Part I. Financial Information This section provides the company's unaudited condensed financial statements and related management discussion and analysis [Item 1. Unaudited Condensed Financial Statements](index=3&type=section&id=Item%201.%20Unaudited%20Condensed%20Financial%20Statements) This section presents Exagen Inc.'s unaudited condensed financial statements, including balance sheets, statements of operations, stockholders' equity, and cash flows, along with detailed explanatory notes [Unaudited Condensed Balance Sheets](index=3&type=section&id=Unaudited%20Condensed%20Balance%20Sheets) Presents Exagen Inc.'s financial position, detailing assets, liabilities, and stockholders' equity at specific reporting dates Unaudited Condensed Balance Sheets (in thousands) | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------------- | :----------------------------- | :------------------------------- | | Cash and cash equivalents | $30,033 | $22,036 | | Accounts receivable, net | $14,272 | $7,835 | | Total current assets | $50,986 | $36,455 | | Total assets | $58,760 | $44,689 | | Total current liabilities | $10,295 | $13,506 | | Total liabilities | $37,726 | $35,149 | | Total stockholders' equity | $21,034 | $9,540 | - Total assets increased by **$14.1 million (31.5%)** from December 31, 2024, to June 30, 2025, primarily driven by an increase in cash and cash equivalents and accounts receivable[9](index=9&type=chunk) - Total stockholders' equity more than doubled, increasing by **$11.5 million (120.9%)** from December 31, 2024, to June 30, 2025, largely due to a public offering[9](index=9&type=chunk) [Unaudited Condensed Statements of Operations](index=4&type=section&id=Unaudited%20Condensed%20Statements%20of%20Operations) Details Exagen Inc.'s revenues, expenses, and net loss over specific reporting periods Unaudited Condensed Statements of Operations (in thousands) | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $17,202 | $15,064 | $32,700 | $29,479 | | Cost of revenue | $6,807 | $6,008 | $13,182 | $11,825 | | Gross margin | $10,395 | $9,056 | $19,518 | $17,654 | | Total operating expenses | $13,025 | $11,643 | $25,513 | $23,244 | | Loss from operations | $(2,630) | $(2,587) | $(5,995) | $(5,590) | | Net loss | $(4,439) | $(2,966) | $(8,191) | $(6,326) | | Net loss per share | $(0.21) | $(0.16) | $(0.41) | $(0.35) | - Revenue increased by **14.2%** for the three months ended June 30, 2025, and by **10.9%** for the six months ended June 30, 2025, compared to the respective prior-year periods[11](index=11&type=chunk) - Net loss widened to **$4.4 million** for the three months and **$8.2 million** for the six months ended June 30, 2025, from **$3.0 million** and **$6.3 million** in the prior-year periods, respectively, partly due to increased interest expense, loss on debt extinguishment, and change in fair value of warrant liability[11](index=11&type=chunk) [Unaudited Condensed Statements of Stockholders' Equity](index=5&type=section&id=Unaudited%20Condensed%20Statements%20of%20Stockholders'%20Equity) Outlines changes in Exagen Inc.'s equity accounts, including common stock, additional paid-in capital, and accumulated deficit Unaudited Condensed Statements of Stockholders' Equity (in thousands) | Metric (in thousands) | December 31, 2024 | March 31, 2025 | June 30, 2025 | | :-------------------- | :---------------- | :------------- | :------------ | | Total Stockholders' Equity | $9,540 | $6,403 | $21,034 | | Common Stock Shares Outstanding | 17,640,328 | 17,950,033 | 21,998,739 | | Additional Paid-In Capital | $303,853 | $304,468 | $323,534 | | Accumulated Deficit | $(294,331) | $(298,083) | $(302,522) | - Total stockholders' equity significantly increased from **$9.5 million** at December 31, 2024, to **$21.0 million** at June 30, 2025, primarily driven by a public offering that generated **$18.6 million** in net proceeds[14](index=14&type=chunk)[26](index=26&type=chunk) - The company issued **3,852,500 shares** of common stock from a public offering and **107,969 shares** from warrant exercises during the six months ended June 30, 2025[14](index=14&type=chunk) [Unaudited Condensed Statements of Cash Flows](index=7&type=section&id=Unaudited%20Condensed%20Statements%20of%20Cash%20Flows) Summarizes Exagen Inc.'s cash inflows and outflows from operating, investing, and financing activities Unaudited Condensed Statements of Cash Flows (in thousands) | Cash Flow Activity (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net cash used in operating activities | $(13,556) | $(11,466) | | Net cash used in investing activities | $(316) | $(222) | | Net cash provided by (used in) financing activities | $21,869 | $(326) | | Net increase (decrease) in cash, cash equivalents and restricted cash | $7,997 | $(12,014) | | Cash, cash equivalents and restricted cash, end of period | $30,233 | $24,679 | - Net cash used in operating activities increased to **$13.6 million** for the six months ended June 30, 2025, from **$11.5 million** in the prior-year period, primarily due to a higher net loss and changes in working capital[20](index=20&type=chunk)[174](index=174&type=chunk)[175](index=175&type=chunk) - Financing activities provided **$21.9 million** in cash for the six months ended June 30, 2025, a significant increase from a net use of **$0.3 million** in the prior-year period, driven by proceeds from debt and warrant issuance (**$23.7 million**) and common stock issuance (**$18.8 million**)[20](index=20&type=chunk)[178](index=178&type=chunk)[179](index=179&type=chunk) [Notes to Unaudited Condensed Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Condensed%20Financial%20Statements) Provides detailed explanations and additional information supporting the unaudited condensed financial statements [Note 1. Organization](index=8&type=section&id=Note%201.%20Organization) Describes Exagen Inc.'s business, operational focus, and financial viability considerations - Exagen Inc. is a medical technology company focused on diagnostic testing products under the AVISE® brand for rheumatic, autoimmune, and autoimmune-related diseases[23](index=23&type=chunk) - The company has incurred recurring losses and negative cash flows from operations since inception, with an accumulated deficit of **$302.5 million** as of June 30, 2025[24](index=24&type=chunk) - Management believes existing capital resources are sufficient for at least twelve months, supported by a new **$75.0 million** Perceptive Term Loan Facility (initial **$25.0 million** funded) and **$18.6 million** net proceeds from a public stock offering in May 2025[24](index=24&type=chunk)[25](index=25&type=chunk)[26](index=26&type=chunk) [Note 2. Summary of Significant Accounting Policies](index=8&type=section&id=Note%202.%20Summary%20of%20Significant%20Accounting%20Policies) Outlines the key accounting principles and methods used in preparing the financial statements, including revenue recognition and fair value measurements - The financial statements are prepared in accordance with GAAP for interim financial statements, requiring management estimates and assumptions, particularly for revenue recognition and fair value of warrant liability[28](index=28&type=chunk)[29](index=29&type=chunk)[30](index=30&type=chunk)[31](index=31&type=chunk) Significant Payors and Customers (Revenue % of Total) | Customer | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Customer A | 23% | 23% | 23% | 25% | | Customer B | 16% | 25% | 17% | 21% | | Customer C | <10% | 11% | 10% | <10% | | Customer D | 10% | <10% | <10% | <10% | - Approximately **91%** of the Company's revenue for the three and six months ended June 30, 2025, was derived from the AVISE® CTD test[34](index=34&type=chunk) Revenue Disaggregation by Payor (in thousands) | Payor Category | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Commercial | $8,811 | $8,672 | $17,571 | $15,535 | | Government | $3,926 | $3,457 | $7,633 | $7,643 | | Client direct bill | $4,371 | $2,910 | $7,367 | $6,194 | | Other | $94 | $25 | $129 | $107 | | Total revenue | $17,202 | $15,064 | $32,700 | $29,479 | - The company recognized a net revenue increase of **$0.1 million** and **$1.0 million** for the three and six months ended June 30, 2025, respectively, from changes in estimated variable consideration related to prior periods[44](index=44&type=chunk) - The allowance for credit losses was **$0.5 million** as of June 30, 2025, compared to zero as of June 30, 2024[48](index=48&type=chunk) - Total potentially dilutive securities not included in diluted EPS calculation due to anti-dilution were **2,878,858 shares** as of June 30, 2025[55](index=55&type=chunk) [Note 3. Other Financial Information](index=14&type=section&id=Note%203.%20Other%20Financial%20Information) Presents details on prepaid expenses, property and equipment, and accrued liabilities Prepaid Expenses and Other Current Assets (in thousands) | Category | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Diagnostic testing supplies | $3,744 | $5,725 | | Prepaid maintenance and insurance contracts | $1,707 | $829 | | Loan commitment fees | $1,132 | — | | Total | $6,681 | $6,584 | Property and Equipment, net (in thousands) | Category | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Total property and equipment | $10,945 | $11,295 | | Less: accumulated depreciation and amortization | $(6,363) | $(6,012) | | Property and equipment, net | $4,582 | $5,283 | - Depreciation and amortization expense was approximately **$0.5 million** for the three months and **$0.9 million** for the six months ended June 30, 2025[60](index=60&type=chunk) Accrued and Other Current Liabilities (in thousands) | Category | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Accrued payroll and related expenses | $3,455 | $5,046 | | Other accrued liabilities | $1,487 | $2,071 | | Total | $4,942 | $7,117 | [Note 4. Borrowings](index=14&type=section&id=Note%204.%20Borrowings) Details the company's debt arrangements, including the new Perceptive Term Loan Facility and related terms - On April 25, 2025, the Company entered into a **$75.0 million** senior secured delayed draw term loan facility with Perceptive, with an initial **$25.0 million** tranche funded, of which **$19.7 million** was used to repay the 2017 Term Loan[62](index=62&type=chunk)[25](index=25&type=chunk) - The Perceptive Term Loan Facility matures on April 25, 2030, accrues interest at Term SOFR (or **4.75%**) plus **7.0%**, and includes an interest-only period through maturity[63](index=63&type=chunk)[64](index=64&type=chunk) - In connection with the Perceptive Term Loan, the Company issued a warrant certificate to purchase up to **1,150,000 shares** of common stock, with **400,000 shares** vesting upon issuance[25](index=25&type=chunk)[66](index=66&type=chunk) - The Company recognized **$0.8 million** in interest expense for the three months ended June 30, 2025, related to the Perceptive Term Loan, with an effective interest rate of **16.2%**[68](index=68&type=chunk) - A **$0.3 million** loss on extinguishment of debt was recognized for the six months ended June 30, 2025, due to the early repayment of the 2017 Term Loan[70](index=70&type=chunk) Future Minimum Payments on Outstanding Borrowings (in thousands) | Year | Amount | | :--- | :----- | | 2025 (remaining) | $1,888 | | 2026 | $3,700 | | 2027 | $3,450 | | 2028 | $3,117 | | 2029 | $2,978 | | 2030 | $25,930 | | Total | $41,063 | [Note 5. Commitments and Contingencies](index=17&type=section&id=Note%205.%20Commitments%20and%20Contingencies) Outlines the company's contractual obligations, including licensing agreements, supply commitments, and legal matters - The Company has licensing agreements requiring ongoing royalty payments of less than **1%** on net sales of products incorporating licensed technology[74](index=74&type=chunk) - A supply agreement with a key supplier includes a minimum annual purchase commitment of **$10.4 million** for diagnostic testing consumables for the year ending December 31, 2025[75](index=75&type=chunk) - A qui tam case related to a DOJ settlement was dismissed with prejudice on July 15, 2025, following an appeal by the relator[78](index=78&type=chunk) [Note 6. Fair Value Measurements](index=18&type=section&id=Note%206.%20Fair%20Value%20Measurements) Explains the methodologies and assumptions used to determine the fair value of financial instruments, including debt and warrant liabilities - The Perceptive Term Loan Facility had a carrying value of **$21.4 million** and a fair value of **$22.0 million** as of June 30, 2025, determined using Level 2 inputs (discounted cash flow approach)[79](index=79&type=chunk) - The warrant liability, recorded at **$3.963 million** as of June 30, 2025, is classified as a Level 3 fair value measurement, utilizing a probability-weighted Black-Scholes-Merton model with significant unobservable inputs[83](index=83&type=chunk)[85](index=85&type=chunk) Warrant Liability Fair Value Assumptions | Assumption | April 25, 2025 (Issuance Date) | June 30, 2025 | | :-------------------------- | :----------------------------- | :------------ | | Fair value of underlying common stock | $6.21 | $6.98 | | Exercise price | $4.96 - $6.99 | $4.96 - $7.85 | | Risk-free interest rate | 4.3% | 4.2% - 4.3% | | Expected volatility | 88.8% | 88.1% - 88.3% | | Expected term (in years) | 10.0 | 9.8 - 10.0 | | Expected dividend yield | 0% | 0% | [Note 7. Stockholders' Equity](index=20&type=section&id=Note%207.%20Stockholders'%20Equity) Details changes in the company's equity structure, including public offerings and outstanding warrants - The Company has a shelf registration statement (Form S-3) effective November 29, 2023, with **$129.8 million** remaining available for sale as of June 30, 2025[86](index=86&type=chunk) - A public offering closed on May 9, 2025, resulting in the issuance of **3,852,500 shares** of common stock at **$5.25 per share**, generating net proceeds of approximately **$18.6 million**[88](index=88&type=chunk) Outstanding Warrants as of June 30, 2025 | Shares | Weighted-Average Exercise Price | Issuance date | Expiration date | | :----- | :------------------------------ | :------------ | :-------------- | | 124,848 | $1.84 | Jan 19, 2016 | Jan 19, 2026 | | 34,416 | $1.84 | Mar 31, 2016 | Mar 31, 2026 | | 131 | $1.84 | Apr 1, 2016 | Apr 1, 2026 | | 20,944 | $14.32 | Dec 7, 2018 | Dec 7, 2025 | | 804,951 | $0.001 | Jun 22, 2021 | None | | 400,000 | $5.27 | Apr 25, 2025 | Apr 25, 2035 | | **1,385,290** | | | | [Note 8. Stock Option Plan](index=21&type=section&id=Note%208.%20Stock%20Option%20Plan) Provides information on the company's incentive award plan, including available shares, unrecognized compensation costs, and stock-based compensation expense - As of June 30, 2025, **2,533,057 shares** remained available for future awards under the 2019 Incentive Award Plan[91](index=91&type=chunk) - Total unrecognized compensation cost related to RSUs was **$4.1 million**, expected to be recognized over a weighted-average vesting period of **2.8 years**[92](index=92&type=chunk) - Total unrecognized compensation cost related to stock options was **$0.6 million**, expected to be recognized over a weighted-average vesting period of **2.7 years**[93](index=93&type=chunk) Stock-Based Compensation Expense (in thousands) | Category | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Cost of revenue | $60 | $39 | $115 | $56 | | Selling, general and administrative | $324 | $465 | $670 | $944 | | Research and development | $59 | $56 | $75 | $113 | | Total | $443 | $560 | $860 | $1,113 | [Note 9. Segment Reporting](index=22&type=section&id=Note%209.%20Segment%20Reporting) Confirms the company operates as a single segment focused on diagnostic testing products for rheumatic and autoimmune diseases - The Company operates as a single segment focused on diagnostic testing products for rheumatic, autoimmune, and autoimmune-related diseases, primarily the AVISE® CTD test[96](index=96&type=chunk) Segment Revenue and Net Loss (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $17,202 | $15,064 | $32,700 | $29,479 | | Gross margin | $10,395 | $9,056 | $19,518 | $17,654 | | Total segment operating expenses | $13,025 | $11,643 | $25,513 | $23,244 | | Segment net loss | $(4,439) | $(2,966) | $(8,191) | $(6,326) | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial condition, operational results, key business developments, and factors influencing performance for the reported periods [Overview](index=24&type=section&id=Overview) Provides a high-level introduction to Exagen Inc.'s business, strategic focus, and flagship product - Exagen Inc. is a medical technology company focused on innovative AVISE® brand testing products for differential diagnosis, prognosis, and monitoring of complex rheumatic, autoimmune, and autoimmune-related diseases[102](index=102&type=chunk) - Under new leadership since late 2022, the company is executing an operational turnaround, achieving revenue growth, gross margin expansion, and reduced operating expenses and cash burn[103](index=103&type=chunk)[104](index=104&type=chunk) - The flagship product, AVISE® CTD, launched in 2012, comprised **91%** of revenue for the six months ended June 30, 2025, and is supported by extensive peer-reviewed literature[103](index=103&type=chunk)[107](index=107&type=chunk) [Recent Developments](index=25&type=section&id=Recent%20Developments) Highlights significant recent corporate events, including public offerings and new debt facilities - The 2025 Public Offering, closed on May 9, 2025, generated approximately **$18.6 million** in net proceeds from the sale of **3,852,500 common shares** at **$5.25 per share**[110](index=110&type=chunk) - The Perceptive Term Loan Facility, entered on April 25, 2025, provides up to **$75.0 million**, with an initial **$25.0 million** tranche funded, maturing on April 25, 2030, and includes interest-only payments until maturity[111](index=111&type=chunk) - The Credit Agreement is secured by a first-priority lien on substantially all company assets and includes financial covenants, such as maintaining a minimum unrestricted cash balance of **$3.0 million** and achieving specified net revenue levels[113](index=113&type=chunk)[114](index=114&type=chunk) [Research and Development](index=26&type=section&id=Research%20and%20Development) Discusses the company's ongoing investment in developing and enhancing diagnostic testing products - The company continues to invest in R&D to enhance existing and develop new testing products, either independently or through collaborations[115](index=115&type=chunk) [Factors Affecting Our Performance](index=26&type=section&id=Factors%20Affecting%20Our%20Performance) Identifies key internal and external elements influencing the company's financial and operational outcomes - Key performance drivers include the commercial launch of AVISE® CTD enhancements, with new SLE and RA biomarker assays expected to improve clinical utility, ASP, gross margin, and demand[116](index=116&type=chunk)[119](index=119&type=chunk) - Upcoming biomarker launches include PAD4 (expected end of 2025 for RA sensitivity), Lupus Nephritis (LN) biomarkers (results Q3 2025, initially for Pharma collaborations), SLE Disease Activity, RA Disease Activity, and Kidney Damage Biomarkers (provisional patent filed Nov 2024, initially for Pharma collaborations)[117](index=117&type=chunk) - Reimbursement for testing products is critical, with challenges from commercial payors regarding coverage and rates, and ongoing efforts to secure favorable Local Coverage Determinations (LCDs) for AVISE® Lupus[119](index=119&type=chunk)[128](index=128&type=chunk)[130](index=130&type=chunk) - AVISE® CTD test volume increased by approximately **7%** for the three months ended June 30, 2025, compared to the same period in 2024, and the trailing-twelve-month ASP increased by approximately **7%**[119](index=119&type=chunk)[131](index=131&type=chunk) - The company expects some seasonal variations in financial results due to holidays, vacation patterns, and patient benefit changes[122](index=122&type=chunk) - The current inflationary environment has impacted costs for laboratory testing services, personnel, and other operating expenses[123](index=123&type=chunk)[124](index=124&type=chunk) [Financial Overview](index=29&type=section&id=Financial%20Overview) Summarizes the company's revenue recognition policies, cost of revenue components, and expense expectations - Revenue recognition follows ASC Topic 606, with estimates based on historical collection analysis by test and payor, requiring significant management judgment[125](index=125&type=chunk) - Cost of revenue includes materials, direct labor, equipment, infrastructure, shipping, blood specimen collection fees, royalties, depreciation, and allocated overhead, with variations influenced by payor mix[132](index=132&type=chunk) - Selling, general and administrative expenses are expected to increase moderately in absolute dollars in the near-term due to sales force expansion and infrastructure investment, but decrease as a percentage of revenue[134](index=134&type=chunk)[144](index=144&type=chunk) - Research and development expenses are expected to increase moderately in absolute dollars in the near-term for pipeline initiatives, but decrease year-over-year as a percentage of revenue[135](index=135&type=chunk)[146](index=146&type=chunk) - Interest expense is projected to increase by approximately **$1.7 million** annually, including **$0.9 million** in non-cash interest, due to the Perceptive Term Loan Facility[136](index=136&type=chunk) [Results of Operations](index=31&type=section&id=Results%20of%20Operations) Compares the company's financial performance for the three and six months ended June 30, 2025, against the prior-year periods Three Months Ended June 30, 2025 vs. 2024 (in thousands) | Metric | 2025 | 2024 | Change | | :-------------------------------- | :----- | :----- | :----- | | Revenue | $17,202 | $15,064 | $2,138 | | Cost of revenue | $6,807 | $6,008 | $799 | | Gross margin | $10,395 | $9,056 | $1,339 | | Selling, general and administrative expenses | $11,542 | $10,464 | $1,078 | | Research and development expenses | $1,483 | $1,179 | $304 | | Loss from operations | $(2,630) | $(2,587) | $(43) | | Net loss | $(4,439) | $(2,966) | $(1,473) | - Revenue increased by **14.2%** for the three months ended June 30, 2025, driven by ASP expansion from new biomarkers and a **7%** increase in AVISE® CTD test volume[141](index=141&type=chunk) - Gross margin percentage slightly increased to **60.4%** for the three months ended June 30, 2025, from **60.1%** in the prior year, due to ASP expansion and improved overhead absorption[142](index=142&type=chunk) Six Months Ended June 30, 2025 vs. 2024 (in thousands) | Metric | 2025 | 2024 | Change | | :-------------------------------- | :----- | :----- | :----- | | Revenue | $32,700 | $29,479 | $3,221 | | Cost of revenue | $13,182 | $11,825 | $1,357 | | Gross margin | $19,518 | $17,654 | $1,864 | | Selling, general and administrative expenses | $22,746 | $21,006 | $1,740 | | Research and development expenses | $2,767 | $2,238 | $529 | | Loss from operations | $(5,995) | $(5,590) | $(405) | | Net loss | $(8,191) | $(6,326) | $(1,865) | - Revenue increased by **10.9%** for the six months ended June 30, 2025, primarily due to ASP expansion from new biomarkers and a **5%** increase in AVISE® CTD test volume[152](index=152&type=chunk) - Gross margin percentage slightly decreased to **59.7%** for the six months ended June 30, 2025, from **59.9%** in the prior year, attributed to investments in lab operations for new biomarker launch and temporary headwinds from contract amendments[153](index=153&type=chunk) [Liquidity and Capital Resources](index=34&type=section&id=Liquidity%20and%20Capital%20Resources) Assesses the company's ability to meet its short-term and long-term financial obligations and fund operations - The company has incurred net losses since inception, with a net loss of **$8.2 million** for the six months ended June 30, 2025, and an accumulated deficit of **$302.5 million**[162](index=162&type=chunk) - As of June 30, 2025, cash and cash equivalents were **$30.0 million**, with an additional **$50.0 million** available under the Perceptive Term Loan Facility, subject to revenue levels and other conditions[162](index=162&type=chunk) - Primary capital sources include product sales, common stock sales (e.g., **$18.6 million** net proceeds from May 2025 public offering), and term loan facilities[163](index=163&type=chunk)[166](index=166&type=chunk) - The company expects near- and longer-term liquidity requirements for working capital, general corporate expenses, milestone payments, purchase obligations, and debt/lease payments[169](index=169&type=chunk)[170](index=170&type=chunk) - Management believes existing cash and anticipated revenue will be sufficient for at least the next 12 months, but future funding may be required through equity offerings, debt financings, or collaborations[170](index=170&type=chunk)[172](index=172&type=chunk) Cash Flows Summary (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------- | :----------------------------- | :----------------------------- | | Operating activities | $(13,556) | $(11,466) | | Investing activities | $(316) | $(222) | | Financing activities | $21,869 | $(326) | | Net change | $7,997 | $(12,014) | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=37&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) States that the company has no applicable quantitative and qualitative disclosures regarding market risk - The company has no applicable quantitative and qualitative disclosures about market risk[184](index=184&type=chunk) [Item 4. Controls and Procedures](index=38&type=section&id=Item%204.%20Controls%20and%20Procedures) Details the evaluation of the company's disclosure controls and procedures, confirming their effectiveness and noting no material changes in internal control - Management, including the principal executive and financial officers, concluded that disclosure controls and procedures were effective at a reasonable level of assurance as of June 30, 2025[187](index=187&type=chunk) - There have been no material changes in internal control over financial reporting during the three months ended June 30, 2025[188](index=188&type=chunk) - The company acknowledges the inherent limitations of any cost-effective control system, which can only provide reasonable, not absolute, assurance[186](index=186&type=chunk)[189](index=189&type=chunk) Part II. Other Information This section provides additional non-financial information, including legal proceedings, risk factors, and exhibit listings [Item 1. Legal Proceedings](index=39&type=section&id=Item%201.%20Legal%20Proceedings) Addresses potential legal claims and highlights the dismissal of a specific qui tam case related to a prior DOJ settlement - The company may be subject to legal proceedings in the ordinary course of business, which can impact operations regardless of outcome[191](index=191&type=chunk) - A previously disclosed qui tam case, related to a **$0.7 million** settlement with the Department of Justice in October 2023, was dismissed with prejudice by the presiding judge on July 15, 2025[192](index=192&type=chunk) [Item 1A. Risk Factors](index=39&type=section&id=Item%201A.%20Risk%20Factors) Confirms no material changes to the risk factors previously disclosed in the 2024 Annual Report and Q1 2025 Quarterly Report - No material changes to the risk factors previously disclosed in the 2024 Annual Report and the Q1 2025 10-Q[194](index=194&type=chunk) [Item 5. Other Information](index=40&type=section&id=Item%205.%20Other%20Information) Reports no adoption, modification, or termination of Rule 10b5-1 or non-Rule 10b5-1 trading arrangements by directors or officers - No directors or officers adopted, modified, or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the six months ended June 30, 2025[197](index=197&type=chunk) [Item 6. Exhibits](index=41&type=section&id=Item%206.%20Exhibits) Lists all exhibits filed with the Form 10-Q, including corporate documents, agreements, and certifications - The exhibits include corporate governance documents (Amended and Restated Certificate of Incorporation, Bylaws), various warrant forms, the Credit Agreement and Guaranty with Perceptive Credit Holdings IV, LP, and the Underwriting Agreement for the May 2025 public offering[199](index=199&type=chunk) - Certifications from the Principal Executive Officer and Principal Financial Officer (pursuant to Rule 13a-14(a)/15d-14(a) and U.S.C. Section 1350) are furnished with the report[199](index=199&type=chunk) [Signatures](index=43&type=section&id=Signatures) Contains the duly authorized signatures of Exagen Inc.'s President, CEO, and CFO, affirming the report filing - The report is signed by John Aballi, President and Chief Executive Officer, and Jeffrey G. Black, Chief Financial Officer, on July 29, 2025[205](index=205&type=chunk)

[Q2 2025 Financial Results and Business Update](index=1&type=section&id=Q2%202025%20Financial%20Results%20and%20Business%20Update) Exagen Inc. reported record Q2 2025 revenue and strengthened its balance sheet, alongside key leadership appointments, despite increased net loss [Financial Highlights](index=1&type=section&id=Financial%20Highlights) Exagen Inc. achieved record total revenue in Q2 2025 and reported significant growth in AVISE CTD test volumes and average selling price, despite increased net loss and adjusted EBITDA | Metric | Q2 2025 | Q2 2024 | Year-over-Year Growth | Q1 2025 | Quarter-over-Quarter Growth | | :--- | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | $17.2 million | $15.064 million | 14% | $15.497 million (estimated) | 11% | | **AVISE CTD Test Volume** | - | - | 7% | - | 14% | | **AVISE CTD Trailing Twelve Month Average Selling Price (ASP)** | $428 | $401 | $27 | - | - | | **Gross Margin** | 60.4% | 60.1% | 0.3% | - | - | | **Operating Expenses** | $13.025 million | $11.643 million | 11.87% | - | - | | **Operating Loss** | $(2.630) million | $(2.587) million | (1.66%) | - | - | | **Net Loss** | $(4.439) million | $(2.966) million | (49.66%) | - | - | | **Adjusted EBITDA** | $(1.721) million | $(1.598) million | (7.7%) | - | - | | **Cash and Cash Equivalents** | $30.033 million | $24.479 million | 22.69% | - | - | [Recent Corporate Updates](index=1&type=section&id=Recent%20Corporate%20Updates) Exagen strengthened its balance sheet through a successful equity offering and new credit financing, and appointed key scientific and board leadership members - The balance sheet was strengthened by completing a **$20.2 million** public offering of common stock and a new loan credit facility[4](index=4&type=chunk) - Cash, cash equivalents, and restricted cash totaled **$30.2 million** at the end of Q2 2025[4](index=4&type=chunk) - Dr. Michael Mahler was appointed Chief Scientific Officer, bringing over two decades of leadership experience in autoimmune diagnostic research[4](index=4&type=chunk) - Chas McKhann joined the Board of Directors, with 25 years of experience in the life sciences sector[5](index=5&type=chunk) [2025 Guidance](index=2&type=section&id=2025%20Guidance) Exagen provides full-year 2025 revenue guidance and anticipates achieving positive adjusted EBITDA in the fourth quarter [Full-Year 2025 Guidance](index=2&type=section&id=Full-Year%202025%20Guidance) The company anticipates full-year 2025 revenue between $65 million and $70 million, with positive adjusted EBITDA expected in the fourth quarter at the high end of the revenue range - Full-year 2025 revenue is projected to be between **$65 million and $70 million**[6](index=6&type=chunk) - Positive adjusted EBITDA is expected in the fourth quarter at the high end of the revenue range[6](index=6&type=chunk) [Conference Call](index=2&type=section&id=Conference%20Call) Exagen hosted a conference call to discuss Q2 2025 results, providing access and replay information for investors [Conference Call Details](index=2&type=section&id=Conference%20Call%20Details) Exagen held a conference call on July 29, 2025, to discuss Q2 2025 financial results and business updates, providing access details for the call, webcast, and replay information - The conference call was held on July 29, 2025, at **8:30 AM ET (5:30 AM PT)**[7](index=7&type=chunk) - Participants could access the call by dialing **(201) 389-0918 (US)** or **(877) 407-0890 (International)**, or via a live webcast link on Exagen's investor relations website[7](index=7&type=chunk) - A replay of the conference call is accessible until August 12, 2025, by dialing **(201) 612-7415 (US)** or **(877) 660-6853 (International)**, using passcode **13753132**[8](index=8&type=chunk) [Use of Non-GAAP Financial Measures (Unaudited)](index=2&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures%20%28UNAUDITED%29) This section defines Adjusted EBITDA as a non-GAAP metric for evaluating operational performance and provides a detailed reconciliation to GAAP net loss [Definition and Purpose of Adjusted EBITDA](index=2&type=section&id=Definition%20and%20Purpose%20of%20Adjusted%20EBITDA) Adjusted EBITDA is a non-GAAP financial measure used by Exagen to assess operational performance by excluding certain non-operating or non-recurring items, though it is not a GAAP standard and may differ from other companies' metrics - Adjusted EBITDA excludes interest income (expense), income tax expense (benefit), depreciation and amortization expense, stock-based compensation expense, loss on extinguishment of debt, fair value adjustment to warrant liability, income taxes, and other expenses or income that management believes are not representative of the company's operations from net loss[9](index=9&type=chunk) - Exagen uses Adjusted EBITDA internally, believing it provides useful supplemental information for evaluating the company's operating performance by excluding the impact of capital investments, financing, investing, and certain expenses that management believes are not representative of ongoing performance[10](index=10&type=chunk) - This non-GAAP financial measure should not be considered in isolation or as a substitute for net loss reported under GAAP, has no standardized meaning under GAAP, is unaudited, and may differ from similar measures used by other companies, limiting its comparability[11](index=11&type=chunk)[12](index=12&type=chunk) [Reconciliation of Non-GAAP Financial Measures](index=7&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section provides a detailed reconciliation of non-GAAP Adjusted EBITDA from GAAP net loss, showing adjustments for Q2 and the first half of 2025 and 2024 | (in thousands of dollars) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net Loss** | $(4,439) | $(2,966) | $(8,191) | $(6,326) | | Other (income) expense | $(85) | $(181) | $(243) | $(373) | | Interest expense | $1,124 | $560 | $1,669 | $1,109 | | Loss on extinguishment of debt | $295 | — | $295 | — | | Fair value adjustment to warrant liability | $438 | — | $438 | — | | Income tax expense | $37 | — | $37 | — | | Depreciation and amortization expense | $466 | $429 | $906 | $887 | | Stock-based compensation expense | $443 | $560 | $860 | $1,113 | | **Adjusted EBITDA (Non-GAAP)** | **$(1,721)** | **$(1,598)** | **$(4,229)** | **$(3,590)** | [About Exagen](index=3&type=section&id=About%20Exagen) Exagen Inc. is a leading autoimmune diagnostic provider focused on improving patient care through innovative testing solutions like AVISE® CTD [Company Overview](index=3&type=section&id=Company%20Overview) Exagen Inc. is a leading autoimmune diagnostic provider dedicated to improving care and clinical outcomes for patients with chronic autoimmune diseases through its innovative testing portfolio, including the flagship AVISE® CTD - Exagen Inc. (Nasdaq: XGN) is a leading autoimmune diagnostic provider committed to transforming care for patients suffering from chronic debilitating autoimmune diseases[14](index=14&type=chunk) - The company's mission is to provide clarity in autoimmune disease decision-making and improve clinical outcomes through its innovative testing product portfolio[14](index=14&type=chunk) - Its flagship product, AVISE® CTD, enables clinicians to diagnose complex autoimmune diseases such as lupus, rheumatoid arthritis, and Sjögren's syndrome earlier and more accurately[14](index=14&type=chunk) [Forward Looking Statements](index=3&type=section&id=Forward%20Looking%20Statements) This section serves as a disclaimer, highlighting that forward-looking statements are subject to risks and uncertainties, and the company is not obligated to update them [Disclaimer and Risk Factors](index=3&type=section&id=Disclaimer%20and%20Risk%20Factors) This section cautions investors that forward-looking statements in the press release are based on current beliefs and expectations, with actual results potentially differing due to inherent business risks and uncertainties, and the company assumes no obligation to update such statements - Statements in the press release that are not historical facts are forward-looking statements, based on Exagen's current beliefs and expectations[16](index=16&type=chunk) - Actual results may differ due to risks and uncertainties inherent in Exagen's business, including but not limited to delays in reimbursement and coverage decisions, impact of inflation, market acceptance, intellectual property protection, and regulatory developments[16](index=16&type=chunk)[17](index=17&type=chunk) - Investors should exercise caution and not place undue reliance on these forward-looking statements, and Exagen undertakes no obligation to update such statements to reflect events or circumstances occurring after their release date[17](index=17&type=chunk) [Unaudited Condensed Financial Statements](index=5&type=section&id=Unaudited%20Condensed%20Financial%20Statements) This section presents Exagen's unaudited condensed statements of operations and balance sheets, detailing financial performance and position for the reported periods [Unaudited Condensed Statements of Operations](index=5&type=section&id=Unaudited%20Condensed%20Statements%20of%20Operations) This statement details Exagen's revenue, costs, operating expenses, and net loss for Q2 and the first half of 2025 and 2024, reflecting the company's operational performance during the periods | (in thousands of dollars, except share and per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $17,202 | $15,064 | $32,700 | $29,479 | | Cost of revenue | $6,807 | $6,008 | $13,182 | $11,825 | | Gross margin | $10,395 | $9,056 | $19,518 | $17,654 | | Selling, general and administrative expenses | $11,542 | $10,464 | $22,746 | $21,006 | | Research and development expenses | $1,483 | $1,179 | $2,767 | $2,238 | | Total operating expenses | $13,025 | $11,643 | $25,513 | $23,244 | | Operating loss | $(2,630) | $(2,587) | $(5,995) | $(5,590) | | Interest expense | $(1,124) | $(560) | $(1,669) | $(1,109) | | Loss on extinguishment of debt | $(295) | — | $(295) | — | | Fair value adjustment to warrant liability | $(438) | — | $(438) | — | | Interest income | $85 | $181 | $243 | $373 | | Loss before income taxes | $(4,402) | $(2,966) | $(8,154) | $(6,326) | | Income tax expense | $(37) | — | $(37) | — | | **Net Loss** | **$(4,439)** | **$(2,966)** | **$(8,191)** | **$(6,326)** | | Net loss per share, basic and diluted | $(0.21) | $(0.16) | $(0.41) | $(0.35) | | Weighted-average shares used in computing net loss per share | 21,085,749 | 18,178,185 | 19,830,265 | 18,061,312 | [Unaudited Condensed Balance Sheets](index=6&type=section&id=Unaudited%20Condensed%20Balance%20Sheets) This statement provides a detailed overview of Exagen's assets, liabilities, and stockholders' equity as of June 30, 2025, and December 31, 2024, illustrating changes in the company's financial position | (in thousands of dollars, except share and per share data) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $30,033 | $22,036 | | Accounts receivable, net | $14,272 | $7,835 | | Prepaid expenses and other current assets | $6,681 | $6,584 | | **Total current assets** | **$50,986** | **$36,455** | | Property and equipment, net | $4,582 | $5,283 | | Operating lease right-of-use assets | $1,929 | $2,401 | | Other assets | $1,263 | $550 | | **Total assets** | **$58,760** | **$44,689** | | **Liabilities and Stockholders' Equity** | | | | Accounts payable | $2,510 | $4,137 | | Accrued and other current liabilities | $4,942 | $7,117 | | Deferred revenue | $1,016 | $733 | | Operating lease liabilities, current | $1,160 | $1,096 | | Borrowings, current | $667 | $423 | | **Total current liabilities** | **$10,295** | **$13,506** | | Borrowings, non-current, net of discount and debt issuance costs | $22,310 | $19,822 | | Operating lease liabilities, non-current | $1,067 | $1,664 | | Warrant liability | $3,963 | — | | Other non-current liabilities | $91 | $157 | | **Total liabilities** | **$37,726** | **$35,149** | | Common stock | $22 | $18 | | Additional paid-in capital | $323,534 | $303,853 | | Accumulated deficit | $(302,522) | $(294,331) | | **Total stockholders' equity** | **$21,034** | **$9,540** | | **Total liabilities and stockholders' equity** | **$58,760** | **$44,689** |

Core Insights - Exagen Inc. reported a record revenue of $17.2 million for Q2 2025, reflecting an 11% increase from Q1 2025 and a 14% increase from Q2 2024 [7] - The company expects full-year revenue for 2025 to be between $65 million and $70 million, with a potential for positive adjusted EBITDA in Q4 2025 [4] Financial Performance - Revenue for Q2 2025 was $17,202 thousand, compared to $15,064 thousand in Q2 2024, marking a year-over-year growth [2] - Gross margin for Q2 2025 was 60.4%, slightly up from 60.1% in Q2 2024 [2] - Operating expenses increased to $13,025 thousand in Q2 2025 from $11,643 thousand in Q2 2024 [2] - The net loss for Q2 2025 was $4,439 thousand, compared to a net loss of $2,966 thousand in Q2 2024 [2] Operational Highlights - The volume of AVISE CTD tests grew by 14% compared to Q1 2025 and by 7% compared to Q2 2024 [7] - The average selling price (ASP) for AVISE CTD tests increased to $428, up by $27 from Q2 2024 [7] - The company strengthened its balance sheet with a $20.2 million public offering and a new loan credit facility, ending Q2 2025 with cash and equivalents of $30.2 million [7] Corporate Developments - Dr. Michael Mahler was appointed as Chief Scientific Officer, bringing over 20 years of experience in autoimmune diagnostic research [7] - Chas McKhann joined the Board of Directors, contributing 25 years of experience in the life sciences sector [7]

Group 1 - Exagen Inc. (XGN) shares increased by 5.5% to close at $7.32, supported by higher trading volume compared to normal sessions, contrasting with a 1.7% loss over the past four weeks [1] - The rise in XGN shares is linked to positive market sentiment driven by bullish analyst coverage, particularly from Craig-Hallum, which initiated coverage with a Buy rating and a $12 price target, indicating over 70% upside potential [2] - Exagen's AVISE CTD test has demonstrated significantly improved diagnostic accuracy for autoimmune diseases, contributing to growing investor confidence and optimism regarding the company's test expansion and leadership enhancements [2] Group 2 - The company is projected to report a quarterly loss of $0.18 per share, reflecting a year-over-year decline of 12.5%, while revenues are expected to reach $15.4 million, a 2.3% increase from the previous year [3] - The consensus EPS estimate for Exagen has remained unchanged over the last 30 days, suggesting that stock price movements may not sustain without trends in earnings estimate revisions [4] - Exagen holds a Zacks Rank of 3 (Hold), indicating a neutral outlook within the Zacks Medical - Products industry [5]

Core Insights - Exagen Inc. has appointed Chas McKhann to its Board of Directors, effective July 17, 2025, enhancing its leadership team with his extensive experience in the life sciences industry [1][2]. Company Overview - Exagen Inc. is a leading provider of autoimmune diagnostics, focused on transforming care for patients with chronic autoimmune conditions. The company aims to improve clinical outcomes through its innovative testing portfolio, including its flagship product, AVISE® CTD, which aids in the diagnosis of complex autoimmune diseases [5]. Leadership Appointment - Chas McKhann brings over 25 years of experience in the life sciences sector, having held significant leadership roles in various medical technology companies. His previous positions include Board member, President, and CEO of Silk Road Medical and Apollo Endosurgery, both of which were acquired by Boston Scientific [2]. - The President and CEO of Exagen, John Aballi, expressed enthusiasm about McKhann's appointment, highlighting his leadership and commercial expertise as vital for driving growth and advancing patient care [3]. Strategic Vision - McKhann expressed his honor in joining Exagen's Board, emphasizing the company's commitment to innovation in autoimmune diagnostics and his eagerness to contribute to strategic growth and long-term value creation for all stakeholders [4].

Core Viewpoint - Exagen Inc. is set to release its financial results for Q2 2025 on July 29, 2025, with a conference call scheduled for the same day to discuss the results [1]. Company Overview - Exagen Inc. is a leading provider of autoimmune diagnostics, focused on improving care for patients with chronic autoimmune conditions [4]. - The company's flagship product, AVISE® CTD, aids clinicians in diagnosing complex autoimmune diseases such as lupus and rheumatoid arthritis with greater accuracy [4]. - Exagen specializes in testing for rheumatic diseases, offering a comprehensive suite of AVISE-branded tests for diagnosis, prognosis, and monitoring [4]. - The company emphasizes research, innovation, education, and patient-centered care in addressing autoimmune disease management challenges [4]. Conference Call Details - The conference call will be hosted by John Aballi, President and CEO, and Jeff Black, CFO, at 8:30 a.m. ET [1]. - Interested parties can access the call via phone or webcast through the Exagen investor relations website [2]. - A replay of the conference call will be available until August 12, 2025, with access details provided [3].

Core Insights - Exagen Inc. has appointed Dr. Michael Mahler as Chief Scientific Officer, enhancing its expertise in autoimmune testing [1][4] - Dr. Mahler has over 20 years of experience in immunology and autoimmune research, with a strong background in developing diagnostic solutions [3][5] - Exagen aims to improve the diagnosis and treatment of autoimmune diseases through innovative testing and strategic initiatives under Dr. Mahler's leadership [4][5] Company Overview - Exagen Inc. is a leading provider of autoimmune diagnostics, focused on transforming care for patients with chronic autoimmune conditions [5] - The company's flagship product, AVISE CTD, aids in the accurate diagnosis of complex autoimmune diseases such as lupus and rheumatoid arthritis [5] - Exagen's laboratory specializes in rheumatic disease testing, offering a comprehensive suite of AVISE-branded tests for diagnosis, prognosis, and monitoring [5] Dr. Mahler's Background - Dr. Mahler holds a Ph.D. from the University of Heidelberg and has collaborated with prominent figures in autoimmune research [2] - He has held significant roles in various diagnostic companies, most recently as Senior Vice President at Werfen, contributing to the discovery of novel autoantigens [3] - His scientific work includes over 300 peer-reviewed publications and numerous patents, advancing the field of autoimmune diagnostics [3]

Core Insights - Exagen Inc. has completed the sale of an additional 502,500 shares of common stock at a public offering price of $5.25 per share, resulting in gross proceeds of approximately $20.2 million [1][2] Company Overview - Exagen Inc. is a leading provider of autoimmune diagnostics, focused on transforming care for patients with chronic autoimmune conditions. The company aims to improve clinical outcomes through its innovative testing portfolio, including its flagship product AVISE® CTD, which aids in the diagnosis of complex autoimmune conditions [5] Offering Details - The public offering was conducted under a shelf registration statement on Form S-3, which was declared effective by the SEC on November 29, 2023. The offering included a final prospectus supplement that describes the terms of the offering [3] Underwriter Information - Canaccord Genuity acted as the sole bookrunner for the offering, facilitating the sale of all shares in the public offering [2]

Core Viewpoint - Exagen Inc. has announced a public offering of 3,350,000 shares of its common stock at a price of $5.25 per share, aiming to raise approximately $17.59 million before expenses [1]. Group 1: Offering Details - The offering consists of 3,350,000 shares, with gross proceeds expected to be $17,587,500 before deducting underwriting discounts and commissions [1]. - Exagen has granted underwriters a 30-day option to purchase an additional 502,500 shares under the same terms [1]. - The offering is expected to close on May 9, 2025, pending customary closing conditions [1]. Group 2: Underwriting and Registration - Canaccord Genuity is acting as the sole bookrunner for the offering [2]. - The public offering is made under a shelf registration statement on Form S-3, which was filed with the SEC on November 17, 2023, and declared effective on November 29, 2023 [3]. Group 3: Company Overview - Exagen Inc. is a leading provider of autoimmune diagnostics, focused on improving care for patients with chronic autoimmune conditions [5]. - The company's flagship product, AVISE® CTD, aids in the diagnosis of complex autoimmune diseases such as lupus and rheumatoid arthritis [5]. - Exagen emphasizes research, innovation, and patient-centered care in addressing autoimmune disease management challenges [5].

Core Insights - Exagen Inc. reported a quarterly loss of $0.20 per share, consistent with the Zacks Consensus Estimate, compared to a loss of $0.19 per share a year ago [1] - The company achieved revenues of $15.5 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 8.38% and up from $14.42 million year-over-year [2] - Exagen shares have increased approximately 46.8% since the beginning of the year, contrasting with a -3.3% decline in the S&P 500 [3] Financial Performance - The company has surpassed consensus EPS estimates three times over the last four quarters [1] - Exagen has also topped consensus revenue estimates three times in the last four quarters [2] - The current consensus EPS estimate for the upcoming quarter is -$0.16 on revenues of $15.5 million, and for the current fiscal year, it is -$0.57 on revenues of $64.4 million [7] Market Outlook - The sustainability of Exagen's stock price movement will largely depend on management's commentary during the earnings call [3] - The estimate revisions trend for Exagen is currently mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] - The Medical - Products industry, to which Exagen belongs, is currently ranked in the bottom 32% of over 250 Zacks industries, which may impact stock performance [8]