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

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

NASDAQ AXGN traded up $11.87 during trading hours 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 stock has a fifty day moving average of $42.80 and a 200 day moving average of $39.20. AxoGen has a twelve month low of $18.46 and a twelve month high of $52.91.

Analyst Ratings Changes

AXGN has been the subject of several recent analyst reports. Wall Street Zen downgraded AxoGen from a “buy” rating to a “hold” rating in a research report on Saturday, September 26th. Lake Street Capital restated a “buy” rating on shares of AxoGen in a research report on Monday, October 5th. Citizens Jmp lifted their price objective on shares of AxoGen from $50.00 to $55.00 and gave the company a “market outperform” rating in a report on Thursday, July 30th. Citigroup reaffirmed a “market outperform” rating on shares of AxoGen in a report on Thursday, July 30th. Finally, Bank of America began coverage on shares of AxoGen in a report on Monday, October 12th. They set a “buy” rating and a $52.00 price objective on the stock. Twelve research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, AxoGen has an average rating of “Moderate Buy” and a consensus price target of $51.27.

Insider Buying and Selling at AxoGen

In related news, Director Amy Wendell sold 13,353 shares of AxoGen stock in a transaction on Tuesday, August 11th. The stock was sold at an average price of $48.42, for a total transaction of $646,552.26. Following the completion of the sale, the director directly owned 107,976 shares of the company’s stock, valued at $5,228,197.92. The trade was a 11.01% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Marc A. Began sold 67,500 shares of the stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $47.34, for a total value of $3,195,450.00. Following the completion of the transaction, the executive vice president directly owned 50,135 shares in the company, valued at $2,373,390.90. The trade was a 57.38% decrease in their position. 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 sold a total of 98,503 shares of company stock worth $4,656,947 over the last quarter. 2.44% of the stock is currently owned by insiders.

About AxoGen

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.