Highlights

  • Third quarter 2026 revenue was $75.8 million, compared with $60.1 million last year, and net income was $0.04 per share.
  • Full-year 2026 revenue is expected to be at least $290 million, including at least $7 million from BioCircuit.
  • Cash, restricted cash and investments were $350.1 million at September 30, 2026, compared with $113.4 million at June 30, 2026.
  • Axogen completed its BioCircuit Technologies acquisition on October 1, 2026 and plans to begin prostate market development in 2027.

Axogen, Inc. (NASDAQ:AXGN) shares were trading at USD 48.38 on October 28, 2026, up 29.14%, with a relative volume at time of 15.19. The peripheral nerve repair company completed its BioCircuit acquisition on October 1 and reported third quarter 2026 results with raised full-year revenue guidance on October 28.

Axogen is incorporated in Minnesota and lists its principal executive offices in Alachua, Florida. The company focuses on the science, development and commercialization of technologies for peripheral nerve regeneration and repair. Its product portfolio includes Avance Nerve Graft, the Axoguard nerve products, Avive+ Soft Tissue Matrix and NerveTape. Management reports results across Extremities, Oral Maxillofacial and Head and Neck, and Breast markets.

Third Quarter Results

Axogen reported revenue of $75.8 million for the third quarter ended September 30, 2026, an increase of 26.2% compared with $60.1 million in the third quarter of 2025. Gross margin was 74.8%, compared with 76.6% a year earlier. Net income was $2.3 million, or $0.04 per share, compared with $0.7 million, or $0.01 per share.

On a non-GAAP basis, adjusted net income was $13.1 million, or $0.21 per share, compared with $6.1 million, or $0.12 per share. Adjusted EBITDA was $13.4 million, compared with $9.2 million.

For the nine months ended September 30, 2026, revenues were $207,022 thousand, compared with $165,304 thousand. The net loss was $18,766 thousand, or $0.35 per diluted share, including a loss on extinguishment of debt of $16,849 thousand.

Balance Sheet, Cash Flow and Capital

Cash and cash equivalents, restricted cash and investments were $350.1 million at September 30, 2026, compared with $113.4 million at June 30, 2026, an increase of $236.7 million. Cash and cash equivalents on the balance sheet were $328,888 thousand at September 30, 2026, compared with $35,548 thousand at December 31, 2025.

Net cash provided by operating activities for the nine months was $25,322 thousand, compared with net cash used of $2,226 thousand. Free cash flow, a non-GAAP measure, was $18,942 thousand, compared with negative $5,862 thousand.

Axogen closed an upsized public offering of 5,646,500 shares of common stock and received $225 million of net proceeds. Of those proceeds, $200 million funded the BioCircuit acquisition and $1.9 million funded transaction related expenses, with the remainder available for general corporate purposes.

Business Developments

On October 1, 2026, Axogen completed the acquisition of BioCircuit Technologies, Inc., a privately held medical device company and developer of NerveTape. On the call, management said the purchase price was $200 million in cash plus transaction expenses.

The company said it received positive coverage decisions from Elevance and Aetna, and that commercial payer coverage for Avance is now approximately 96% of covered lives in the United States. On the call, management said Aetna's policy currently limits coverage to sensory nerve gaps of 30 millimeters or less in the upper extremity.

Based on positive clinical study outcomes, Axogen decided to begin prostate market development in 2027. Management will host a prostate-specific conference call and webcast on November 9, 2026.

2026 Outlook

Axogen expects 2026 full-year revenue of at least $290 million, representing growth of at least 29%, including at least $7 million of revenue from the BioCircuit acquisition. Excluding BioCircuit, the company expects organic revenue of at least $283 million, representing growth of at least 26%. It continues to expect gross margin of at least 73% and positive free cash flow for the full year.

On the call, the chief financial officer said the step-up in value of acquired inventory could negatively affect gross margin in the fourth quarter and for the full year relative to current expectations. Management also said it expects fourth quarter gross margin to decline sequentially and be slightly less than the second quarter.