AxoGen (AXGN) Q4 2025 earnings summary

Executive summary

• Achieved Q4 2025 revenue of $59.9 million, up 21.3% year-over-year, and full-year revenue of $225.2 million, up 20.2% year-over-year, driven by double-digit growth across all target markets and expanding adoption of nerve repair solutions.

• FDA Biologics License Application (BLA) approval for Avance®, the first and only FDA-approved biologic for peripheral nerve repair, granting 12 years of U.S. market exclusivity and establishing a new standard of care.

• Completed an upsized public offering, raising $133.3 million, and fully retired term loan facility, enhancing financial flexibility.

• Strategic focus on growth, market development, commercial expansion, and innovation, with significant investments in sales force and infrastructure.

• Expanded commercial organization and exceeded training targets, supporting continued market penetration.

Financial highlights

• Q4 gross margin: 74.1% (down from 76.1% YoY); full-year gross margin: 74.3% (down from 75.8%), impacted by one-time BLA-related costs.

• Adjusted EBITDA for 2025 was $27.9 million (12.4% margin), up from $19.8 million (10.6% margin) in 2024.

• Adjusted net income for the year was $14.4 million ($0.29/share), up from $5.9 million in 2024.

• Net loss for the year: $15.7 million ($0.34/share), compared to $10.0 million in 2024.

• Cash and investments increased by $6 million to $45.5 million at year-end 2025.

Outlook and guidance

• 2026 revenue expected to grow at least 18% to $265.7 million.

• Gross margin guidance for 2026 is 74%-76%, with improvement expected in 2027 as cost efficiencies are realized.

• Free cash flow positive expected for full year 2026, with higher cash burn in Q1.

• Continued disciplined investment in innovation and commercial infrastructure.