[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]

Financial Data and Key Metrics Changes - The company achieved record revenue of $15,500,000 for Q1 2025, representing an approximately 8% increase compared to Q1 2024 [23] - The average selling price (ASP) for advised CTD tests increased to $419 per test, driven by the addition of new biomarkers [24] - Gross margin for Q1 was 58.9%, slightly down from 59.6% in 2024, with expectations for improvement throughout 2025 [26][27] - The net loss for Q1 was $3,800,000 compared to $3,400,000 in the same period last year, with an adjusted EBITDA loss of $2,500,000 versus $2,000,000 in Q1 2024 [29] Business Line Data and Key Metrics Changes - The company reported a 6% increase in testing volume over Q4 performance, attributed to the successful launch of new biomarkers [11] - The ASP is expected to receive an incremental boost of approximately $90 by the end of the year from the new markers [10] Market Data and Key Metrics Changes - The company has secured positive medical policy with TRICARE, which will enhance reimbursement for active duty service members and their families [9] - The company is focusing on expanding its presence in the rheumatology market, currently servicing about one-third of the community [40] Company Strategy and Development Direction - The company aims to achieve positive adjusted EBITDA by the end of 2025, with a focus on expanding ASP and volume [11][34] - Future innovations include the launch of seronegative markers expected by the end of the year, which are anticipated to improve sensitivity for identifying rheumatoid arthritis patients [16][17] - The company is exploring strategic transactions related to autoimmune disease diagnostics, with a focus on novel biomarker development [70] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about meeting profitability goals, citing strong early traction from new biomarkers and improved sales team stability [22][34] - The company is well-positioned from a balance sheet perspective, with nearly $80,000,000 in combined cash, accounts receivable, and available future credit capacity as of April 30 [34] Other Important Information - The company has successfully won its first ALJ hearing, which is expected to set a precedent for future appeals [8] - The new credit facility with Perceptive Advisors extends the maturity of prior term debt, providing flexibility for growth initiatives [31][32] Q&A Session Summary Question: Expectations for volume growth throughout the year - Management is pleased with Q1 volume growth and expects it to continue, focusing on existing physician bases and expanding into the rheumatology market [40][42] Question: Update on the launch of the second wave of RIM markers - The launch is expected around year-end, with preparations underway for regulatory approvals [58][60] Question: Market awareness of new enhanced tests - Awareness varies regionally, with ongoing educational efforts to inform physicians about new markers [61][64] Question: Types of strategic transactions considered - The company is likely to pursue opportunities related to existing business in the autoimmune space, particularly in biomarker development [70] Question: Progress in kidney disease diagnostics - The company is committed to advancing early markers for kidney disease, with promising science and significant patient need [76][79] Question: Impact of ALJ hearing wins - Management has several hearings scheduled and expects to learn from each to improve future appeals [85]