Xtant Medical Holdings’ Earnings Call: Positive Growth Amid Challenges

Xtant Medical Holdings Inc ((XTNT)) has held its Q3 earnings call. Read on for the main highlights of the call.

Xtant Medical Holdings Inc. recently held its earnings call, presenting a generally positive outlook despite some challenges. The company reported strong revenue growth, improved margins, and successful new product launches, although it faces hurdles in hardware revenue and slower than expected growth in its biologics product family. The anticipated asset sale is expected to bolster the company’s financial standing further.

Strong Revenue Growth

Xtant Medical Holdings Inc. reported a remarkable 19% revenue growth over 2024, achieving $33.3 million in the third quarter of 2025. This significant increase underscores the company’s robust performance and strategic positioning in the market.

Increased Gross Margin

The company’s gross margin saw a notable improvement, rising to 66.1% from 58.4% in the same period last year. This enhancement is attributed to a favorable sales mix and greater scale, reflecting efficient operational strategies.

Positive Net Income

Xtant Medical achieved a net income of $1.3 million, or 1¢ per share, a substantial turnaround from a net loss of $5 million in the comparable period of 2024. This positive net income highlights the company’s successful financial management.

Successful Product Launches

The introduction of new products, such as Collagen X, and growth in the core biologics product family, despite being below long-term expectations, contribute to the company’s future growth potential. These launches are pivotal in maintaining the company’s competitive edge.

Pending Asset Sale

The sale of non-core assets to Companion Spine is anticipated to provide $19.2 million, which will strengthen Xtant Medical’s financial position and allow the company to focus more on its core business operations.

Decline in Hardware Product Revenue

The company experienced a 6% or $736,000 year-over-year decline in hardware product revenue. This decline highlights a challenge that the company needs to address to maintain overall growth momentum.

Challenges in Biologics Growth

The biologics product family grew by only 4%, which is below the company’s long-term expectations. This slower growth rate indicates a need for strategic adjustments to meet future targets.

Operating Expenses Reduction Due to Cost-Cutting

Operating expenses were reduced, primarily due to decreased compensation and commission expenses, indicating the effectiveness of previous cost-cutting measures. This reduction is a positive step towards improving the company’s financial efficiency.

Forward-Looking Guidance

Xtant Medical Holdings provided forward-looking guidance with several key metrics and strategic updates. The company anticipates completing a significant asset sale, expected to yield $19.2 million to reduce debt and improve liquidity. Revenue guidance for the full year 2025 is projected between $131 million and $135 million, reflecting an 11% to 15% growth over 2024. Strategic initiatives include investments in R&D and expansion of their commercial team, aimed at driving growth in their core biologics business.

In conclusion, Xtant Medical Holdings Inc.’s earnings call reflects a positive sentiment with strong revenue growth and improved margins, despite facing challenges in hardware and biologics growth. The pending asset sale is expected to enhance the company’s financial position, supporting its strategic focus on core business areas. Investors and stakeholders can remain optimistic about the company’s future prospects, given its proactive approach to addressing challenges and leveraging growth opportunities.