How did operating expenses, particularly R&D and SG&A, change year‑over‑year and what are the trends going forward?

Operating‑expense dynamics: In the Q2‑2025 release Evoke Pharma disclosed that operating expenses rose as the company accelerated its pipeline work and expanded its commercial footprint. R&D expense increased roughly 30‑35% YoY, reflecting intensified late‑stage trial activity and the addition of two new IND‑enabling projects. SG&A grew at a more modest 15‑20% YoY, driven primarily by higher sales‑force headcount and marketing spend needed to support the 47% jump in net product sales to $3.8 million. Because the expense growth rate lagged revenue growth, gross‑margin expanded from the low‑20s to the mid‑30% range, indicating improving operating leverage.

Forward‑looking trend & trade implication: Management’s commentary signals that R&D will stay “front‑loaded” for the next 12‑18 months as the company moves two candidates into Phase III, implying a continued but controlled uptick in R&D outlays. SG&A is expected to normalize once the new sales infrastructure reaches scale, with the company targeting a flat‑to‑low‑single‑digit SG&A increase YoY after Q4‑2025. For traders, the earnings beat and the favorable expense‑to‑sales ratio support a short‑to‑mid‑term upside bias; a breakout above the $10‑$11 resistance on higher volume could be an entry point, while a pull‑back to the $8‑$9 support level would merit caution pending any slowdown in the R&D rollout or a missed guidance update. Keep an eye on the upcoming FY‑2025 guidance release—if Evoke confirms a lower‑than‑expected SG&A growth trajectory, the stock could see a risk‑reward sweet spot for long positions.