Axogen, Inc. Reports Third Quarter 2026 Financial Results

Higher quarterly net income accompanied a lower gross margin, while new shares financed the completed BioCircuit acquisition.

Rhea-AI Summary

Axogen (NASDAQ: AXGN) reported third-quarter revenue of $75.8 million, up from the same quarter last year, and raised its full-year revenue guidance. Revenue grew 26.2% year over year. Net income rose to $2.3 million, or $0.04 per diluted share, from $0.7 million, or $0.01 per diluted share. Gross margin fell to 74.8% from 76.6%.

Axogen expects 2026 revenue of at least $290 million, representing growth of at least 29%, including at least $7 million from BioCircuit. Organic revenue is expected to reach at least $283 million, up at least 26%. Gross-margin guidance remains at least 73%, with positive full-year free cash flow expected. Axogen completed its BioCircuit acquisition on October 1, 2026. An offering raised $225 million net through 5,646,500 common shares; $200 million funded the acquisition and $1.9 million funded transaction expenses. Cash, restricted cash and investments totaled $350.1 million at September 30.

19 points · 1 major

PositiveiHow this balance works

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How the balance worksHow Sentiment works

0 major · 11 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major point. Forward-looking: it has not happened yet and may not happen.Full-year revenue guidance raised to at least $290 million, with growth of at least 29% expected.
• Moderate pointThird-quarter revenue increased 26.2% to $75.8 million from $60.1 million a year earlier.
• Moderate point. Forward-looking: it has not happened yet and may not happen.BioCircuit acquisition completed October 1, 2026; expected 2026 revenue contribution is at least $7 million.
• Moderate pointThird-quarter net income rose to $2.3 million from $0.7 million a year earlier.
• Moderate pointThird-quarter adjusted net income rose to $13.1 million, or $0.21 per share, from $6.1 million, or $0.12.
• Moderate pointThird-quarter adjusted EBITDA rose to $13.4 million from $9.2 million a year earlier.
• Moderate pointPublic offering raised $225 million in net proceeds. 10% of market cap
• Moderate pointNine-month operating cash flow reached $25.322 million, versus $2.226 million used a year earlier.
• Moderate pointAvance received positive coverage decisions from Elevance and Aetna; coverage now spans approximately 96% of U.S. covered lives.

10 minor points

• Minor point. Forward-looking: it has not happened yet and may not happen.Organic 2026 revenue expected to reach at least $283 million, representing growth of at least 26%.
• Minor pointThird-quarter diluted earnings increased to $0.04 per share from $0.01 a year earlier.
• Minor pointCash, restricted cash and investments rose to $350.1 million at September 30 from $113.4 million at June 30.
• Minor pointLong-term debt, net, fell to zero at September 30 from $48.387 million at December 31, 2025.
• Minor point. Forward-looking: it has not happened yet and may not happen.Full-year guidance continues to expect positive free cash flow and gross margin of at least 73%.
• Minor pointYear-to-date growth included 20% plus year-over-year account productivity, expanding sales coverage and improving insurance coverage and payment.
• Minor point. Forward-looking: it has not happened yet and may not happen.Prostate market development planned to begin in 2027, following clinical study outcomes Axogen characterized as positive.
• Minor pointNine-month revenue increased to $207.022 million from $165.304 million a year earlier.
• Minor pointThird-quarter investment income increased to $1.431 million from $0.319 million a year earlier.
• Minor pointThird-quarter interest expense decreased to $0.001 million from $1.757 million a year earlier.

Negative

• Moderate pointThird-quarter operating income decreased to $0.955 million from $1.912 million a year earlier.
• Moderate pointPublic offering issued 5,646,500 common shares, diluting existing holders.
• Moderate pointOffering proceeds funded $200 million for BioCircuit and $1.9 million in transaction expenses. 9.1% of market cap
• Moderate pointNine-month net loss widened to $18.766 million, or $0.35 per share, from $2.547 million, or $0.06.
• Minor pointThird-quarter gross margin fell to 74.8% from 76.6% a year earlier.

6 minor points

• Minor pointNine-month operations produced a $4.033 million loss, versus $1.923 million income a year earlier.
• Minor pointNine-month debt extinguishment generated a $16.849 million loss.
• Minor pointThird-quarter sales and marketing expenses increased to $30.361 million from $25.680 million a year earlier.
• Minor pointThird-quarter research and development expenses increased to $8.950 million from $7.565 million a year earlier.
• Minor pointThird-quarter general and administrative expenses increased to $16.465 million from $10.836 million a year earlier.
• Minor pointNine-month stock-based compensation increased to $24.403 million from $13.501 million a year earlier.

News Explained

Axogen’s completed offering issued 5,646,500 common shares; shares outstanding rose from 53,656,293 on June 30, 2026 to 59,724,524 on September 30, 2026, adding shares that reduce each pre-existing holder’s percentage ownership absent offsetting changes.

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Market move: AXGN +15.99% vs previous close. Q3 2026 earnings report

$39.87 – $45.22 Day Range

$2.55B Mkt Cap at Last Price

On Oct 28, the day this news came out, the latest delayed price for AXGN is 15.99% above the previous close. Our momentum scanner has recorded 7 alerts for this stock so far that day. The latest delayed price is $43.45. Relative volume is exceptionally heavy at 49.7x the average.

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Key Figures

Q3 revenue: $75.8 million Gross margin: 74.8% Net income: $2.3 million, or $0.04 per share +5 more

Q3 revenue

$75.8 million

Q3 2026; up 26.2% from $60.1 million in Q3 2025

Gross margin

74.8%

Q3 2026; compared with 76.6% in Q3 2025

Net income

$2.3 million, or $0.04 per share

Q3 2026; compared with $0.7 million, or $0.01 per share, in Q3 2025

Adjusted net income

$13.1 million, or $0.21 per share

Q3 2026; compared with $6.1 million, or $0.12 per share, in Q3 2025

Adjusted EBITDA

$13.4 million

Q3 2026; compared with $9.2 million in Q3 2025

Cash, restricted cash, and investments

$350.1 million

As of September 30, 2026; compared with $113.4 million as of June 30, 2026

2026 revenue guidance

At least $290 million; at least 29% growth

Includes at least $7 million in BioCircuit revenue

2026 organic revenue guidance

At least $283 million; at least 26% growth

Excludes BioCircuit

Previous Earnings Reports

3 past events · Latest: Jul 29

Same Type 3 events

1. Jul 29

   Q2 earnings results

   24h Move

   +0.5%

   Revenue grew and full-year revenue guidance increased to at least 24% growth.

2. Apr 28

   Q1 earnings results

   24h Move

   +6.6%

   Revenue grew and full-year revenue guidance increased to at least 20% growth.

3. Oct 29

   Q3 earnings results

   24h Move

   +23.1%

   Q3 revenue grew year over year and full-year revenue guidance was raised.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

ebitda, restricted cash, public offering, free cash flow

4 terms

ebitda financial

"Adjusted EBITDA was $13.4 million, compared to $9.2 million"

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

View in glossary

restricted cash financial

"Cash and cash equivalents, restricted cash, and investments as of September 30, 2026"

Cash that a company holds but cannot use for day-to-day operations because it is set aside for a specific purpose—such as meeting loan covenants, serving as collateral, funding an escrow, or complying with regulations. Like money in a locked savings account earmarked for a bill, restricted cash reduces the cash available to run the business and pay dividends or debts, so investors treat it differently when assessing a company’s true short-term financial strength.

public offering financial

"We closed an upsized public offering with the sale of 5,646,500 shares"

A public offering is when a company sells shares to the general public through the stock market, either by issuing new shares to raise cash or by letting existing owners sell their stakes. Think of it like a business opening its doors to many new owners at once: it can bring in money for growth but also increases the number of shares available, which can change the stock price and dilute existing ownership — key factors investors watch closely.

free cash flow financial

"positive free cash flow for the full-year"

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

View in glossary

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Raises Full Year Revenue Guidance to at Least 29% Growth or $290 million

ALACHUA and TAMPA, Fla., Oct. 28, 2026 (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 third quarter ended September 30, 2026.

Third Quarter Financial Results

• Revenue was $75.8 million, an increase of 26.2% compared to $60.1 million in the third quarter of 2025.
• Gross margin was 74.8% compared to 76.6% in the third quarter of 2025.
• Net income was $2.3 million, or $0.04 per share, compared to $0.7 million, or $0.01 per share for the third quarter of 2025.
• Adjusted net income was $13.1 million, or $0.21 per share, as compared to $6.1 million, or $0.12 per share for the third quarter of 2025.
• Adjusted EBITDA was $13.4 million, compared to $9.2 million for the third quarter of 2025.
• Cash and cash equivalents, restricted cash, and investments as of September 30, 2026 was $350.1 million, as compared to $113.4 million as of June 30, 2026, an increase of $236.7 million.

“We are delighted with our third-quarter and year-to-date revenue performance and the progress we continue to make across each of Axogen’s strategic plan priorities,” said Michael Dale, President and CEO of Axogen, Inc. “Our strong growth across all markets, continues to validate our market development strategies and the strength of our commercial execution. We remain well positioned to achieve our 2026 revenue guidance and longer-term strategic objectives.”

Summary of Business Highlights

• Year-to-date revenue growth through the third quarter of 2026 was broad-based across Extremities, Oral Maxillofacial & Head and Neck, and Breast, driven by 20% plus year-over-year account productivity, expanding sales force coverage, and improving commercial insurance coverage and payment.
   
• Received positive coverage decisions from Elevance and Aetna; commercial payer coverage for Avance is now approximately 96% of covered lives in the United States.
   
• We closed an upsized public offering with the sale of 5,646,500 shares of common stock and receipt of $225 million of net proceeds. $200 million of the net proceeds were used to fund the BioCircuit acquisition and $1.9 million were used to fund transaction related expenses, with the remaining funds available for general corporate purposes.
   
• On October 1, 2026, we completed the acquisition of BioCircuit Technologies, Inc. (“BioCircuit”), a privately held medical device company and developer of NerveTape^®.
   
• Based on positive clinical study outcomes, we have made the decision to initiate Prostate market development beginning in 2027. Axogen management will host a prostate specific investment-community conference call and webcast on November 9, 2026 at 9:00 a.m. Investors interested in participating in the conference call by phone may dial toll-free at (877) 407-0993 or use the direct dial-in number at (201) 689-8795. A live webcast, an archived replay, and presentation slides from the event will be available on the Investors page of the Company’s website at www.axogeninc.com.

2026 Financial Guidance

For 2026, we expect full-year revenue of at least $290 million, representing growth of at least 29%, including at least $7 million revenue from the BioCircuit acquisition. Excluding BioCircuit, we expect organic revenue to be at least $283 million, representing growth of at least 26%. We continue to expect gross margin to be at least 73%, and positive free cash flow 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^® (acellular nerve allograft-arwx), Avance^® Nerve Graft, Axoguard Nerve Connector^®, Axoguard Nerve Protector^®, Axoguard HA+ Nerve Protector™, Axoguard Nerve Cap^®, Avive+ Soft Tissue Matrix^®, and NerveTape^®_.

For more information, visit www.axogeninc.com.

Cautionary Statements Concerning Forward-Looking Statements

This press release and accompanying earnings call contain “forward-looking” statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements under the heading “2026 Financial Guidance” and statements regarding our ability to successfully integrate BioCircuit and realize the anticipated benefits of the acquisition, our business model optimization plans; market development strategies and objectives; our strategic investments, including the expected benefits and opportunities of such investments; our expectations around the potential positive impact on our business of expanded coverage and reimbursement for peripheral nerve injuries using synthetic conduits or allografts; our ability to sustain growth, operate profitably, generate positive cash flows, and fund our market development initiatives. These statements are based on management’s current expectations and estimates of trends and economic factors in the markets in which we are active. Words such as “expects,” “anticipates,” “objectives,” “targets,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “projects,” “forecasts,” “continue,” “may,” “should,” “will,” and variations of such words and similar expressions are intended to identify such forward-looking statements. Actual results or events could differ materially from those described in any forward-looking statements as a result of factors, including, without limitation, the risks and challenges associated with integrating BioCircuit and the realization of the anticipated benefits of the acquisition, disruptions from global supply chain issues, inflation, hospital staffing challenges, product development timelines, regulatory processes, financial performance, surgeon adoption rates, market awareness of our products, the estimated total addressable market, as well as those risk factors described under Part I, Item 1A, “Risk Factors,” in our most recent Annual Report on Form 10-K and other risks and uncertainties that 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. Forward-looking statements speak 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, EBITDA margin, and Adjusted EBITDA, which further excludes non-cash stock-based compensation expense, BioCircuit transaction and integration costs, and the loss on extinguishment of debt, and Adjusted EBITDA margin. We also use the non-GAAP financial measures of Adjusted Net Income and Adjusted Net Income Per Common Share - diluted which excludes non-cash stock-based compensation expense, BioCircuit transaction and integration costs, and the loss on extinguishment of debt from Net Income (Loss) and Net Income (Loss) Per Common Share - diluted. Additionally, we use the non-GAAP financial measure of Free Cash Flow which consists of net cash provided by operating activities, less expenditures for property and equipment, and intangible assets.

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)
​	September 30, 2026				December 31, 2025
Assets					​
Current assets
Cash and cash equivalents	$	328,888			$	35,548
Restricted cash		2,000				4,000
Investments		19,180				5,980
Accounts receivable, net of allowance for doubtful accounts of $770 and $948, respectively		34,008				26,169
Inventory		49,063				42,373
Prepaid expenses and other assets		4,953				6,352
Total current assets		438,092				120,422
Property and equipment, net		81,946				81,783
Operating lease right-of-use assets		13,394				12,732
Intangible assets, net		7,910				6,750
Other assets, net		8,997				—
Total assets	$	550,339			$	221,687
​
Liabilities and shareholders’ equity
Current liabilities
Accounts payable and accrued expenses	$	34,626			$	21,184
Current maturities of long-term lease obligations		1,830				2,372
Total current liabilities		36,456				23,556
​
Long-term debt, net of debt discount and financing fees		—				48,387
Long-term lease obligations		17,639				16,870
Debt derivative liabilities		—				3,886
Other long-term liabilities		141				141
Total liabilities		54,236				92,840
​
Shareholders’ equity
Common stock, $0.01 par value per share; 100,000,000 shares authorized; 59,724,524 and 47,199,797 shares issued and outstanding, respectively		597				472
Additional paid-in capital		821,235				435,338
Accumulated deficit		(325,729	)			(306,963	)
Total shareholders’ equity		496,103				128,847
Total liabilities and shareholders’ equity	$	550,339			$	221,687

Axogen, Inc. Condensed Consolidated Statements of Operations (unaudited) (in thousands, except share and per share amounts)​
​	Three Months Ended								Nine Months Ended
​	September 30, 2026				September 30, 2025				September 30, 2026				September 30, 2025
Revenues	$	75,834			$	60,082			$	207,022			$	165,304
Cost of goods sold		19,103				14,089				53,428				42,360
Gross profit		56,731				45,993				153,594				122,944
Costs and expenses
Sales and marketing		30,361				25,680				89,821				70,529
Research and development		8,950				7,565				25,056				20,509
General and administrative		16,465				10,836				42,750				29,983
Total costs and expenses		55,776				44,081				157,627				121,021
Income (loss) from operations		955				1,912				(4,033	)			1,923
Other income (expense)
Investment income		1,431				319				2,985				816
Interest expense		(1	)			(1,757	)			(696	)			(5,984	)
Loss on extinguishment of debt		—				—				(16,849	)			—
Change in fair value of debt derivative liabilities		—				209				—				531
Other (expense) income, net		(51	)			25				(173	)			167
Total other income (expense), net		1,379				(1,204	)			(14,733	)			(4,470	)
Net income (loss)	$	2,334			$	708			$	(18,766	)		$	(2,547	)
Weighted average common shares outstanding — basic		55,158,424				46,494,598				53,437,633				45,905,069
Weighted average common shares outstanding — diluted		61,525,789				49,088,436				53,437,633				45,905,069
Net income (loss) per common share — basic	$	0.04			$	0.02			$	(0.35	)		$	(0.06	)
Net income (loss) per common share — diluted	$	0.04			$	0.01			$	(0.35	)		$	(0.06	)

​

Axogen, Inc. Condensed Consolidated Statements of Cash Flows (unaudited) (in thousands)​
​	Nine Months Ended
​	September 30, 2026				September 30, 2025
Cash flows from operating activities:	​
Net loss	$	(18,766	)		$	(2,547	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation		4,787				5,027
Amortization of right-of-use assets		1,305				294
Amortization of intangible assets		329				221
Amortization of debt discount and deferred financing fees		68				666
Provision for bad debts		4				358
Loss on disposal of equipment		26				—
Change in fair value of debt derivative liabilities		—				(531	)
Investment gains, net		(191	)			(238	)
Loss on extinguishment of debt		16,849				—
Stock-based compensation expense		24,403				13,501
Change in operating assets and liabilities:
Accounts receivable		(7,843	)			(7,028	)
Inventory		(6,690	)			(7,398	)
Prepaid expenses and other assets		1,399				(619	)
Other assets, net		(1,989	)			—
Accounts payable and accrued expenses		13,359				(2,985	)
Operating lease obligations		(1,724	)			(833	)
Cash paid for interest portion of financing lease obligations		(4	)			(3	)
Other long-term liabilities		—				(111	)
Net cash provided by (used in) operating activities		25,322				(2,226	)
​	​
Cash flows from investing activities:	​
Purchase of property and equipment		(5,074	)			(2,498	)
Purchase of investments		(27,209	)			(13,723	)
Proceeds from sale of investments		14,200				8,000
Purchases of equity investments held at cost		(7,008	)			—
Cash payments for intangible assets		(1,306	)			(1,138	)
Net cash used in investing activities	$	(26,397	)		$	(9,359	)
​	(CONTINUED...)
Cash flows from financing activities:	​
Proceeds from issuance of common stock	$	359,622			$	—
Payment of stock issuance costs		(1,341	)			—
Repayment of long-term debt		(48,585	)			—
Fees paid to lender related to debt extinguishment		(20,498	)			—
Fees paid to third parties related to debt extinguishment		(107	)			—
Payments of employee tax withholding on vested stock awards		(9,447	)			—
Cash paid for debt portion of financing lease obligations		(14	)			(11	)
Proceeds from exercise of stock options and ESPP stock purchases		12,785				5,944
Net cash provided by financing activities		292,415				5,933
Net increase (decrease) in cash and cash equivalents, and restricted cash		291,340				(5,652	)
Cash and cash equivalents, and restricted cash, beginning of period		39,548				33,554
Cash and cash equivalents, and restricted cash, end of period	$	330,888			$	27,902

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 September 30, 2026
Balance at June 30, 2026	53,656,293		$	537		$	583,783			$	(328,063	)		$	256,257
Net income	—			—			—				2,334				2,334
Issuance of common shares	5,646,500			57			224,972				—				225,029
Stock-based compensation	—			—			8,794				—				8,794
Issuance of restricted and performance stock units, net of shares withheld for withholding taxes	9,507			—			(174	)			—				(174	)
Exercise of stock options	412,224			3			3,860				—				3,863
Balance at September 30, 2026	59,724,524		$	597		$	821,235			$	(325,729	)		$	496,103
​	​		​			​				​				​
Nine Months Ended September 30, 2026	​		​			​				​				​
Balance at December 31, 2025	47,199,797		$	472		$	435,338			$	(306,963	)		$	128,847
Net loss	—			—			—				(18,766	)			(18,766	)
Issuance of common shares	10,246,500			103			358,178				—				358,281
Stock-based compensation	—			—			24,403				—				24,403
Issuance of restricted and performance stock units, net of shares withheld for withholding taxes	1,130,195			11			(9,458	)			—				(9,447	)
Exercise of stock options and employee stock purchases under the ESPP	1,148,032			11			12,774				—				12,785
Balance at September 30, 2026	59,724,524		$	597		$	821,235			$	(325,729	)		$	496,103
Three Months Ended September 30, 2025
Balance at June 30, 2025	45,765,290		$	457		$	406,334			$	(294,515	)		$	112,276
Net income	—			—			—				708				708
Stock-based compensation	—			—			5,424				—				5,424
Issuance of restricted and performance stock units	81,925			1			(1	)			—				—
Exercise of stock options	270,068			3			2,394				—				2,397
Balance at September 30, 2025	46,117,283		$	461		$	414,151			$	(293,807	)		$	120,805
Nine Months Ended September 30, 2025
Balance at December 31, 2024	44,148,836		$	441		$	394,726			$	(291,260	)		$	103,907
Net loss	—			—			—				(2,547	)			(2,547	)
Stock-based compensation	—			—			13,501				—				13,501
Issuance of restricted and performance stock units	1,301,062			13			(13	)			—				—
Exercise of stock options and employee stock purchases under the ESPP	667,385			7			5,937				—				5,944
Balance at September 30, 2025	46,117,283		$	461		$	414,151			$	(293,807	)		$	120,805

Axogen, Inc. Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures (unaudited) (in thousands, except share and per share amounts)​
EBITDA & Adjusted EBITDA	Three Months Ended						Nine Months Ended
	September 30, 2026			September 30, 2025			September 30, 2026			September 30, 2025
Net income (loss)	$	2,334		$	708		$	(18,766)		$	(2,547)
Depreciation and amortization expense		1,694			1,730			5,116			5,248
Investment income		(1,431)			(319)			(2,985)			(816)
Income tax expense (benefit)		32			(62)			220			4
Interest expense		1			1,757			696			5,984
EBITDA - non-GAAP		2,630			3,814			(15,719)			7,873
EBITDA margin - non-GAAP		3.5%			6.3%			(7.6)%			4.8%
Non-cash stock-based compensation expense		8,794			5,424			24,403			13,501
BioCircuit transaction and integration costs		1,969			—			1,969			—
Loss on extinguishment of debt		—			—			16,849			—
Adjusted EBITDA - non-GAAP	$	13,393		$	9,238		$	27,502		$	21,374
Adjusted EBITDA margin - non-GAAP		17.7			15.4%			13.3%			12.9%

​

Adjusted Net Income	Three Months Ended September 30, 2026
	GAAP Results				Non-cash Stock-based Compensation Expense				BioCircuit Transaction and Integration Costs				Adjusted Results
Revenues	$	75,834			$	—			$	—			$	75,834
Cost of goods sold		19,103				(695	)			—				18,408
Gross profit		56,731				695				—				57,426
Costs and expenses
Sales and marketing		30,361				(2,176	)			—				28,185
Research and development		8,950				(1,826	)			—				7,124
General and administrative		16,465				(4,097	)			(1,969	)			10,399
Total costs and expenses		55,776				(8,099	)			(1,969	)			45,708
Income from operations		955				8,794				1,969				11,718
Other income (expense)
Investment income		1,431				—				—				1,431
Interest expense		(1	)			—				—				(1	)
Other expense, net		(51	)			—				—				(51	)
Total other income, net		1,379				—				—				1,379
Net income	$	2,334			$	8,794			$	1,969			$	13,097
Weighted average common shares outstanding - diluted		61,525,789				61,525,789				61,525,789				61,525,789
Net income per common share - diluted	$	0.04			$	0.14			$	0.03			$	0.21

Axogen, Inc. Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures (unaudited) (in thousands, except share and per share amounts)​
Adjusted Net Income	Three Months Ended September 30, 2025
	GAAP Results				Non-cash Stock-based Compensation Expense				Adjusted Results
Revenues	$	60,082			$	—			$	60,082
Cost of goods sold		14,089				(706	)			13,383
Gross profit		45,993				706				46,699
Costs and expenses
Sales and marketing		25,680				(1,524	)			24,156
Research and development		7,565				(1,047	)			6,518
General and administrative		10,836				(2,147	)			8,689
Total costs and expenses		44,081				(4,718	)			39,363
Income from operations		1,912				5,424				7,336
Other income (expense)
Investment income		319				—				319
Interest expense		(1,757	)			—				(1,757	)
Change in fair value of debt derivative liabilities		209				—				209
Other income, net		25				—				25
Total other expense, net		(1,204	)			—				(1,204	)
Net income	$	708			$	5,424			$	6,132
Weighted average common shares outstanding - diluted		49,088,436				49,088,436				49,088,436
Net income per common share - diluted	$	0.01			$	0.11			$	0.12

Axogen, Inc. Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures (unaudited) (in thousands, except share and per share amounts)​
Adjusted Net Income	Nine Months Ended September 30, 2026
	GAAP Results				Non-cash Stock-based Compensation Expense				BioCircuit Transaction and Integration Costs				Loss on Extinguishment of Debt			Dilutive Shares Impact(1)				Adjusted Results
Revenues	$	207,022			$	—			$	—			$	—						$	207,022
Cost of goods sold		53,428				(2,824	)			—				—							50,604
Gross profit		153,594				2,824				—				—							156,418
Costs and expenses
Sales and marketing		89,821				(5,737	)			—				—							84,084
Research and development		25,056				(5,040	)			—				—							20,016
General and administrative		42,750				(10,802	)			(1,969	)			—							29,979
Total costs and expenses		157,627				(21,579	)			(1,969	)			—							134,079
(Loss) income from operations		(4,033	)			24,403				1,969				—							22,339
Other income (expense)
Investment income		2,985				—				—				—							2,985
Interest expense		(696	)			—				—				—							(696	)
Loss on extinguishment of debt		(16,849	)			—				—				16,849							—
Other expense, net		(173	)			—				—				—							(173	)
Total other (expense) income, net		(14,733	)			—				—				16,849							2,116
Net (loss) income	$	(18,766	)		$	24,403			$	1,969			$	16,849						$	24,455
Weighted average common shares outstanding - diluted		53,437,633				53,437,633				53,437,633				53,437,633			6,097,037				59,534,670
Net (loss) income per common share - diluted	$	(0.35	)		$	0.46			$	0.04			$	0.32		$	(0.04	)		$	0.41

(1)

Due to a GAAP net loss, antidilutive securities are excluded from GAAP diluted weighted average common shares outstanding. However, considering the adjusted net income position, adjusted diluted weighted average common shares outstanding incorporates securities that would have been dilutive for GAAP.

Axogen, Inc. Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures (unaudited) (in thousands, except share and per share amounts)​
Adjusted Net Income	Nine Months Ended September 30, 2025
	GAAP Results				Non-cash Stock-based Compensation Expense				Dilutive Shares Impact(1)				Adjusted Results
Revenues	$	165,304			$	—							$	165,304
Cost of goods sold		42,360				(1,406	)							40,954
Gross profit		122,944				1,406								124,350
Costs and expenses
Sales and marketing		70,529				(3,422	)							67,107
Research and development		20,509				(2,796	)							17,713
General and administrative		29,983				(5,877	)							24,106
Total costs and expenses		121,021				(12,095	)							108,926
Income from operations		1,923				13,501								15,424
Other income (expense)
Investment income		816				—								816
Interest expense		(5,984	)			—								(5,984	)
Change in fair value of debt derivative liabilities		531				—								531
Other income, net		167				—								167
Total other expense, net		(4,470	)			—								(4,470	)
Net (loss) income	$	(2,547	)		$	13,501							$	10,954
Weighted average common shares outstanding - diluted		45,905,069				45,905,069				3,068,714				48,973,783
Net (loss) income per common share - diluted	$	(0.06	)		$	0.29			$	(0.01	)		$	0.22

(1)

Due to a GAAP net loss, antidilutive securities are excluded from GAAP diluted weighted average common shares outstanding. However, considering the adjusted net income position, adjusted diluted weighted average common shares outstanding incorporates securities that would have been dilutive for GAAP.

Free Cash Flow	Nine Months Ended
	September 30, 2026				September 30, 2025
Net cash provided by (used in) operating activities	$	25,322			$	(2,226	)
Purchase of property and equipment		(5,074	)			(2,498	)
Cash payments for intangible assets		(1,306	)			(1,138	)
Free cash flow	$	18,942			$	(5,862	)

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What is Axogen's updated 2026 revenue guidance?

Axogen expects 2026 revenue of at least $290 million, representing growth of at least 29%. This includes at least $7 million from BioCircuit. Organic revenue is expected to be at least $283 million, representing growth of at least 26%.

How did Axogen's third-quarter 2026 earnings compare with last year?

Axogen earned $2.3 million, or $0.04 per diluted share, compared with $0.7 million, or $0.01 per diluted share, in the third quarter of 2025. Revenue increased 26.2% to $75.8 million, while gross margin declined to 74.8% from 76.6%.