Core Viewpoint - Xtant Medical Holdings, Inc. has launched its next-generation synthetic bone graft, nanOss Strata, aimed at improving surgical outcomes for spinal and orthopedic conditions [1][4]. Product Details - nanOss Strata is made from hydroxycarbonapatite (HCA), which has higher solubility than traditional hydroxyapatite (HA), enhancing bioactivity and integration with surrounding bone tissue [2]. - The product features a nanocrystalline structure that mimics human bone, increasing surface area for better osteoconductivity and cellular activity stimulation post-implantation [2]. - Strata is available in two forms: compression-resistant preformed strips and prehydrated moldable grafts, both of which are sterile and absorb biologic fluids quickly [3]. Company Commitment - The CEO of Xtant Medical emphasized the company's dedication to innovation in regenerative medicine and improving surgical outcomes through the introduction of nanOss Strata [4]. - Xtant Medical operates a nationwide distribution network to make nanOss Strata accessible to surgeons [4]. Company Overview - Xtant Medical Holdings, Inc. focuses on the design, development, and commercialization of orthobiologics for chronic and surgical wound care, sports medicine, and spinal implant systems [5].

Core Insights - Xtant Medical Holdings, Inc. has completed the sale of certain non-core Coflex spinal implant assets and all OUS entities of Paradigm Spine GmbH to Companion Spine, LLC for approximately $19.2 million, which includes $11.0 million in cash and $8.2 million in short-term seller financing [2][3] Financial Details - The transaction's purchase price consists of $11.0 million in cash and $8.2 million in an unsecured promissory note, which is subject to purchase price adjustments and matures on January 15, 2026 [2] - The net proceeds from the sale will be used to reduce long-term debt and enhance cash liquidity for the company [2] Strategic Focus - The sale is viewed as a significant step for Xtant Medical to enhance its focus on its core biologics business, aiming to drive innovation and improve financial performance [3] - The company expects that the net proceeds, along with anticipated cash flows from operations, will allow it to operate without needing additional external capital [3] Company Overview - Xtant Medical is a global medical technology company dedicated to surgical solutions for spinal and orthopedic conditions, with a mission centered on honoring the gift of donation to improve patients' lives [4]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $33.3 million, a 19% increase from $27.9 million in Q3 2024, primarily driven by $5.5 million in licensing revenue [13][14] - Gross margin improved to 66.1% in Q3 2025 from 58.4% in Q3 2024, attributed to a favorable sales mix and greater scale [14] - Net income for Q3 2025 was $1.3 million, compared to a net loss of $5 million in the same period last year [16] Business Line Data and Key Metrics Changes - The biologics product family, the core business, grew 4% year-over-year, which was below long-term growth expectations [8][9] - Hardware product revenue declined by 6% or $736,000 year-over-year [13] Market Data and Key Metrics Changes - The company anticipates closing the sale of non-core assets for $19.2 million, which will enhance focus on core biologics and strengthen financial position [5][6] - The sale is expected to be neutral to slightly positive for margins and bottom line metrics in 2026 and beyond [7] Company Strategy and Development Direction - The company is focusing on self-sustainability and positive cash flows, with strategic initiatives aimed at higher margin biologics and in-house manufacturing [9] - Investments are being made in the commercial team to maximize the reach of the orthobiologics portfolio [9][10] - New product launches include CollagenX, which is designed for surgical wound closure and complements the existing product line [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving low double-digit growth in the orthobiologics business for 2026, despite not providing full guidance yet [23][24] - The company is optimistic about the impact of new products and the potential for growth in the surgical repair and wound care markets [11][40] Other Important Information - The company has $10.6 million in cash and equivalents, with $25.6 million in net accounts receivable and $40.7 million in inventory as of September 30, 2025 [17] - The anticipated proceeds from the sale of assets will not require additional external capital for operations [5][6] Q&A Session Summary Question: Plans for investment in the commercial organization - Management indicated plans to increase the number of sales representatives from four to eight by the end of the year, with further additions expected in 2026 [22] Question: Growth expectations for the orthobiologics business - Management expects low double-digit growth in orthobiologics for 2026, with ongoing efforts to optimize the product portfolio [23][24] Question: Insights on new product launches at NAS - Management highlighted three key products: a new growth factor product, an advanced DBM called Trivium, and the recently launched CollagenX [24][25] Question: Year-over-year growth in orthobiologics - The 4% growth was supported by the stem cell and amnio product lines, while older demineralized bone products faced declines [30][31] Question: Impact of amnio product pricing changes - The company is well-positioned to benefit from the new pricing structure in the amnio market due to its low production costs [36][38] Question: Plans for distributing CollagenX - Management sees significant potential for CollagenX in various surgical procedures and is excited about its market opportunities [40]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $33.3 million, a 19% increase from $27.9 million in Q3 2024, primarily driven by $5.5 million in licensing revenue [13][14] - Gross margin improved to 66.1% in Q3 2025 from 58.4% in Q3 2024, attributed to a favorable sales mix and greater scale [14] - Net income for Q3 2025 was $1.3 million, compared to a net loss of $5 million in the same period last year [16] Business Line Data and Key Metrics Changes - The biologics product family, the core business, grew 4% year-over-year, which was below long-term growth expectations [8][9] - Hardware product revenue declined by 6% or $736,000 year-over-year [13] Market Data and Key Metrics Changes - The company anticipates closing the sale of non-core assets for $19.2 million, which will enhance focus on core biologics and strengthen financial position [5][6] - The anticipated revenue from the sold business was approximately $23.5 million, which was modestly unprofitable on a standalone basis [7] Company Strategy and Development Direction - The company is focusing on self-sustainability and positive cash flows, with strategic initiatives aimed at higher margin biologics and in-house manufacturing [9] - Investments are being made in the commercial team to maximize the reach of the orthobiologics portfolio [9][10] - New product launches include CollagenX, which is expected to complement existing offerings and address diverse surgical needs [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving low double-digit growth in the orthobiologics business for 2026, despite not providing specific guidance yet [23][24] - The company is optimistic about the impact of new products and the potential for growth in the surgical repair and wound care markets [11][40] Other Important Information - The company has reiterated its 2025 revenue guidance of $131 million to $135 million, reflecting an 11%-15% growth over 2024 [12] - Cash balance as of September 30, 2025, was $10.6 million, with net accounts receivable at $25.6 million and inventory at $40.7 million [17] Q&A Session Summary Question: Plans for commercial organization investments - Management indicated plans to increase the number of sales representatives from four to eight by the end of the year, with further additions expected in 2026 [22] Question: Growth expectations for orthobiologics business - Management expects low double-digit growth in orthobiologics for 2026, with ongoing efforts to optimize the product portfolio [23][24] Question: Highlights for upcoming NAS event - Management highlighted new products such as a growth factor product, advanced DBM called Trivium, and CollagenX as key offerings to showcase [25] Question: Year-over-year growth in orthobiologics - Management noted a 4% growth in orthobiologics, driven by stem cell and amnio product lines, while older demineralized bone products faced challenges [30][31] Question: Impact of amnio product pricing changes - Management expressed confidence in leveraging robust hospital contracts to capitalize on new pricing structures in the amnio market [36][38] Question: Plans for CollagenX distribution - Management sees significant potential for CollagenX in various markets, leveraging existing platforms and FDA work for future growth [40]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $33.3 million, a 19% increase from $27.9 million in Q3 2024, primarily driven by $5.5 million in licensing revenue and $576,000 in additional biologics revenue, despite a 6% decline in hardware product revenue [13][8][4] - Gross margin improved to 66.1% in Q3 2025 from 58.4% in Q3 2024, attributed to a favorable sales mix and greater scale [13] - Net income for Q3 2025 was $1.3 million, compared to a net loss of $5 million in the same period last year [16] - Adjusted EBITDA for Q3 2025 was $4.5 million, a significant improvement from an adjusted EBITDA loss of approximately $1 million in Q3 2024 [16] Business Line Data and Key Metrics Changes - The biologics product family, the core business, grew by 4% year-over-year, which was below long-term growth expectations [8] - The company is focusing on higher-margin biologics and in-house manufacturing to improve quality and control costs, with plans to drive top-line growth in the orthobiologics business [9] Market Data and Key Metrics Changes - The company anticipates closing the sale of non-core assets for $19.2 million, which will enhance focus on the core biologics business and strengthen financial position [5][6] - The anticipated revenue from the sold business was approximately $23.5 million, which was modestly unprofitable on a standalone basis [6] Company Strategy and Development Direction - The company is shifting focus back to driving top-line growth in orthobiologics after achieving self-sustainability and positive cash flows [9] - New product launches include CollagenX, which is designed for surgical wound closure and complements the existing orthobiologics product line [10] - The company is well-positioned to grow in the surgical repair and wound care markets, supported by positive feedback from surgeons on recent innovations [11] Management's Comments on Operating Environment and Future Outlook - Management reiterated 2025 revenue guidance of $131 million to $135 million, reflecting an 11%-15% growth over 2024 revenue [11][12] - The company expects to provide initial 2026 revenue guidance with Q4 results in March of next year [12] Other Important Information - The company has $10.6 million in cash and cash equivalents, with net accounts receivable of $25.6 million and inventory of $40.7 million as of September 30, 2025 [17] Q&A Session Summary Question: Plans for investment in the commercial organization - Management indicated plans to increase the number of sales representatives from four to eight by the end of the year, with expectations to add four more in 2026, focusing on strategic areas [19][21] Question: Growth expectations for the orthobiologics business in 2026 - Management expects low double-digit growth for the orthobiologics business in 2026, while hardware growth remains uncertain [22] Question: Insights on new product launches at NAS - Management highlighted three key products: a new growth factor product, an advanced DBM called Trivium, and the recently launched CollagenX, all of which are expected to enhance the product portfolio [25][26] Question: Year-over-year growth in orthobiologics - The orthobiologics business experienced a 4% growth, driven by the stem cell and amnio product lines, while older demineralized bone products faced declines [30][33] Question: Impact of amnio product pricing changes - The company is well-positioned to benefit from the new pricing structure for amnio products, leveraging strong hospital contracts [38] Question: Plans for distributing CollagenX - Management sees significant potential for CollagenX in various markets, leveraging the existing platform technology acquired through previous acquisitions [40][41]

Core Insights - Xtant Medical Holdings, Inc. reported an earnings per share (EPS) of -$0.005, matching estimates, with revenue of approximately $33.26 million, exceeding expectations of $32.70 million [1][6] Financial Performance - The company achieved a total revenue of $33.26 million in the third quarter of 2025, reflecting a 19% increase compared to the previous year [2][6] - XTNT's full-year 2025 revenue guidance remains between $131 million and $135 million, indicating an anticipated growth of 11% to 15% over fiscal year 2024 [3][6] - Despite a negative price-to-earnings (P/E) ratio of -23.14, the price-to-sales ratio stands at 0.78, suggesting the stock is valued at less than one times its sales [2] Strategic Initiatives - The company announced the sale of certain hardware assets and its OUS businesses to Companion Spine, expected to close by the end of the year, which may enhance focus on core operations and improve financial performance [3][6] - Sean Browne, President and CEO, emphasized the company's commitment to self-sustainability through positive free cash flow, as reflected in the strong third-quarter results [4] Liquidity and Debt Position - XTNT maintains a strong liquidity position with a current ratio of 2.47, indicating more than twice the current assets compared to current liabilities [5] - The debt-to-equity ratio is 0.31, suggesting a moderate level of debt relative to equity [5]

Financial Performance - Total revenue for Q3 2025 was $33.3 million, representing a 19% increase year-over-year from $27.9 million in Q3 2024[6] - Net income for Q3 2025 was $1.3 million, compared to a net loss of $5.0 million in Q3 2024[8] - Adjusted EBITDA for Q3 2025 was $4.5 million, a significant improvement from an adjusted EBITDA loss of $1.0 million in Q3 2024[9] - Total revenue for the three months ended September 30, 2025, was $33.255 million, an increase from $27.937 million in the same period of 2024, representing a growth of 19.1%[23] - Product revenue for the nine months ended September 30, 2025, reached $87.492 million, compared to $85.754 million in 2024, showing a growth of 2.0%[23] - Net income for the nine months ended September 30, 2025, was $4.916 million, a significant recovery from a net loss of $13.284 million in the same period of 2024[25] - Non-GAAP Adjusted EBITDA for the nine months ended September 30, 2025, was $14.482 million, compared to a loss of $2.488 million in 2024[27] Cost Management - Gross margin improved to 66.1% in Q3 2025, up from 58.4% in the same period last year[7] - Operating expenses decreased to $19.5 million in Q3 2025, down from $20.1 million in Q3 2024[8] - Operating expenses decreased to $19.451 million for the three months ended September 30, 2025, from $20.084 million in 2024, a reduction of 3.2%[23] - The company experienced a significant reduction in loss from operations, reporting a loss of $2.541 million for the three months ended September 30, 2025, compared to a loss of $3.777 million in 2024[23] - Interest expense for the nine months ended September 30, 2025, was $2.953 million, a slight decrease from $3.026 million in 2024[27] Cash Flow and Liquidity - Cash generated from operations was $4.6 million in Q3 2025, compared to cash used in operations of $1.7 million in the prior year quarter[5] - As of September 30, 2025, cash and cash equivalents increased to $10.6 million from $6.2 million at the end of 2024[11] - Cash and cash equivalents at the end of the nine months ended September 30, 2025, totaled $10.641 million, up from $7.086 million in 2024[25] - The company reported a net cash provided by operating activities of $7.166 million for the nine months ended September 30, 2025, compared to a net cash used of $12.561 million in 2024[25] Strategic Initiatives - The company reiterated its full-year 2025 revenue guidance of $131-$135 million, indicating growth of 11%-15% over FY24[12] - The anticipated sale of non-core assets and international businesses to Companion Spine is expected to close by year-end 2025[5] - The company launched CollagenX™, a new bovine collagen particulate product aimed at enhancing surgical wound closure[5]

Core Insights - Xtant Medical Holdings, Inc. reported a total revenue of $33.3 million for Q3 2025, reflecting a 19% increase year-over-year, primarily driven by licensing revenue [1][3][13] - The company achieved a gross margin of 66.1%, up from 58.4% in the same quarter of the previous year, attributed to a favorable sales mix and greater scale [3][13] - Xtant Medical reiterated its full-year 2025 revenue guidance of $131-$135 million, indicating an expected growth of 11%-15% over FY24 [1][8] Financial Performance - Operating expenses decreased to $19.5 million in Q3 2025 from $20.1 million in Q3 2024, mainly due to reduced compensation and commission expenses [4][13] - The company reported a net income of $1.3 million, or $0.01 per share, compared to a net loss of $5.0 million, or $(0.04) per share, in Q3 2024 [4][13] - Non-GAAP adjusted EBITDA for Q3 2025 was $4.5 million, a significant improvement from an adjusted EBITDA loss of $1.0 million in the same period last year [5][13] Cash Flow and Assets - As of September 30, 2025, Xtant Medical had cash and cash equivalents of $10.6 million, an increase from $6.2 million at the end of 2024 [7][13] - The company generated $4.6 million in cash from operations in Q3 2025, compared to cash used in operations of $1.7 million in Q3 2024 [13] Strategic Developments - The anticipated sale of certain non-core spinal implant assets and international businesses to Companion Spine is expected to close by the end of 2025, allowing the company to focus on its core biologics business [2][13] - Xtant Medical launched CollagenX™, a bovine collagen particulate product aimed at enhancing surgical wound closure and promoting healing [13][21]

Revenue Performance - Total revenue for Q3 2025 was $33.3 million, a 19% increase from $27.9 million in Q3 2024, and for the nine months ended September 30, 2025, revenue was $101.6 million, an 18% increase from $85.8 million in the same period last year [106]. - Licensing revenue contributed $5.5 million in Q3 2025 and $14.1 million for the nine months ended September 30, 2025, driving the overall revenue increase [106]. Profitability - Gross profit margin improved to 66.1% for Q3 2025 compared to 58.4% in Q3 2024, and to 65.5% for the nine months ended September 30, 2025, up from 60.9% in the same period last year [108]. Expenses - General and administrative expenses decreased by 6% to $7.1 million for Q3 2025, and by 4% to $22.1 million for the nine months ended September 30, 2025, primarily due to reduced stock-based compensation [109]. - Sales and marketing expenses decreased by 1% to $11.7 million for Q3 2025 and by 8% to $34.6 million for the nine months ended September 30, 2025, attributed to reduced commission expenses [110]. - Research and development expenses were $0.6 million for Q3 2025, down from $0.7 million in Q3 2024, and $1.6 million for the nine months ended September 30, 2025, compared to $1.9 million in the same period last year [111]. Agreements and Sales - The company entered into a manufacture and license agreement for the SimpliGraft® product, receiving a one-time payment of $1.5 million and minimum purchase obligations from the distributor [99]. - The company is in the process of selling its Coflex and CoFix assets for a total purchase price of $17.5 million, with a non-refundable cash deposit of $2.5 million already received [101]. - The company also agreed to sell its equity in Paradigm Spine GmbH for $1.7 million, contingent on financing [102]. Regulatory and Financial Impact - Regulatory changes from CMS regarding reimbursement for skin substitutes may impact future license revenue and the viability of certain agreements [99]. Interest and Cash Flow - Interest expense for Q3 2025 was $0.9 million, down from $1.2 million in Q3 2024, while total interest expense for the nine months ended September 30, 2025 remained at $3.0 million [112]. - Net cash provided by operating activities for the first nine months of 2025 was $7.2 million, a significant improvement compared to a net cash used of $12.6 million in the same period of 2024 [116]. - Net cash provided by investing activities for the first nine months of 2025 was $3.2 million, compared to net cash used of $3.2 million in the same period of 2024, primarily due to $5.0 million advances from pending sales [117]. - Net cash used in financing activities for the first nine months of 2025 was $6.0 million, a decrease from net cash provided of $16.9 million in the same period of 2024, mainly due to reduced borrowings [118]. Current Assets and Liabilities - Total current assets increased to $78.3 million as of September 30, 2025, up from $67.1 million as of December 31, 2024, driven by higher cash and accounts receivable [114]. - The company had $10.6 million in cash and cash equivalents as of September 30, 2025, which is expected to meet cash requirements through at least November 2026 [124]. - As of September 30, 2025, the outstanding term loan under the Term Credit Agreement was $17.0 million, reduced from $22.0 million as of June 30, 2025 [119]. - The effective interest rate for the Term Credit Agreement was 13.18% as of September 30, 2025, while the effective rate for the Revolving Credit Agreement was 8.89% [122]. - The company had $11.3 million outstanding and $5.7 million of availability under the Revolving Credit Facility as of September 30, 2025 [121]. - The company is in compliance with all covenants under the Credit Agreements as of September 30, 2025 [123].

Core Insights - Xtant Medical Holdings, Inc. has launched CollagenX™, a bovine collagen particulate product aimed at surgical wound closure, which is designed to enhance healing, prevent dehiscence, and reduce surgical site infection risks [1][3] - The introduction of CollagenX™ is expected to complement Xtant's existing biologics portfolio and can be utilized across various surgical disciplines [2][3] Company Overview - Xtant Medical is a global medical technology company focused on surgical solutions for spinal, orthopedic, and wound care disorders, emphasizing innovation and quality in its product offerings [1][3] - The company operates as a fully vertically integrated regenerative medicine firm, which allows it to maintain high standards of quality and consistency in its products [3] Market Position - The launch of CollagenX™ reflects the company's commitment to meeting the diverse needs of surgeons and patients, potentially enhancing patient outcomes [3] - Xtant Medical's mission is centered around honoring the gift of donation to improve patients' quality of life, which drives its product development and market strategies [3]