Exagen Inc. (NASDAQ:XGN) reported financial results for the third quarter of 2025, delivering a performance that presented a mixed picture for investors. The company surpassed revenue expectations but recorded a larger-than-anticipated loss, leading to a negative reaction in the pre-market trading session.
Earnings and Revenue Versus Estimates
The diagnostic company's top-line growth was a clear positive in the report. However, profitability metrics fell short of analyst forecasts, creating a complex narrative for the quarter.
- Revenue: Exagen reported Q3 2025 revenue of $17.2 million. This exceeded the analyst consensus estimate of $17.1 million.
- Earnings Per Share (EPS): The company reported a non-GAAP EPS of -$0.19. This was worse than the analyst estimate of -$0.16 per share.
The market's immediate reaction reflected this dichotomy. While the revenue beat is a favorable indicator of demand and commercial execution, the deeper-than-expected loss appears to have weighed more heavily on investor sentiment, resulting in a pre-market stock decline.
Financial and Operational Highlights
Beyond the headline earnings figures, Exagen's press release highlighted several areas of operational strength and strategic progress during the quarter.
The company achieved record total revenue, which represented a 38% increase compared to the third quarter of 2024. Key drivers of this growth included a 16% year-over-year increase in volume for its flagship AVISE CTD test and an expansion in the test's average selling price (ASP) to $441, up from $404 in the prior-year period.
Exagen also strengthened its balance sheet, ending the quarter with $35.7 million in cash and cash equivalents, a significant increase from $22.0 million at the end of December 2024. From a commercial and development standpoint, the company launched new seronegative rheumatoid arthritis markers and presented multiple research abstracts at a major medical conference, underscoring its ongoing innovation in autoimmune testing.
Forward-Looking Guidance
Management provided updated full-year 2025 guidance, which offers a point of comparison against existing market expectations.
The company reiterated its expected full-year revenue to be between $65 million and $70 million. This range brackets the current analyst sales estimate for the full year of $68.2 million. Exagen also stated that at the high end of this revenue range, it expects to achieve positive adjusted EBITDA in the fourth quarter of 2025. For the upcoming quarter, analysts are currently estimating a Q4 2025 EPS of -$0.12 on sales of $18.1 million.
Market Performance and Investor Sentiment
The stock's pre-market decline suggests that investors are focusing on the company's ongoing losses and the costs associated with its growth initiatives. While the revenue beat and raised cash position are fundamental positives, the path to sustained profitability remains a key area of focus for the market. The company's ability to meet its Q4 guidance and achieve its stated goal of positive adjusted EBITDA will likely be critical for investor confidence in the near term.
For a detailed look at historical earnings, future estimates, and analyst projections for Exagen Inc., you can review the data here.
Disclaimer: This article is for informational purposes only and is not intended as investment advice. All investment decisions carry risk, and individuals should conduct their own research or consult with a qualified financial advisor before making any investment decisions.
