Axogen, Inc. Reports Fourth Quarter and Full-Year 2025 Financial Results

Core Insights - Axogen, Inc. reported significant financial and operational achievements in 2025, including FDA approval for Avance, which is the only implantable biologic for peripheral nerve discontinuities, positioning the company for future growth [3][6]. Fourth Quarter Financial Results - Fourth quarter 2025 revenue reached $59.9 million, marking a 21.3% increase from the same quarter in 2024, but a slight decrease of 0.3% compared to the third quarter of 2025 [5]. - The gross margin for the fourth quarter was 74.1%, down from 76.1% in Q4 2024 and 76.6% in Q3 2025, influenced by one-time costs of approximately $1.9 million related to the FDA approval [5]. - The net loss for Q4 2025 was $13.2 million, or $0.28 per share, compared to a net income of $0.5 million, or $0.01 per share, in Q4 2024 [5]. - Adjusted net income for Q4 2025 remained at $3.5 million, or $0.07 per share, consistent with Q4 2024 [5]. - Adjusted EBITDA for Q4 2025 was $6.5 million, slightly down from $6.7 million in Q4 2024 [5]. - Cash and cash equivalents increased by $5.7 million during Q4 2025 [5]. Full-Year Financial Results - Full-year 2025 revenue totaled $225.2 million, a 20.2% increase from $187.3 million in 2024 [6]. - The gross margin for the full year was 74.3%, down from 75.8% in 2024, also reflecting one-time costs related to FDA approval [6]. - The net loss for 2025 was $15.7 million, or $0.34 per share, compared to a net loss of $10.0 million, or $0.23 per share, in 2024 [6]. - Adjusted net income for 2025 was $14.4 million, or $0.29 per share, up from $5.9 million, or $0.13 per share, in 2024 [6]. - Adjusted EBITDA for the full year was $27.9 million, compared to $19.8 million in 2024 [6]. - As of December 31, 2025, cash and cash equivalents, restricted cash, and investments totaled $45.5 million, an increase of $6.0 million from $39.5 million at the end of 2024 [6]. Business Highlights - The company experienced broad-based revenue growth in 2025, with double-digit growth across all markets, including Extremities, Oral Maxillofacial & Head and Neck, and Breast [13]. - Expanded coverage and reimbursement for peripheral nerve repair increased the number of newly covered lives to approximately 19.8 million, raising commercial payer coverage to over 65% [13]. - The FDA approved the BLA for Avance on December 3, 2025, and CMS created a new Level 3 Nerve Procedure Code effective January 1, 2026, increasing Avance facility reimbursement by 40% year-over-year [13]. - Axogen closed an upsized public offering on January 23, 2026, selling 4.6 million shares and yielding net proceeds of $133.3 million, with a portion used to repay debt [13]. 2026 Financial Guidance - The company expects at least 18% revenue growth in 2026, projecting full-year revenue of $265.7 million, with gross margin anticipated to be between 74% and 76% [8].