Axogen, Inc. Reports Third Quarter 2025 Financial Results

Core Insights - Axogen, Inc. raised its full-year revenue guidance to at least 19% growth, equating to $222.8 million, reflecting strong market performance and operational scaling [1][8]. Financial Performance - Third quarter revenue reached $60.1 million, marking a 23.5% increase year-over-year and a 6.0% increase from the previous quarter [3][6]. - Gross margin improved to 76.6%, up from 74.9% in Q3 2024 and 74.2% in Q2 2025 [6]. - Net income for the quarter was $0.7 million, or $0.01 per share, compared to a net loss of $1.9 million, or $0.04 per share, in Q3 2024 [6][21]. - Adjusted net income was $6.1 million, or $0.12 per share, compared to $3.1 million, or $0.07 per share, in Q3 2024 [6][23]. - Adjusted EBITDA for the quarter was $9.2 million, up from $6.5 million in Q3 2024 [6][23]. Market Developments - The peripheral nerve repair market is maturing, with double-digit growth across all segments, including Extremities, Oral Maxillofacial & Head and Neck, and Breast [3][7]. - New position statements from the American Association of Hand Surgery (AAHS) and the American Society for Reconstructive Microsurgery (ASRM) recognize nerve allografts as a standard medical practice, validating the company's market development strategy [3][7]. - The total number of covered lives for nerve repair has increased to approximately 18.1 million, with coverage among commercial payers exceeding 64% [7]. Regulatory Updates - The FDA accepted the filing of the Biologics License Application (BLA) for Avance Nerve Graft, with approval anticipated by December 5, 2025 [7][8]. Future Outlook - The company expects gross margin for the year to be in the range of 73% to 75%, accounting for one-time costs related to the anticipated BLA approval [8]. - The company reiterates its expectation to be net cash flow positive for the full year [8].