives. For example, the company expects to receive a $17.5 million milestone payment from CSL Vifor following the conversion of FILSPARI’s conditional approval to full approval in Europe, and remains eligible for additional payments tied to market access and sales achievements.
  Delays or failures in achieving these partner-driven regulatory or commercial milestones-such as slower-than-expected approvals or clinical trial results-could reduce or postpone these payments and negatively impact Travere’s financial flexibility. This dependence means that any setbacks in partnership progress could limit the company’s ability to invest in product launches, R&D, or further market expansion.

Read More: Eli Lilly Stock (LLY) Strong Growth and Good Value in Q1 2025

Conclusion

Travere Therapeutics has demonstrated exceptional growth, underpinned by strong financial performance and growth momentum. The company's strategic initiatives, combined with favorable analyst projections and a robust cash position, suggest a potential future. While inherent risks exist in the biotech industry, Travere's focus on rare diseases and commitment to innovation make it a compelling investment opportunity for those seeking exposure to the sector. In my opinion, this stock is a decent investment if the company can withstand a net loss in 2025 and achieve true profitability in 2026.