AxoGen(US:AXGN)2025-10-29 20:07Financial Performance - Revenues for the quarter ended September 30, 2025, were $60,082, an increase of $11,438 or 23.5% compared to $48,644 for the same quarter in 2024[106] - Gross profit for the quarter ended September 30, 2025, was $45,993, reflecting an increase of $9,555 or 26.2% from $36,438 in the prior year, with a gross margin of 76.6%[110] - Net income for the quarter ended September 30, 2025, was $708, compared to a net loss of $1,858 in the same quarter of 2024[107] - Revenues for the nine months ended September 30, 2025 increased by $27,371, or 19.8%, to $165,304 compared to $137,933 for the same period in 2024[115] - Gross profit for the nine months ended September 30, 2025 increased by $18,542, or 17.8%, to $122,944, with a gross margin of 74.4% compared to 75.7% in 2024[117] - Net loss for the nine months ended September 30, 2025 was $2,547, a significant improvement from a net loss of $10,414 in 2024[120] Costs and Expenses - Total costs and expenses for the quarter ended September 30, 2025, were $44,081, a 19.9% increase from $36,754 in the same quarter of 2024[111] - Sales and marketing expenses increased by 35.7% to $25,680 for the quarter ended September 30, 2025, compared to $18,924 in 2024[111] - Total costs and expenses for the nine months ended September 30, 2025 were $121,021, an increase of 10.3% from $109,706 in 2024, driven primarily by higher sales and marketing costs[118] - Research and development costs for the quarter ended September 30, 2025, were $7,565, representing an 8.1% increase from $6,996 in the same quarter of 2024[111] - Research and development costs decreased by 2.6% to $20,509 for the nine months ended September 30, 2025, primarily due to lower product development expenses[119] Cash Flow and Liquidity - Cash and cash equivalents and investments increased by $2,309 to $35,791 as of September 30, 2025, primarily due to proceeds from stock options and the release of restricted cash[123] - Net cash used in operating activities decreased by $1,974, or 47.0%, to $2,226 for the nine months ended September 30, 2025, reflecting a decrease in net loss[126] - Net cash provided by financing activities increased by $4,613 to $5,933 for the nine months ended September 30, 2025, primarily due to increased proceeds from the exercise of stock options[128] - The current ratio improved to 4.1x as of September 30, 2025, compared to 3.2x at December 31, 2024, indicating stronger liquidity[124] Business Developments - The company expanded coverage for nerve repair, increasing the total number of new lives covered in 2025 to approximately 18.1 million, with coverage among commercial payers exceeding 64%[106] - The FDA accepted the filing of the Biologics License Application for Avance Nerve Graft, with a new PDUFA goal date of December 5, 2025, following a major amendment submission[106] - The company discontinued its case stock sales program for Avance Nerve Graft, positively impacting revenue by approximately $1.6 million, or about 3%[109] - The company discontinued its case stock sales program for Avance Nerve Graft, positively impacting revenue by approximately $1.6 million, or about 1%[116] Debt and Interest - As of September 30, 2025, the outstanding principal amount of loans under the Credit Facility was $50,000[137] - Interest on loans under the Credit Facility is calculated at 7.5% plus the greater of Adjusted SOFR or 2.0%, with a minimum interest rate of 9.5%[137] - At September 30, 2025, the Adjusted SOFR was 11.89%[137] - A 100 basis points increase in interest rates would increase annual interest expense by approximately $500[137] - Changes in the Adjusted SOFR rate may affect interest expense associated with the Credit Facility[137]