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

AxoGen (NASDAQ:AXGN) issued its earnings results on Wednesday. The medical equipment provider reported ($0.03) earnings per share (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 Performance

Shares of AxoGen stock traded up $1.64 during trading hours on Wednesday, reaching $42.79. The company’s stock had a trading volume of 1,110,370 shares, compared to its average volume of 1,111,822. AxoGen has a one year low of $12.39 and a one year high of $46.95. The company’s 50 day simple moving average is $42.13 and its 200 day simple moving average is $37.22. The company has a debt-to-equity ratio of 0.08, a quick ratio of 5.33 and a current ratio of 7.10. The stock has a market cap of $2.28 billion, a P/E ratio of -66.99 and a beta of 1.09.

Insider Activity at AxoGen

In related news, Director Kathy Johnson Weiler sold 16,344 shares of the stock in a transaction dated Thursday, May 7th. The shares were sold at an average price of $44.09, for a total transaction of $720,606.96. Following the sale, the director owned 16,344 shares in the company, valued at $720,606.96. This represents a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Amy Mcbride Wendell sold 1,647 shares of the stock in a transaction dated Friday, May 8th. The stock was sold at an average price of $42.60, for a total transaction of $70,162.20. Following the sale, the director owned 93,826 shares in the company, valued at approximately $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. Insiders sold a total of 29,041 shares of company stock valued at $1,268,792 in the last quarter. Insiders own 2.44% of the company’s stock.

Institutional Trading of AxoGen

A number of institutional investors and hedge funds have recently made changes to their positions in AXGN. Invesco Ltd. boosted its position in AxoGen by 86.1% during the 4th quarter. Invesco Ltd. now owns 189,345 shares of the medical equipment provider’s stock valued at $6,197,000 after purchasing an additional 87,622 shares during the period. Mercer Global Advisors Inc. ADV increased its position in AxoGen by 41.7% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 15,857 shares of the medical equipment provider’s stock worth $503,000 after buying an additional 4,664 shares during the period. XTX Topco Ltd acquired a new stake in AxoGen in the fourth quarter worth $228,000. Uniplan Investment Counsel Inc. lifted its stake in AxoGen by 7.5% in the fourth quarter. Uniplan Investment Counsel Inc. now owns 170,620 shares of the medical equipment provider’s stock valued at $5,584,000 after buying an additional 11,882 shares during the last quarter. Finally, Susquehanna Portfolio Strategies LLC lifted its stake in AxoGen by 22.9% in the fourth quarter. Susquehanna Portfolio Strategies LLC now owns 114,724 shares of the medical equipment provider’s stock valued at $3,755,000 after buying an additional 21,356 shares during the last quarter. 80.29% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of equities analysts recently commented on the company. Canaccord Genuity Group lifted their price target on AxoGen from $45.00 to $50.00 and gave the stock a “buy” rating in a research note on Wednesday, April 29th. Zacks Research upgraded AxoGen from a “strong sell” rating to a “hold” rating in a research note on Friday, May 29th. Wall Street Zen raised AxoGen from a “hold” rating to a “buy” rating in a report on Sunday. Citigroup reiterated an “outperform” rating on shares of AxoGen in a research report on Wednesday, April 29th. Finally, Raymond James Financial reiterated an “outperform” rating and issued a $48.00 price target on shares of AxoGen in a report on Wednesday, April 29th. Nine research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target 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.