AXGN · 10-Q · 2026Q1 · Full report

Operating Expense Trends

Axogen, Inc. · 2026-04-28 · Importance 84 · Surprise 74

Total operating costs and expenses increased 34.0% year-over-year to $49,021 in Q1 2026, led by a 36.1% rise in sales and marketing and a 36.1% rise in general and administrative expense. The increases were primarily driven by higher compensation (salaries, benefits, commissions and incentives) tied to headcount growth and sales volume, and higher stock-based compensation due to anticipated above-target PSU achievement. Research and development expense rose 23.4%, with a larger portion of R&D now tied to clinical trial activity. These expense trends reflect a deliberate commercial expansion and increased investment in clinical programs following product regulatory developments.

Key facts

• Net loss for the three months ended March 31, 2026 was $(19,584), or (31.9)% of revenue
• Compensation costs contributed $8,076 of the total change in costs and expenses for the three months ended March 31, 2026, primarily due to higher salaries, employee benefits, sales commissions, incentive compensation and payroll taxes driven by higher headcount and sales volumes
• Sales and marketing expense for the three months ended March 31, 2026 was $28,633, representing 46.6% of revenue
• Sales and marketing expense for the three months ended March 31, 2025 was $21,045, representing 43.3% of revenue
• Research and development expense for the three months ended March 31, 2026 was $7,517, representing 12.2% of revenue
• Research and development expense for the three months ended March 31, 2025 was $6,091, representing 12.5% of revenue
• General and administrative expense for the three months ended March 31, 2026 was $12,871, representing 20.9% of revenue
• General and administrative expense for the three months ended March 31, 2025 was $9,458, representing 19.5% of revenue

Impact estimates