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Sep 30
Axogen Q3 2025 Earnings Report
Axogen reported strong third quarter 2025 financial results, exceeding revenue expectations and achieving significant growth across all markets.
Key Takeaways
Axogen, Inc. delivered a robust third quarter in 2025, with revenue reaching $60.1 million, marking a 23.5% increase year-over-year. The company achieved net income of $0.7 million and adjusted EBITDA of $9.2 million, demonstrating strong operational performance and profitability. Growth was broad-based across all key market segments, and the company raised its full-year revenue guidance.
Third quarter revenue increased by 23.5% year-over-year to $60.1 million, reflecting continued market maturation and commercial scaling.
The company achieved a net income of $0.7 million, or $0.01 per share, a significant improvement from a net loss in the prior year.
Adjusted EBITDA for the quarter was $9.2 million, up from $6.5 million in the third quarter of 2024, indicating enhanced operational efficiency.
Axogen raised its full-year revenue guidance to at least 19% growth, or $222.8 million, signaling confidence in continued strong performance.
Axogen
Axogen
Forward Guidance
Axogen is raising its full-year 2025 revenue guidance and reiterating its gross margin and net cash flow expectations, driven by strong market performance and anticipated BLA approval.
Positive Outlook
- Full-year revenue guidance raised to at least 19% growth, or $222.8 million.
- Gross margin for the year is expected to be in the range of 73% to 75%.
- Anticipated FDA approval of Avance® Nerve Graft BLA by December 5, 2025.
- Expected to be net cash flow positive for the full year.
- Continued double-digit growth across all market segments.
Challenges Ahead
- One-time costs related to anticipated Avance® Nerve Graft BLA approval are expected to negatively impact gross margin by approximately 1%, or $2 million.
- The PDUFA goal date for Avance® Nerve Graft BLA was extended to December 5, 2025, from September 5, 2025.
- Potential disruptions from leadership transitions, global supply chain issues, and hospital staffing challenges.
- Evolving macroeconomic environment, including financial market volatility and escalating geopolitical tensions.
- Potential impact of recent government actions and policies, such as the One Big Beautiful Bill Act and a U.S. government shutdown.