Xtant Medical (US:XTNT)2025-11-10 21:11Revenue 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].