Xtant Medical (XTNT) FY Conference August 12, 2025 03:30 PM ET Speaker0Good afternoon, everyone. Thank you for joining us at this year's Canaccord Genuity Global Growth Conference. My name is Caitlin Cronin, and I'm on the med tech team here at Canaccord Genuity. I'm joined today by Xtant, a medical device company developing regenerative products for orthopedic and spine procedures. With me today is Sean Brown, CEO.And before we begin, I want to remind everyone of any relevant disclosures which can be found ...

Xtant Medical (XTNT) Q2 2025 Earnings Call August 12, 2025 08:30 AM ET Speaker0Good morning, everyone, and welcome to the Xtant Medical Second Quarter twenty twenty five Financial Results. Please note this conference is being recorded. I will now turn the conference over to your host, Kevin Gardner of LifeSci Advisors. The floor is yours.Speaker1Thank you, operator, and welcome to Xtant Medical's second quarter twenty twenty five financial results call. Joining me today are Sean Brown, President and Chief E ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission File Number: 001-34951 XTANT MEDICAL HOLDINGS, INC. (Exact name of registrant as specified in its charter) | Delaware | 2 ...

Exhibit 99.1 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., August 12, 2025 — Xtant Medical Holdings, Inc. (NYSE American: XTNT), a global medical technology company focused on surgical solutions for the treatment of spinal, orthopedic, and woundcare disorders ...

Core Insights - Xtant Medical Holdings, Inc. has announced the sale of certain Coflex® and CoFix® interlaminar stabilization implant assets and all OUS entities of Paradigm Spine GmbH to Companion Spine, LLC for a total consideration of approximately $19.2 million [1][2] - The transaction is expected to close in the third quarter of 2025 and aims to enhance Xtant's focus on its core business while improving its balance sheet and liquidity [2][3] Financial Details - The proceeds from the transaction consist of $11 million in cash at closing and $8.2 million in short-term seller financing [2][4] - Xtant plans to use the proceeds to reduce long-term debt and improve cash liquidity [2] Strategic Focus - The transaction allows Xtant to concentrate on the development of higher-margin orthobiologics, thereby streamlining operations [3] - Companion Spine, backed by Viscogliosi Brothers, is expected to effectively manage the transitioned products and drive their growth [3] Operational Transition - Certain members of Xtant's U.S. and international commercial organizations will transition to Companion Spine to continue supporting the products [2] - Companion Spine aims to enhance its product solutions portfolio and strengthen its presence in the U.S. market [3][8] Closing Conditions - The transaction is subject to Companion Spine obtaining financing and other customary closing conditions [3]

Market Opportunity & Growth - The worldwide spine market is a \$10 billion market[6], while the addressable orthobiologics market is \$2.5 billion[6] - Xtant Medical's FY2024 revenue was \$117.3 million, a 28% increase over FY2023[6] - The company expects FY2025 revenue to be between \$126 million and \$130 million[6] Product Portfolio & Strategy - Xtant Medical offers a full-service product offering including cervical fusion, posterior thoracic fusion, TLIF/PLIF/ALIF lumbar fusion, sacroiliac fusion, biologics, and fixation[19] - The company is vertically integrated in all five orthobiologics categories[7, 17] - Xtant Medical's current portfolio addresses the entire \$2.5 billion orthobiologics market[25] Distribution & Expansion - Xtant Medical has an established distribution network with 450 IDN contracts and 670+ independent distributors[6] - The company aims to expand its distribution network by signing new IDN and GPO agreements and attracting additional independent rep agencies[46] Acquisition & Financials - The company focuses on profitability and self-sustainability[17], with positive Adjusted EBITDA and operating cash flow in Q4 2024[8] - Inorganic growth through acquisitions is key to achieving long-term goals[47]

Core Viewpoint - Xtant Medical Holdings, Inc. has launched OsteoFactor Pro™, a new allogeneic growth factor solution aimed at enhancing bone healing and supporting surgical success in orthopedic and spine procedures [1][4]. Product Overview - OsteoFactor Pro™ is a naturally derived formulation rich in growth factors that enhances the biological activity and regenerative potential of orthobiologic scaffolds [2]. - The product features a biphasic release profile, providing an immediate bolus followed by sustained growth factor release, which stimulates key natural bone regeneration pathways such as angiogenesis, chemotaxis, and osteogenesis [2]. - It is an off-the-shelf, ready-to-use solution that integrates with various scaffolds, offering surgeons versatility and biologic performance for diverse bone regeneration approaches [3]. Company Positioning - With the launch of OsteoFactor Pro™, Xtant Medical becomes the first vertically integrated company to provide solutions across all five major orthobiologic categories, including demineralized bone matrix, cellular allografts, synthetics, structural allografts, and growth factors [5]. - The company emphasizes its commitment to innovation, scalability, and addressing the full spectrum of needs in regenerative medicine [5]. Company Mission - Xtant Medical's mission focuses on honoring the gift of donation to enhance patients' quality of life through a comprehensive portfolio of orthobiologics and spinal implant systems [6].

Financial Data and Key Metrics Changes - The company reported total revenue of $32.9 million for Q1 2025, an 18% increase from $27.9 million in Q1 2024, primarily driven by growth in the biologics product family [5][12] - Adjusted EBITDA for Q1 2025 was $3 million, compared to an adjusted EBITDA loss of $1 million in Q1 2024 [15] - Net income for Q1 2025 was $58,000, or $0.00 per share, compared to a net loss of $4.4 million, or $0.03 per share, in the same period last year [15] Business Line Data and Key Metrics Changes - The biologics product family experienced significant growth, while spinal implant sales declined by 10% or $1.2 million year over year [12] - The company launched two new innovative products, Trivium and FiberX, aimed at rejuvenating its core demineralized bone offerings [8] - The company anticipates mid double-digit revenue growth in its biologics product family for the fiscal year 2025 [10] Market Data and Key Metrics Changes - The company received royalties from licensing its Simply Max Q code to a distributor in the chronic wound care space, which is expected to generate additional income [9] - CMS has extended the local coverage determination for skin substitutes to December 31, 2025, potentially increasing royalty income [9] Company Strategy and Development Direction - The company has achieved full vertical integration of its biologics products, marking a significant strategic milestone [7] - The focus is on self-sustainability, profitability, and cash generation, with a targeted revenue guidance for 2025 in the range of $127 million to $131 million, representing 8% to 11% growth [11] - The company is rationalizing its hardware product lines to optimize cash management [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's future, emphasizing the importance of being realistic regarding government policy impacts on revenue [22] - The company is focused on maintaining its growth in the biologics sector while managing the transition in its hardware offerings [24] - Management expects steady revenue growth throughout the remainder of the year, with cash flow from operations anticipated to improve in Q4 [27] Other Important Information - The company terminated a restrictive investor rights agreement with OrbiMed, which is seen as a positive development for shareholders [6] - The company has added processing capacity at its Belgrade facility to support growing production needs [9] Q&A Session Summary Question: What are the assumptions for incremental minimum payments and royalties from the Amneal deals? - Management has not included additional minimums under the royalty agreement and assumes full manufacturing under the manufacturing license agreement for the remainder of 2025 [19][20] Question: Can you walk through the different drivers for growth in the biologics business? - Key drivers include growth from Amneal and VBM, with a focus on transitioning customers to new product lines [23][24] Question: How should we think about EBITDA and cash flow through the rest of the year? - Cash flow from operations is expected to be tighter in Q3 but improve in Q4, with steady revenue growth anticipated [27] Question: What is the outlook for sales and marketing expenses? - Sales and marketing expenses are expected to increase in Q2 and beyond, aligning more closely with Q4 of the previous year [32] Question: Will there be margin improvements from in-house production? - Management expects margin improvements from bringing production in-house, particularly for products like Fibrex and Trivium [34][35]

Xtant Medical (XTNT) Q1 2025 Earnings Call May 12, 2025 04:30 PM ET Speaker0 Good afternoon, everyone, and welcome to the Xtant Medical First Quarter twenty twenty five Financial Results. Please note this conference is being recorded. I will now turn the conference over to your host, Brett Maas of Hayden Investor Relations. Brett, the floor is yours. Speaker1 Thank you, operator. Joining me today is Sean Brown, President and Chief Executive Officer and Scott Neals, Chief Financial Officer. Today's call is b ...

Part I: Financial Information [Financial Statements](index=7&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) The company reported a net income of **$58 thousand** in Q1 2025, a significant turnaround from a **$4.4 million** net loss in Q1 2024, driven by an **18%** revenue increase and a post-quarter change in majority ownership [Condensed Consolidated Financial Statements](index=7&type=section&id=Condensed%20Consolidated%20Financial%20Statements) Q1 2025 financial statements reflect a shift to profitability with a net income of **$58 thousand**, positive operating cash flow of **$1.3 million**, and a slight increase in total assets to **$95.8 million** Condensed Consolidated Balance Sheet Data (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $5,032 | $6,199 | | Total current assets | $69,144 | $67,116 | | Total Assets | $95,833 | $93,837 | | Total current liabilities | $29,581 | $28,581 | | Total Liabilities | $51,956 | $50,874 | | Total Stockholders' Equity | $43,877 | $42,963 | Condensed Consolidated Statements of Operations (in thousands, except per share data) | Account | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Revenue | $32,904 | $27,873 | | Gross Profit | $20,243 | $17,302 | | Income (Loss) from Operations | $1,063 | $(3,470) | | Net Income (Loss) | $58 | $(4,400) | | Basic & Diluted EPS | $0.00 | $(0.03) | Condensed Consolidated Statements of Cash Flows (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $1,278 | $(5,755) | | Net cash used in investing activities | $(1,143) | $(674) | | Net cash (used in) provided by financing activities | $(919) | $5,179 | | Net change in cash | $(786) | $(1,299) | [Notes to Financial Statements](index=12&type=section&id=Notes%20to%20Financial%20Statements) Notes reveal a significant revenue shift with **$3.6 million** in new licensing revenue, continued debt covenant compliance, and a major post-quarter ownership change where Nantahala Capital Management acquired a **49.1%** stake Revenue by Product Line (in thousands) | Product Line | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Orthobiologics | $18,074 | $15,416 | | Spinal implant | $11,210 | $12,457 | | License revenue | $3,620 | $— | | **Total revenue** | **$32,904** | **$27,873** | - A new license agreement includes a **$1.5 million** upfront fee and guaranteed quarterly minimum royalties, though future minimums beyond Q1 2025 were constrained due to uncertainty regarding a CMS policy change[52](index=52&type=chunk) - As of March 31, 2025, the company had **$5.7 million** available under its revolving line of credit and was in compliance with all debt covenants[59](index=59&type=chunk) - Subsequent to the quarter end, in April 2025, OrbiMed sold its entire **~73.1 million share stake**, with Nantahala Capital Management increasing its ownership to **49.1%** of the company's outstanding common stock as the lead purchaser[79](index=79&type=chunk)[83](index=83&type=chunk) [Management's Discussion and Analysis (MD&A)](index=23&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management attributes Q1 2025 revenue growth of **18%** to orthobiologics and new licensing, leading to an operating income of **$1.1 million** and sufficient liquidity to fund operations through at least May 2026 [Business Overview and Strategy](index=23&type=section&id=Business%20Overview%20and%20Strategy) The company focuses on developing and marketing regenerative medicine and medical devices, pursuing growth through new products, expanded distribution, adjacent market penetration, and strategic acquisitions - The company's four key growth initiatives are: - Introduce new products (e.g., Trivium™) - Expand distribution network - Penetrate adjacent markets - Leverage growth platform with technology and strategic acquisitions[88](index=88&type=chunk) - Recent license agreements for SimpliGraft® and SimpliMax™ products are subject to revenue recognition risks related to potential changes in CMS reimbursement policies, which have been delayed to January 1, 2026[91](index=91&type=chunk) [Results of Operations](index=24&type=section&id=Results%20of%20Operations) Q1 2025 total revenue grew **18%** to **$32.9 million** driven by orthobiologics and new licensing, while gross margin slightly decreased to **61.5%** and operating expenses notably declined, shifting to operating income - Total revenue increased **18%** year-over-year to **$32.9 million**, driven by orthobiologics sales and **$3.6 million** in new licensing revenue[93](index=93&type=chunk) - Gross margin decreased by **60 basis points** to **61.5%**, primarily due to inventory write-offs and sales mix changes[94](index=94&type=chunk) - Sales and marketing expenses decreased by **10%** (**$1.3 million**), mainly from a **$0.8 million** reduction in agent commissions and a **$0.7 million** decrease in compensation expense due to reduced headcount[96](index=96&type=chunk) - General and administrative expenses decreased by **3%** (**$0.3 million**) due to reduced accounting and consultant fees[95](index=95&type=chunk) [Liquidity and Capital Resources](index=25&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity, including **$5.4 million** cash and **$5.7 million** available credit, is deemed sufficient to meet cash requirements through at least May 2026, supported by **$1.3 million** in Q1 2025 operating cash flow - The company believes its **$5.4 million** in cash as of March 31, 2025, along with operating cash flows and available credit, will be sufficient to meet cash requirements through at least **May 2026**[109](index=109&type=chunk) - Net cash from operating activities was **$1.3 million** in Q1 2025, a significant improvement from a **$5.8 million** use of cash in Q1 2024, primarily due to achieving net income versus a net loss[101](index=101&type=chunk) - As of March 31, 2025, the company had **$11.3 million** outstanding on its revolving line of credit, with **$5.7 million** of availability[106](index=106&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=27&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) As a smaller reporting company, Xtant Medical is not required to provide the information for this item - The company is not required to provide this information as it qualifies as a smaller reporting company[113](index=113&type=chunk) [Controls and Procedures](index=27&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded that disclosure controls and procedures were not effective as of March 31, 2025, due to a previously identified material weakness in internal control over financial reporting - Based on their evaluation, the principal executive officer and principal financial officer concluded that as of March 31, 2025, the company's disclosure controls and procedures were not effective[115](index=115&type=chunk) - The ineffectiveness is attributed to a material weakness in the company's internal control over financial reporting[115](index=115&type=chunk) Part II: Other Information [Legal Proceedings](index=28&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company is subject to various legal claims arising in the ordinary course of business and believes it has adequately accrued for probable and estimable contingent liabilities - The company is subject to potential liabilities from various claims and legal actions arising in the ordinary course of business[71](index=71&type=chunk)[117](index=117&type=chunk) - Management believes it has adequately accrued for contingent liabilities where loss is probable and reasonably estimable, and does not expect the ultimate resolution of claims to have a material adverse effect[71](index=71&type=chunk) [Other Information](index=28&type=section&id=ITEM%205.%20OTHER%20INFORMATION) Effective May 12, 2025, Mark A. Schallenberger was appointed COO with an annual base salary of **$461,760** and a **75%** target bonus, with no Rule 10b5-1 trading plan changes reported - Effective May 12, 2025, Mark A. Schallenberger was appointed as the company's Chief Operating Officer[122](index=122&type=chunk) - Mr. Schallenberger's compensation was increased to an annual base salary of **$461,760** and a target annual bonus of **75%** of base salary[124](index=124&type=chunk) [Other Items (Risk Factors, Unregistered Sales, Defaults, Mine Safety)](index=28&type=section&id=Other%20Items) As a smaller reporting company, Item 1A (Risk Factors) information is not required, and other items including unregistered sales, defaults, and mine safety disclosures were not applicable - As a smaller reporting company, information regarding Risk Factors (Item 1A) is not required[118](index=118&type=chunk) - Items concerning Unregistered Sales of Equity Securities, Defaults Upon Senior Securities, and Mine Safety Disclosures were not applicable[119](index=119&type=chunk)[120](index=120&type=chunk)[121](index=121&type=chunk)