AxoGen posts Q4 loss as FDA regulatory costs hit margins

Overview

• Surgical solutions provider's Q4 revenue grew 21.3% yr/yr

• Company reported a net loss of $13.2 mln for Q4 2025, vs net income a year earlier

• Gross margin decreased due to one-time FDA approval costs

Outlook

• AxoGen expects 2026 revenue growth of at least 18%, reaching $265.7 mln

• Company anticipates 2026 gross margin between 74% and 76%

• AxoGen projects to be free cash flow positive for full-year 2026

Result Drivers

• BROAD-BASED REVENUE GROWTH - Co reported double-digit growth across all markets, including Extremities, Oral Maxillofacial & Head and Neck, and Breast

• FDA APPROVAL COSTS - Gross margin impacted by one-time costs related to FDA approval of Avance®

• EXPANDED COVERAGE - Co expanded coverage and reimbursement for peripheral nerve repair, increasing newly covered lives and commercial payer coverage

Company press release: ID:nGNX7t2RC8

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the advanced medical equipment & technology peer group is "buy"

• Wall Street's median 12-month price target for AxoGen Inc is $40.00, about 13.1% above its February 23 closing price of $35.38

• The stock recently traded at 70 times the next 12-month earnings vs. a P/E of 49 three months ago

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