# Axogen, Inc. (AXGN)

Informational only - not investment advice.

CIK: 0000805928
SIC: 3845 Electromedical & Electrotherapeutic Apparatus
SIC breadcrumb: [Manufacturing](/division/D/) > [SIC Major Group 38](/major-group/38/) > [SIC 3845 Electromedical & Electrotherapeutic Apparatus](/industry/3845/)
Latest 10-K filed: 2026-02-24
SEC page: https://www.sec.gov/edgar/browse/?CIK=805928
Filing source: https://www.sec.gov/Archives/edgar/data/805928/000080592826000031/axgn-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-02-24 · accession 0000805928-26-000031 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000805928.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 225,208,000 USD | 2025 | verified |
| Net income | -15,703,000 USD | 2025 | verified |
| Assets | 221,687,000 USD | 2025 | verified |
| Free cash flow | -2,933,000 USD | 2025 | computed |
| Net margin | -6.97% | 2025 | computed |
| Operating margin | -3.49% | 2025 | computed |
| Revenue YoY | +20.21% | 2025 | computed |
| ROE | -12.19% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | AXGN | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | -7.0% | -5.9% | 45 | 12 |
| Operating margin | -3.5% | 9.7% | 36 | 12 |
| Revenue growth | 20.2% | 15.3% | 67 | 13 |
| FCF margin | -1.3% | 11.0% | 33 | 13 |
| ROE | -12.2% | -12.2% | 50 | 13 |
| ROA | -7.1% | -7.1% | 50 | 13 |
| Liabilities / equity | 0.72 | 0.95 | 33 | 13 |
| Current ratio | 5.11 | 3.77 | 67 | 13 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 3845 Electromedical & Electrotherapeutic Apparatus, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 225208000 | USD | 2025 | 2026-02-24 |
| Net income | -15703000 | USD | 2025 | 2026-02-24 |
| Assets | 221687000 | USD | 2025 | 2026-02-24 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-24. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000805928.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 41,108,000 | 60,426,000 | 83,937,000 | 106,712,000 | 112,300,000 | 127,358,000 | 138,584,000 | 159,012,000 | 187,338,000 | 225,208,000 |
| Net income | -14,411,000 | -10,445,000 | -22,397,000 | -29,135,000 | -23,786,000 | -26,985,000 | -28,948,000 | -21,716,000 | -9,964,000 | -15,703,000 |
| Operating income | -8,130,000 | -7,951,000 | -20,500,000 | -31,406,000 | -23,182,000 | -25,416,000 | -29,707,000 | -21,462,000 | -3,287,000 | -7,849,000 |
| Gross profit | 34,641,000 | 51,115,000 | 71,014,000 | 89,363,000 | 90,719,000 | 104,427,000 | 108,809,000 | 121,869,000 | 141,977,000 | 167,353,000 |
| Diluted EPS |  |  |  | -0.74 | -0.60 | -0.65 | -0.69 | -0.51 | -0.23 | -0.34 |
| Operating cash flow | -11,237,000 | -9,238,000 | -17,862,000 | -19,872,000 | -9,626,000 | -13,405,000 | -16,066,000 | -5,716,000 | 4,535,000 | 812,000 |
| Capital expenditures | 931,000 | 1,105,000 | 6,282,000 | 4,664,000 | 21,905,000 | 27,811,000 | 20,078,000 | 13,872,000 | 3,101,000 | 3,745,000 |
| Assets | 46,360,478 | 58,875,000 | 160,173,000 | 154,643,000 | 201,381,000 | 208,024,000 | 195,387,000 | 196,827,000 | 203,728,000 | 221,687,000 |
| Liabilities | 31,439,329 | 33,693,000 | 13,191,000 | 22,490,000 | 78,232,000 | 95,474,000 | 94,388,000 | 101,162,000 | 99,821,000 | 92,840,000 |
| Stockholders' equity | 14,921,000 | 25,182,000 | 146,982,000 | 132,153,000 | 123,149,000 | 112,550,000 | 100,999,000 | 95,665,000 | 103,907,000 | 128,847,000 |
| Cash and cash equivalents | 30,014,405 | 36,507,000 | 24,294,000 | 35,724,000 | 48,767,000 | 32,756,000 | 15,284,000 | 31,024,000 | 27,554,000 | 35,548,000 |
| Free cash flow | -12,168,000 | -10,343,000 | -24,144,000 | -24,536,000 | -31,531,000 | -41,216,000 | -36,144,000 | -19,588,000 | 1,434,000 | -2,933,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin | -35.06% | -17.29% | -26.68% | -27.30% | -21.18% | -21.19% | -20.89% | -13.66% | -5.32% | -6.97% |
| Operating margin | -19.78% | -13.16% | -24.42% | -29.43% | -20.64% | -19.96% | -21.44% | -13.50% | -1.75% | -3.49% |
| Return on equity | -96.58% | -41.48% | -15.24% | -22.05% | -19.31% | -23.98% | -28.66% | -22.70% | -9.59% | -12.19% |
| Return on assets | -31.08% | -17.74% | -13.98% | -18.84% | -11.81% | -12.97% | -14.82% | -11.03% | -4.89% | -7.08% |
| Liabilities / equity | 2.11 | 1.34 | 0.09 | 0.17 | 0.64 | 0.85 | 0.93 | 1.06 | 0.96 | 0.72 |
| Current ratio | 3.97 | 4.06 | 11.57 | 6.47 | 6.36 | 5.23 | 4.13 | 2.89 | 3.24 | 5.11 |

## As-reported value updates

2 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/AXGN/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-07-29. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000805928.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-09-30 |  |  | -0.10 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | -0.17 | reported discrete quarter |
| 2023-Q2 | 2023-06-30 |  |  | -0.16 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 41,271,000 | -4,089,000 | -0.10 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 42,922,000 | -3,893,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 41,378,000 | -6,635,000 | -0.15 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 47,912,000 | -1,921,000 | -0.04 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 48,644,000 | -1,858,000 | -0.04 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 49,405,000 | 450,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 48,560,000 | -3,834,000 | -0.08 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 56,662,000 | 579,000 | 0.01 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 60,082,000 | 708,000 | 0.01 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 59,904,000 | -13,156,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 61,457,000 | -19,584,000 | -0.38 | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 69,731,000 | -1,516,000 | -0.03 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from AXGN's latest 10-K: [/company/AXGN/business/](/company/AXGN/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from AXGN's latest 10-K: [/company/AXGN/risk-factors/](/company/AXGN/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/805928/000080592826000094/axgn-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-07-29
Report date: 2026-06-30

ITEM 2 – MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of the Company’s financial condition and results of operations should be read in conjunction with our condensed consolidated financial statements and the related notes thereto appearing elsewhere in this report and our consolidated financial statements for the year ended December 31, 2025, included in our 2025 Annual Report on Form 10-K. All dollar amounts in the discussion and analysis, unless noted otherwise, are presented in thousands.

Unless the context otherwise requires, all references in this report to “Axogen,” the “Company,” “we,” “us” and “our” refer to Axogen, Inc., and its wholly owned subsidiaries Axogen Corporation, Axogen Processing Corporation, Axogen Europe GmbH and Axogen Germany GmbH.

Overview

We are the leading company focused specifically on the science, development and commercialization of technologies for peripheral nerve regeneration and repair. We are passionate about providing the opportunity to restore nerve function and quality of life for patients with peripheral nerve injuries. We provide innovative, clinically proven and economically effective repair solutions for surgeons and healthcare providers. Peripheral nerves provide the pathways for both motor and sensory signals throughout the body. Every day people suffer traumatic injuries or undergo surgical procedures that impact the function of their peripheral nerves. Physical damage to a peripheral nerve or the inability to properly reconnect peripheral nerves can result in the loss of muscle or organ function, the loss of sensory feeling, or the initiation of pain.

Product Portfolio

Our platform for peripheral nerve repair features a comprehensive portfolio of products, including:

•Avance® (acellular nerve allograft-arwx), an FDA-approved acellular nerve scaffold for the treatment of adult and pediatric patients aged one month or older with sensory, mixed, and motor peripheral nerve discontinuities (“Avance”);

•Avance® Nerve Graft, a biologically active off-the-shelf processed human nerve allograft for bridging severed peripheral nerves without the comorbidities associated with a second surgical site (“Avance Nerve Graft”);

•Axoguard Nerve Connector®, a porcine (pig) submucosa extracellular matrix (“ECM”) coaptation aid for tensionless repair of severed peripheral nerves (“Axoguard Nerve Connector”);

•Axoguard Nerve Protector®, a porcine submucosa ECM product used to wrap and protect damaged peripheral nerves and reinforce the nerve reconstruction while minimizing soft tissue attachments (“Axoguard Nerve Protector”);

•Axoguard HA+ Nerve Protector™, a porcine submucosa ECM base layer coated with a proprietary hyaluronate-alginate gel, a next-generation technology designed to enhance nerve gliding and provide short- and long-term protection for peripheral nerve injuries (“Axoguard HA+ Nerve Protector”);

•Axoguard Nerve Cap®, a porcine submucosa ECM product used to protect a peripheral nerve end and separate the nerve from the surrounding environment to reduce the development of symptomatic or painful neuroma (“Axoguard Nerve Cap”); and

•Avive+ Soft Tissue Matrix™, a multi-layer amniotic membrane allograft used to protect and separate tissues in the surgical bed during the critical phase of tissue healing (“Avive+ Soft Tissue Matrix”).

On December 3, 2025, the FDA approved the Biologics License Application for Avance. Continued approval depends on verification and description of clinical benefits in confirmatory studies.

While we offer nerve repair products in the U.S., Canada, Germany, the United Kingdom, Spain and several other countries, we derive substantially all of our revenues from sales of our nerve repair products to customers in the U.S.

Our strategy remains focused on deepening our presence in high-potential accounts, specifically Level 1 trauma centers and academic-affiliated hospitals with a high number of trained microsurgeons. We will drive growth in these accounts through

17

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Axogen, Inc.

Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued

(in thousands, except share and per share amounts)

targeted expansion of nerve repair indications and driving deeper adoption of our nerve repair algorithm across multiple surgical specialties.

Business Outlook

We are subject to risks and exposures from the evolving macroeconomic environment, including financial market volatility, geopolitical tensions and escalating trade disputes with U.S. trading partners. While our direct exposure to current tariffs is limited, risk lies in the potential for these disputes to cause a broader trade war, resulting in general economic instability and uncertainty that could cause our net revenue to fluctuate. We are actively assessing steps to mitigate potential adverse effects; however, if these measures are not effective in addressing wider economic disruption, our business, financial condition, results of operations and liquidity could be materially adversely affected.

Summary of Operational and Business Highlights

•Revenues were $69,731 for the quarter ended June 30, 2026, an increase of $13,069 or 23.1% compared to the quarter ended June 30, 2025.

•Gross profit was $50,674 for the quarter ended June 30, 2026, an increase of $8,656 or 20.6% compared to the quarter ended June 30, 2025.

•Year-to-date revenue growth through the second quarter of 2026 was broad-based, across all markets, which includes Extremities, Oral Maxillofacial & Head and Neck, and Breast, driven by 20% plus year-over-year account productivity, expanding sales force coverage, and improving commercial insurance coverage and payment.

•Publication of REPOSE, a prospective, randomized clinical study evaluating Axoguard Nerve Cap for symptomatic neuroma management, providing Level 1 evidence supporting nerve end protection and demonstrating favorable outcomes in pain burden, medication utilization, and recovery-related measures.

•Initiation of Nerve-RESTORE, a prospective, randomized, assessor-blinded study comparing Avance Nerve Graft to sural nerve autograft in mixed and motor nerve reconstruction, designed to generate Level 1 evidence in support of broader adoption of nerve repair globally.

•Acquired a minority ownership stake in Trace Biosciences, including a limited right of first refusal, to support development of its nerve-specific imaging technology.

18

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Axogen, Inc.

Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued

(in thousands, except share and per share amounts)

Results of Operations

Comparison of the Three Months Ended June 30, 2026 and 2025

The following table sets forth, for the periods presented, our results of operations expressed as dollar amounts and percentage of total revenue:

[[GREPCENT_TABLE]]
[["","Three Months Ended"],["","June 30, 2026","","June 30, 2025"],["(dollars in thousands)","Amount","","% of Revenue","","Amount","","% of Revenue"],["Revenues","$","69,731","","","100.0","%","","$","56,662","","","100.0","%"],["Cost of goods sold","19,057","","","27.3","","","14,644","","","25.8"],["Gross profit","50,674","","","72.7","","","42,018","","","74.2"],["Costs and expenses"],["Sales and marketing","30,827","","","44.2","","","23,804","","","42.0"],["Research and development","8,589","","","12.3","","","6,853","","","12.1"],["General and administrative","13,414","","","19.3","","","9,689","","","17.1"],["Total costs and expenses","52,830","","","75.8","","","40,346","","","71.2"],["(Loss) income from operations","(2,156)","","","(3.1)","","","1,672","","","3.0"],["Other income (expense)"],["Investment income","786","","","1.1","","","225","","","0.4"],["Interest expense","(1)","","","\u2014","","","(1,977)","","","(3.5)"],["Change in fair value of debt derivative liabilities","\u2014","","","\u2014","","","480","","","0.9"],["Other (expense) income, net","(145)","","","(0.2)","","","179","","","0.3"],["Total other income (expense), net","640","","","0.9","","","(1,093)","","","(1.9)"],["Net (loss) income","$","(1,516)","","","(2.2)","%","","$","579","","","1.0","%"]]
[[/GREPCENT_TABLE]]

Revenues

Revenues for the three months ended June 30, 2026 increased $13,069, or 23.1%, to $69,731, as compared to $56,662 for the three months ended June 30, 2025. The increase in revenues was primarily driven by an increase in unit volume and the impact of changes in price.

Gross Profit

Gross profit for the three months ended June 30, 2026 increased $8,656, or 20.6%, to $50,674, as compared to $42,018 for the three months ended June 30, 2025. Gross margin as a percentage of revenues was 72.7% and 74.2% for the three months ended June 30, 2026 and 2025, respectively. Compared to the three months ended June 30, 2025, margins on products sold declined primarily due to higher product costs, partially offset by lower inventory write-offs. Elevated product costs were largely attributable to increased sales of higher-cost biologic Avance product commencing in April 2026 and increased demand of long Avance products, primarily driven by growth in breast Resensation® procedures.

19

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Axogen, Inc.

Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued

(in thousands, except share and per share amounts)

Costs and Expenses

Following is a summary of the change in costs and expenses for the three months ended June 30, 2026:

[[GREPCENT_TABLE]]
[["(dollars in thousands)","Total costs and expenses","","Sales and marketing","","Research and development","","General and administrative"],["For the three months ended June 30, 2025","$","40,346","","","$","23,804","","","$","6,853","","","$","9,689"],["Change from:"],["Compensation costs (1)","6,446","","","3,670","","","427","","","2,349"],["Stock-based compensation expenses (2)","3,098","","","689","","","766","","","1,643"],["Research and development project costs (3)","1,108","","","\u2014","","","1,108","","","\u2014"],["Marketing program costs","489","","","489","","","\u2014","","","\u2014"],["Travel costs","457","","","417","","","97","","","(57)"],["Professional services fees and expenses","(706)","","","274","","","(882)","","","(98)"],["Occupancy related costs","(45)","","","(25)","","","5","","","(25)"],["Other costs and expenses","1,637","","","1,509","","","215","","","(87)"],["Total change","12,484","","","7,023","","","1,736","","","3,725"],["For the three months ended June 30, 2026","$","52,830","","","$","30,827","","","$","8,589","","","$","13,414"],["Percentage change","30.9","%","","29.5","%","","25.3","%","","38.4","%"]]
[[/GREPCENT_TABLE]]

__________

(1)Primarily due to higher salaries, employee benefits, sales commissions, incentive compensation and payroll taxes, due to higher headcount and sales volumes.

(2)Primarily due to anticipated above target achievement for certain PSU awards due to sales growth.

(3)Clinical trial costs and expenses represented approximately 53% and 47% of total research and development costs and expenses for the three months ended June 30, 2026 and 2025, respectively. Product development costs and expenses represented approximately 47% and 53% of total research and development costs and expenses for the three months ended June 30, 2026 and 2025, respectively.

Other Income (Expense), Net

Other income, net, for the three months ended June 30, 2026 increased $1,733, or 158.6%, to $640, as compared to Other expense, net, of $1,093 for the three months ended June 30, 2025. The increase in total other income, net, was primarily due to a decrease of $1,976 in interest expense and an increase of investment income of $561, partially offset by decreases of $480 from the change in fair value of the debt derivative liabilities and $324 from other income.

Income Taxes

We had no material income t

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/805928/000080592826000031/axgn-20251231.htm
Complete FY 2025 MD&A: /company/AXGN/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2026-02-24
Report date: 2025-12-31

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following information should be read in conjunction with our consolidated financial statements and the notes thereto contained in Item 8 of Part II in this Form 10-K, “Forward-Looking Statements” contained in Part I of this Form 10-K, “Risk Factors” contained in Item 1A of this Form 10-K, and the other information appearing elsewhere in, or incorporated by reference into, this Form 10-K. Dollar amounts referenced in this Item 7 are in thousands, except per share amounts.

Unless the context otherwise requires, all references in this report to “Axogen,” the “Company,” “we,” “us” and “our” refer to Axogen, Inc., and its wholly owned subsidiaries Axogen Corporation (“AC”), Axogen Processing Corporation, Axogen Europe GmbH and Axogen Germany GmbH.

Overview

We are the leading company focused specifically on the science, development, and commercialization of technologies for peripheral nerve regeneration and repair. We are passionate about providing the opportunity to restore nerve function and quality of life for patients with peripheral nerve injuries. We provide innovative, clinically proven, and economically effective repair solutions for surgeons and healthcare providers. Peripheral nerves provide the pathways for both motor and sensory signals throughout the body. Every day, people suffer traumatic injuries or undergo surgical procedures that impact the function of their peripheral nerves. Physical damage to a peripheral nerve or the inability to properly reconnect peripheral nerves can result in the loss of muscle or organ function, the loss of sensory feeling, or the initiation of pain.

Product Portfolio

Our platform for peripheral nerve repair features a comprehensive portfolio of products, including:

•Avance® (acellular nerve allograft-arwx) an FDA-approved acellular nerve scaffold for the treatment of adult and pediatric patients aged one month or older with sensory, mixed, and motor peripheral nerve discontinuities (“Avance”).

•Avance® Nerve Graft, a biologically active off-the-shelf processed human nerve allograft for bridging severed peripheral nerves without the comorbidities associated with a second surgical site (“Avance Nerve Graft” and together with Avance, the “Avance Products”).

•Axoguard Nerve Connector®, a porcine (pig) submucosa extracellular matrix (“ECM”) coaptation aid for tensionless repair of severed peripheral nerves.

•Axoguard Nerve Protector®, a porcine submucosa ECM product used to wrap and protect damaged peripheral nerves and reinforce the nerve reconstruction while minimizing soft tissue attachments.

•Axoguard HA+ Nerve Protector™, a porcine submucosa ECM base layer coated with a proprietary hyaluronate-alginate gel, a next-generation technology designed to enhance nerve gliding and provide short- and long-term protection for peripheral nerve injuries.

•Axoguard Nerve Cap®, a porcine submucosa ECM product used to protect a peripheral nerve end and separate the nerve from the surrounding environment to reduce the development of symptomatic or painful neuroma.

•Avive+ Soft Tissue Matrix™, a multi-layer amniotic membrane allograft used to protect and separate tissues in the surgical bed during the critical phase of tissue healing.

Our portfolio of products is currently available in the United States (“U.S.”), Canada, Germany, the United Kingdom, Spain and several other countries.

We derive substantially all of our revenues from sales of our nerve repair products to customers in the U.S.

On December 3, 2025, the FDA approved the Biologics License Application (“BLA”) for Avance (acellular nerve allograft-arwx). Continued approval depends on verification and description of clinical benefits in confirmatory studies.

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Axogen, Inc.

Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued

(in thousands, except share and per share amounts)

Our strategy remains focused on deepening our presence in high-potential accounts, specifically Level 1 trauma centers and academic-affiliated hospitals with a high number of trained microsurgeons. We will drive growth in these accounts through targeted expansion of nerve repair indications and driving deeper adoption of our nerve repair algorithm across multiple surgical specialties.

Summary of Operational and Business Highlights

•Revenue was $225,208 for the year ended December 31, 2025, an increase of $37,870, or 20.2%, compared to the year ended December 31, 2024.

•Gross profit was $167,353 for the year ended December 31, 2025, an increase of $25,376, or 17.9%, compared to the year ended December 31, 2024.

•Gross margin reflects one-time costs of approximately $1.9 million, or 1% for full-year 2025, respectively, related to the FDA BLA approval of Avance®. 67% of the one-time costs are non-cash and relate to the vesting of certain stock compensation awards containing FDA BLA approval of Avance® milestones.

•Net loss for the full-year 2025 was $15.7 million, or $0.34 per share, compared to $10.0 million, or $0.23 per share for 2024.

•As of December 31, 2025, cash and cash equivalents, restricted cash, and investments was $45.5 million, as compared to $39.5 million as of December 31, 2024, an increase of $6.0 million.

•Expanded coverage and reimbursement for nerve repair for peripheral nerve injuries using synthetic conduits or allografts, increasing the total number of new lives covered in 2025 to approximately 19.8 million and bringing coverage amongst commercial payers to more than 65%.

•Effective January 1, 2026, CMS created a new Level 3 Nerve Procedure Code, increasing Avance facility reimbursement 40% year-over-year to $9 for hospital outpatient and 35% to $6 for ASC-based procedures.

•On January 23, 2026, we closed an upsized public offering with the sale of 4,600,000 shares of common stock and receipt of $133,338 of net proceeds. $69,707 of the net proceeds were used to fully repay and terminate our term loan facility on January 28, 2026 with the remaining funds available for working capital, capital expenditures, and other general corporate purposes.

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Axogen, Inc.

Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued

(in thousands, except share and per share amounts)

Results of Operations

Comparison of the Years Ended December 31, 2025 and 2024

The following table sets forth our results of operations expressed as dollar amounts and as percentages of total revenue for the periods presented:

[[GREPCENT_TABLE]]
[["","Years Ended December 31,"],["","2025","","2024"],["(dollars in thousands)","Amount","","% of Revenue","","Amount","","% of Revenue"],["Revenues","$","225,208","","","100.0","%","","$","187,338","","","100.0","%"],["Cost of goods sold","57,855","","","25.7","","","45,361","","","24.2"],["Gross profit","167,353","","","74.3","","","141,977","","","75.8"],["Cost and expenses"],["Sales and marketing","97,740","","","43.4","","","78,461","","","41.9"],["Research and development","32,885","","","14.6","","","27,767","","","14.8"],["General and administrative","44,577","","","19.8","","","39,036","","","20.8"],["Total costs and expenses","175,202","","","77.8","","","145,264","","","77.5"],["Loss from operations","(7,849)","","","(3.5)","","","(3,287)","","","(1.8)"],["Other income (expense):"],["Investment income","1,168","","","0.5","","","1,141","","","0.6"],["Interest expense","(7,702)","","","(3.4)","","","(8,206)","","","(4.4)"],["Change in fair value of derivatives","(1,487)","","","(0.7)","","","587","","","0.3"],["Other expense","167","","","0.1","","","(199)","","","(0.1)"],["Total other expense, net","(7,854)","","","(3.5)","","","(6,677)","","","(3.7)"],["Net loss","$","(15,703)","","","(7.0)","%","","$","(9,964)","","","(5.3)","%"]]
[[/GREPCENT_TABLE]]

Revenues

Revenues for the year ended December 31, 2025 increased $37,870, or 20.2%, to $225,208, as compared to $187,338 for the year ended December 31, 2024. Revenue growth was driven by an increase in unit volume, as well as the impact of changes in price and product mix.

Gross Profit

Gross profit for the year ended December 31, 2025 increased $25,376, or 17.9%, to $167,353, as compared to $141,977 for the year ended December 31, 2024. Gross margin as a percentage of revenue decreased to 74.3% for the year ended December 31, 2025, as compared to 75.8% for the year ended December 31, 2024. Gross margin reflects one-time costs of approximately $1,900, or 1%, related to the FDA BLA approval of Avance, with approximately 67% of such costs related to the vesting of stock compensation awards containing FDA BLA approval of Avance milestones. The decrease in gross margin was due to higher product costs and BLA-related stock-based compensation costs, partially offset by lower inventory write-offs.

61

Table of Contents

Axogen, Inc.

Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued

(in thousands, except share and per share amounts)

Costs and Expenses

Following is a summary of the change in costs and expenses for the year ended December 31, 2025:

[[GREPCENT_TABLE]]
[["(dollars in thousands)","Total costs and expenses","","Sales and marketing","","Research and development","","General and administrative"],["For the year ended December 31, 2024","$","145,264","","","$","78,461","","","$","27,767","","","$","39,036"],["Change from:"],["Compensation costs (1)","22,230","","","13,312","","","5,481","","","3,437"],["Marketing program costs","3,676","","","3,676","","","\u2014","","","\u2014"],["Travel costs","2,446","","","2,063","","","213","","","170"],["Occupancy related costs","(1,145)","","","(269)","","","(316)","","","(560)"],["Research and development project costs (2)","(69)","","","\u2014","","","(69)","","","\u2014"],["Professional services fees and expenses","(12)","","","209","","","(207)","","","(14)"],["Other","2,812","","","288","","","16","","","2,508"],["Total change","29,938","","","19,279","","","5,118","","","5,541"],["For the year ended December 31, 2025","$","175,202","","","$","97,740","","","$","32,885","","","$","44,577"],["Percentage change","20.6","%","","24.6","%","","18.4","%","","14.2","%"]]
[[/GREPCENT_TABLE]]

__________

(1)The increase in compensation costs is primarily due to higher: (i) stock-based compensation, primarily due to $7,236 from PSU awards vesting in connection with Avance BLA approval by the FDA, and (ii) salaries and sales commissions, due to higher headcount and sales volume. BLA approval-related stock compensation expenses included $749 in sales and marketing, $4,600 in research and development, and $1,887 in general and administrative.

(2)The decrease in research and development costs and expenses was primarily due to product development and clinical expenses. Product development costs include spending for a number of specific programs, including the non-clinical expenses related to the BLA for Avance. Product development costs and expenses represented approximately 50% and 53% of total research and development costs and expenses for the years ended December 31, 2025 and 2024, respectively. Clinical trial costs and expenses represented approximately 50% and 47% of total research and development costs and expenses for the years ended December 31, 2025 and 2024, respectively.

Other Expense

Total other expense, net increased $1,177, or 17.6%, to $7,854 for the year ended December 31, 2025, as compared to $6,677 for the year ended December 31, 2024. The increase was primarily due to the change in the fair value of debt derivative liabilities. See Note 6 - Fair Value Measurement in the Notes to the Consolidated Financial Statements in Part II, Item 8 of this Form 10-K for details regarding the valuation of the debt derivative liabilities.

Income Taxes

We had no federal income tax expense

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/AXGN/mda/fy2025/
All MD&A years: /company/AXGN/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/AXGN/mda/fy2024/): filed 2025-02-26; accession 0000805928-25-000017 (https://www.sec.gov/Archives/edgar/data/805928/000080592825000017/axgn-20241231.htm)
- [FY 2023 MD&A](/company/AXGN/mda/fy2023/): filed 2024-03-05; accession 0000805928-24-000028 (https://www.sec.gov/Archives/edgar/data/805928/000080592824000028/axgn-20231231.htm)
- [FY 2022 MD&A](/company/AXGN/mda/fy2022/): filed 2023-03-14; accession 0000805928-23-000020 (https://www.sec.gov/Archives/edgar/data/805928/000080592823000020/axgn-20221231.htm)
- [FY 2021 MD&A](/company/AXGN/mda/fy2021/): filed 2022-02-25; accession 0000805928-22-000026 (https://www.sec.gov/Archives/edgar/data/805928/000080592822000026/axgn-20211231.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 3845 Electromedical & Electrotherapeutic Apparatus) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index
- [TCU](/indicator/TCU/): Capacity Utilization: Total Index
- [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities
- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm

Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/), [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/AXGN.md · JSON record: /company/AXGN.json · verified financials: /company/AXGN/financials.json / /company/AXGN/financials.csv · machine TOC for the whole site: /llms.txt