Shares of AxoGen Inc. (NASDAQ: AXGN) surged 15.27% in pre-market trading on Wednesday after the medical technology company reported third-quarter earnings that significantly exceeded analyst expectations and raised its full-year revenue guidance.
The peripheral nerve repair specialist posted Q3 revenue of $60.1 million, handily beating the analyst consensus estimate of $56.8 million. This represented a 23.5% increase compared to the same quarter last year. AxoGen also reported adjusted earnings per share of $0.12, well above the $0.07 expected by analysts.
Key highlights from the earnings report include:
- Gross margin improved to 76.6%, up from 74.9% in Q3 2024
- Net income of $700,000, compared to a net loss of $1.9 million in the year-ago quarter
- Adjusted EBITDA of $9.2 million, up from $6.5 million in Q3 2024
Buoyed by the strong results, AxoGen raised its full-year 2025 revenue guidance to at least 19% growth, or $222.8 million, up from its previous forecast of at least 17% growth. The company cited broad-based growth across all its markets, including Extremities, Oral Maxillofacial & Head and Neck, and Breast.
"Our third quarter performance reflects the continued maturation of the peripheral nerve repair market," commented Michael Dale, CEO of AxoGen. He added that new position statements from medical associations and expanded insurance coverage are validating the company's market development strategy.
Investors appear to be reacting positively to AxoGen's strong financial performance and improved outlook, driving the significant pre-market stock price increase.