AxoGen (AXGN) investor relations material

Executive summary

• Q2 2025 revenue reached $56.7M, up 18.3% year-over-year, with broad-based double-digit growth across all nerve repair target markets and segments, driven by strong adoption and commercial execution.

• Net income was $0.6M, reversing a net loss of $1.9M in Q2 2024; adjusted net income rose to $5.7M from $2.0M.

• Gross margin improved to 74.2% from 73.8% year-over-year, with gross profit at $42M.

• Expanded insurance coverage for nerve repair products, adding 17M new covered lives year-to-date, now exceeding 55% of commercial payers.

• FDA review of Avance Nerve Graft BLA is progressing, with anticipated approval in September 2025.

Financial highlights

• Q2 2025 revenue: $56.7M (+18.3% YoY); gross profit: $42.0M (+18.9% YoY); gross margin: 74.2%.

• Adjusted EBITDA reached $9.3M, up from $5.6M year-over-year; margin improved to 16.3%.

• Operating expenses rose to $40.3M, but as a percentage of revenue decreased by 3.5% year-over-year.

• Cash, cash equivalents, and investments increased to $35.9M at June 30, 2025, up $7.8M during Q2.

• Net cash used in operating activities for the first half of 2025 was $5.4M, a 32.7% improvement year-over-year.

Outlook and guidance

• Full-year 2025 revenue growth guidance raised to at least 17% ($219M+); gross margin expected between 73% and 75%, including a 1% impact from BLA approval costs.

• Expectation to remain net cash flow positive and self-fund the strategic plan with growing cash from operations.

• Cautious approach to second-half guidance due to potential logistics changes and macroeconomic risks.

• Management expects existing cash, investments, and product sales to fund operations for at least the next 12 months.

• Focus remains on expanding presence in high-potential accounts and driving deeper adoption of nerve repair solutions.