When Can We Expect A Profit From Axogen, Inc. (NASDAQ:AXGN)?

With the business potentially at an important milestone, we thought we'd take a closer look at Axogen, Inc.'s (NASDAQ:AXGN) future prospects. 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$4.7m, the US$729m market-cap company alleviated its loss by moving closer towards its target of breakeven. The most pressing concern for investors is Axogen's path to profitability – when will it breakeven? 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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Consensus from 7 of the American Medical Equipment analysts is that Axogen is on the verge of breakeven. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$9.8m in 2026. Therefore, the company is expected to breakeven just over a year from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 59%, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Axogen's growth isn’t the focus of this broad overview, however, bear in mind that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

View our latest analysis for Axogen

One thing we would like to bring into light with Axogen is its relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in Axogen's case is 45%. A higher level of debt requires more stringent capital management which increases the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of Axogen which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Axogen, take a look at Axogen's company page on Simply Wall St. We've also compiled a list of relevant aspects you should further research:

1. Historical Track Record: What has Axogen's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
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.