Business
Axogen, Inc. Reports Second Quarter 2026 Financial Results
Axogen, Inc. Reports Second Quarter 2026 Financial
About this update from Axogen, Inc.
Raises Full Year Revenue Guidance to at Least 24% Growth or $279 million ALACHUA, Fla. and TAMPA, Fla., July 29, 2026 (GLOBE NEWSWIRE) -- Axogen, Inc. (NASDAQ: AXGN), a global leader in developing and marketing innovative surgical solutions for the restoration of peripheral nerve function, today reported financial results and business highlights for the second quarter ended June 30, 2026. Second Quarter Financial Results Revenue was $69.7 million, an increase of 23.1% compared with $56.7 million in the second quarter of 2025. Gross margin was 72.7% compared to 74.2% in the second quarter of 2025. Gross margin performance was driven by changes in product mix caused primarily by accelerating year over year Breast growth greater than 50%. Net loss was $1.5 million, or $0.03 per share, compared to a Net income of $0.6 million, or $0.01 per share for the second quarter of 2025. Adjusted net income was $7.3 million, or $0.12 per share, as compared to $5.7 million, or $0.12 per share for the second quarter of 2025. Adjusted EBITDA was $8.4 million, compared to $9.3 million for the second quarter of 2025. Cash and cash equivalents, restricted cash, and investments as of June 30, 2026 was $113.4 million, as compared to $103.6 million as of March 31, 2026, an increase of $9.8 million. “We are pleased with our second-quarter revenue performance and the progress we’re making across each of Axogen’s strategic plan priorities,” said Michael Dale, President and CEO of Axogen, Inc. “Our strong growth across all our target markets, continues to reinforce the relevance of our market development strategies and the strength of our commercial execution. We remain well positioned to achieve our revenue guidance and continue advancing our strategic objectives for 2026.” Summary of Business Highlights Year-to-date revenue growth through the second quarter of 2026 was broad-based across Extremities, Oral Maxillofacial & Head and Neck, and Breast, driven by 20% plus year-over-year account productivity, expanding sales force coverage, and improving commercial insurance coverage and payment. Publication of REPOSE, a prospective, randomized clinical study evaluating Axoguard Nerve Cap for symptomatic neuroma management, providing Level 1 evidence supporting nerve end protection and demonstrating favorable outcomes in pain burden, medication utilization, and recovery-related measures. Initiated Nerve-RESTORE, a prospective, randomized, assessor-blinded study comparing Avance Nerve Graft to sural nerve autograft in mixed and motor nerve reconstruction, designed to generate Level 1 evidence supporting broader adoption of nerve repair globally. Acquired a minority ownership stake in Trace Biosciences, including a limited right of first refusal, to support development of its nerve-specific imaging technology. 2026 Financial Guidance For 2026, we expect full-year revenue growth to be at least 24%, or revenue of at least $279 million, gross margin to be at least 73%, and positive free cash flow for the full-year. Conference Call The Company will host a conference call and webcast for the investment community today at 8:00 a.m. ET. Investors interested in participating in the conference call by phone may do so by dialing toll free at (877) 407-0993 or use the direct dial-in number at (201) 689-8795. Those interested in listening to the conference call live via the internet may do so by visiting the Investors page of the Company’s website at www.axogeninc.com and clicking on the webcast link. Following the conference call, a replay will be available in the Investors section of the Company’s website at www.axogeninc.com under Investors. About Axogen Axogen (AXGN) is the leading company focused specifically on the science, development and commercialization of technologies for peripheral nerve regeneration and repair. Axogen employees are passionate about providing the opportunity to restore nerve function and quality of life for patients with peripheral nerve injuries by providing innovative, clinically proven and economically effective repair solutions for surgeons and healthcare providers. Peripheral nerves provide the pathways for both motor and sensory signals throughout the body. Every day people suffer traumatic injuries or undergo surgical procedures that impact the function of their peripheral nerves. Physical damage to a peripheral nerve or the inability to properly reconnect peripheral nerves can result in the loss of muscle or organ function, the loss of sensory feeling, or the initiation of pain. Axogen’s product portfolio includes Avance ® (acellular nerve allograft-arwx), Avance ® Nerve Graft, Axoguard Nerve Connector ® , Axoguard Nerve Protector ® , Axoguard HA+ Nerve Protector™, Axoguard Nerve Cap ® , and Avive+ Soft Tissue Matrix™. For more information, visit www.axogeninc.com. Cautionary Statements Concerning Forward-Looking Statements This press release and accompanying earnings call contain “forward-looking” statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements under the heading “2026 Financial Guidance” and statements regarding our business model optimization plans; market development strategies and objectives; our strategic investments, including the expected benefits and opportunities of such investments; our expectations around the potential positive impact on our business of expanded coverage and reimbursement for peripheral nerve injuries using synthetic conduits or allografts; our ability to sustain growth, operate profitably, generate positive cash flows, and fund our market development initiatives. These statements are based on management’s current expectations and estimates of trends and economic factors in the markets in which we are active. Words such as “expects,” “anticipates,” “objectives,” “targets,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “projects,” “forecasts,” “continue,” “may,” “should,” “will,” and variations of such words and similar expressions are intended to identify such forward-looking statements. Actual results or events could differ materially from those described in any forward-looking statements as a result of factors, including, without limitation, disruptions from global supply chain issues, inflation, hospital staffing challenges, product development timelines, regulatory processes, financial performance, surgeon adoption rates, market awareness of our products, the estimated total addressable market, as well as those risk factors described under Part I, Item 1A, “Risk Factors,” in our most recent Annual Report on Form 10-K and other risks and uncertainties that may be detailed from time to time in reports filed by the Company with the SEC. Forward-looking statements are not a guarantee of future performance, and actual results may differ materially from those projected. Forward-looking statements speak only as of the date they are made and, except as required by applicable law, we assume no responsibility to publicly update or revise any forward-looking statements. About Non-GAAP Financial Measures To supplement our condensed consolidated financial statements, we use the non-GAAP financial measures of EBITDA, which measures earnings before interest, income taxes, depreciation and amortization, EBITDA margin, and Adjusted EBITDA, which further excludes non-cash stock-based compensation expense and the loss on extinguishment of debt, and Adjusted EBITDA margin. We also use the non-GAAP financial measures of Adjusted Net Income and Adjusted Net Income Per Common Share - diluted which excludes non-cash stock-based compensation expense and the loss on extinguishment of debt from Net (Loss) Income and Net (Loss) Income Per Common Share - diluted. Additionally, we use the non-GAAP financial measure of Free Cash Flow which consists of net cash provided by operating activities, less expenditures for property and equipment, and intangible assets. These non-GAAP measures are not based on any comprehensive set of accounting rules or principles and should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures should be read in conjunction with our financial statements prepared in accordance with GAAP. The reconciliations of the non-GAAP measures to the most directly comparable financial measures calculated and presented in accordance with GAAP should be carefully evaluated. We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. We believe that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, and analyzing future periods. We believe these non-GAAP financial measures are useful to investors because (i) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (ii) they are used by our institutional investors and the analyst community to help them analyze the performance of our business. Contact: Axogen, Inc. [email protected] Axogen, Inc. Condensed Consolidated Balance Sheets (unaudited) (in thousands, except share and per share amounts) June 30, 2026 December 31, 2025 Assets Current assets: Cash and cash equivalents $ 94,572 $ 35,548 Restricted cash 2,000 4,000 Investments 16,840 5,980 Accounts receivable, net of allowance for doubtful accounts of $734 and $948, respectively 34,126 26,169 Inventory 47,313 42,373 Prepaid expenses and other assets 5,525 6,352 Total current assets 200,376 120,422 Property and equipment, net 82,342 81,783 Operating lease right-of-use assets 13,845 12,732 Intangible assets, net 7,571 6,750 Other assets 729 — Total assets $ 304,863 $ 221,687 Liabilities and shareholders’ equity Current liabilities: Accounts payable and accrued expenses $ 28,399 $ 21,184 Current maturities of long-term lease obligations 1,975 2,372 Total current liabilities 30,374 23,556 Long-term debt, net of debt discount and financing fees — 48,387 Long-term lease obligations 18,091 16,870 Debt derivative liabilities — 3,886 Other long-term liabilities 141 141 Total liabilities 48,606 92,840 Shareholders’ equity: Common stock, $0.01 par value per share; 100,000,000 shares authorized; 53,656,293 and 47,199,797 shares issued and outstanding, respectively 537 472 Additional paid-in capital 583,783 435,338 Accumulated deficit (328,063 ) (306,963 ) Total shareholders’ equity 256,257 128,847 Total liabilities and shareholders’ equity $ 304,863 $ 221,687 Axogen, Inc. Condensed Consolidated Statements of Operations (unaudited) (in thousands, except share and per share amounts) Three Months Ended Six Months Ended June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 Revenues $ 69,731 $ 56,662 $ 131,188 $ 105,222 Cost of goods sold 19,057 14,644 34,325 28,271 Gross profit 50,674 42,018 96,863 76,951 Costs and expenses: Sales and marketing 30,827 23,804 59,460 44,849 Research and development 8,589 6,853 16,106 12,944 General and administrative 13,414 9,689 26,285 19,147 Total costs and expenses 52,830 40,346 101,851 76,940 (Loss) income from operations (2,156 ) 1,672 (4,988 ) 11 Other income (expense): Investment income 786 225 1,554 497 Interest expense (1 ) (1,977 ) (695 ) (4,227 ) Loss on extinguishment of debt — — (16,849 ) — Change in fair value of debt derivative liabilities — 480 — 322 Other (expense) income, net (145 ) 179 (122 ) 142 Total other income (expense), net 640 (1,093 ) (16,112 ) (3,266 ) Net (loss) income $ (1,516 ) $ 579 $ (21,100 ) $ (3,255 ) Weighted average common shares outstanding — basic 53,339,258 46,063,092 52,562,976 45,605,419 Weighted average common shares outstanding — diluted 53,339,258 47,980,830 52,562,976 45,605,419 Net (loss) income per common share — basic $ (0.03 ) $ 0.01 $ (0.40 ) $ (0.07 ) Net (loss) income per common share — diluted $ (0.03 ) $ 0.01 $ (0.40 ) $ (0.07 ) Axogen, Inc. Condensed Consolidated Statements of Cash Flows (unaudited) (in thousands) Six Months Ended June 30, 2026 June 30, 2025 Cash flows from operating activities: Net loss $ (21,100 ) $ (3,255 ) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation 3,211 3,385 Amortization of right-of-use assets 854 184 Amortization of intangible assets 212 133 Amortization of debt discount and deferred financing fees 68 442 (Recovery of) provision for bad debts (52 ) 386 Loss on disposal of equipment 7 — Change in fair value of debt derivative liabilities — (322 ) Investment gains, net (110 ) (121 ) Loss on extinguishment of debt 16,849 — Stock-based compensation expense 15,609 8,077 Change in operating assets and liabilities: Accounts receivable (7,905 ) (4,310 ) Inventory (4,940 ) (3,591 ) Prepaid expenses and other assets 827 (81 ) Other assets (729 ) — Accounts payable and accrued expenses 7,118 (5,755 ) Operating lease obligations (1,130 ) (542 ) Cash paid for interest portion of financing lease obligations (3 ) (2 ) Other long-term liabilities — (77 ) Net cash provided by (used in) operating activities 8,786 (5,449 ) Cash flows from investing activities: Purchase of property and equipment (3,682 ) (978 ) Purchase of investments (18,750 ) (7,837 ) Proceeds from sale of investments 8,000 4,000 Cash payments for intangible assets (1,032 ) (793 ) Net cash used in investing activities (15,464 ) (5,608 ) Cash flows from financing activities: Proceeds from issuance of common stock 134,044 — Payment of stock issuance costs (792 ) — Repayment of long-term debt (48,585 ) — Fees paid to lender related to debt extinguishment (20,498 ) — Fees paid to third parties related to debt extinguishment (107 ) — Payments of employee tax withholding on vested stock awards (9,273 ) — Cash paid for debt portion of financing lease obligations (9 ) (8 ) Proceeds from exercise of stock options and ESPP stock purchases 8,922 3,547 Net cash provided by financing activities 63,702 3,539 Net increase (decrease) in cash and cash equivalents, and restricted cash 57,024 (7,518 ) Cash and cash equivalents, and restricted cash, beginning of period 39,548 33,554 Cash and cash equivalents, and restricted cash, end of period $ 96,572 $ 26,036 Axogen, Inc. Condensed Consolidated Statements of Changes in Shareholders’ Equity (unaudited) (in thousands, except share amounts) Common Stock Additional Paid-in Capital Accumulated Deficit Total Shareholders' Equity Shares Amount Three Months Ended June 30, 2026 Balance at March 31, 2026 53,153,471 $ 532 $ 570,823 $ (326,547 ) $ 244,808 Net loss — — — (1,516 ) (1,516 ) Stock-based compensation — — 8,766 — 8,766 Issuance of restricted and performance stock units, net of shares withheld for withholding taxes 134,892 1 (498 ) — (497 ) Exercise of stock options and employee stock purchases under the ESPP 367,930 4 4,692 — 4,696 Balance at June 30, 2026 53,656,293 $ 537 $ 583,783 $ (328,063 ) $ 256,257 Six Months Ended June 30, 2026 Balance at December 31, 2025 47,199,797 $ 472 $ 435,338 $ (306,963 ) $ 128,847 Net loss — — — (21,100 ) (21,100 ) Issuance of common shares 4,600,000 46 133,206 — 133,252 Stock-based compensation — — 15,609 — 15,609 Issuance of restricted and performance stock units, net of shares withheld for withholding taxes 1,120,688 11 (9,284 ) — (9,273 ) Exercise of stock options and employee stock purchases under the ESPP 735,808 8 8,914 — 8,922 Balance at June 30, 2026 53,656,293 $ 537 $ 583,783 $ (328,063 ) $ 256,257 Three Months Ended June 30, 2025 Balance at December 31, 2024 45,512,623 $ 455 $ 400,004 $ (295,094 ) $ 105,365 Net income — — — 579 579 Stock-based compensation — — 5,168 — 5,168 Issuance of restricted and performance stock units 113,923 1 (1 ) — — Exercise of stock options and employee stock purchases under the ESPP 138,744 1 1,163 — 1,164 Balance at June 30, 2025 45,765,290 $ 457 $ 406,334 $ (294,515 ) $ 112,276 Six Months Ended June 30, 2025 Balance at December 31, 2024 44,148,836 $ 441 $ 394,726 $ (291,260 ) $ 103,907 Net loss — — — (3,255 ) (3,255 ) Stock-based compensation — — 8,077 — 8,077 Issuance of restricted and performance stock units 1,219,137 12 (12 ) — — Exercise of stock options and employee stock purchases under the ESPP 397,317 4 3,543 — 3,547 Balance at June 30, 2025 45,765,290 $ 457 $ 406,334 $ (294,515 ) $ 112,276 Axogen, Inc. Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures (unaudited) (in thousands, except share and per share amounts) EBITDA & Adjusted EBITDA Three Months Ended Six Months Ended June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 Net (loss) income $ (1,516 ) $ 579 $ (21,100 ) $ (3,255 ) Depreciation and amortization expense 1,717 1,723 3,422 3,518 Investment income (786 ) (225 ) (1,554 ) (497 ) Income tax expense 221 37 188 66 Interest expense 1 1,977 695 4,227 EBITDA - non-GAAP $ (363 ) $ 4,091 $ (18,349 ) $ 4,059 EBITDA margin - non-GAAP (0.5) % 7.2 % (14.0) % 3.9 % Non-cash stock-based compensation expense 8,766 5,168 15,609 8,077 Loss on extinguishment of debt — — 16,849 — Adjusted EBITDA - non-GAAP $ 8,403 $ 9,259 $ 14,109 $ 12,136 Adjusted EBITDA margin - non-GAAP 12.1 % 16.3 % 10.8 % 11.5 % Adjusted Net Income Three Months Ended June 30, 2026 GAAP Results Non-cash Stock-based Compensation Expense Dilutive Shares Impact ( 1) Adjusted Results Revenues $ 69,731 $ — $ 69,731 Cost of goods sold 19,057 (1,209 ) 17,848 Gross profit 50,674 1,209 51,883 Costs and expenses: Sales and marketing 30,827 (2,004 ) 28,823 Research and development 8,589 (1,795 ) 6,794 General and administrative 13,414 (3,758 ) 9,656 Total costs and expenses 52,830 (7,557 ) 45,273 (Loss) income from operations (2,156 ) 8,766 6,610 Other income (expense): Investment income 786 — 786 Interest expense (1 ) — (1 ) Other expense, net (145 ) — (145 ) Total other income, net 640 — 640 Net (loss) income $ (1,516 ) $ 8,766 $ 7,250 Weighted average common shares outstanding - diluted 53,339,258 53,339,258 6,234,467 59,573,725 Net (loss) income per common share - diluted $ (0.03 ) $ 0.16 $ (0.01 ) $ 0.12 __________ (1) Due to a GAAP net loss, antidilutive securities are excluded from GAAP diluted weighted average common shares outstanding. However, considering the adjusted net income position, adjusted diluted weighted average common shares outstanding incorporates securities that would have been dilutive for GAAP. Axogen, Inc. Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures (unaudited) (in thousands, except share and per share amounts) Adjusted Net Income Three Months Ended June 30, 2025 GAAP Results Non-cash Stock-based Compensation Expense Adjusted Results Revenues $ 56,662 $ — $ 56,662 Cost of goods sold 14,644 (710 ) 13,934 Gross profit 42,018 710 42,728 Costs and expenses: Sales and marketing 23,804 (1,314 ) 22,490 Research and development 6,853 (1,029 ) 5,824 General and administrative 9,689 (2,115 ) 7,574 Total costs and expenses 40,346 (4,458 ) 35,888 Income from operations 1,672 5,168 6,840 Other income (expense): Investment income 225 — 225 Interest expense (1,977 ) — (1,977 ) Change in fair value of debt derivative liabilities 480 — 480 Other income, net 179 — 179 Total other expense, net (1,093 ) — (1,093 ) Net income $ 579 $ 5,168 $ 5,747 Weighted average common shares outstanding - diluted 47,980,830 47,980,830 47,980,830 Net income per common share - diluted $ 0.01 $ 0.11 $ 0.12 Axogen, Inc. Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures (unaudited) (in thousands, except share and per share amounts) Adjusted Net Income Six Months Ended June 30, 2026 GAAP Results Non-cash Stock-based Compensation Expense Loss on Extinguishment of Debt Dilutive Shares Impact ( 1) Adjusted Results Revenues $ 131,188 $ — $ — $ 131,188 Cost of goods sold 34,325 (2,129 ) — 32,196 Gross profit 96,863 2,129 — 98,992 Costs and expenses: Sales and marketing 59,460 (3,561 ) — 55,899 Research and development 16,106 (3,214 ) — 12,892 General and administrative 26,285 (6,705 ) — 19,580 Total costs and expenses 101,851 (13,480 ) — 88,371 (Loss) income from operations (4,988 ) 15,609 — 10,621 Other income (expense): Investment income 1,554 — — 1,554 Interest expense (695 ) — — (695 ) Loss on extinguishment of debt (16,849 ) — 16,849 — Other expense, net (122 ) — — (122 ) Total other (expense) income, net (16,112 ) — 16,849 737 Net (loss) income $ (21,100 ) $ 15,609 $ 16,849 $ 11,358 Weighted average common shares outstanding - diluted 52,562,976 52,562,976 52,562,976 5,966,877 58,529,853 Net (loss) income per common share - diluted $ (0.40 ) $ 0.30 $ 0.32 $ (0.02 ) $ 0.19 __________ (1) Due to a GAAP net loss, antidilutive securities are excluded from GAAP diluted weighted average common shares outstanding. However, considering the adjusted net income position, adjusted diluted weighted average common shares outstanding incorporates securities that would have been dilutive for GAAP. Axogen, Inc. Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures (unaudited) (in thousands, except share and per share amounts) Adjusted Net Income Six Months Ended June 30, 2025 GAAP Results Non-cash Stock-based Compensation Expense Dilutive Shares Impact (1) Adjusted Results Revenues $ 105,222 $ — $ 105,222 Cost of goods sold 28,271 (700 ) 27,571 Gross profit 76,951 700 77,651 Costs and expenses: Sales and marketing 44,849 (1,898 ) 42,951 Research and development 12,944 (1,749 ) 11,195 General and administrative 19,147 (3,730 ) 15,417 Total costs and expenses 76,940 (7,377 ) 69,563 Income from operations 11 8,077 8,088 Other income (expense): Investment income 497 — 497 Interest expense (4,227 ) — (4,227 ) Change in fair value of debt derivative liabilities 322 — 322 Other income, net 142 — 142 Total other expense, net (3,266 ) — (3,266 ) Net (loss) income $ (3,255 ) $ 8,077 $ 4,822 Weighted average common shares outstanding - diluted 45,605,419 45,605,419 2,650,576 48,255,995 Net (loss) income per common share - diluted $ (0.07 ) $ 0.18 $ (0.01 ) $ 0.10 __________ (1) Due to a GAAP net loss, antidilutive securities are excluded from GAAP diluted weighted average common shares outstanding. However, considering the adjusted net income position, adjusted diluted weighted average common shares outstanding incorporates securities that would have been dilutive for GAAP. Free Cash Flow Six Months Ended June 30, 2026 2025 Net cash provided by (used in) operating activities $ 8,786 $ (5,449 ) Purchase of property and equipment (3,682 ) (978 ) Cash payments for intangible assets (1,032 ) (793 ) Free cash flow $ 4,072 $ (7,220 )