Axogen, Inc. Reports Second Quarter 2025 Financial Results

Rhea-AI Summary

Axogen (NASDAQ: AXGN), a leader in peripheral nerve function restoration, reported strong Q2 2025 financial results with revenue of $56.7 million, up 18.3% year-over-year. The company achieved profitability with net income of $0.6 million ($0.01 per share), compared to a net loss in Q2 2024.

Key highlights include improved gross margin of 74.2%, adjusted EBITDA of $9.3 million, and expanded insurance coverage for nerve repair procedures. The FDA's review of Avance® Nerve Graft's Biologics License Application is progressing with a decision date of September 5, 2025.

Following strong H1 2025 performance, Axogen raised its full-year revenue guidance to at least 17% growth ($219 million) and maintains its gross margin forecast of 73-75%, despite anticipated one-time BLA approval costs.

Positive

• Revenue growth of 18.3% YoY to $56.7 million in Q2 2025
• Achieved profitability with $0.6M net income vs $1.9M loss in Q2 2024
• Improved gross margin to 74.2% from 73.8% YoY
• Expanded insurance coverage by 17 million new covered lives in 2025
• Raised full-year revenue guidance to 17% growth ($219M)
• Expected to be net cash flow positive for full year 2025

Negative

• Cash and investments decreased to $35.9M from $39.5M since December 2024
• Anticipated one-time BLA approval costs to impact gross margin by 1%

Insights

Financial Analyst

Axogen shows strong momentum with 18.3% revenue growth, profitability achievement, and raised guidance, indicating successful execution of its strategic initiatives.

Axogen's Q2 2025 results demonstrate robust commercial execution with revenue reaching $56.7 million, representing an impressive 18.3% year-over-year growth and 16.7% sequential growth. This performance reflects strong market penetration across all segments including Extremities, Oral Maxillofacial & Head and Neck, and Breast markets - all showing double-digit growth.

The company's transition to profitability marks a significant milestone, posting net income of $0.6 million ($0.01 per share) compared to a net loss of $1.9 million in Q2 2024. More tellingly, adjusted net income surged to $5.7 million ($0.12 per share), up from $2.0 million in the year-ago period, while Adjusted EBITDA reached $9.3 million, representing a 66% increase year-over-year.

Gross margin improvements to 74.2% (up from 73.8% last year and 71.9% in Q1) indicate enhanced operational efficiency and manufacturing scale benefits. This margin expansion is particularly impressive considering the company is absorbing one-time costs related to its anticipated BLA approval.

The raised revenue guidance to at least 17% growth ($219 million) signals management's confidence in continued strong performance through year-end. While cash position decreased slightly to $35.9 million from $39.5 million at year-end 2024, the $7.8 million increase during Q2 and the company's expectation to be net cash flow positive for the full year suggest improving financial sustainability.

On the regulatory front, Axogen is approaching a critical milestone with the FDA's Prescription Drug User Fee Act goal date of September 5, 2025, for its Avance® Nerve Graft BLA. The completed pre-licensing inspection and other regulatory steps position the company well for this potential approval, which could further accelerate growth. Additionally, expanded insurance coverage by approximately 17 million new lives in 2025 (bringing commercial payer coverage to over 55%) strengthens the reimbursement landscape for the company's products.

Raises Full Year Revenue Guidance to at Least 17% Growth or $219 Million

ALACHUA, Fla. and TAMPA, Fla., Aug. 05, 2025 (GLOBE NEWSWIRE) -- Axogen, Inc. (NASDAQ: AXGN), a global leader in developing and marketing innovative surgical solutions for the restoration of peripheral nerve function, today reported financial results and business highlights for the second quarter ended June 30, 2025.

Second Quarter Financial Results

• Second quarter revenue was $56.7 million, an 18.3% increase compared to the second quarter of 2024, and a 16.7% increase over the first quarter of 2025.
• For the second quarter of 2025, gross margin was 74.2%, up from 73.8% for the second quarter of 2024, and up from 71.9% in the first quarter of 2025.
• Net income for the quarter was $0.6 million, or $0.01 per share, compared to a Net loss of $1.9 million, or $0.04 per share for the second quarter of 2024.
• Adjusted net income for the quarter was $5.7 million, or $0.12 per share, compared to $2.0 million, or $0.05 per share, for the second quarter of 2024.
• Adjusted EBITDA was $9.3 million for the quarter, compared to $5.6 million for the second quarter of 2024.
• The balance of cash and cash equivalents, restricted cash, and investments at June 30, 2025, was $35.9 million, as compared to a balance of $39.5 million at December 31, 2024. Cash and cash equivalents, restricted cash, and investments increased $7.8 million during the second quarter of 2025.

“We are delighted with our second quarter 2025 results and progress year to date implementing our strategic plan. Our strong revenue growth across the full range of our nerve repair solutions reflects the soundness of our market development strategies and strength and discipline of our commercial execution,” commented Michael Dale, CEO and Director of Axogen, Inc. “With the first half of the year behind us, we remain confident our market development objectives and business model optimization plans are the right priorities for advancing our business purpose to restore health and improve quality of life by making restoration of peripheral nerve function an expected standard of care.”

Summary of Business Highlights

• Second quarter 2025 revenue growth was broad-based, including double-digit growth from second quarter 2024 in all markets, which includes Extremities, Oral Maxillofacial & Head and Neck, and Breast.

• Expanded coverage and reimbursement for nerve repair for peripheral nerve injuries using synthetic conduits or allografts by an estimated 10 million new covered lives in 2025; bringing the total new lives covered in 2025 to approximately 17 million, which brings coverage amongst commercial payers to more than 55%.

• The U.S. Food and Drug Administration (“FDA”) accepted the filing of the Company’s Biologics License Application (“BLA”) for Avance® Nerve Graft on November 1, 2024, and assigned a Prescription Drug User Fee Act goal date of September 5, 2025. During the second quarter 2025, we completed the following regulatory milestones to support our anticipated approval in September 2025: the late-cycle meeting with the FDA, pre-licensing inspection, and sponsor inspection under the FDA’s Bioresearch Monitoring program.

2025 Financial Guidance

We are raising our revenue guidance to at least 17% growth, or $219 million for the full year. We continue to expect gross margin for the year to be in the range of 73% to 75%. This range reflects one-time costs, mainly related to an anticipated Avance® Nerve Graft BLA approval, which we expect will negatively impact gross margin by approximately 1%. Lastly, we reiterate that we expect to be net cash flow positive for the full year.

Conference Call

The Company will host a conference call and webcast for the investment community today at 8:00 a.m. ET. Investors interested in participating in the conference call by phone may do so by dialing toll free at (877) 407-0993 or use the direct dial-in number at (201) 689-8795. Those interested in listening to the conference call live via the Internet may do so by visiting the Investors page of the Company’s website at www.axogeninc.com and clicking on the webcast link.

Following the conference call, a replay will be available in the Investors section of the Company’s website at www.axogeninc.com under Investors.

About Axogen

Axogen (AXGN) is the leading company focused specifically on the science, development and commercialization of technologies for peripheral nerve regeneration and repair. Axogen employees are passionate about providing the opportunity to restore nerve function and quality of life for patients with peripheral nerve injuries by providing innovative, clinically proven and economically effective repair solutions for surgeons and healthcare providers. Peripheral nerves provide the pathways for both motor and sensory signals throughout the body. Every day people suffer traumatic injuries or undergo surgical procedures that impact the function of their peripheral nerves. Physical damage to a peripheral nerve or the inability to properly reconnect peripheral nerves can result in the loss of muscle or organ function, the loss of sensory feeling, or the initiation of pain.

Axogen’s product portfolio includes Avance^® Nerve Graft, a biologically active off-the-shelf processed human nerve allograft for bridging severed peripheral nerves without the comorbidities associated with a second surgical site; Axoguard Nerve Connector^®, a porcine (pig) submucosa extracellular matrix (“ECM”) coaptation aid for tensionless repair of severed peripheral nerves; Axoguard Nerve Protector^®, a porcine submucosa ECM product used to wrap and protect damaged peripheral nerves and reinforce the nerve reconstruction while minimizing soft tissue attachments; Axoguard HA+ Nerve Protector™, a porcine submucosa ECM base layer coated with a proprietary hyaluronate-alginate gel, a next-generation technology designed to enhance nerve gliding and provide short- and long-term protection for peripheral nerve injuries; Axoguard Nerve Cap^®, a porcine submucosa ECM product used to protect a peripheral nerve end and separate the nerve from the surrounding environment to reduce the development of symptomatic or painful neuroma; and Avive+ Soft Tissue Matrix™, a multi-layer amniotic membrane allograft used to protect and separate tissues in the surgical bed during the critical phase of tissue healing. The Axogen portfolio of products is available in the United States, Canada, Germany, the United Kingdom, Spain, South Korea and several other countries.​

For more information, visit www.axogeninc.com.

Cautionary Statements Concerning Forward-Looking Statements

This press release contains “forward-looking” statements as defined in the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations or predictions of future conditions, events, or results based on various assumptions and management’s estimates of trends and economic factors in the markets in which we are active, as well as our business plans. Words such as “expects,” “anticipates,” “priorities,” “objectives,” “targets,” “intends,” “plan(s),” “believes,” “seeks,” “estimates,” “projects,” “forecasts,” “continue,” “may,” “should,” “will,” “goals,” and variations of such words and similar expressions are intended to identify such forward-looking statements. Forward-looking statements include, but are not limited to, statements regarding our business model optimization plans, market development strategies and objectives, our beliefs around the strengths and discipline of our commercial execution, our business purpose to restore health and improve quality of life by making restoration of peripheral nerve function an expected standard of care, and our expectation of BLA approval in September 2025, as well as statements under the subheading “2025 Financial Guidance.” Actual results or events could differ materially from those described in any forward-looking statements as a result of various factors, including, without limitation, potential disruptions from leadership transitions, global supply chain issues, record inflation, hospital staffing challenges, product development timelines, product potential, expected clinical enrollment timing and outcomes, regulatory processes and approvals, financial performance, sales growth, surgeon and product adoption rates, market awareness of our products, data validation processes, our visibility at and sponsorship of conferences and educational events, global business disruption from Russia’s invasion of Ukraine and related sanctions, recent geopolitical conflicts in the Middle East, the evolving macroeconomic environment (including financial market volatility), escalating geopolitical tensions and trade disputes with U.S. trading partners, as well as those risk factors described under Part I, Item 1A., “Risk Factors,” in our Annual Report on Form 10-K for the year ended December 31, 2024 and other risks and uncertainties, which may be detailed from time to time in reports filed by the Company with the SEC. Forward-looking statements are not a guarantee of future performance, and actual results may differ materially from those projected. The forward-looking statements are representative only as of the date they are made and, except as required by applicable law, we assume no responsibility to publicly update or revise any forward-looking statements.

About Non-GAAP Financial Measures

To supplement our condensed consolidated financial statements, we use the non-GAAP financial measures of EBITDA, which measures earnings before interest, income taxes, depreciation and amortization, and Adjusted EBITDA which further excludes noncash stock compensation expense. We also use the non-GAAP financial measures of Adjusted Net Income or Loss and Adjusted Net Income or Loss Per Common Share - diluted which excludes noncash stock compensation expense from Net Income or Loss and Net Income or Loss Per Common Share - diluted. These non-GAAP measures are not based on any comprehensive set of accounting rules or principles and should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures should be read in conjunction with our financial statements prepared in accordance with GAAP. The reconciliations of the non-GAAP measures to the most directly comparable financial measures calculated and presented in accordance with GAAP should be carefully evaluated.

We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. We believe that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, and analyzing future periods. We believe these non-GAAP financial measures are useful to investors because (i) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (ii) they are used by our institutional investors and the analyst community to help them analyze the performance of our business.

Contact: Axogen, Inc. InvestorRelations@axogeninc.com

Axogen, Inc. Condensed Consolidated Balance Sheets (unaudited) (In thousands, except share and per share amounts)
​	June 30, 2025				December 31, 2024
Assets					​
Current assets:
Cash and cash equivalents	$	20,036			$	27,554
Restricted cash		6,000				6,000
Investments		9,886				5,928
Accounts receivable, net of allowance for doubtful accounts of $1,144 and $788, respectively		28,029				24,105
Inventory		36,774				33,183
Prepaid expenses and other assets		2,694				2,447
Total current assets		103,419				99,217
Property and equipment, net		82,392				84,667
Operating lease right-of-use assets		13,527				14,265
Intangible assets, net		6,115				5,579
Total assets	$	205,453			$	203,728
​
Liabilities and shareholders’ equity
Current liabilities:
Accounts payable and accrued expenses	$	22,770			$	28,641
Current maturities of long-term lease obligations		2,210				1,969
Total current liabilities		24,980				30,610
​
Long-term debt, net of debt discount and financing fees		47,938				47,496
Long-term lease obligations		18,040				19,221
Debt derivative liabilities		2,078				2,400
Other long-term liabilities		141				94
Total liabilities		93,177				99,821
​
Shareholders’ equity:
Common stock, $0.01 par value per share; 100,000,000 shares authorized; 45,765,290 and 44,148,836 shares issued and outstanding, respectively		457				441
Additional paid-in capital		406,334				394,726
Accumulated deficit		(294,515	)			(291,260	)
Total shareholders’ equity		112,276				103,907
Total liabilities and shareholders’ equity	$	205,453			$	203,728

​

Axogen, Inc. Condensed Consolidated Statements of Operations (unaudited) (In thousands, except share and per share amounts)
​	Three Months Ended								Six Months Ended
​	June 30, 2025				June 30, 2024				June 30, 2025				June 30, 2024
Revenues	$	56,662			$	47,912			$	105,222			$	89,289
Cost of goods sold		14,644				12,567				28,271				21,325
Gross profit		42,018				35,345				76,951				67,964
Costs and expenses:
Sales and marketing		23,804				19,698				44,849				39,513
Research and development		6,853				6,658				12,944				14,066
General and administrative		9,689				9,417				19,147				19,373
Total costs and expenses		40,346				35,773				76,940				72,952
Income (loss) from operations		1,672				(428	)			11				(4,988	)
Other income (expense):
Investment income		225				227				497				520
Interest expense		(1,977	)			(2,185	)			(4,227	)			(4,512	)
Change in fair value of debt derivative liabilities		480				464				322				529
Other income (expense), net		179				1				142				(105	)
Total other expense, net		(1,093	)			(1,493	)			(3,266	)			(3,568	)
Net income (loss)	$	579			$	(1,921	)		$	(3,255	)		$	(8,556	)
Weighted average common shares outstanding — basic		46,063,092				43,713,313				45,605,419				43,473,541
Weighted average common shares outstanding — diluted		47,980,830				43,713,313				45,605,419				43,473,541
Net income (loss) per common share — basic	$	0.01			$	(0.04	)		$	(0.07	)		$	(0.20	)
Net income (loss) per common share — diluted	$	0.01			$	(0.04	)		$	(0.07	)		$	(0.20	)

Axogen, Inc. Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures (unaudited) (In thousands, except share and per share amounts)​
	Three Months Ended								Six Months Ended
	June 30, 2025				June 30, 2024				June 30, 2025				June 30, 2024
Net income (loss)	$	579			$	(1,921	)		$	(3,255	)		$	(8,556	)
Depreciation and amortization expense		1,723				1,733				3,518				3,315
Investment income		(225	)			(227	)			(497	)			(520	)
Income tax expense (benefit)		37				(53	)			66				51
Interest expense		1,977				2,185				4,227				4,512
EBITDA - non-GAAP	$	4,091			$	1,717			$	4,059			$	(1,198	)
Noncash stock-based compensation expense		5,168				3,907				8,077				7,826
Adjusted EBITDA - non-GAAP	$	9,259			$	5,624			$	12,136			$	6,628
Net income (loss)	$	579			$	(1,921	)		$	(3,255	)		$	(8,556	)
Noncash stock-based compensation expense		5,168				3,907				8,077				7,826
Adjusted net income (loss) - non-GAAP	$	5,747			$	1,986			$	4,822			$	(730	)
Weighted average common shares outstanding - diluted		47,980,830				43,713,313				48,255,995				43,473,541
Net income (loss) per common share - diluted	$	0.01			$	(0.04	)		$	(0.07	)		$	(0.20	)
Noncash stock-based compensation expense		0.11				0.09				0.17				0.18
Adjusted net income (loss) per common share - diluted - non-GAAP	$	0.12			$	0.05			$	0.10			$	(0.02	)

​

Axogen, Inc. Condensed Consolidated Statements of Changes in Shareholders’ Equity (unaudited) (In thousands, except share amounts)
​	Common Stock					Additional Paid-in Capital				Accumulated Deficit				Total Shareholders' Equity
​	Shares		Amount
Three Months Ended June 30, 2025
Balance at March 31, 2025	45,512,623		$	455		$	400,004			$	(295,094	)		$	105,365
Net income	—			—			—				579				579
Stock-based compensation	—			—			5,168				—				5,168
Issuance of restricted and performance stock units	113,923			1			(1	)			—				—
Exercise of stock options and employee stock purchases under the ESPP	138,744			1			1,163				—				1,164
Balance at June 30, 2025	45,765,290		$	457		$	406,334			$	(294,515	)		$	112,276
​	​		​			​				​				​
Six Months Ended June 30, 2025	​		​			​				​				​
Balance at December 31, 2024	44,148,836		$	441		$	394,726			$	(291,260	)		$	103,907
Net loss	—			—			—				(3,255	)			(3,255	)
Stock-based compensation	—			—			8,077				—				8,077
Issuance of restricted and performance stock units	1,219,137			12			(12	)			—				—
Exercise of stock options and employee stock purchases under the ESPP	397,317			4			3,543				—				3,547
Balance at June 30, 2025	45,765,290		$	457		$	406,334			$	(294,515	)		$	112,276
Three Months Ended June 30, 2024
Balance at March 31, 2024	43,687,729		$	437		$	380,650			$	(287,931	)		$	93,156
Net loss	—			—			—				(1,921	)			(1,921	)
Stock-based compensation	—			—			3,907				—				3,907
Issuance of restricted and performance stock units	44,153			—			—				—				—
Exercise of stock options and employee stock purchases under the ESPP	92,856			1			544				—				545
Balance at June 30, 2024	43,824,738		$	438		$	385,101			$	(289,852	)		$	95,687
Six Months Ended June 30, 2024
December 31, 2023	43,124,496		$	431		$	376,530			$	(281,296	)		$	95,665
Net loss	—			—			—				(8,556	)			(8,556	)
Stock-based compensation	—			—			7,826				—				7,826
Issuance of restricted and performance stock units	583,386			6			(6	)			—				—
Exercise of stock options and employee stock purchases under the ESPP	116,856			1			751				—				752
Balance at June 30, 2024	43,824,738		$	438		$	385,101			$	(289,852	)		$	95,687

Axogen, Inc. Condensed Consolidated Statements of Cash Flows (unaudited) (In thousands)​
​	Six Months Ended
​	June 30, 2025				June 30, 2024
Cash flows from operating activities:	​
Net loss	$	(3,255	)		$	(8,556	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation		3,385				3,177
Amortization of right-of-use assets		184				642
Amortization of intangible assets		133				138
Amortization of debt discount and deferred financing fees		442				444
Provision for bad debts		386				528
Change in fair value of debt derivative liabilities		(322	)			(529	)
Investment gains		(121	)			(33	)
Stock-based compensation		8,077				7,826
Change in operating assets and liabilities:
Accounts receivable		(4,310	)			(533	)
Inventory		(3,591	)			(4,995	)
Prepaid expenses and other		(81	)			957
Accounts payable and accrued expenses		(5,755	)			(6,577	)
Operating lease obligations		(542	)			(731	)
Cash paid for interest portion of financing lease obligations		(2	)			(2	)
Other long-term liabilities		(77	)			143
Net cash used in operating activities		(5,449	)			(8,101	)
​	​
Cash flows from investing activities:	​
Purchase of property and equipment		(978	)			(1,834	)
Purchase of investments		(7,837	)			(1,911	)
Proceeds from sale of investments		4,000				—
Cash payments for intangible assets		(793	)			(739	)
Net cash used in investing activities		(5,608	)			(4,484	)
​	​
Cash flows from financing activities:	​
Cash paid for debt portion of financing lease obligations		(8	)			(4	)
Proceeds from exercise of stock options and ESPP stock purchases		3,547				752
Net cash provided by financing activities		3,539				748
Net decrease in cash and cash equivalents, and restricted cash		(7,518	)			(11,837	)
Cash and cash equivalents, and restricted cash, beginning of period		33,554				37,026
Cash and cash equivalents, and restricted cash, end of period	$	26,036			$	25,189

FAQ

What were Axogen's (AXGN) Q2 2025 earnings results?

Axogen reported Q2 2025 revenue of $56.7M (up 18.3% YoY), net income of $0.6M ($0.01 per share), and gross margin of 74.2%. Adjusted EBITDA was $9.3M.

When is the FDA expected to decide on Axogen's Avance Nerve Graft BLA?

The FDA has assigned a PDUFA goal date of September 5, 2025 for the Avance® Nerve Graft Biologics License Application.

What is Axogen's revenue guidance for 2025?

Axogen raised its full-year 2025 revenue guidance to at least 17% growth, targeting $219 million in revenue.

How many new insurance covered lives did Axogen add in 2025?

Axogen added approximately 17 million new covered lives in 2025, bringing coverage amongst commercial payers to more than 55%.

What was Axogen's cash position in Q2 2025?

Axogen reported $35.9 million in cash, restricted cash, and investments as of June 30, 2025, with cash increasing by $7.8 million during Q2 2025.