AXGN · AxoGen, Inc.

Axogen, Inc. delivered robust revenue growth of 26.5% year-over-year to $61.5 million in Q1 2026, driven by expansions in nerve repair markets including extremities, breast reconstruction, and emerging prostate applications, as highlighted in the earnings materials. Gross profit rose to $46.2 million, reflecting improved gross margins, while operating expenses increased to $49.0 million, primarily from higher sales and marketing ($28.6 million) and R&D ($7.5 million), leading to an operating loss of $2.8 million, narrower than the prior year's $1.7 million loss. The GAAP net loss widened to $19.6 million or $(0.38) per share due to a one-time $16.8 million loss on debt extinguishment, alongside interest expense. Excluding this and stock-based compensation, Adjusted EBITDA improved significantly to $5.7 million (9.3% margin) from $2.9 million (5.9% margin), underscoring operational leverage. Balance sheet strengthened markedly with cash and equivalents at $82.7 million (up from $35.5 million at year-end), total assets at $289.5 million, and shareholders' equity at $244.8 million, fueled by $134 million gross proceeds from issuing 4.6 million common shares (shares outstanding now 53.2 million). Debt was fully repaid ($48.6 million), eliminating related liabilities. Operating cash flow turned positive at $1.6 million versus prior year's outflow, though free cash flow was negative $1.4 million due to $2.8 million capex and $0.2 million intangibles. Exhibits 99.1-99.3 provide business highlights on market development, commercial expansion, and coverage gains for Avance nerve graft, positioning for sustained growth amid a $5.6 billion U.S. nerve care opportunity.