Exagen 2025 Q1 Earnings Revenue Surges, Net Loss Widens

Exagen(XGN) reported its fiscal 2025 Q1 earnings on May 05th, 2025. Exagen's Q1 2025 revenue exceeded expectations, recording $15.5 million compared to the forecasted $14.66 million, marking a 5.7% positive surprise. However, the company's net loss widened to $3.75 million, increasing by 11.7% from the previous year's $3.36 million. Exagen anticipates full-year 2025 revenue of at least $65 million and aims for positive adjusted EBITDA by Q4. The stock reacted with a decline, largely attributed to ongoing investor concerns regarding profitability.

Revenue
Exagen's total revenue saw a 7.5% increase, reaching $15.50 million in Q1 2025 from $14.41 million in Q1 2024. The commercial segment led the growth with $8.19 million, while government revenue contributed $3.64 million. Client Direct Bill added $3.60 million, and other revenues amounted to $76,000, culminating in the total revenue figure of $15.50 million.

Earnings/Net Income
Exagen's losses deepened to $0.20 per share in Q1 2025 from a loss of $0.19 per share in Q1 2024, marking a 5.3% wider loss. Moreover, the net loss expanded to $-3.75 million, an 11.7% increase from the previous year. The EPS results, indicating deeper losses, are concerning for investors.

Post-Earnings Price Action Review
Following the earnings announcement, Exagen's stock price experienced volatility. Despite a record revenue surpassing expectations, the company continued to report net losses, which may have influenced investor sentiment negatively. The strategic focus on expanding the average selling price (ASP) to $419 per test reflects a shift toward profitability, yet concerns over sustained losses linger. The stock declined by 2.49% to $5.87 in pre-market trading, further dropping by 9.47% over the past week. However, it maintains a robust 330% return over the last year. Investor concerns about profitability, despite strong revenue performance, seem to have overshadowed the positive aspects. Exagen's goal to achieve positive adjusted EBITDA by Q4 2025, alongside recent financing activities, could potentially stabilize investor confidence moving forward.

CEO Commentary
John Aballi, President & Chief Executive Officer, emphasized Exagen's success in increasing its trailing 12-month average selling price (ASP) for nine consecutive quarters. This growth has been driven by launching new biomarkers and improving revenue cycle operations. Aballi highlighted victories in administrative law judge hearings as crucial for their reimbursement strategy, setting precedents for future appeals. He expressed optimism about achieving positive adjusted EBITDA by year-end, citing a strong sales team and stable organizational culture as key growth drivers, while underscoring their commitment to enhancing market access and product offerings.

Guidance
Exagen expects full-year 2025 revenue of at least $65 million and is on track to achieve positive adjusted EBITDA by the fourth quarter. The company anticipates a trailing 12-month ASP increase of approximately $90 by year-end 2025, supported by the launch of new markers.

Additional News
In recent weeks, Exagen Inc. has been active in expanding its market presence and research initiatives. The company initiated a commercial expansion plan, identifying new sales territories as a first step to broaden its market reach. Additionally, Exagen published a T-cell manuscript in the peer-reviewed journal Frontiers in Immunology, detailing the clinical benefits of new systemic lupus erythematosus (SLE) biomarkers. This publication underscores Exagen's commitment to advancing autoimmune diagnostics. The company also presented its research on biomarkers for early detection of kidney damage at the 7th Annual Chronic Kidney Disease Drug Development Summit in Boston, demonstrating its ongoing focus on addressing critical health challenges in autoimmune and related diseases.