AxoGen (NASDAQ:AXGN) Posts Earnings Results, Beats Expectations By $0.08 EPS

AxoGen (NASDAQ:AXGN) posted its earnings results on Wednesday. The medical equipment provider reported $0.21 EPS for the quarter, topping the consensus estimate of $0.13 by $0.08, FiscalAI reports. The business had revenue of $75.83 million during the quarter, compared to the consensus estimate of $73.18 million.

Here are the key takeaways from AxoGen’s conference call:

• Positive Sentiment: AxoGen reported third-quarter revenue of $75.8 million, up 26.2% year over year, with breast revenue increasing more than 60% and adjusted EBITDA rising 46% to $13.4 million. Management raised 2026 guidance to at least $290 million in revenue, including $7 million from BioCircuit, while maintaining expectations for at least 73% gross margin and positive free cash flow.
• Positive Sentiment: Commercial payer coverage for Avance reached approximately 96% of U.S. covered lives after Elevance removed its nerve-gap restriction and Aetna added coverage for certain upper-extremity repairs. The company said breast growth is supported by expanding account adoption, with roughly 485 active breast accounts and 590 active surgeons.
• Positive Sentiment: AxoGen completed its $200 million BioCircuit acquisition, adding NerveTape and access to direct nerve-repair procedures representing an estimated 40%–50% of transected nerve cases. Management expects the product to contribute to revenue growth and adjusted EBITDA margin in its first year, although integration and potential cannibalization risks remain.
• Negative Sentiment: Gross margin declined to 74.8% from 76.6% a year earlier and is expected to decrease sequentially in the fourth quarter as production shifts toward longer Avance grafts for breast procedures. The company also warned that BioCircuit purchase-accounting inventory adjustments could further pressure fourth-quarter and full-year gross margin, while higher amortization and administrative expenses are expected going forward.
• Positive Sentiment: AxoGen plans to begin prostate nerve-reconstruction market development in 2027 after treating more than 220 patients across 15 sites; among patients with at least six months of follow-up, surgeons reported better-than-expected erectile-function recovery in approximately 80% and pad-free urinary continence above expected levels in more than 95%. Prostate is not included in current guidance, but management views it as a potentially meaningful long-term growth driver.

AxoGen Trading Up 31.7%

AXGN traded up $11.87 during trading on Wednesday, hitting $49.33. The company’s stock had a trading volume of 4,459,978 shares, compared to its average volume of 1,170,102. The firm’s 50 day moving average price is $42.80 and its two-hundred day moving average price is $39.20. AxoGen has a 12 month low of $18.46 and a 12 month high of $52.91.

Analyst Upgrades and Downgrades

A number of analysts have recently weighed in on the stock. Raymond James Financial boosted their price objective on shares of AxoGen from $48.00 to $53.00 and gave the stock an “outperform” rating in a research note on Friday, September 25th. Morgan Stanley cut shares of AxoGen to a “hold” rating in a research note on Tuesday, September 29th. Bank of America started coverage on AxoGen in a report on Monday, October 12th. They set a “buy” rating and a $52.00 price objective on the stock. Citizens Jmp increased their price objective on AxoGen from $50.00 to $55.00 and gave the stock a “market outperform” rating in a research note on Thursday, July 30th. Finally, Wall Street Zen lowered shares of AxoGen from a “buy” rating to a “hold” rating in a report on Saturday, September 26th. Twelve investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $51.27.

Insiders Place Their Bets

In other AxoGen news, EVP Marc A. Began sold 67,500 shares of the company’s stock in a transaction on Monday, August 10th. The shares were sold at an average price of $47.34, for a total transaction of $3,195,450.00. Following the completion of the sale, the executive vice president owned 50,135 shares in the company, valued at approximately $2,373,390.90. The trade was a 57.38% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Kathy Weiler sold 14,150 shares of AxoGen stock in a transaction on Friday, August 7th. The stock was sold at an average price of $45.30, for a total transaction of $640,995.00. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 98,503 shares of company stock worth $4,656,947 over the last ninety days. Company insiders own 2.44% of the company’s stock.

AxoGen Company Profile

AxoGen, Inc (NASDAQ: AXGN) is a medical technology company focused on developing and commercializing products for the repair and regeneration of peripheral nerves. Its technologies are designed to help restore sensory and motor function following traumatic injuries, surgical procedures, and other conditions affecting peripheral nerves.

The company’s product portfolio includes Avance Nerve Graft, a processed human nerve allograft used to bridge gaps in damaged nerves without requiring tissue to be taken from another part of the patient’s body.