AxoGen Inc. (NASDAQ: AXGN) saw its stock price surge 7.85% in pre-market trading on Wednesday following the release of its third-quarter 2025 financial results. The company, which specializes in peripheral nerve repair solutions, reported earnings that significantly exceeded analyst expectations.

The medical technology firm announced Q3 revenue of $60.1 million, handily beating the IBES estimate of $56.8 million. This strong top-line performance was accompanied by a healthy gross margin of 76.6%, indicating efficient operations and pricing power. AxoGen also reported adjusted EBITDA of $9.2 million and adjusted net income of $6.1 million for the quarter, demonstrating improved profitability.

Investors were particularly encouraged by AxoGen's bottom-line performance, with the company posting a net income of $700,000. This return to profitability, coupled with the revenue beat, appears to be driving the substantial pre-market stock price increase. The results suggest that AxoGen's innovative nerve repair technologies are gaining traction in the medical community, potentially setting the stage for continued growth in the coming quarters.