Axogen, Inc. reported fourth‑quarter 2025 results with revenue of $59.9 million, up 21.3% from $49.4 million in Q4 2024. Adjusted earnings per share were $0.07, beating the $0.06 consensus estimate from one analyst while missing the $0.099 estimate from another. GAAP earnings per share were a loss of $0.28, falling short of the $0.08 consensus estimate. Gross margin contracted to 74.1% from 76.1% in the prior quarter, a decline driven by one‑time costs associated with the FDA BLA approval of Avance, including non‑cash stock‑based compensation.
The quarter also marked a 21.3% year‑over‑year revenue increase, while adjusted EPS rose from a loss of $0.06 in Q4 2023 to $0.07 in Q4 2025, reflecting improved pricing and volume. Full‑year 2024 revenue of $187.3 million represented a 17.8% increase over 2023, and the company posted a net loss of $10.0 million versus a $21.7 million loss in 2023, indicating a narrowing loss trajectory.
A key driver of the quarter’s performance was the FDA approval of the biologics license application for Avance, the company’s only implantable biologic for peripheral nerve discontinuities. The approval, granted in December 2025, provides 12 years of market exclusivity and positions Avance as the standard of reference in the peripheral nerve repair market, strengthening Axogen’s competitive moat.
Management guided 2026 revenue growth to at least 18%, translating to an estimated $265.7 million, and projected gross margins of 74–76%. The company also expects to be free‑cash‑flow positive, signaling confidence in sustaining profitability despite near‑term margin pressure from the increased biologic mix and one‑time compensation costs.
Michael Dale, President and CEO, said, “2025 was a year of significant achievement for Axogen, both financially and strategically and one that positions us well for durable growth in the years ahead.” He added that the Avance BLA approval was “the most significant milestone in Axogen’s history.” Chief Financial Officer Lindsey Hartley noted, “Our focus on commercial execution and resource allocation have yielded top‑line growth and positive cash flows,” and highlighted the $59.9 million revenue figure as a 21.3% increase over Q4 2024. Hartley also explained that the company raised $133.3 million in net proceeds from an upsized public offering, using $69.7 million to retire its term loan facility and leave the balance sheet with a clean capital structure and enhanced financial flexibility.
Investors reacted to the GAAP loss and the rise in operating expenses, particularly the non‑cash stock‑based compensation linked to the Avance BLA approval, which tempered enthusiasm for the quarter’s revenue and adjusted EPS gains.
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