AxoGen (NASDAQ:AXGN) Issues Earnings Results, Misses Expectations By $0.15 EPS

Key Points

• AxoGen missed earnings expectations: Second-quarter EPS was negative $0.03, $0.15 below the consensus estimate of $0.12, while the company reported negative net margin and return on equity.
• Growth outlook strengthened: Revenue increased 23.1% year over year to $69.7 million, driven by more than 50% growth in breast revenue. Management raised 2026 revenue guidance to at least $279 million and maintained its expectation for positive full-year free cash flow.
• Margins remain a concern: Gross margin declined to 72.7% as breast growth increased demand for higher-cost Avance grafts, prompting management to lower full-year 2026 gross-margin guidance to at least 73%.

AxoGen (NASDAQ:AXGN - Get Free Report) announced its quarterly earnings results on Wednesday. The medical equipment provider reported ($0.03) earnings per share for the quarter, missing analysts' consensus estimates of $0.12 by ($0.15), Zacks reports. AxoGen had a negative return on equity of 9.63% and a negative net margin of 13.21%.

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

• Revenue growth accelerated: Second-quarter revenue rose 23.1% year over year to $69.7 million, led by breast revenue growth of more than 50% and broad-based gains across all three target markets.
• Management raised 2026 revenue guidance to at least $279 million, representing growth of at least 24%, while maintaining expectations for positive full-year free cash flow.
• The breast business continues to expand rapidly, reaching approximately 215 active programs and 560 active surgeons; management said patient and surgeon awareness, reimbursement, and sales-force investments are supporting substantial long-term opportunity.
• Gross margin fell to 72.7% from 74.2% a year ago because breast growth increased demand for higher-cost, longer Avance grafts. Full-year 2026 gross-margin guidance was reduced to at least 73%, with pricing and manufacturing initiatives not expected to materially help this year.
• Commercial coverage for Avance reached approximately 86% of U.S. covered lives, while Aetna’s review remains ongoing; a favorable decision could lift coverage to roughly 95% of commercial lives, but management does not include material incremental benefit from pending payer decisions in its guidance.

AxoGen Stock Up 4.0%

AxoGen stock traded up $1.64 during midday trading on Wednesday, hitting $42.79. 1,110,370 shares of the stock were exchanged, compared to its average volume of 1,111,822. AxoGen has a 1 year low of $12.39 and a 1 year high of $46.95. The company has a debt-to-equity ratio of 0.08, a current ratio of 7.10 and a quick ratio of 5.33. The firm has a market cap of $2.28 billion, a P/E ratio of -66.99 and a beta of 1.09. The company has a 50 day moving average price of $42.13 and a two-hundred day moving average price of $37.22.

Analysts Set New Price Targets

AXGN has been the topic of a number of recent research reports. Citigroup restated an "outperform" rating on shares of AxoGen in a research note on Wednesday, April 29th. Wall Street Zen upgraded AxoGen from a "hold" rating to a "buy" rating in a research note on Sunday. Lake Street Capital raised their target price on AxoGen from $40.00 to $50.00 and gave the company a "buy" rating in a report on Thursday, April 23rd. Zacks Research raised AxoGen from a "strong sell" rating to a "hold" rating in a research report on Friday, May 29th. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of AxoGen in a report on Friday, May 29th. Nine equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, AxoGen presently has a consensus rating of "Moderate Buy" and an average price target of $46.50.

Insider Buying and Selling at AxoGen

In other news, Director Amy Mcbride Wendell sold 1,647 shares of AxoGen stock in a transaction dated Friday, May 8th. The stock was sold at an average price of $42.60, for a total transaction of $70,162.20. Following the sale, the director directly owned 93,826 shares of the company's stock, valued at approximately $3,996,987.60. The trade was a 1.73% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director John Johnson sold 11,050 shares of the business's stock in a transaction dated Thursday, May 7th. The stock was sold at an average price of $43.26, for a total value of $478,023.00. Following the completion of the transaction, the director owned 11,050 shares in the company, valued at approximately $478,023. This trade represents a 50.00% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 29,041 shares of company stock valued at $1,268,792 in the last ninety days. Insiders own 2.44% of the company's stock.

Institutional Investors Weigh In On AxoGen

Hedge funds have recently bought and sold shares of the business. Aquatic Capital Management LLC raised its position in shares of AxoGen by 287.8% in the 3rd quarter. Aquatic Capital Management LLC now owns 1,710 shares of the medical equipment provider's stock valued at $31,000 after purchasing an additional 1,269 shares in the last quarter. Arax Advisory Partners grew its position in shares of AxoGen by 362.4% during the fourth quarter. Arax Advisory Partners now owns 1,045 shares of the medical equipment provider's stock worth $34,000 after buying an additional 819 shares in the last quarter. Caitong International Asset Management Co. Ltd acquired a new stake in shares of AxoGen during the fourth quarter worth approximately $36,000. Kestra Advisory Services LLC bought a new stake in shares of AxoGen in the fourth quarter worth $39,000. Finally, Tower Research Capital LLC TRC raised its holdings in AxoGen by 189.9% in the second quarter. Tower Research Capital LLC TRC now owns 5,079 shares of the medical equipment provider's stock valued at $55,000 after acquiring an additional 3,327 shares in the last quarter. Institutional investors and hedge funds own 80.29% of the company's stock.

AxoGen Company Profile

AxoGen, Inc is a Florida-based medical technology company that develops and commercializes surgical solutions for peripheral nerve damage. Founded in 2002 and headquartered in Alachua, Florida, the company focuses on restoring nerve function and improving patient outcomes through innovative biologic and engineered products. AxoGen's offerings address a range of traumatic and iatrogenic injuries, offering alternatives to traditional nerve autografts.

The company's core product portfolio includes the Avance® Nerve Graft, a decellularized human nerve allograft designed to bridge nerve gaps without the need for a secondary harvest site, and the Axoguard® Nerve Connector and Protector devices, which facilitate nerve coaptation and protect repaired sites from surrounding scar tissue.

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