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AXGN, Axogen Inc.

Medical Devices & Equipment consumer brand UnprofitableDistress / turnaround

We are the leading company focused specifically on the science, development, and commercialization of technologies for peripheral nerve regeneration and repair.

We provide innovative, clinically proven, and economically effective repair solutions for surgeons and healthcare providers.

Latest annual: FY2025 10-K

AXGN · Axogen Inc.

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2025

$225M

+20.2% YoY · 15% 5-yr CAGR

Vital signs · TTM, with 5-yr average

Revenue $238M 5-yr avg $168M

Gross margin 75% 5-yr avg 77%

Operating margin −3.8% 5-yr avg −12.0%

ROIC −4% 5-yr avg −11%

Owner-earnings margin 4% 5-yr avg −7%

Free cash flow margin 4% 5-yr avg −14%

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

Situation: Unprofitable. No sustained operating profit across the record; an earnings multiple has nothing to rest on. What the record does show is revenue, the gross-margin trajectory, and the burn against the cash on hand. Distress / turnaround. Thin interest coverage, or operating cash burned against real debt, across the record. The balance sheet carries this situation; the debt schedule sets the clock.
What moves the needle: Operating margin has run around −20% through the cycle on a 81% gross margin, the operating line in the red even at its best — so the lever is whether the spending below the gross line can come down enough to clear a profit: revenue growth against the cost curve, and the cash runway until it does. Inventory runs near 13% of sales, so how fast it turns back into cash — and the risk of writing it down when demand softens — sits alongside the margin. Read this kind of business on the installed base and what follows it. On its own account, the filing leans hardest on pricing power & competition, set against the numbers in what the filing emphasizes, below.
Is it a good business?: Return on capital has rarely cleared the cost of capital (median −17%, above 15% in 0 of 10 years). Owner earnings, the cash-based check, have been thin too. This is price-taker territory, where the balance sheet and the cycle matter more than any multiple; the rest is in the 10-K.

Every line is arithmetic on the company's filings, shown in full in the sections below.

The record

Ten years of arithmetic, read across the cycle.

The record, 2016–2025

realized figures from each filing · older years to the left

2016’16	2017’17	2018’18	2019’19	2020’20	2021’21	2022’22	2023’23	2024’24	2025’25	TTMTTMMar 2026
											Income statement
$41M	$60M	$84M	$107M	$112M	$127M	$139M	$159M	$187M	$225M	$238M	RevenueRevenue
84%	85%	85%	84%	81%	82%	79%	77%	76%	74%	75%	Gross marginGross mgn
25%	24%	28%	29%	24%	25%	30%	24%	21%	20%	20%	SG&A / revenueSG&A/rev
10%	11%	14%	16%	16%	19%	18%	17%	15%	15%	14%	R&D / revenueR&D/rev
($8M)	($8M)	($21M)	($31M)	($23M)	($25M)	($30M)	($21M)	($3M)	($8M)	($9M)	Operating incomeOp. inc.
−19.8%	−13.2%	−24.4%	−29.4%	−20.6%	−20.0%	−21.4%	−13.5%	−1.8%	−3.5%	−3.8%	Operating marginOp. mgn
($14M)	($10M)	($22M)	($29M)	($24M)	($27M)	($29M)	($22M)	($10M)	($16M)	($31M)	Net incomeNet inc.
											Cash flow & returns
($11M)	($9M)	($18M)	($20M)	($10M)	($13M)	($16M)	($6M)	$5M	$812K	$16M	Operating cash flowOp. cash
$362K	$488K	$774K	$933K	$2M	$3M	$3M	$4M	$6M	$7M	$7M	DepreciationDeprec.
$1M	($3M)	($4M)	($2M)	$4M	($83K)	($6M)	($3M)	($8M)	($20M)	$6M	Working capital & otherWC & other
$931K	$1M	$6M	$5M	$22M	$28M	$20M	$14M	$3M	$4M	$6M	CapexCapex
2.3%	1.8%	7.5%	4.4%	19.5%	21.8%	14.5%	8.7%	1.7%	1.7%	2.6%	Capex / revenueCapex/rev
($12M)	($10M)	($19M)	($21M)	($11M)	($16M)	($19M)	($10M)	$1M	($3M)	$9M	Owner earningsOwner earn.
−28.2%	−16.1%	−22.2%	−19.5%	−9.9%	−12.7%	−13.6%	−6.2%	0.8%	−1.3%	3.9%	Owner earnings marginOE mgn
($12M)	($10M)	($24M)	($25M)	($32M)	($41M)	($36M)	($20M)	$1M	($3M)	$9M	Free cash flowFCF
−29.6%	−17.1%	−28.8%	−23.0%	−28.1%	−32.4%	−26.1%	−12.3%	0.8%	−1.3%	3.9%	Free cash flow marginFCF mgn
-70%	-48%	-13%	-25%	-17%	-16%	-18%	-15%	-2%	-4%	-4%	ROICROIC
-97%	-41%	-15%	-22%	-19%	-24%	-29%	-23%	-10%	-12%	-13%	Return on equityROE
−97%	−41%	−15%	−22%	−19%	−24%	−29%	−23%	−10%	−12%	−13%	Retained to equityRetained/eq
											Balance sheet
$30M	$37M	$117M	$97M	$104M	$84M	$49M	$31M	$33M	$42M	$102M	Cash & investmentsCash+inv
$8M	$11M	$15M	$17M	$18M	$18M	$22M	$25M	$24M	$26M	$28M	ReceivablesReceiv.
$5M	$7M	$12M	$14M	$13M	$17M	$19M	$23M	$33M	$42M	$46M	InventoryInvent.
$4M	$3M	$5M	$8M	$5M	$6M	$9M	$12M	$8M	$3M	$24M	Accounts payablePayables
$10M	$15M	$23M	$23M	$26M	$29M	$32M	$36M	$49M	$66M	$50M	Operating working capitalOper. WC
$44M	$56M	$151M	$135M	$145M	$127M	$98M	$88M	$99M	$120M	$185M	Current assetsCur. assets
$11M	$14M	$13M	$21M	$23M	$24M	$24M	$30M	$31M	$24M	$26M	Current liabilitiesCur. liab.
4.0×	4.1×	11.6×	6.5×	6.4×	5.2×	4.1×	2.9×	3.2×	5.1×	7.1×	Current ratioCurr. ratio
$46M	$59M	$160M	$155M	$201M	$208M	$195M	$197M	$204M	$222M	$289M	Total assetsAssets
$24M	$25M	$63K	$2M	$32M	$45M	$46M	$47M	$47M	$48M	$25M	Total debtDebt
($6M)	($12M)	($117M)	($95M)	($72M)	($39M)	($3M)	$16M	$14M	$7M	($77M)	Net debt / (cash)Net debt
-1.5×	-3.6×	-17.0×	-785.1×	-22.0×	-18.7×	-47.6×	-7.6×	-0.4×	-1.0×	-1.5×	Interest coverageInt. cov.
$15M	$25M	$147M	$132M	$123M	$113M	$101M	$96M	$104M	$129M	$245M	Shareholders’ equityEquity
3.4%	6.0%	9.1%	9.7%	7.5%	8.6%	11.3%	9.1%	8.5%	13.4%	14.3%	Stock comp / revenueSBC/rev
											Per share
30.7M	33.3M	37.1M	39.2M	40.0M	41.2M	42.1M	42.9M	44.3M	46.1M	51.6M	Shares out (diluted)Shares
$1.34	$1.81	$2.26	$2.72	$2.81	$3.09	$3.29	$3.71	$4.23	$4.89	$4.62	Revenue / shareRev/sh
$-0.47	$-0.31	$-0.60	$-0.74	$-0.60	$-0.65	$-0.69	$-0.51	$-0.23	$-0.34	$-0.61	EPS (diluted)EPS
$-0.38	$-0.29	$-0.50	$-0.53	$-0.28	$-0.39	$-0.45	$-0.23	$0.03	$-0.06	$0.18	Owner earnings / shareOE/sh
$-0.40	$-0.31	$-0.65	$-0.63	$-0.79	$-1.00	$-0.86	$-0.46	$0.03	$-0.06	$0.18	Free cash flow / shareFCF/sh
$0.03	$0.03	$0.17	$0.12	$0.55	$0.67	$0.48	$0.32	$0.07	$0.08	$0.12	Cap. spending / shareCapex/sh
$0.49	$0.76	$3.96	$3.37	$3.08	$2.73	$2.40	$2.23	$2.35	$2.80	$4.75	Book value / shareBVPS

Per-share growththe realized rate an owner's share compounded

	9-yr	5-yr
Revenue / share	+15.5%/yr	+11.7%/yr
Capital spending / share	+11.6%/yr	−31.7%/yr
Book value / share	+21.5%/yr	−1.9%/yr

The record, charted

FY2016–2025

Each measure over its full record; the current point and the worst year marked.

Share count

46Mpeak FY2025

ROIC

−4%low FY2016

Gross margin

74%low FY2025

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

($3M)owner earningsvs.($16M)net incomelow FY2019

Owner-earnings bridge

FY2021–FY2025cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2025 the business turned a $16M loss into ($3M) of owner earnings: more cash than the profit line showed, after the non-cash charges and the capital it put back in.

	FY2025	FY2024	FY2023	FY2022	FY2021
Reported net income	($16M)	($10M)	($22M)	($29M)	($27M)
Depreciation & amortizationnon-cash charge added back	+$7M	+$6M	+$4M	+$3M	+$3M
Stock-based compensationreal costnon-cash, but a real cost	+$30M	+$16M	+$14M	+$16M	+$11M
Working capital & othertiming of cash in and out, other non-cash items	−$20M	−$8M	−$3M	−$6M	−$83K
Cash from operations	$812K	$5M	($6M)	($16M)	($13M)
Maintenance capital expenditurethe spending needed just to hold position and volume	−$4M	−$3M	−$4M	−$3M	−$3M
Owner earnings	($3M)	$1M	($10M)	($19M)	($16M)
Growth capital expenditurediscretionary; spent to get bigger, not to stand still	—	—	−$10M	−$17M	−$25M
Free cash flow	($3M)	$1M	($20M)	($36M)	($41M)
Owner-earnings marginowner earnings ÷ revenue	-1%	1%	-6%	-14%	-13%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position . The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $30M), owner earnings is nearer ($33M).

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 10-K · source on SEC EDGAR →

Will it survive?

Can it pay its interest? -1.0×

Does not cover its interest

Operating income ($8M) ÷ interest expense $8M

What this means
A full year of operating profit didn't cover the interest bill. This is the zombie zone: the business depends on refinancing, asset sales, or forbearance to service its debt.
How heavy is the debt, net of cash? $9M

Net debt against an operating loss

Cash $36M + ST investments $6M − debt $50M

What this means
Netting $42M of cash and short-term investments against $50M of debt leaves $9M owed, with no operating profit this year to measure it against — understand that combination before anything else about the company. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? 292d

Long (60+ days)

DSO 42 + DIO 267 − DPO 18 days

What this means
Days cash is tied up between paying suppliers and collecting from customers. Lower is better; a long cycle means growth itself eats cash.

Is it a good business?

Return on invested capital -17%

Below average through the cycle

10-yr median, range -70%–-2%; -4% latest = NOPAT ($6M) ÷ invested capital $143M

Industry peers: median -34%

What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 10 years (it ran -4% most recently), so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
Owner-earnings margin -14%

Consumes cash through the cycle

10-yr median margin, range -28%–1%; latest ($3M) = operating cash $812K − maintenance capex $4M

Industry peers: median -35%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's -1% of revenue this year, a -14% median across 10 years. Treating stock comp as the real expense it is (less $30M of SBC) leaves ($33M).
Are earnings backed by cash? $812K

Loss, but cash-generative

Net income ($16M) · cash from operations $812K

What this means
The company reported a net loss, so a conversion ratio isn't meaningful. What matters then is whether operations still threw off cash, here, they did.

How is the cash used?

Where do the earnings go? —

Not enough data

What this means
The filing data didn't include the inputs for this check.
Investing or harvesting? 0.56×

Harvesting

Capex $4M ÷ depreciation $7M

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 2 of 5 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Miss

Revenue ≥ $2B · $225M

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Pass

Current ratio ≥ 2× · 5.11×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Conservative debt Pass

Debt ≤ working capital · $50M vs $97M WC

What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
Earnings stability Miss

A profit every year (10-yr record) · 10 loss years

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record Miss

Uninterrupted dividends · none paid

What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
Earnings growth —

Earnings +33% over the record · —

What this means
Earnings were negative early in the record, a growth rate isn't meaningful.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $-0.30/share (latest year $-0.30), the averaged base the calculator's gate runs on, and book value is $2.42/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2016–2025

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 0 of 10

What this means
Lost money in 10 year(s), look at what happened there before trusting the average.
Return on capital ≥ 15% 0 of 10 yrs

What this means
A moat shows up as a high return on invested capital that holds year after year, not one good vintage.
Operating margin −19% → −6% (3-yr avg ends)

What this means
Through the cycle the operating margin widened — about −19% early to −6% lately, median −20% — pricing power intact or improving.
Reinvestment, incremental ROIC 1%

What this means
Reinvested capital came back at only a modest incremental return — near the cost of capital, where extra growth adds little per dollar. The record shows whether it is a soft stretch or a thinning moat.
Worst year 2019 · −29.4% op. margin

What this means
Operations went underwater in 2019, understand why before trusting the good years.
Share count +4.6%/yr

What this means
The share count is rising, dilution works against you on a per-share basis.
How management talks about it Owner’s terms

What this means
The record and the register agree: capital is compounding and the filing reasons in an owner’s terms — per-share value, return on capital, the long term — not a promoter’s.

Does AI threaten the moat?

Low contestability

The moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.

AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of the latest quarter, Mar 31, 2026

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$185M

Cash & short-term investments$102M
Receivables$28M
Inventory$46M
Other current assets$9M

Current liabilities$26M

Debt due within a year$2M
Accounts payable$24M

Current ratio7.10×all current assets ÷ what's due · Graham looked for 2×

Quick ratio5.33×stricter: inventory excluded

Cash ratio3.91×strictest: cash alone against what's due

Working capital$159Mthe cushion left after near-term bills

Debt due this year vs. cash$2M due · $102M cash covered by cash on hand, no refinancing forced · both figures from the Mar 31, 2026 balance sheet

Revenue, latest quarter vs. a year ago+26.6%the freshest read on whether the business is still growing

Current ratio, recent quarters3.5× → 7.1×

Deeper floors

Tangible book value$237Mequity stripped of goodwill & intangibles

Net current asset value$140MGraham's net-net: current assets less all liabilities

Debt incl. operating leases$23M$21M of it operating leases

Deferred revenue$14Kcustomer cash collected before delivery; operating float

From the company's latest filing.

Management, ownership & pay

read the proxy →

From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.

Fiscal year	Chief executive	Pay, as filed	“Actually paid”	Owner earnings
2021	Karen Zaderej	$5.4M	$289k	($16M)
2022	Karen Zaderej	$4.4M	$5.4M	($19M)
2023	Karen Zaderej	$5.5M	$2.9M	($10M)
2024	Karen Zaderej	$2.5M	$10.4M	$1M
2024	Michael Dale	$8.8M	$12.1M	$1M
2025	Michael Dale	$9.0M	$40.7M	($3M)

Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Owner earnings are the whole business's, from the record above, for the same fiscal years.

Insider ownership2.4%
The stake all directors and executive officers hold together, per the 2026 proxy: skin in the game, the first thing Munger reads.
CEO pay ratio80:1
What the chief earns for every dollar the median employee makes, per the 2026 proxy. A high ratio alone settles nothing; some businesses are genuinely top-heavy in scarce skill. A runaway figure is where Buffett starts asking whether the board is doing its job.
Stock-based compensation$30M
The slice of the business handed to employees in shares this year, 13% of revenue. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.

Inverting the record

Invert: instead of why Axogen Inc. is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2016–2025.

None of the 4 tests turned up a mark; each came back clean. A clean panel says only that these particular ways of being wrong are not written into the record.

Each test came back clean

Is it less profitable than it was?
Did debt outgrow the business?
Did receivables and inventory outpace sales?
Are "one-time" charges a yearly habit?

Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.

What an owner would ask, FY2025

read the 10-K →

Which reported numbers are a judgment call?
Management names Stock compensation as critical estimates
each rests partly on management's judgment; the filing's note sets out the assumptionsverify →

The questions the record and the charts do not answer on their own; each carries the figure and the place to look.

Peers, Medical Devices & Equipment

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
PRCTPROCEPT BioRobotics Corporation	$308M	51%	-93.9%	-115%	-96%
LMATLeMaitre Vascular Inc.	$250M	68%	21.6%	12%	16%
KIDSOrthoPediatrics Corp.	$236M	74%	-16.9%	-7%	-24%
CERSCerus Corporation	$234M	58%	-40.9%	-43%	-31%
AXGNAxogen Inc.	$225M	81%	-19.9%	-17%	-13%
ESTAEstablishment Labs Holdings Inc.	$211M	65%	-33.0%	-36%	-35%
SIBNSI-BONE Inc.	$201M	88%	-36.2%	-21%	-38%
CBLLCeriBell Inc.	$89M	87%	-65.6%	-34%	-56%
Group median	—	71%	-34.6%	-27%	-33%

The price

What a price has to assume.

What the price implies

reverse-DCF

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Axogen Inc. has delivered.

Today’s price $

Base Normalize · through-cycle (($7M)) Net of stock comp (−$34M) Steady-state · maintenance capex ($12M)

—

The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth, delivered—

Owner-earnings yield—

P/E (3-yr earnings ’23–’25)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Free cash flow $9M on 53M shares outstanding, per the 10-Q cover, as of 2026-04-24; net cash $77M. The base is the latest year by default; Normalize values it on the through-cycle median owner-earnings margin (to avoid paying on a peak year). Net of stock comp treats option pay as the expense it is. Capex ($6M) runs well above depreciation ($7M), so this is a build-out; Steady-state swaps total capex for maintenance (≈ depreciation), lifting the base to about $12M, the cash it would throw off if it stopped expanding. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh AXGN against another business →

Cite: Owner Scorecard, "Axogen Inc. (AXGN), the owner's record," https://ownerscorecard.com/c/AXGN, data as of 2026-07-09.

Manual order: ← AX its page in the Manual AXON →

Industry order: ← AVR the Medical Devices & Equipment chapter BAX →