Exagen Inc. Reports 7.5% Revenue Growth to $15.5 Million in Q1 2025

Exagen Inc. reported its financial results for the first quarter of 2025, revealing a revenue increase of 7.5% to $15.5 million, compared to $14.4 million in the same period of 2024. The growth was primarily driven by an expansion in average selling prices (ASP) due to the introduction of new biomarkers, alongside a modest 2% increase in the volume of AVISE® CTD tests delivered. Despite the revenue growth, the company recorded a net loss of $3.8 million, slightly higher than the $3.4 million loss reported in the prior year, reflecting ongoing operational challenges.

Total operating expenses rose to $12.5 million from $11.6 million year-over-year, with selling, general, and administrative expenses increasing by 6.3% to $11.2 million, largely due to higher employee-related costs. Research and development expenses also saw a significant rise of 21.2%, totaling $1.3 million, as the company continues to invest in its product pipeline. The gross margin for the quarter was 58.9%, a slight decrease from 59.6% in the previous year, attributed to costs associated with processing tests that include new biomarkers.

In terms of operational metrics, Exagen's accounts receivable increased significantly to $14.7 million from $7.8 million at the end of 2024, indicating a rise in billing activity but also reflecting delays in claim submissions as part of the company's revenue cycle management initiatives. The company reported a cash balance of $11.2 million as of March 31, 2025, down from $22.0 million at the end of 2024, primarily due to cash used in operating activities amounting to $10.7 million during the quarter.

Strategically, Exagen has made significant moves to enhance its financial position, including entering into a Credit Agreement with Perceptive Credit Holdings on April 25, 2025, which provided an initial term loan of $25 million. This funding was partly used to repay an existing term loan, thereby improving liquidity. The company is also focused on expanding its product offerings, with plans to launch new biomarkers for rheumatoid arthritis and lupus nephritis later this year, which are expected to enhance the clinical utility of its existing tests.

Looking ahead, Exagen anticipates continued revenue growth driven by the adoption of its new biomarkers and an increase in test volume. However, the company acknowledges the need for additional funding to support its growth strategy and operational needs, as it expects to incur further losses in the near term. The management remains optimistic about achieving profitability in the future, contingent on successful product launches and improved reimbursement rates from third-party payors.