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

AxoGen (NASDAQ:AXGN) issued its earnings results on Wednesday. The medical equipment provider reported ($0.03) EPS for the quarter, missing analysts’ consensus estimates of $0.12 by ($0.15), Zacks reports. AxoGen had a negative net margin of 13.21% and a negative return on equity of 9.63%.

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 3.2%

Shares of AxoGen stock traded up $1.30 during trading hours on Wednesday, hitting $42.45. The company had a trading volume of 1,396,749 shares, compared to its average volume of 1,114,353. The company’s 50-day moving average is $42.13 and its two-hundred day moving average is $37.22. AxoGen has a twelve month low of $12.39 and a twelve month 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 company has a market cap of $2.26 billion, a P/E ratio of -66.62 and a beta of 1.09.

Insiders Place Their Bets

In related news, Director Kathy Johnson Weiler sold 16,344 shares of the company’s stock in a transaction on Thursday, May 7th. The shares were sold at an average price of $44.09, for a total value of $720,606.96. Following the completion of the sale, the director owned 16,344 shares in the company, valued at $720,606.96. This represents a 50.00% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Amy Mcbride Wendell sold 1,647 shares of the business’s stock in a transaction dated Friday, May 8th. The shares were sold at an average price of $42.60, for a total value of $70,162.20. Following the completion of the transaction, the director owned 93,826 shares in the company, valued at $3,996,987.60. This trade represents a 1.73% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 29,041 shares of company stock valued at $1,268,792. 2.44% of the stock is currently owned by insiders.

Institutional Investors Weigh In On AxoGen

Hedge funds and other institutional investors have recently bought and sold shares of the business. Aquatic Capital Management LLC lifted its stake in shares of AxoGen by 287.8% in the third 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 during the period. Arax Advisory Partners increased its position in shares of AxoGen by 362.4% in the fourth quarter. Arax Advisory Partners now owns 1,045 shares of the medical equipment provider’s stock worth $34,000 after acquiring an additional 819 shares in the last quarter. Caitong International Asset Management Co. Ltd purchased a new position in AxoGen in the fourth quarter valued at about $36,000. Kestra Advisory Services LLC bought a new stake in shares of AxoGen in the 4th quarter worth approximately $39,000. Finally, Tower Research Capital LLC TRC lifted its stake in shares of AxoGen by 189.9% in the 2nd quarter. Tower Research Capital LLC TRC now owns 5,079 shares of the medical equipment provider’s stock worth $55,000 after acquiring an additional 3,327 shares during the period. Institutional investors and hedge funds own 80.29% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on AXGN. Citizens Jmp increased their price target on shares of AxoGen from $42.00 to $50.00 and gave the stock a “market outperform” rating in a report on Wednesday, April 29th. HC Wainwright lifted their target price on shares of AxoGen from $39.00 to $50.00 and gave the stock a “buy” rating in a research note on Wednesday, April 29th. Wall Street Zen raised shares of AxoGen from a “hold” rating to a “buy” rating in a report on Sunday. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of AxoGen in a report on Friday, May 29th. Finally, Raymond James Financial restated an “outperform” rating and issued a $48.00 target price on shares of AxoGen in a report on Wednesday, April 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 stock. According to data from MarketBeat, AxoGen currently has an average rating of “Moderate Buy” and a consensus target price of $46.50.

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.