Exagen Inc (XGN) Stock Forecast & Price Target

Exagen Inc. has demonstrated strong growth, with a 19% year-over-year increase in revenue over the first nine months of the year, supported by balanced growth in average selling prices (ASPs) and volume. The company's ASPs rose by 9% year-over-year to $441 per test, indicating resilience and an upward trend even amid challenges related to ASP expansion. Moreover, Exagen's strategic plans to expand its sales territories, coupled with efficient operational changes, position the company favorably for sustained future growth and positive cash flow.

Exagen Inc. reported disappointing financial results with a top-line revenue of $17.2 million in 2Q25, indicating challenges in maintaining consistent sales growth, particularly as revenue per sales territory fell slightly below prior quarter levels. The company has also made significant workforce reductions, cutting approximately 42 full-time equivalents across sales, research and development, and other functions, which raises concerns about its operational efficiency and future growth potential. Moreover, the reported GAAP EPS of -$0.21 was worse than consensus expectations, coupled with a continued EBITDA loss of $1.9 million, signaling persistent financial pressures that contribute to a negative outlook for the stock.