Exagen Inc (XGN) Stock Forecast & Price Target

Exagen Inc. has demonstrated strong financial performance, with average selling prices (ASPs) increasing to $441 per test, marking a 9% year-over-year growth, despite encountering challenges in ASP expansion. The company's revenue has surged by 19% year-over-year on a nine-month basis, driven by balanced growth in both ASPs and test volumes, the latter of which grew 16% year-over-year and reached high volumes in October, even amidst external disruptions. Furthermore, Exagen's strategic expansion plan aims to increase its sales territories to 45 by the end of 2025, supported by improved commercial team leadership and a solid cash position of $35.7 million as of the latest quarter.

Exagen Inc reported mixed financial results for 2Q25, with revenue of $17.2 million but a GAAP EPS loss of -$0.21, which fell short of market expectations. The company's decision to reduce its workforce by approximately 42 full-time equivalents across various departments suggests significant operational challenges, reflecting a need to cut costs amid stagnant revenue growth as revenue per sales territory slightly declined from 2Q25 levels. Additionally, the backlog of $3.5 million under contract indicates potential for revenue generation; however, the expectation of lumpy revenue recognition raises concerns about the company's near-term financial stability.