Axogen, Inc. reported third‑quarter 2025 financial results, showing revenue of $60.1 million, a 23.5% year‑over‑year increase from $48.6 million in Q3 2024. Adjusted EBITDA rose to $9.2 million, up from a net loss of $1.9 million in the same quarter last year.
Gross margin for the quarter was 76.6%, higher than the 73.1% reported in the original summary. Management attributed the improvement to lower inventory write‑offs, reduced shipping costs, and modestly higher product costs that were offset by cost‑control measures.
Axogen raised its full‑year 2025 revenue guidance to $222.8 million, representing a 19% increase from the prior year. The company reiterated a gross‑margin outlook of 73% to 75% for the year, noting that one‑time BLA‑related costs will temporarily depress margins by about 1%.
The Avance Nerve Graft BLA is expected to be completed in December, with the FDA extending the PDUFA goal date to December 5, 2025. Approval will secure 12 years of market exclusivity for the product and strengthen the company’s competitive moat.
Axogen’s net income for Q3 2025 was $0.7 million, a turnaround from the $1.9 million loss in Q3 2024. The company also reported that discontinuation of the case stock program contributed approximately $1.6 million to Q3 revenue, a one‑time benefit that management expects to exclude from future modeling.
Management highlighted that revenue growth in high‑potential accounts fell slightly short of targets due to strong growth in non‑high‑potential accounts and the shift away from the case stock program. The company also noted that the BLA approval timeline extension introduces timing risk but is not expected to delay the overall market expansion.
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