Exagen Inc. Reports 15.9% Revenue Growth in Q2 2026 Despite Net Loss

Exagen Inc. reported a notable increase in financial performance for the second quarter of 2026, with revenues reaching $19.9 million, a 15.9% rise from $17.2 million in the same period last year. For the first half of 2026, total revenue was $37.2 million, up 13.9% from $32.7 million in the first half of 2025. The growth was primarily driven by an increase in the volume of AVISE® CTD tests delivered, which rose approximately 11% year-over-year, alongside a 4% increase in the average selling price (ASP) of these tests. Despite the revenue growth, Exagen reported a net loss of $3.2 million for the second quarter, an improvement from a loss of $4.4 million in the prior year.

The company’s cost of revenue also increased, totaling $7.7 million for the second quarter, up from $6.8 million in the same period last year. This rise was attributed to higher material costs, employee-related expenses, and depreciation. Gross profit for the quarter was $12.2 million, resulting in a gross margin of 61.3%, slightly up from 60.4% in the previous year. Operating expenses increased to $13.9 million, primarily due to higher selling, general, and administrative costs, which rose by 8.4% to $12.5 million.

In terms of strategic developments, Exagen has focused on enhancing its product offerings, particularly the AVISE® CTD test, which continues to dominate its revenue stream, accounting for approximately 90% of total revenue. The company has also made significant strides in its research and development efforts, with plans to launch new biomarker tests for myositis and lupus nephritis in the coming years. Additionally, Exagen has expanded its sales force to cover 45 territories across the United States, aiming to increase market penetration and customer engagement.

Operationally, Exagen's total assets decreased to $51.9 million as of June 30, 2026, down from $58.0 million at the end of 2025, largely due to a reduction in cash and cash equivalents, which fell to $24.6 million. The company’s accumulated deficit increased to $321.4 million. Exagen's employee headcount has also grown, reflecting its commitment to expanding its operational capabilities. The company anticipates that its existing capital resources will be sufficient to fund operations for at least the next twelve months, although it may require additional funding to support its growth strategy.

Looking ahead, Exagen remains optimistic about its growth trajectory, driven by the anticipated adoption of its enhanced AVISE® CTD test and the introduction of new testing products. The company is focused on improving reimbursement rates and expanding its customer base, which it believes will contribute to achieving profitability in the future. However, Exagen acknowledges the challenges posed by market conditions and the need for ongoing investment in research and development to maintain its competitive edge in the medical technology sector.