Exagen(XGN) - 2025 Q2 - Quarterly Results

Q2 2025 Financial Results and Business Update Exagen Inc. reported record Q2 2025 revenue and strengthened its balance sheet, alongside key leadership appointments, despite increased net loss Financial Highlights 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 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] - Cash, cash equivalents, and restricted cash totaled $30.2 million at the end of Q2 2025[4] - Dr. Michael Mahler was appointed Chief Scientific Officer, bringing over two decades of leadership experience in autoimmune diagnostic research[4] - Chas McKhann joined the Board of Directors, with 25 years of experience in the life sciences sector[5] 2025 Guidance Exagen provides full-year 2025 revenue guidance and anticipates achieving positive adjusted EBITDA in the fourth quarter Full-Year 2025 Guidance 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] - Positive adjusted EBITDA is expected in the fourth quarter at the high end of the revenue range[6] Conference Call Exagen hosted a conference call to discuss Q2 2025 results, providing access and replay information for investors Conference Call Details 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] - 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] - 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] Use of Non-GAAP Financial Measures (Unaudited) 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 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] - 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] - 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][12] Reconciliation of Non-GAAP Financial Measures 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 Exagen Inc. is a leading autoimmune diagnostic provider focused on improving patient care through innovative testing solutions like AVISE® CTD Company Overview 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] - The company's mission is to provide clarity in autoimmune disease decision-making and improve clinical outcomes through its innovative testing product portfolio[14] - 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] Forward Looking Statements 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 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] - 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][17] - 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] Unaudited Condensed Financial Statements 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 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 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 |