Exagen Inc. Reports Record Q1 2025 Revenue Driven by Growth in Average Selling Price and Testing Volume
- Record quarterly revenue of $15.5 million, up from $14.4 million in Q1 2024
- ASP increased by $42 to $419 per test compared to Q1 2024
- Secured $25 million credit facility with Perceptive Advisors
- Launched new SLE and RA biomarkers with expected reimbursement of $90 per test
- Projected combined cash and receivables of $28 million as of April 30, 2025
- Guidance for 2025 revenue of at least $65 million with positive adjusted EBITDA expected in Q4
- Net loss increased to $3.75 million from $3.36 million in Q1 2024
- Adjusted EBITDA loss widened to $2.51 million from $1.99 million
- Cash position decreased to $11.2 million from $27.3 million year-over-year
- Gross margin declined to 58.9% from 59.6% in Q1 2024
Insights
Exagen reports 7.5% revenue growth to $15.5M, but widening losses and reduced cash position offset the positive revenue trajectory.
Exagen's Q1 2025 earnings reveal record revenue of $15.5 million, a 7.5% year-over-year increase from $14.4 million in Q1 2024. This growth was driven by two factors: increased AVISE CTD test volume and a substantial improvement in pricing, with the trailing twelve-month average selling price (ASP) rising to
Despite the revenue gains, the company's financial performance shows concerning trends. Net loss widened to
The company's cash position has substantially decreased, with cash and cash equivalents standing at
To address financing needs, Exagen closed a
On the product front, Exagen has enhanced its AVISE CTD offering with new biomarkers for lupus and rheumatoid arthritis, expected to generate additional reimbursement of
Management's forward guidance projects full-year 2025 revenue of at least
From a biotechnology perspective, Exagen continues to strengthen its position in the specialized autoimmune testing market through both clinical validation and product enhancements. The company's expansion of their AVISE CTD test with new biomarkers for systemic lupus erythematosus (SLE) and rheumatoid arthritis (RA) represents a meaningful advancement in their diagnostic capabilities.
The scientific credibility of Exagen's approach is reinforced by their recently published T-cell research in Frontiers in Immunology, which details the clinical benefits of their new SLE biomarkers. Additionally, their presentation on biomarkers for early kidney damage detection at the Chronic Kidney Disease Drug Development Summit indicates ongoing R&D efforts to expand their diagnostic applications beyond current offerings.
The expected
The initiation of commercial expansion with new sales territories signals management's confidence in market demand for their specialized testing solutions. However, the increased operating expenses (
The company's financial strategy of temporarily holding claims to maximize reimbursement highlights the complexities of the diagnostic reimbursement landscape. While this approach may optimize revenue in the long run, it creates short-term pressure on cash flow that necessitated the recent
Exagen's continued test volume growth and ASP expansion are positive indicators of clinical adoption. The projected timeline to positive adjusted EBITDA by Q4 2025 suggests management sees a clear path to operational efficiency, though execution will be key to achieving this milestone.
CARLSBAD, Calif., May 05, 2025 (GLOBE NEWSWIRE) -- Exagen Inc. (Nasdaq: XGN), a leading provider of autoimmune testing solutions, today reported financial results for the quarter ended March 31, 2025, and recent corporate updates.
| Three Months Ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| (in thousands, except ASP data) | ||||||||
| Revenue | $ | 15,498 | $ | 14,415 | ||||
| Gross margin | 58.9 | % | 59.6 | % | ||||
| Operating expenses | $ | 12,488 | $ | 11,601 | ||||
| Operating loss | $ | (3,365 | ) | $ | (3,003 | ) | ||
| Net loss | $ | (3,752 | ) | $ | (3,360 | ) | ||
| Adjusted EBITDA | $ | (2,508 | ) | $ | (1,992 | ) | ||
| Cash and cash equivalents | $ | 11,194 | $ | 27,267 | ||||
| Trailing-twelve-month average selling price (ASP) | $ | 419 | $ | 377 | ||||
Q1 2025 Highlights and Recent Corporate Updates:
- Delivered record total revenue of
$15.5 million on the strength of continued ASP expansion and AVISE CTD test volume growth. - Expanded AVISE CTD trailing twelve-month ASP to
$419 , an increase of$42 per test over the first quarter of 2024. - Enhanced AVISE CTD offering with commercial launch of new systemic lupus erythematosus (SLE) and rheumatoid arthritis (RA) biomarkers; expected reimbursement in line with initial estimates of
$90 per test. - Ended the first quarter of 2025 with cash, cash equivalents and restricted cash of
$11.2 million , with an accounts receivable balance of$14.7 million , driven by the company's strategy to hold claims in the first quarter to maximize reimbursement. Following the initial release of held claims in April 2025, combined cash, cash equivalents and accounts receivable are projected to be approximately$28 million as of April 30, 2025. - Closed a senior secured credit facility with Perceptive Advisors on April 25, 2025, with
$25 million funded at closing to refinance existing debt and extend maturity; potential additional borrowing capacity for minimally dilutive growth capital available. - Published T-cell manuscript in a peer-reviewed journal, Frontiers in Immunology, detailing clinical benefit of new SLE biomarkers.
- Presented research on biomarkers for early detection of kidney damage at the 7th Annual Chronic Kidney Disease Drug Development Summit in Boston.
- Initiated commercial expansion with first wave of new sales territories identified.
2025 Guidance
The company expects 2025 full-year revenue of at least
Conference Call
A conference call to review first quarter 2025 financial results and to provide a business update is scheduled for today, May 5, 2025 at 8:30 a.m. ET (5:30 a.m. PT). Interested parties may access the conference call by dialing (201) 389-0918 (U.S.) or (877) 407-0890 (international). Additionally, a link to a live webcast of the call will be available in the Investor Relations section of Exagen's website at investors.exagen.com.
Participants are asked to join a few minutes prior to the call to register for the event. A replay of the conference call will be available until May 19, 2025. Interested parties may access the replay by dialing (201) 612-7415 (U.S.) or (877) 660-6853 (international) using passcode 13753132. A link to the replay of the webcast will also be available in the Investor Relations section of Exagen's website.
Use of Non-GAAP Financial Measures (UNAUDITED)
In addition to the financial results prepared in accordance with generally accepted accounting principles in the United States (GAAP), this press release contains the metric adjusted EBITDA, which is not calculated in accordance with GAAP and is a non-GAAP financial measure. Adjusted EBITDA excludes from net loss interest income (expense), income tax expense (benefit), depreciation and amortization expense, stock-based compensation expense and other expenses or income that management believes are not representative of the company’s operations. Such items could have a significant impact on the calculation of GAAP net loss.
Exagen uses adjusted EBITDA internally because the company believes these metrics provide useful supplemental information in assessing its operating performance reported in accordance with GAAP. Exagen believes adjusted EBITDA may enhance an evaluation of our operating performance because it excludes the impact of prior decisions made about capital investment, financing, investing and certain expenses the company believes are not indicative of our ongoing performance. However, this non-GAAP financial measure may be different from non-GAAP financial measures used by other companies, even when the same or similarly titled terms are used to identify such measures, limiting their usefulness for comparative purposes.
This non-GAAP financial measure is not meant to be considered in isolation or used as a substitute for net loss reported in accordance with GAAP, should be considered in conjunction with our financial information presented in accordance with GAAP, has no standardized meaning prescribed by GAAP, is unaudited, and is not prepared under any comprehensive set of accounting rules or principles. In addition, from time to time in the future, there may be other items that Exagen may exclude for purposes of these non-GAAP financial measures, and the company may in the future cease to exclude items that it has historically excluded for purposes of these non-GAAP financial measures. Likewise, Exagen may determine to modify the nature of adjustments to arrive at these non-GAAP financial measures. Because of the non-standardized definitions of non-GAAP financial measures, the non-GAAP financial measure as used by the company in this press release and the accompanying reconciliation table have limits in their usefulness to investors and may be calculated differently from, and therefore may not be directly comparable to, similarly titled measures used by other companies. Accordingly, investors should not place undue reliance on non-GAAP financial measures.
A reconciliation of net loss to non-GAAP adjusted EBITDA is provided in the financial schedules that are part of this press release.
About Exagen
Exagen Inc. (Nasdaq: XGN) is a leading provider of autoimmune diagnostics, committed to transforming care for patients with chronic and debilitating autoimmune conditions. Based in San Diego County, California, Exagen’s mission is to provide clarity in autoimmune disease decision making and improve clinical outcomes through its innovative testing portfolio. The company’s flagship product, AVISE® CTD, enables clinicians to more effectively diagnose complex autoimmune conditions such as lupus, rheumatoid arthritis, and Sjögren’s syndrome earlier and with greater accuracy. Exagen’s laboratory specializes in the testing of rheumatic diseases, delivering precise and timely results, supported by a full suite of AVISE®-branded tests for disease diagnosis, prognosis, and monitoring. With a focus on research, innovation, education, and patient-centered care, Exagen is dedicated to addressing the ongoing challenges of autoimmune disease management.
For more information, please visit Exagen.com or follow @ExagenInc on X.
Forward Looking Statements
Exagen cautions you that statements contained in this press release regarding matters that are not historical facts are forward-looking statements. These statements are based on Exagen’s current beliefs and expectations. Such forward-looking statements include, but are not limited to, statements regarding: Exagen’s goals, strategies, positioning, and ambitions; evaluations and judgments regarding financial results and the potential implications of those results, potential future financial and business performance, including any improvements to adjusted EBITDA, ASP, net loss and potential profitability and/or Exagen’s ability obtain additional funding pursuant to its secured credit facility with Perceptive Advisors (which is subject to milestones and conditions); the potential utility and effectiveness of Exagen’s services and testing solutions; potential shareholder value and growth and full-year 2025 guidance. The inclusion of forward-looking statements should not be regarded as a representation by Exagen that any of its plans will be achieved. Actual results may differ from those set forth in this press release due to the risks and uncertainties inherent in Exagen’s business, including, without limitation: delays in reimbursement and coverage decisions from Medicare and third-party payors and interactions with regulatory authorities, and delays in ongoing and planned clinical trials involving its tests; the potential effects of inflation and tariffs on Exagen’s margins; and changes in laws and regulations related to Exagen’s regulatory requirements. Exagen’s commercial success depends upon attaining and maintaining significant market acceptance of its testing products among rheumatologists, patients, third-party payors and others in the medical community; Exagen’s ability to successfully execute on its business strategies; third-party payors not providing coverage and adequate reimbursement for Exagen’s testing products, including Exagen’s ability to collect on funds due; Exagen’s ability to obtain and maintain intellectual property protection for its testing products; regulatory developments affecting Exagen’s business; and other risks described in Exagen’s prior press releases and Exagen’s filings with the Securities and Exchange Commission (SEC), including under the heading “Risk Factors” in Exagen’s Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on March 11, 2025 and any subsequent filings with the SEC. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and Exagen undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, which is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Contact:
Ryan Douglas
Exagen Inc.
ir@exagen.com
760.560.1525
| Exagen Inc. Unaudited Condensed Statements of Operations (in thousands, except share and per share data) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| Revenue | $ | 15,498 | $ | 14,415 | ||||
| Cost of revenue | 6,375 | 5,817 | ||||||
| Gross margin | 9,123 | 8,598 | ||||||
| Operating expenses: | ||||||||
| Selling, general and administrative expenses | 11,204 | 10,542 | ||||||
| Research and development expenses | 1,284 | 1,059 | ||||||
| Total operating expenses | 12,488 | 11,601 | ||||||
| Loss from operations | (3,365 | ) | (3,003 | ) | ||||
| Interest expense | (545 | ) | (549 | ) | ||||
| Interest income | 158 | 192 | ||||||
| Net loss | $ | (3,752 | ) | $ | (3,360 | ) | ||
| Net loss per share, basic and diluted | $ | (0.20 | ) | $ | (0.19 | ) | ||
| Weighted-average number of shares used to compute net loss per share, basic and diluted | 18,557,390 | 17,944,438 | ||||||
| Exagen Inc. Unaudited Condensed Balance Sheets (in thousands, except share and per share data) | ||||||||
| March 31, 2025 | December 31, 2024 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 11,194 | $ | 22,036 | ||||
| Accounts receivable, net | 14,728 | 7,835 | ||||||
| Prepaid expenses and other current assets | 6,583 | 6,584 | ||||||
| Total current assets | 32,505 | 36,455 | ||||||
| Property and equipment, net | 5,025 | 5,283 | ||||||
| Operating lease right-of-use assets | 2,168 | 2,401 | ||||||
| Other assets | 596 | 550 | ||||||
| Total assets | $ | 40,294 | $ | 44,689 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 4,509 | $ | 4,137 | ||||
| Accrued and other current liabilities | 4,948 | 7,117 | ||||||
| Deferred revenue | 876 | 733 | ||||||
| Operating lease liabilities, current | 1,127 | 1,096 | ||||||
| Borrowings, current | 2,535 | 423 | ||||||
| Total current liabilities | 13,995 | 13,506 | ||||||
| Borrowings, non-current, net of discounts and debt issuance costs | 18,405 | 19,822 | ||||||
| Operating lease liabilities, non-current | 1,369 | 1,664 | ||||||
| Other liabilities, non-current | 122 | 157 | ||||||
| Total liabilities | 33,891 | 35,149 | ||||||
| Commitments and contingencies (Note 5) | ||||||||
| Stockholders' equity: | ||||||||
| Preferred stock, | — | — | ||||||
| Common stock, | 18 | 18 | ||||||
| Additional paid-in capital | 304,468 | 303,853 | ||||||
| Accumulated deficit | (298,083 | ) | (294,331 | ) | ||||
| Total stockholders' equity | 6,403 | 9,540 | ||||||
| Total liabilities and stockholders' equity | $ | 40,294 | $ | 44,689 | ||||
| Exagen Inc. Reconciliation of Non-GAAP Financial Measures (UNAUDITED) |
The table below presents the reconciliation of adjusted EBITDA, which is a non-GAAP financial measure. See "Use of Non-GAAP Financial Measures (UNAUDITED)" above for further information regarding the company's use of non-GAAP financial measures.
| Three Months Ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| (in thousands) | ||||||||
| Adjusted EBITDA | ||||||||
| Net loss | $ | (3,752 | ) | $ | (3,360 | ) | ||
| Other (income) expense | (158 | ) | (192 | ) | ||||
| Interest expense | 545 | 549 | ||||||
| Depreciation and amortization expense | 440 | 458 | ||||||
| Stock-based compensation expense | 417 | 553 | ||||||
| Adjusted EBITDA (Non-GAAP) | $ | (2,508 | ) | $ | (1,992 | ) | ||
FAQ
What was Exagen's (XGN) revenue in Q1 2025?
What is Exagen's (XGN) revenue guidance for 2025?
How much did Exagen (XGN) secure in the credit facility with Perceptive Advisors?
What was Exagen's (XGN) average selling price (ASP) in Q1 2025?
What was Exagen's (XGN) net loss in Q1 2025?
