Exagen (XGN) investor relations material

Executive summary

• Q3 revenue rose 6.8% YoY to a record $18.4M; 9M revenue was $55.7M, up 11.5%.

• 9M adjusted EBITDA loss improved more than 30% to $4.2M from $6.1M; FY 2026 revenue guidance was reiterated at $72M–$75M.

Financial highlights

• Q3 gross margin was 58.8%, up 40 bps YoY; 9M gross margin was 59.7%, up 40 bps.

• Q3 operating expenses were $15.2M, up from $13.2M; included a ~$600K in-process R&D charge and higher stock-based compensation.

• Q3 operating loss widened to $4.4M from $3.1M; net loss narrowed to $6.3M from $7.1M, partly reflecting a smaller warrant-liability fair-value loss.

• Q3 adjusted EBITDA loss was $1.932M versus $1.895M; 9M adjusted EBITDA loss was $4.206M versus $6.124M.

Outlook and guidance

• FY 2026 revenue guidance of $72M–$75M was reiterated, based on high-single-digit volume growth and mid-single-digit ASP growth versus the Q4 2025 exit rate.

• Long-term growth expectations are high-single-digit volume and low-to-mid-single-digit ASP growth; adjusted EBITDA break-even is expected at an $80M annual revenue run rate and ~60% gross margin.

• Myositis launch remains on track for early 2027; validation is complete, with a New York State submission package expected by end-January.

• Lupus Nephritis partnership adoption is targeted for H1 2027; near-term operating losses are expected to continue.