Axogen, Inc.
For the period ended Sep 30, 2026. Filed Oct 28, 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.
Sep 30, 2026 · Filed Oct 28, 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 2026-06-30; filed 2026-07-29.
0000805928-26-000094
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-10-28.
0000805928-26-000108
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 78 previous paragraphs and 79 current paragraphs.
54 unchanged; 19 reworded; 6 added; 5 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 6 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 (6)
Current report
•Received positive coverage decisions from Elevance and Aetna; commercial payer coverage for Avance is now approximately 96% of covered lives in the United States.
Current report
•Closed an upsized public offering with the sale of 5,646,500 shares of common stock and receipt of $225,029 of net proceeds, with $200,000 of the net proceeds used to fund the BioCircuit Acquisition and $1,883 used to fund transaction related expenses, with the remaining funds available for general corporate purposes.
Current report
•On October 1, 2026 we completed the acquisition of BioCircuit, a privately held medical device company and developer of NerveTape®.
Current report
Other (Expense) Income, Net
Current report
Comparison of the Nine Months Ended September 30, 2026 and 2025
Current report
On October 1, 2026, we completed the BioCircuit Acquisition. The base purchase price was $200,000 in cash, subject to adjustments for cash, indebtedness, transaction expenses and net working capital. At closing, $1,000 was withheld to satisfy any post-closing purchase price adjustments. In connection with the BioCircuit Acquisition, we incurred transaction costs of $1,883 during the three months ended September 30, 2026 and we estimate approximately $5,000 of additional transaction costs during the three months ended December 31, 2026.
Removed paragraphs (5)
Previous 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.
Previous 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.
Previous 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.
Previous report
Other Income (Expense), Net
Previous report
Comparison of the Six Months Ended June 30, 2026 and 2025
Reworded paragraphs (19)
Previous 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.
Current wording
•Revenues were $75,834 for the quarter ended September 30, 2026, an increase of $15,752 or 26.2% compared to the quarter ended September 30, 2025.
Previous 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.
Current wording
•Gross profit was $56,731 for the quarter ended September 30, 2026, an increase of $10,738 or 23.3% compared to the quarter ended September 30, 2025.
Previous wording
•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 wording
•Year-to-date revenue growth through the third quarter of 2026 was broad-based across 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.
Previous 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.
Current wording
Revenues for the three months ended September 30, 2026 increased $15,752, or 26.2%, to $75,834, as compared to $60,082 for the three months ended September 30, 2025. The increase in revenues was primarily driven by an increase in unit volume and the impact of changes in price.
Previous wording
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 wording
Gross profit for the three months ended September 30, 2026 increased $10,738, or 23.3%, to $56,731, as compared to $45,993 for the three months ended September 30, 2025. Gross margin as a percentage of revenues was 74.8% and 76.6% for the three months ended September 30, 2026 and 2025, respectively. Compared to the three months ended September 30, 2025, margins on products sold declined primarily due to higher product costs, partially offset by lower inventory write-offs.
Previous 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.
Current wording
(3)Clinical trial costs and expenses represented approximately 57% and 47% of total research and development costs and expenses for the three months ended September 30, 2026 and 2025, respectively. Product development costs and expenses represented approximately 43% and 53% of total research and development costs and expenses for the three months ended September 30, 2026 and 2025, respectively.
Previous 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.
Current wording
Other income, net, for the three months ended September 30, 2026 increased $2,583, or 214.5%, to $1,379, as compared to Other expense, net, of $1,204 for the three months ended September 30, 2025. The increase in total other income, net, was primarily due to a decrease in interest expense of $1,756 and an increase in investment income of $1,112, partially offset by decreases from the change in fair value of the debt derivative liabilities of $209 and from other income of $76.
Previous wording
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 wording
Revenues for the nine months ended September 30, 2026 increased $41,718, or 25.2%, to $207,022, as compared to $165,304 for the nine months ended September 30, 2025. The increase in revenues was primarily driven by an increase in unit volume and the impact of changes in price.
Previous 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.
Current wording
Gross profit for the nine months ended September 30, 2026 increased $30,650, or 24.9%, to $153,594, as compared to $122,944 for the nine months ended September 30, 2025. Gross margin as a percentage of revenues was 74.2% and 74.4% for the nine months ended September 30, 2026 and 2025, respectively. Lower margins on products sold were driven by the impact of higher product costs partially offset by lower inventory write-offs.
Previous wording
Following is a summary of the change in costs and expenses for the six months ended June 30, 2026:
Current wording
Following is a summary of the change in costs and expenses for the nine months ended September 30, 2026:
Previous wording
(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 wording
(3)Clinical trial costs and expenses represented approximately 56% and 46% of total research and development costs and expenses for the nine months ended September 30, 2026 and 2025, respectively. Product development costs and expenses represented approximately 44% and 54% of total research and development costs and expenses for the nine months ended September 30, 2026 and 2025, respectively.
Previous wording
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 wording
Other expense, net, for the nine months ended September 30, 2026 increased $10,263, or 229.6%, to $14,733, as compared to $4,470 for the nine months ended September 30, 2025. The increase in total other expense, net, was due to loss on the extinguishment of debt of $16,849, and decreases in the change in fair value of the debt derivative liabilities of $531 and other income of $340. These increases were partially offset by a decrease in interest expense of $5,288 and an increase in investment income of $2,169.
Previous 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.
Current wording
We had no material income tax expense or benefit during the nine months ended September 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 nine months ended September 30, 2026, the IRS completed examining our 2021 federal income tax return with no material findings.
Previous 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.
Current wording
As of September 30, 2026, our principal sources of liquidity were our cash and cash equivalents and investments totaling $348,068. 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 $306,540 to $348,068 from $41,528 at December 31, 2025. The increase was primarily as a result of net proceeds from: (i) the September 2026 Offering of $225,029, (ii) the January 2026 Offering of $133,252, (iii) the exercise of stock options and ESPP purchases and (iv) 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: (i) early payoff and termination of the Credit Facility of $69,707, (ii) payment of employee tax withholdings for shares withheld from vested stock awards, (iii) payment of annual bonuses during the first quarter of 2026 and (iv) the purchase of a noncontrolling ownership interest in Trace.
Previous 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.
Current wording
On September 30, 2026 and December 31, 2025, our current assets exceeded our current liabilities by $401,636 and $96,866, respectively, and we had current ratios of 12.0x and 5.1x, respectively. Following quarter-end, we used approximately $200,000 of cash to fund the BioCircuit Acquisition, which has been taken into account in our assessment of our liquidity needs for the next twelve months. 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
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.
Current wording
Net cash provided by operating activities was $25,322 during the nine months ended September 30, 2026 as compared to net cash used in operating activities of $2,226 during the nine months ended September 30, 2025. The increase in net cash provided by operating activities of $27,548, or 1237.6%, was primarily due to a net favorable change in non-cash charges and working capital accounts of $28,282 and $16,266, respectively, offset by an increase in net loss of $16,219.
Previous 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.
Current wording
Net cash used in investing activities was $26,397 and $9,359 for the nine months ended September 30, 2026 and 2025, respectively, an increase of $17,038 primarily as a result of an increase in the purchase of: (i) investments of $13,486, (ii) equity investments of $7,008 and (iii) property and equipment of $2,576. These increases were partially offset by decreases from the sale of $14,200 of investments during the nine months ended September 30, 2026, compared to the sale of $8,000 of investments during the nine months ended September 30, 2025.
Previous 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.
Current wording
Net cash provided by financing activities was $292,415 and $5,933 for the nine months ended September 30, 2026 and 2025, respectively, an increase of $286,482 primarily as a result of net proceeds from the September 2026 and January 2026 Offerings, the exercise of stock options and ESPP purchases. These increases were 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.
Previous wording
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 wording
In July 2026, we invested $7,000 in Trace, a privately held biotechnology company. We funded this investment with cash on hand.