KeyBanc maintains Exagen stock at Sector Weight

Published 06/05/2025, 14:20
KeyBanc maintains Exagen stock at Sector Weight

On Tuesday, KeyBanc Capital Markets maintained its Sector Weight rating on Exagen Inc . (NASDAQ:XGN) following the company’s release of its first-quarter 2025 financial results. According to InvestingPro data, the company has demonstrated strong momentum with a remarkable 352.9% return over the past year. Exagen reported a revenue beat and earnings per share (EPS) that met expectations, while also initiating full-year 2025 guidance above the consensus.

Exagen, which launched new enhanced AVISE tests in January 2025, saw results that aligned with forecasts of approximately $90 per test in incremental revenue. With revenue growth forecast at 19% for FY2025, the company also announced the beginning of its commercial expansion, currently with around 40 territories, and identified the first wave of new sales territories as part of this growth strategy. InvestingPro analysis shows 12 additional key insights about Exagen’s growth potential and market position.

In addition to the expansion news, Exagen provided a positive update on its reimbursement efforts. The company has also refinanced its debt, entering into a new credit agreement that extends the maturity to 2030 from 2026 and offers increased borrowing capacity. InvestingPro data indicates the company operates with a moderate debt level and maintains strong liquidity with a current ratio of 2.7.

KeyBanc analysts noted the continued improvement in Exagen’s financial profile and highlighted the company’s expectation to achieve positive adjusted EBITDA by the fourth quarter of 2025. The firm has released a revised model to account for the first-quarter results and the updated guidance for the full year. InvestingPro’s comprehensive analysis reveals the company maintains a "Good" Financial Health score of 2.59, despite current negative EBITDA of $11.91M.

In other recent news, Exagen Inc. reported a revenue of $15.5 million for the first quarter of 2025, surpassing the projected $14.66 million by approximately 5.7%. This marks an 8% increase compared to the same period last year, attributed to the launch of new biomarkers and enhanced sales operations. Despite the revenue beat, the company continues to face net losses, recording a net loss of $3.8 million for the quarter. Exagen aims to achieve positive adjusted EBITDA by the fourth quarter of 2025, with gross margins expected to improve into the low 60% range by mid-year.

The company has also secured a new credit facility with Perceptive Advisors, which extends the maturity of its prior term debt, providing financial flexibility for future growth initiatives. Exagen plans to launch new seronegative rheumatoid arthritis markers by the end of the year, which could further bolster revenue. Additionally, Exagen achieved a positive medical policy with TRICARE, which may enhance reimbursement rates and market access. These developments come amidst ongoing efforts to improve reimbursement strategies and expand their presence in the rheumatology diagnostics market.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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