Exagen Inc. Posts 20% Revenue Growth, Raises R&D and Commercial Costs 13%
Exagen Inc. posted a near 20% revenue increase in 2025, driven by higher testing volume and ASP growth, achieving record top-line performance. Operating expenses rose 13% YoY on commercial and R&D investments, resulting in a $9.8 million adjusted EBITDA loss, with a mid-60% gross margin forecast as ASP nears $500.
1. Record Revenue Growth in 2025
Exagen Inc. generated a near 20% year-over-year revenue increase in 2025, marking record top-line performance. Growth was driven by higher testing volume and improved average selling prices across existing and newly launched assays.
2. Operating Expenses and Adjusted EBITDA Loss
Operating expenses rose 13% year-over-year as Exagen expanded its commercial and R&D teams, increasing short-term costs. These investments contributed to a $9.8 million adjusted EBITDA loss, reflecting ongoing work to transition away from unprofitable customers and processes.
3. Pipeline Development and Myositis Product Timeline
Exagen’s pipeline comprises five assets currently in development, with plans to introduce one product annually. The myositis assay is targeted for clinical readiness by 2027, addressing a significant unmet need in rheumatologic diagnostics.
4. Gross Margin Outlook and ASP Trends
Despite higher COGS from seven new biomarkers, Exagen expects to achieve a mid-60% gross margin as ASP stabilizes and approaches $500. The current ASP reset at approximately $430 should support incremental gains through enhanced revenue cycle management.