Axogen, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Q3 2026 revenue was $75.8 million, a 26.2% increase compared to $60.1 million in Q3 2025.
• Year-to-date revenue through Q3 2026 was $207.0 million, up from $165.3 million in the same period of 2025.
• Q3 2026 gross margin was 74.8%, down from 76.6% in Q3 2025.
• Q3 2026 net income was $2.3 million ($0.04 per share), compared to $0.7 million ($0.01 per share) in Q3 2025.
• Q3 2026 adjusted net income was $13.1 million ($0.21 per share), compared to $6.1 million ($0.12 per share) in Q3 2025.
• Q3 2026 adjusted EBITDA was $13.4 million, up from $9.2 million in Q3 2025.
• Cash, cash equivalents, restricted cash, and investments totaled $350.1 million as of September 30, 2026, an increase of $236.7 million from $113.4 million as of June 30, 2026.
• Nine-month 2026 free cash flow was $18.9 million, compared to a negative $5.9 million in the same period of 2025.
• Long-term debt was eliminated, dropping from $48.4 million as of December 31, 2025, to zero as of September 30, 2026.
• GAAP net loss for the nine months ended September 30, 2026, was $18.8 million, compared to a loss of $2.5 million in 2025.

Guidance and Future Outlook:

• Full-year 2026 revenue guidance raised to at least $290 million, representing growth of at least 29%.
• Guidance includes at least $7 million in revenue from the BioCircuit acquisition.
• Excluding BioCircuit, organic revenue is expected to be at least $283 million, representing growth of at least 26%.
• Full-year 2026 gross margin is expected to be at least 73%.
• Full-year 2026 positive free cash flow is expected.
• Prostate market development is scheduled to begin in 2027.

Business Segments and Product Lines:

• Year-to-date revenue growth was broad-based across Extremities, Oral Maxillofacial & Head and Neck, and Breast segments.
• Growth drivers included 20% plus year-over-year account productivity, expanding sales force coverage, and improving commercial insurance coverage and payment.
• Commercial payer coverage for Avance is now approximately 96% of covered lives in the United States following positive coverage decisions from Elevance and Aetna.
• Product portfolio includes Avance, Avance Nerve Graft, Axoguard Nerve Connector, Axoguard Nerve Protector, Axoguard HA+ Nerve Protector, Axoguard Nerve Cap, Avive+ Soft Tissue Matrix, and NerveTape.

Market and Competitive Landscape:

• Management stated that strong growth across all markets validates market development strategies and commercial execution strength.
• The company remains well-positioned to achieve 2026 revenue guidance and longer-term strategic objectives.

Risks and Challenges:

• Risks include integration of BioCircuit and realization of anticipated benefits.
• Potential disruptions from global supply chain issues, inflation, and hospital staffing challenges.
• Risks related to product development timelines, regulatory processes, financial performance, surgeon adoption rates, and market awareness.
• Risks associated with the estimated total addressable market.

Management Commentary and Tone:

• Michael Dale, President and CEO, expressed delight with Q3 and year-to-date revenue performance and progress on strategic plan priorities.
• Management highlighted the strength of commercial execution and validated market development strategies.

Other Key Points:

• Completed an upsized public offering of 5,646,500 shares of common stock, receiving $225 million in net proceeds.
• $200 million of net proceeds were used to fund the BioCircuit acquisition, $1.9 million for transaction expenses, with remaining funds for general corporate purposes.
• Completed the acquisition of BioCircuit Technologies, Inc. on October 1, 2026.
• BioCircuit is a developer of NerveTape®.
• A prostate-specific investment-community conference call and webcast is scheduled for November 9, 2026.
• Nine-month 2026 stock-based compensation expense was $24.4 million.
• Nine-month 2026 loss on extinguishment of debt was $16.8 million.