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Axogen, Inc. Reports Second Quarter 2025 Financial Results

Raises Full Year Revenue Guidance to at Least 17% Growth or $219 Million
ALACHUA and TAMPA, FL – August 5, 2025 – 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 cash6,000 6,000 
Investments9,886 5,928 
Accounts receivable, net of allowance for doubtful accounts of $1,144 and $788, respectively
28,029 24,105 
Inventory36,774 33,183 
Prepaid expenses and other assets2,694 2,447 
Total current assets103,419 99,217 
Property and equipment, net82,392 84,667 
Operating lease right-of-use assets13,527 14,265 
Intangible assets, net6,115 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 obligations2,210 1,969 
Total current liabilities24,980 30,610 
Long-term debt, net of debt discount and financing fees47,938 47,496 
Long-term lease obligations18,040 19,221 
Debt derivative liabilities2,078 2,400 
Other long-term liabilities141 94 
Total liabilities93,177 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 capital406,334 394,726 
Accumulated deficit(294,515)(291,260)
Total shareholders’ equity112,276 103,907 
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, 2025June 30, 2024June 30, 2025June 30, 2024
Revenues$56,662 $47,912 $105,222 $89,289 
Cost of goods sold14,644 12,567 28,271 21,325 
Gross profit42,018 35,345 76,951 67,964 
Costs and expenses:
Sales and marketing23,804 19,698 44,849 39,513 
Research and development6,853 6,658 12,944 14,066 
General and administrative9,689 9,417 19,147 19,373 
Total costs and expenses40,346 35,773 76,940 72,952 
Income (loss) from operations1,672 (428)11 (4,988)
Other income (expense):
Investment income225 227 497 520 
Interest expense(1,977)(2,185)(4,227)(4,512)
Change in fair value of debt derivative liabilities480 464 322 529 
Other income (expense), net179 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 — basic46,063,092 43,713,313 45,605,419 43,473,541 
Weighted average common shares outstanding — diluted47,980,830 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, 2025June 30, 2024June 30, 2025June 30, 2024
Net income (loss)$579 $(1,921)$(3,255)$(8,556)
Depreciation and amortization expense1,723 1,733 3,518 3,315 
Investment income(225)(227)(497)(520)
Income tax expense (benefit)37 (53)66 51 
Interest expense1,977 2,185 4,227 4,512 
EBITDA - non-GAAP$4,091 $1,717 $4,059 $(1,198)
Noncash stock-based compensation expense5,168 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 expense5,168 3,907 8,077 7,826 
Adjusted net income (loss) - non-GAAP$5,747 $1,986 $4,822 $(730)
Weighted average common shares outstanding - diluted47,980,830 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 expense0.11 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 StockAdditional Paid-in
Capital		Accumulated
Deficit		Total Shareholders'
Equity
SharesAmount
Three Months Ended June 30, 2025
Balance at March 31, 202545,512,623 $455 $400,004 $(295,094)$105,365 
Net income— — — 579 579 
Stock-based compensation— — 5,168 — 5,168 
Issuance of restricted and performance stock units113,923 1 (1)— — 
Exercise of stock options and employee stock purchases under the ESPP138,744 1 1,163 — 1,164 
Balance at June 30, 202545,765,290 $457 $406,334 $(294,515)$112,276 
Six Months Ended June 30, 2025
Balance at December 31, 202444,148,836 $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 units1,219,137 12 (12)— — 
Exercise of stock options and employee stock purchases under the ESPP397,317 4 3,543 — 3,547 
Balance at June 30, 202545,765,290 $457 $406,334 $(294,515)$112,276 
Three Months Ended June 30, 2024
Balance at March 31, 202443,687,729 $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 units44,153 — — — — 
Exercise of stock options and employee stock purchases under the ESPP92,856 1 544 — 545 
Balance at June 30, 202443,824,738 $438 $385,101 $(289,852)$95,687 
Six Months Ended June 30, 2024
December 31, 202343,124,496 $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 units583,386 6 (6)— — 
Exercise of stock options and employee stock purchases under the ESPP116,856 1 751 — 752 
Balance at June 30, 202443,824,738 $438 $385,101 $(289,852)$95,687 


Axogen, Inc.
Condensed Consolidated Statements of Cash Flows
(unaudited)
(In thousands)
Six Months Ended
June 30, 2025June 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:
Depreciation3,385 3,177 
Amortization of right-of-use assets184 642 
Amortization of intangible assets133 138 
Amortization of debt discount and deferred financing fees442 444 
Provision for bad debts386 528 
Change in fair value of debt derivative liabilities(322)(529)
Investment gains(121)(33)
Stock-based compensation8,077 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 investments4,000 — 
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 purchases3,547 752 
Net cash provided by financing activities3,539 748 
Net decrease in cash and cash equivalents, and restricted cash(7,518)(11,837)
Cash and cash equivalents, and restricted cash, beginning of period33,554 37,026 
Cash and cash equivalents, and restricted cash, end of period$26,036 $25,189