Axogen, Inc.
For the period ended Jun 30, 2026. Filed Jul 29, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Jul 29, 2026
AXGN$50.02+2.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-04-28.
0000805928-26-000053
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-07-29.
0000805928-26-000094
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 59 previous paragraphs and 78 current paragraphs.
40 unchanged; 15 reworded; 15 added; 4 removed; 0 previous and 8 current paragraphs rearranged.
Tables are not compared: 4 previous and 6 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (15)
Current report
•Year-to-date revenue growth through the second quarter of 2026 was broad-based, across all markets, which includes Extremities, Oral Maxillofacial & Head and Neck, and Breast, driven by 20% plus year-over-year account productivity, expanding sales force coverage, and improving commercial insurance coverage and payment.
Current report
•Publication of REPOSE, a prospective, randomized clinical study evaluating Axoguard Nerve Cap for symptomatic neuroma management, providing Level 1 evidence supporting nerve end protection and demonstrating favorable outcomes in pain burden, medication utilization, and recovery-related measures.
Current report
•Initiation of Nerve-RESTORE, a prospective, randomized, assessor-blinded study comparing Avance Nerve Graft to sural nerve autograft in mixed and motor nerve reconstruction, designed to generate Level 1 evidence in support of broader adoption of nerve repair globally.
Current report
•Acquired a minority ownership stake in Trace Biosciences, including a limited right of first refusal, to support development of its nerve-specific imaging technology.
Current report
Gross profit for the three months ended June 30, 2026 increased $8,656, or 20.6%, to $50,674, as compared to $42,018 for the three months ended June 30, 2025. Gross margin as a percentage of revenues was 72.7% and 74.2% for the three months ended June 30, 2026 and 2025, respectively. Compared to the three months ended June 30, 2025, margins on products sold declined primarily due to higher product costs, partially offset by lower inventory write-offs. Elevated product costs were largely attributable to increased sales of higher-cost biologic Avance product commencing in April 2026 and increased demand of long Avance products, primarily driven by growth in breast Resensation® procedures.
Current report
Other Income (Expense), Net
Current report
Comparison of the Six Months Ended June 30, 2026 and 2025
Current report
Revenues
Current report
Gross Profit
Current report
Costs and Expenses
Current report
Other expense, net, for the six months ended June 30, 2026 increased $12,846, or 393.3%, to $16,112, as compared to $3,266 for the six months ended June 30, 2025. The increase in total other expense, net, was due to loss on the extinguishment of debt of $16,849, and decreases of $322 from the change in fair value of the debt derivative liabilities and $264 from other income. These increases were partially offset by a decrease of $3,532 in interest expense and an increase of $1,057 in investment income.
Current report
Income Taxes
Current report
Uses of Capital
Current report
On July 28, 2026, we invested $7,000 in Trace Biosciences, a privately held biotechnology company. We funded this investment with cash on hand.
Current report
(2)Purchase obligations include agreements to purchase goods or services that are enforceable, legally binding and specify all significant terms, including fixed or minimum quantities to be purchased; fixed, minimum or variable price provisions; and the approximate timing of the transaction.
Removed paragraphs (4)
Previous report
•Received positive coverage decisions from Cigna and Elevance Health, two of the nation’s largest commercial insurers.
Previous report
•Effective January 1, 2026, CMS created a new Level 3 Nerve Procedure Code, increasing Avance facility reimbursement 40% year-over-year to $9 for hospital outpatient and 35% to $6 for ASC-based procedures.
Previous report
•On January 23, 2026, Axogen closed an upsized public offering with the sale of 4,600,000 shares of common stock, yielding net proceeds of $133,252. From these net proceeds, $69,707 were used to fully repay and terminate our Credit Facility on January 28, 2026. Remaining funds are available for working capital, capital expenditures, and other general corporate purposes.
Previous report
Net Cash (Used in) Provided by Investing Activities
Reworded paragraphs (15)
Previous wording
On December 3, 2025, the FDA approved the BLA for Avance. Continued approval depends on verification and description of clinical benefits in confirmatory studies.
Current wording
On December 3, 2025, the FDA approved the Biologics License Application for Avance. Continued approval depends on verification and description of clinical benefits in confirmatory studies.
Previous wording
•Revenues were $61,457 for the quarter ended March 31, 2026, an increase of $12,897 or 26.6% compared to the quarter ended March 31, 2025.
Current wording
•Revenues were $69,731 for the quarter ended June 30, 2026, an increase of $13,069 or 23.1% compared to the quarter ended June 30, 2025.
Previous wording
•Gross profit was $46,189 for the quarter ended March 31, 2026, an increase of $11,256 or 32.2% compared to the quarter ended March 31, 2025.
Current wording
•Gross profit was $50,674 for the quarter ended June 30, 2026, an increase of $8,656 or 20.6% compared to the quarter ended June 30, 2025.
Previous wording
The following table sets forth, for the periods indicated, our results of operations expressed as dollar amounts and percentage of total revenue:
Current wording
The following table sets forth, for the periods presented, our results of operations expressed as dollar amounts and percentage of total revenue:
Previous wording
Revenues for the three months ended March 31, 2026 increased $12,897, or 26.6%, to $61,457, as compared to $48,560 for the three months ended March 31, 2025. The increase in revenues was primarily driven by an increase in unit volume and the impact of changes in price.
Current wording
Revenues for the three months ended June 30, 2026 increased $13,069, or 23.1%, to $69,731, as compared to $56,662 for the three months ended June 30, 2025. The increase in revenues was primarily driven by an increase in unit volume and the impact of changes in price.
Previous wording
(3)Clinical trial costs and expenses represented approximately 59% and 43% of total research and development costs and expenses for the three months ended March 31, 2026 and 2025, respectively. Product development costs and expenses represented approximately 41% and 57% of total research and development costs and expenses for the three months ended March 31, 2026 and 2025, respectively.
Current wording
(3)Clinical trial costs and expenses represented approximately 53% and 47% of total research and development costs and expenses for the three months ended June 30, 2026 and 2025, respectively. Product development costs and expenses represented approximately 47% and 53% of total research and development costs and expenses for the three months ended June 30, 2026 and 2025, respectively.
Previous wording
Other expense, net for the three months ended March 31, 2026 increased $14,579, or 670.9%, to $16,752, as compared to $2,173 for the three months ended March 31, 2025. The increase in total other expense, net was primarily due to loss on the extinguishment of debt of $16,849, partially offset by a decrease of $1,556 in interest expense and an increase of $496 in investment income.
Current wording
Other income, net, for the three months ended June 30, 2026 increased $1,733, or 158.6%, to $640, as compared to Other expense, net, of $1,093 for the three months ended June 30, 2025. The increase in total other income, net, was primarily due to a decrease of $1,976 in interest expense and an increase of investment income of $561, partially offset by decreases of $480 from the change in fair value of the debt derivative liabilities and $324 from other income.
Previous wording
Gross profit for the three months ended March 31, 2026 increased $11,256, or 32.2%, to $46,189, as compared to $34,933 for the three months ended March 31, 2025. Gross margin as a percentage of revenues was 75.2% and 71.9% for the three months ended March 31, 2026 and 2025, respectively. Higher margins on products sold were driven by lower inventory write-offs and lower shipping costs on products sold, partially offset by higher product costs.
Current wording
Gross profit for the six months ended June 30, 2026 increased $19,912, or 25.9%, to $96,863, as compared to $76,951 for the six months ended June 30, 2025. Gross margin as a percentage of revenues was 73.8% and 73.1% for the six months ended June 30, 2026 and 2025, respectively. Higher margins on products sold were driven by lower inventory write-offs partially offset by the impact of higher product costs.
Previous wording
We had no material income tax expense or benefit during the three months ended March 31, 2026 and 2025 due to the incurrence of net operating losses in both periods, the benefits of which have a full valuation allowance. From time to time, we receive notices of examination of prior tax filings from federal and state authorities. During the three months ended March 31, 2026, the IRS completed examining our 2021 federal income tax return with no material findings. We do not believe that there are any material additional tax expenses or benefits.
Current wording
We had no material income tax expense or benefit during the six months ended June 30, 2026 and 2025 due to the incurrence of net operating losses in both periods, the benefits of which have a full valuation allowance. From time to time, we receive notices of examination of prior tax filings from federal and state authorities. During the six months ended June 30, 2026, the IRS completed examining our 2021 federal income tax return with no material findings.
Previous wording
As of March 31, 2026, our principal sources of liquidity were our cash and cash equivalents and investments totaling $101,601. Our cash equivalents are comprised of money market mutual funds and our investments primarily consist of U.S. Treasuries and corporate bonds. Our cash and cash equivalents and investments increased $60,073 to $101,601 from $41,528 at December 31, 2025. The increase was primarily as a result of net proceeds from the Offering of $133,252 and the release of $2,000 of restricted cash under the contractual terms of a lease agreement. These increases were partially offset by cash used for early payoff and termination of the Credit Facility of $69,707 and payment of annual bonuses during the first quarter of 2026.
Current wording
As of June 30, 2026, our principal sources of liquidity were our cash and cash equivalents and investments totaling $111,412. Our cash equivalents are comprised of money market mutual funds and our investments primarily consist of U.S. treasuries and corporate bonds. Our cash and cash equivalents and investments increased $69,884 to $111,412 from $41,528 at December 31, 2025. The increase was primarily as a result of net proceeds from the Offering of $133,252 and the release of $2,000 of restricted cash under the contractual terms of a lease agreement. These increases were partially offset by cash used for early payoff and termination of the Credit Facility of $69,707, payment of employee tax withholdings for shares withheld from vested stock awards and payment of annual bonuses during the first quarter of 2026.
Previous wording
On March 31, 2026 and December 31, 2025, our current assets exceeded our current liabilities by $158,695 and $96,866, respectively, and we had a current ratios of 7.1x and 5.1x, respectively. Based on current estimates, we believe that our existing cash and cash equivalents and investments, as well as cash provided by sales of our products, will allow us to fund our operations through at least the next twelve months from the date of issuance of the accompanying financial statements.
Current wording
On June 30, 2026 and December 31, 2025, our current assets exceeded our current liabilities by $170,002 and $96,866, respectively, and we had a current ratios of 6.6x and 5.1x, respectively. Based on current estimates, we believe that our existing cash and cash equivalents and investments, as well as cash provided by sales of our products, will allow us to fund our operations through at least the next twelve months from the date of issuance of the accompanying financial statements.
Previous wording
The following table presents a summary of cash flows from operating, investing and financing activities for the periods indicated:
Current wording
The following table presents a summary of cash flows from operating, investing and financing activities for the periods presented:
Previous wording
Net cash provided by operating activities was $1,565 during the three months ended March 31, 2026 as compared to net cash used in operating activities of $13,179 during the three months ended March 31, 2025. The increase in net cash provided by operating activities of $14,744, or 111.9%, was primarily due to a net favorable change in non-cash charges and working capital accounts of $20,487 and $10,179, respectively, offset by an increase in net loss of $15,750.
Current wording
Net cash provided by operating activities was $8,786 during the six months ended June 30, 2026 as compared to net cash used in operating activities of $5,449 during the six months ended June 30, 2025. The increase in net cash provided by operating activities of $14,235, or 261.2%, was primarily due to a net favorable change in non-cash charges and working capital accounts of $24,484 and $8,108, respectively, offset by an increase in net loss of $17,845.
Previous wording
Net cash used in investing activities for the three months ended March 31, 2026 was $15,964 compared to net cash provided by investing activities of $1,339 for the three months ended March 31, 2025. The unfavorable change in net cash used in investing activities of $17,303 was primarily due to the purchase of $19,000 of investments, offset by the sale of $4,000 of investments, during the three months ended March 31, 2026, compared to the sale of $2,000 of investments during the three months ended March 31, 2025, and an increase in purchases of property and equipment of $2,533.
Current wording
Net cash used in investing activities was $15,464 and $5,608 for the six months ended June 30, 2026 and 2025, respectively, an increase of $9,856 primarily as a result of an increase in the purchase of investments of $10,913 and an increase in the purchase of property and equipment of $2,704, partially offset by the sale of $8,000 of investments during the six months ended June 30, 2026, compared to the sale of $4,000 of investments during the six months ended June 30, 2025.
Previous wording
Net cash provided by financing activities was $59,505 and $2,382 for the three months ended March 31, 2026 and 2025, respectively, an increase of $57,123 primarily as a result of net proceeds from the Offering and proceeds from the exercise of stock options, partially offset by cash used for early payoff and termination of the Credit Facility and payments of employee tax withholding on vested stock awards in exchange for shares withheld.
Current wording
Net cash provided by financing activities was $63,702 and $3,539 for the six months ended June 30, 2026 and 2025, respectively, an increase of $60,163 primarily as a result of net proceeds from the Offering, the exercise of stock options and ESPP purchases, partially offset by cash used for early payoff and termination of the Credit Facility and payment of employee tax withholding on vested stock awards in exchange for shares withheld.
Rearranged current paragraphs (8)
Current report — wording carried from elsewhere
We had no material income tax expense or benefit during the three months ended June 30, 2026 and 2025 due to the incurrence of fiscal year net operating losses in both periods, the benefits of which have a full valuation allowance.
Current report — wording carried from elsewhere
The following table sets forth, for the periods presented, our results of operations expressed as dollar amounts and percentage of total revenue:
Current report — wording carried from elsewhere
Revenues for the six months ended June 30, 2026 increased $25,966, or 24.7%, to $131,188, as compared to $105,222 for the six months ended June 30, 2025. The increase in revenues was primarily driven by an increase in unit volume and the impact of changes in price.
Current report — wording carried from elsewhere
Following is a summary of the change in costs and expenses for the six months ended June 30, 2026:
Current report — wording carried from elsewhere
(1)Primarily due to higher salaries, employee benefits, sales commissions, incentive compensation and payroll taxes, due to higher headcount and sales volumes.
Current report — wording carried from elsewhere
(2)Primarily due to anticipated above target achievement for certain PSU awards due to sales growth.
Current report — wording carried from elsewhere
(3)Clinical trial costs and expenses represented approximately 55% and 44% of total research and development costs and expenses for the six months ended June 30, 2026 and 2025, respectively. Product development costs and expenses represented approximately 45% and 56% of total research and development costs and expenses for the six months ended June 30, 2026 and 2025, respectively.
Current report — wording carried from elsewhere
Net Cash Used in Investing Activities