Exagen (XGN) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 2025 revenue of $15.5 million, up nearly 8% year-over-year, driven by higher ASP from new biomarker launches and increased AVISE CTD test volume.

• Trailing 12-month ASP reached $419 per test, up $42 year-over-year, with new markers contributing to the increase.

• Net loss for Q1 was $3.8 million, compared to $3.4 million in Q1 2024, reflecting higher operating expenses and R&D investment.

• Cash and cash equivalents at quarter-end were $11.2 million, with a subsequent liquidity boost from a $25 million term loan in April, raising combined cash and AR to ~$28 million.

• AVISE CTD remains the core product, accounting for 92% of revenue.

Financial highlights

• Gross margin for Q1 was 58.9%, slightly down from 59.6% in Q1 2024, with expectations for improvement as new pricing is fully implemented.

• Operating expenses totaled $12.5 million, up about 7.5% year-over-year, mainly due to R&D and SG&A investments.

• Adjusted EBITDA loss was $2.5 million, compared to $2.0 million in Q1 2024.

• Cash used in operations was $10.7 million for Q1 2025.

• Accounts receivable increased to $14.7 million from $7.8 million at year-end 2024.

Outlook and guidance

• Full-year 2025 revenue expected to be at least $65 million, representing over 17% growth.

• On track to achieve positive Adjusted EBITDA by Q4 2025.

• Anticipates continued volume and ASP growth, with further expansion into the rheumatoid arthritis market and new marker launches by year-end.

• Management expects moderate increases in operating expenses and cost of revenue in the near term as new biomarkers are integrated.

• Cash position strengthened post-quarter with $25 million from the Perceptive Term Loan Facility; management believes current resources are sufficient for at least 12 months.