Xtant Medical Holdings Inc ((XTNT)) has held its Q2 earnings call. Read on for the main highlights of the call.
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Xtant Medical Holdings Inc. recently held its earnings call, revealing a generally positive sentiment with notable revenue growth driven by the biologics segment. The company showcased improved margins and successful product launches, although challenges persist in the hardware segment and licensing revenue remains uncertain.
Strong Revenue Growth
Xtant Medical reported a robust total revenue for the second quarter of 2025, reaching $35.4 million. This marks an 18% increase compared to the same period in 2024, underscoring the company’s strong financial performance.
Biologics Performance
The biologics segment was a key driver of growth, with revenue surging over 20% from the second quarter of 2024. This impressive performance was fueled by new product launches and a strategic focus on biologics.
Gross Margin Improvement
The company achieved a significant improvement in gross margin, which rose to 68.6% in Q2 2025 from 62.1% in the same period in 2024. This was attributed to a favorable sales mix and enhanced production efficiency.
Positive Net Income and EBITDA
Xtant Medical reported a net income of $3.5 million or $0.02 per share, a notable turnaround from a net loss of $3.9 million in Q2 2024. Adjusted EBITDA also improved significantly to $6.9 million, compared to a loss of $0.6 million in the previous year.
Full Year Revenue Guidance Raised
The company raised its full-year 2025 revenue guidance to a range of $131 million to $135 million, reflecting growth of approximately 11% to 15% over 2024. This optimistic outlook highlights Xtant Medical’s confidence in its ongoing growth trajectory.
Successful New Product Launches
Xtant Medical successfully launched OsteoFactor Pro and Trivium, expanding its biologics product portfolio and supporting growth in the orthobiologic categories.
Sale of Noncore Assets
In a strategic move, Xtant Medical entered an agreement to sell certain noncore assets for approximately $19.2 million. This sale will allow the company to focus on its core biologics platform and reduce debt.
Decline in Hardware Revenue
Despite overall revenue growth, the hardware product family experienced a year-over-year decline of 20%, or $2.7 million, partially offsetting the company’s financial gains.
Uncertainty in Licensing Revenue
Licensing revenue contributed $5 million in Q2 2025, but future levels remain uncertain due to changes in CMS coverage and partner sales, posing potential challenges for the company.
Forward-Looking Guidance
Xtant Medical’s forward-looking guidance for the second quarter of fiscal year 2025 includes a total revenue increase of nearly 18% compared to 2024, with significant growth in the biologics segment. The company also highlighted a gross margin improvement and a decrease in operating expenses. The updated full-year revenue guidance reflects growth of 11% to 15% over 2024, excluding the pending sale of noncore assets.
In conclusion, Xtant Medical’s earnings call painted a generally positive picture with strong revenue growth and improved financial metrics. While challenges persist in certain segments, the company’s strategic focus on biologics and successful product launches position it well for future growth.