Xtant Medical Reports Second Quarter 2025 Financial Results

Total Revenue of $35.4 Million Increased 18% Year-over-Year

Delivers Positive Net Income, Adjusted EBITDA and Operating Cash Flow

Raises FY25 Revenue Guidance to $131-$135 Million, Representing Growth of 11%-15% over FY24

BELGRADE, Mont., Aug. 12, 2025 /PRNewswire/ -- Xtant Medical Holdings, Inc. (NYSE:XTNT), a global medical technology company focused on surgical solutions for the treatment of spinal, orthopedic, and woundcare disorders, today reported financial and operating results for the second quarter ended June 30, 2025.

Second Quarter 2025 Financial Highlights

• Revenue of $35.4 million, up 18%, compared to the prior year quarter
• Gross margin of 68.6% compared to 62.1% for the prior year quarter
• Net income of $3.6 million compared to a net loss of $3.9 million in the prior year quarter
• Adjusted EBITDA of $6.9 million compared to Adjusted EBITDA loss of $0.6 million in the prior year quarter
• Cash generated from operations of $1.2 million compared to cash used in operations of $5.1 million in the prior year quarter
• Raised FY25 revenue guidance to $131-$135 million, representing growth of 11%-15%, excluding the impact of the pending sale of certain assets to Companion Spine

Recent Business Highlights

• Announced definitive agreements to sell its non-core Coflex® and CoFix® spinal implants and all OUS businesses to Companion Spine for total proceeds of approximately $19.2 million
• Launched OsteoFactor Pro™, a naturally occurring cocktail of allogeneic growth factors engineered and designed to improve bone healing and support surgical success across orthopedic and spine procedures
• Launched Trivium™, a premium, next-generation demineralized bone matrix (DBM) allograft designed to elevate the standard of care in bone grafting procedures

Sean Browne, President and CEO of Xtant Medical, stated, "We delivered strong financial and operating results during the second quarter, reflecting steps taken to enhance our focus on our core biologics business while also prudently managing expenses across the organization and driving operating leverage, consistent profitability, and cash flow. Notably, with the recent launch of our next-generation growth factor, OsteoFactor Pro™, we are now the only vertically integrated company to develop and manufacture solutions across all major orthobiologic categories."      

Mr. Browne continued, "Our recently announced agreements to sell certain non-core spinal implant and OUS businesses to Companion Spine represent another step toward the realization of our strategic vision for the company. Once completed, this transaction will allow us to significantly strengthen our balance sheet and further support the ongoing development of our broad pipeline of advanced biologics. I believe our tireless commitment to innovation and quality uniquely positions Xtant to address the needs of surgeons and patients alike while simultaneously creating enduring value for our shareholders."      

Second Quarter 2025 Financial Results

Revenue grew 18% to $35.4 million, compared to $29.9 million for the same quarter in 2024. The increase is due primarily to increased orthobiologics sales and licensing revenue.

Gross margin for the second quarter of 2025 was 68.6%, compared to 62.1% for the same period in 2024. The increase is primarily attributable to the impact of royalty revenue in the current year period, as well as lower product costs and greater scale.

Operating expenses for the second quarter of 2025 totaled $19.7 million, compared to $21.5 million for the second quarter of 2024. The reduction in operating expenses is primarily attributable to reduced compensation and commission expenses, which were partially offset by an increase in professional fees related to sales and marketing. 

Net income totaled $3.6 million, or $0.02 per share on a fully diluted basis, compared to a net loss of $3.9 million, or $(0.03) per share, in the second quarter of 2024.

Non-GAAP adjusted EBITDA for the second quarter of 2025 totaled $6.9 million, compared to an Adjusted EBITDA loss of $569,000 for the same period in 2024. Beginning in the fourth quarter of 2024, phasing of the bargain purchase gain on sell through of inventory acquired as part of the purchase of Surgalign Holdings' hardware and biologics business is no longer included in acquisition-related fair value adjustments in the non-GAAP adjusted EBITDA calculation and prior period calculations as presented herein have been recast to conform to the current presentation and calculation.

The Company defines adjusted EBITDA as net income/loss from operations before depreciation, amortization and interest expense and provision for income tax/benefit, and as further adjusted to add back in or exclude, as applicable, separation-related expenses, non-cash compensation, disposition/acquisition-related expense, acquisition-related fair value adjustments and unrealized foreign currency translation gain or loss. A calculation and reconciliation of adjusted EBITDA to net loss can be found in the attached financial tables.

As of June 30, 2025, the Company had $7.0 million of cash and cash equivalents compared to $6.2 million as of December 31, 2024.

2025 Financial Guidance

Xtant is raising its full-year 2025 revenue guidance to a range of $131 million to $135 million, which represents approximately 11% to 15% growth over the Company's 2024 revenue.  This compares to its prior revenue guidance of $127 million to $131 million. Xtant intends to update its outlook following the completion of the  sale of its non-core Coflex® and CoFix® spinal implants and all OUS businesses to Companion Spine.   

Conference Call

Xtant Medical will host a webcast and conference call to discuss its second quarter 2025 financial and operating results at 8:30 am ET today, August 12, 2025.

To access the webcast, visit Webcast Link: https://www.webcaster4.com/Webcast/Page/3039/52698

To access the conference call, dial 877-545-0523 (US) or 973-528-0016 (International) and reference Participant Access Code 482755.

A replay of the call will be available on the Investor section of the Company's website at www.xtantmedical.com.

About Xtant Medical Holdings, Inc.

Xtant Medical's mission of honoring the gift of donation so that our patients can live as full and complete a life as possible, is the driving force behind our company. Xtant Medical Holdings, Inc. (www.xtantmedical.com) is a global medical technology company focused on the design, development, and commercialization of a comprehensive portfolio of orthobiologics serving the chronic and surgical wound care and sports medicine markets, as well as spinal implant systems. Xtant people are dedicated and talented, operating with the highest integrity to serve our customers.

The symbols ™ and ® denote trademarks and registered trademarks of Xtant Medical Holdings, Inc. or its affiliates, registered as indicated in the United States, and in other countries. All other trademarks and trade names referred to in this release are the property of their respective owners.

Non-GAAP Financial Measures

To supplement the Company's consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP), the Company uses certain non-GAAP financial measures in this release, including adjusted EBITDA. Reconciliations of the non-GAAP financial measures used in this release to the most comparable GAAP measures for the respective periods can be found in tables later in this release. The Company's management believes that the presentation of these measures provides useful information to investors. These measures may assist investors in evaluating the Company's operations, period over period. Management uses the non-GAAP measures in this release internally for evaluation of the performance of the business, including the allocation of resources. Investors should consider non-GAAP financial measures only as a supplement to, not as a substitute for or as superior to, measures of financial performance prepared in accordance with GAAP.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as "intends," ''expects,'' ''anticipates,'' ''plans,'' ''believes,'' ''estimates,'' "continue," "future," ''will,'' "potential," "going forward," "guidance," similar expressions or the negative thereof, and the use of future dates. Forward-looking statements in this release include the Company's full year 2025 revenue guidance and the anticipated closing of the sale of the Company's Coflex® and CoFix® spinal implants and all OUS businesses to Companion Spine and proceeds therefrom. The Company cautions that its forward-looking statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors, including, among others: the possibility that the sale of the Company's Coflex and CoFix products and international business are not completed or, if completed, that the anticipated benefits of the transactions are not realized when expected or at all; the possibility that the transactions may be more expensive to complete than anticipated; diversion of management's attention from ongoing business operations and opportunities; the occurrence of any event, change or other circumstances that could give rise to the right of the parties to terminate either or both transactions; exposure to potential litigation and adverse tax consequences; the Company's future operating results and financial performance; its ability to increase or maintain revenue; the Company's ability to become operationally self-sustaining and less reliant on third-party manufacturers and suppliers; risks associated with its acquisitions and the integration of those businesses; anticipated shortages of stem cells which will adversely affect future revenues; the ability to implement successfully its future growth initiatives and risks associated therewith; possible future impairment charges to long-lived assets and goodwill and write-downs of excess inventory; the ability to remain competitive; the ability to innovate, develop and introduce new products and the success of those products; the ability to engage and retain new and existing independent distributors and agents and qualified personnel and the Company's dependence on key independent agents for a significant portion of its revenue; the effect of labor and hospital staffing shortages on the Company's business, operating results and financial condition, especially when they affect key markets; the effect of inflation, increased interest rates and other recessionary factors and supply chain disruptions; the effect of product sales mix changes on the Company's financial results; government and third-party coverage and reimbursement for Company products; the ability to obtain and maintain regulatory approvals and comply with government regulations; the effect of product liability claims and other litigation to which the Company may be subject; the effect of product recalls and defects; the ability to license certain of the Company's intellectual property on commercially reasonable terms and to maintain any such licenses; the ability to obtain and protect Company intellectual property and proprietary rights and operate without infringing the rights of others; risks associated with the Company's clinical trials; international risks; the ability to service Company debt, comply with its debt covenants and access additional indebtedness; the ability to maintain sufficient liquidity to fund its operations and obtain financing on favorable terms or at all; and other factors. Additional risk factors are contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 filed with the Securities and Exchange Commission (SEC) on March 6, 2025 and subsequent SEC reports, including its Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2025 to be filed with the SEC on August 12, 2025. Investors are encouraged to read the Company's filings with the SEC, available at www.sec.gov, for a discussion of these and other risks and uncertainties. The Company undertakes no obligation to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as required by law. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by this cautionary statement.

-- Tables Follow –

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SOURCE Xtant Medical Holdings, Inc.