Second quarter 2026
Filed Jul 29, 2026Axogen, Inc. Reports Second Quarter 2026 Financial Results Raises Full Year Revenue Guidance to at Least 24% Growth or $279 million
Revenue increased 23.1% and the company raised full-year revenue guidance, but gross margin declined, GAAP results moved to a net loss, and Adjusted EBITDA decreased from the prior-year quarter.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $69.7 million | – | 23.1% |
| Gross marginGAAP | 72.7% | – | – |
| Net lossGAAP | $1.5 million | – | – |
| Net loss per shareGAAP | $0.03 per share | – | – |
| Adjusted net incomenon-GAAP | $7.3 million | – | – |
| Adjusted net income per sharenon-GAAP | $0.12 per share | – | – |
| Adjusted EBITDAnon-GAAP | $8.4 million | – | – |
| Six Months RevenueGAAP | $131,188 (in thousands) | – | – |
| Cost of goods soldGAAP | $19,057 (in thousands) | – | – |
| Gross profitGAAP | $50,674 (in thousands) | – | – |
| Sales and marketing expenseGAAP | $30,827 (in thousands) | – | – |
| Research and development expenseGAAP | $8,589 (in thousands) | – | – |
| General and administrative expenseGAAP | $13,414 (in thousands) | – | – |
| Total costs and expensesGAAP | $52,830 (in thousands) | – | – |
| Loss from operationsGAAP | $(2,156) (in thousands) | – | – |
| Investment incomeGAAP | $786 (in thousands) | – | – |
| Interest expenseGAAP | $(1) (in thousands) | – | – |
| Other expense, netGAAP | $(145) (in thousands) | – | – |
| Total other income (expense), netGAAP | $640 (in thousands) | – | – |
| Six Months Cost of goods soldGAAP | $34,325 (in thousands) | – | – |
| Six Months Gross profitGAAP | $96,863 (in thousands) | – | – |
| Six Months Sales and marketing expenseGAAP | $59,460 (in thousands) | – | – |
| Six Months Research and development expenseGAAP | $16,106 (in thousands) | – | – |
| Six Months General and administrative expenseGAAP | $26,285 (in thousands) | – | – |
| Six Months Total costs and expensesGAAP | $101,851 (in thousands) | – | – |
| Six Months Loss from operationsGAAP | $(4,988) (in thousands) | – | – |
| Six Months Investment incomeGAAP | $1,554 (in thousands) | – | – |
| Six Months Interest expenseGAAP | $(695) (in thousands) | – | – |
| Six Months Loss on extinguishment of debtGAAP | $(16,849) (in thousands) | – | – |
| Six Months Change in fair value of debt derivative liabilitiesGAAP | — | – | – |
| Six Months Other expense, netGAAP | $(122) (in thousands) | – | – |
| Six Months Total other expense, netGAAP | $(16,112) (in thousands) | – | – |
| Cash and cash equivalents, restricted cash, and investmentsGAAP | $113.4 million | an increase of $9.8 million | – |
2026 outlook
- Revenuefull-year revenue growth to be at least 24%, or revenue of at least $279 million
- Gross marginat least 73%
- Notepositive free cash flow for the full-year
What drove it
- Year-to-date revenue growth through the second quarter of 2026 was broad-based across Extremities, Oral Maxillofacial & Head and Neck, and Breast.
- The company cited 20% plus year-over-year account productivity, expanding sales force coverage, and improving commercial insurance coverage and payment as drivers of year-to-date growth.
- Gross margin performance was driven by changes in product mix caused primarily by accelerating year over year Breast growth greater than 50%.
- The company published REPOSE, a prospective, randomized clinical study evaluating Axoguard Nerve Cap for symptomatic neuroma management.
- The company initiated Nerve-RESTORE, a prospective, randomized, assessor-blinded study comparing Avance Nerve Graft to sural nerve autograft in mixed and motor nerve reconstruction.
- The company acquired a minority ownership stake in Trace Biosciences, including a limited right of first refusal, to support development of its nerve-specific imaging technology.
Concerns
- Gross margin was 72.7% compared to 74.2% in the second quarter of 2025.
- The company reported a net loss of $1.5 million compared to net income of $0.6 million in the second quarter of 2025.
- Loss from operations was $(2,156) (in thousands) compared to income from operations of $1,672 (in thousands) in the second quarter of 2025.
- Adjusted EBITDA was $8.4 million compared to $9.3 million in the second quarter of 2025.
- Six-month results included a loss on extinguishment of debt of $(16,849) (in thousands).
What to watch
- Execution toward full-year revenue growth of at least 24%, or revenue of at least $279 million.
- Ability to deliver gross margin of at least 73% for 2026 following second-quarter gross margin of 72.7%.
- Delivery of positive free cash flow for the full-year.
- Sustained growth across Extremities, Oral Maxillofacial & Head and Neck, and Breast.
- Commercial progress from sales force coverage expansion and improving commercial insurance coverage and payment.
- Development of the Nerve-RESTORE study and Trace Biosciences nerve-specific imaging technology.
Balance sheet and cash flow
- Cash and cash equivalents: $94,572 (in thousands) as of June 30, 2026; $35,548 (in thousands) as of December 31, 2025.
- Restricted cash: $2,000 (in thousands) as of June 30, 2026; $4,000 (in thousands) as of December 31, 2025.
- Investments: $16,840 (in thousands) as of June 30, 2026; $5,980 (in thousands) as of December 31, 2025.
- Accounts receivable, net of allowance for doubtful accounts of $734 and $948, respectively: $34,126 (in thousands) as of June 30, 2026; $26,169 (in thousands) as of December 31, 2025.
- Inventory: $47,313 (in thousands) as of June 30, 2026; $42,373 (in thousands) as of December 31, 2025.
- Total current assets: $200,376 (in thousands) as of June 30, 2026; $120,422 (in thousands) as of December 31, 2025.
- Total assets: $304,863 (in thousands) as of June 30, 2026; $221,687 (in thousands) as of December 31, 2025.
- Long-term debt, net of debt discount and financing fees: — as of June 30, 2026; $48,387 (in thousands) as of December 31, 2025.
- Total liabilities: $48,606 (in thousands) as of June 30, 2026; $92,840 (in thousands) as of December 31, 2025.
- Total shareholders’ equity: $256,257 (in thousands) as of June 30, 2026; $128,847 (in thousands) as of December 31, 2025.
Analysis
Second-quarter revenue was $69.7 million, an increase of 23.1% compared with $56.7 million in the second quarter of 2025. The company described year-to-date growth as broad-based across Extremities, Oral Maxillofacial & Head and Neck, and Breast, supported by 20% plus year-over-year account productivity, expanding sales force coverage, and improving commercial insurance coverage and payment. Breast was the principal product-mix factor cited, with accelerating year-over-year growth greater than 50%.
Growth did not translate into improved reported profitability. Gross margin was 72.7%, compared with 74.2% in the second quarter of 2025, with the company attributing the change to product mix. Loss from operations was $(2,156) (in thousands), compared with income from operations of $1,672 (in thousands), and GAAP results were a net loss of $1.5 million, or $0.03 per share, compared with net income of $0.6 million, or $0.01 per share.
Non-GAAP profitability presented a different view but also showed pressure in Adjusted EBITDA. Adjusted net income was $7.3 million, compared with $5.7 million, while adjusted net income per share was unchanged at $0.12 per share. Adjusted EBITDA was $8.4 million, below $9.3 million in the prior-year quarter. For the six months ended June 30, 2026, the company recorded a loss on extinguishment of debt of $(16,849) (in thousands), and the balance sheet showed long-term debt, net of debt discount and financing fees, of — as of June 30, 2026 compared with $48,387 (in thousands) as of December 31, 2025.
Liquidity increased during the quarter. Cash and cash equivalents, restricted cash, and investments were $113.4 million as of June 30, 2026, compared with $103.6 million as of March 31, 2026, an increase of $9.8 million. The company expects positive free cash flow for the full-year, although it did not provide an actual quarterly free-cash-flow figure in the supplied text.
Management raised 2026 revenue guidance to full-year revenue growth of at least 24%, or revenue of at least $279 million. It also expects gross margin of at least 73% and positive free cash flow for the full-year. The key operating issue is whether commercial growth and the stated improvement in coverage and payment can support the full-year revenue objective while restoring gross margin above the second-quarter level and improving operating profitability.
Management, verbatim
We are pleased with our second-quarter revenue performance and the progress we’re making across each of Axogen’s strategic plan priorities. 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.
Michael Dale, President and CEO of Axogen, Inc.
Not in the filing
stated, not guessed- Prior outlook was not provided, so comparison of actual results with prior guidance is unavailable.
- Segment revenue by Extremities, Oral Maxillofacial & Head and Neck, and Breast was not provided.
- Prior-quarter revenue, gross margin, operating income, net income, EPS, adjusted net income, and Adjusted EBITDA were not provided.
- Actual operating cash flow, capital expenditures, and free cash flow for the quarter were not provided in the supplied text.
- Capital returns, including share repurchases and dividends, were not provided.
- The supplied statement of operations is truncated after the beginning of the net income line; detailed GAAP net loss, income tax, weighted-average shares, and six-month net income and EPS table lines are unavailable.
- Guidance for operating expenses and tax rate was not provided.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.