Axogen, Inc. (NASDAQ:AXGN) Could Be Less Than A Year Away From Profitability

We feel now is a pretty good time to analyse Axogen, Inc.'s (NASDAQ:AXGN) business as it appears the company may be on the cusp of a considerable accomplishment. Axogen, Inc., together with its subsidiaries, develops and commercializes technologies for peripheral nerve regeneration and repair worldwide. With the latest financial year loss of US$10.0m and a trailing-twelve-month loss of US$2.1m, the US$1.5b market-cap company alleviated its loss by moving closer towards its target of breakeven. As path to profitability is the topic on Axogen's investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

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According to the 9 industry analysts covering Axogen, the consensus is that breakeven is near. They expect the company to post a final loss in 2025, before turning a profit of US$8.0m in 2026. Therefore, the company is expected to breakeven roughly a year from now or less! We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 47% is expected, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, we won’t go into details of Axogen's upcoming projects, however, bear in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Check out our latest analysis for Axogen

One thing we would like to bring into light with Axogen is its relatively high level of debt. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in Axogen's case is 41%. Note that a higher debt obligation increases the risk in investing in the loss-making company.

Next Steps:

There are too many aspects of Axogen to cover in one brief article, but the key fundamentals for the company can all be found in one place – Axogen's company page on Simply Wall St. We've also compiled a list of essential aspects you should further examine:

1. Valuation: What is Axogen worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Axogen is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Axogen’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.