Axogen delivered its strongest quarter of the year and a clean balance-sheet reset in the same print. Second-quarter revenue rose 23.1% year over year to $69.7M, the Avance nerve allograft (now a fully FDA-approved biologic, not just a tissue product) ramped into breast and extremity accounts, and management used the quarter to retire the remaining $48.4M of long-term debt with Oberland Capital, exiting the credit facility entirely on January 28, 2026. The combination lifted cash plus investments to $113.4M with zero debt on the balance sheet and turned the year-to-date net loss into an accounting artifact of a one-time $16.8M loss on extinguishment of debt rather than a story about the operating business. Gross margin compressed 150 basis points to 72.7%, almost entirely the cost of selling more of the higher-cost Avance allograft - a deliberate trade for a higher-revenue, higher-evidence product. Adjusted EBITDA fell 9.3% quarter over quarter to $8.4M because the company chose to reinvest the gross-margin step-down back into sales coverage, but free cash flow turned positive at $4.1M for the half-year, and management raised full-year 2026 revenue guidance to at least $279M, or 24% growth, with at least 73% gross margin and positive full-year free cash flow. The open question for the next two quarters is whether the post-Biologics License Application (BLA) Avance product story can keep compounding at this pace once the BLA-related stock-compensation one-off no longer distorts the comparison - falsifiable when the Q4 gross margin walks back above 73% on a comparable mix.