AxoGen (AXGN) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 26.2% YoY to $75.8M; adjusted EBITDA was $13.4M, with margin up 2.3 percentage points to 17.7%.

• FY 2026 revenue guidance is at least $290M, or 29% growth, including BioCircuit; organic growth is expected to be at least 26%.

• Strategic progress included expanded Avance payer coverage, clinical evidence, commercial execution, BioCircuit integration, and plans to begin prostate market development in 2027.

Financial highlights

• Q3 revenue was $75.8M versus $60.1M; gross profit was $56.7M, and GAAP net income was $2.3M versus $0.7M.

• Q3 adjusted net income was $13.1M, or $0.21 per diluted share, versus $6.1M, or $0.12; adjusted EBITDA was $13.4M versus $9.2M.

• 9M revenue was $207.0M versus $165.3M; GAAP net loss was $18.8M versus $2.5M, including a $16.8M debt-extinguishment loss.

• 9M adjusted net income was $24.5M versus $11.0M; adjusted EBITDA was $27.5M versus $21.4M.

• Q3 operating expenses were $55.8M versus $44.1M YoY; increases reflected compensation, stock-based compensation, and BioCircuit-related costs.

Outlook and guidance

• FY 2026 revenue is expected to be at least $290M, up at least 29%, including at least $7M from BioCircuit; organic revenue is expected to be at least $283M, up at least 26%.

• FY 2026 GAAP gross margin guidance remains at least 73%, with positive free cash flow expected.

• Q4 gross margin is expected to decline sequentially and be slightly below Q2; FY 2027 gross margin is informally expected to be more in line with FY 2026.

• Guidance excludes material benefits from new payer decisions and prostate development; BioCircuit revenue guidance includes integration or disruption risk.

• Formal 2027 guidance is planned for Q1 2027; prostate is excluded from current and long-range guidance.