AxoGen (AXGN) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $61.5 million, up 26.6% year-over-year, driven by strong demand, higher unit volume, and pricing changes across all target markets.

• Gross margin improved to 75.2% from 71.9% in the prior year, with gross profit at $46.2 million.

• Adjusted EBITDA rose to $5.7 million (9.3% margin), up from $2.9 million (5.9%) year-over-year.

• Net loss was $19.6 million ($0.38/share), primarily due to a $16.8 million loss on debt extinguishment; adjusted net income was $4.1 million ($0.07/share).

• Raised $133.3 million in a public offering, using $69.7 million to retire term loan, resulting in a debt-free balance sheet and increased cash to $103.6 million.

Financial highlights

• Operating expenses rose to $49 million, mainly due to higher compensation and sales/marketing investments.

• Sales and marketing expenses were $28.6 million, R&D $7.5 million, and G&A $12.9 million.

• Free cash flow improved to negative $1.4 million from negative $13.8 million year-over-year.

• Adjusted diluted EPS was $0.07, compared to $(0.02) in Q1 2025.

• Cash, equivalents, and investments totaled $103.6 million at quarter-end.

Outlook and guidance

• Full-year 2026 revenue guidance raised to at least $270 million (20%+ growth), with gross margin expected in the 74%-76% range.

• Company expects to be free cash flow positive for the full year.

• Guidance does not include material benefit from future payer coverage wins beyond those already secured.

• Existing cash and investments expected to fund operations for at least the next twelve months.

• Monitoring macroeconomic risks, including market volatility and trade disputes.