Xtant Medical Q1 2026 Earnings Report

Xtant Medical EPS Results

• Actual EPS: -$0.02
• Consensus EPS: -$0.02
• Beat/Miss: Missed by -$0.01
• One Year Ago EPS: N/A

Xtant Medical Revenue Results

• Actual Revenue: $20.88 million
• Expected Revenue: $20.16 million
• Beat/Miss: Beat by +$720.00 thousand
• YoY Revenue Growth: N/A

Xtant Medical Announcement Details

• Quarter: Q1 2026
• Date: 5/13/2026
• Time: Before Market Opens
• Conference Call Date: Wednesday, May 13, 2026
• Conference Call Time: 8:30AM ET

Xtant Medical (NYSEAMERICAN:XTNT), Inc. is a medical technology company focused on the development, manufacturing and distribution of bone graft, spine biologics and related implantable medical devices. The company’s product portfolio is designed to address critical needs in spinal fusion, orthopedics and trauma surgery by providing a range of solutions that promote bone growth, structural support and patient recovery.

The company’s offerings include an array of bone graft substitutes – such as demineralized bone matrix putties and fibers – interbody fusion devices, spinal fixation systems and biologic agents. Xtant Medical leverages proprietary technologies to optimize handling characteristics and osteoinductive potential, with products that are used by surgeons in hospital operating rooms and outpatient surgical centers. The company also provides custom solutions through its product design and contract manufacturing services.

Headquartered in Carlsbad, California, Xtant Medical serves customers primarily across North America, with distribution partnerships extending to select international markets. Under the leadership of President and Chief Executive Officer Shawn Ainsworth, the company continues to expand its research and development capabilities and advance its regenerative medicine pipeline. Xtant Medical is dedicated to improving patient outcomes by delivering innovative, clinically driven solutions for spinal and orthopedic care.

Xtant Medical Q1 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Xtant raised its full-year 2026 revenue guidance to $101 million to $105 million, citing the addition of HEMOBLAST, recent product launches, and expanded sales coverage.
• Positive Sentiment: The company secured exclusive U.S. distribution rights to HEMOBLAST Bellows, giving it entry into an estimated $2 billion hemostatic products market and broadening its biologics portfolio.
• Positive Sentiment: Proceeds from the Companion Spine divestiture were used to strengthen the balance sheet, with Xtant reducing total indebtedness by $13.3 million in the quarter and increasing revolver availability.
• Neutral Sentiment: First-quarter revenue was $20.9 million, down from the prior-year period on a pro forma basis, mainly due to headwinds in amnio products tied to the advanced wound care market and the loss of non-recurring license revenue.
• Negative Sentiment: Gross margin fell to 57.3% from 61.5% last year, and the company said the decline reflected the end of Q-code license revenue plus some product-mix pressure and excess inventory charges.

Presentation

[Operator]

Good morning everyone, and thank you and welcome to the Xtant Medical First Quarter 2026 financial results. At this time all participants are in a listen only mode the floor will be open for questions and comments following the presentation. Please note, this conference is being recorded. I will now turn the conference over to your host, Kevin Gardner of LifeSci Advisors.

[Kevin Gardner, Managing Director at LifeSci Advisors]

Thank you, operator, and welcome to Xtant Medical's first quarter 2026 financial results call. Joining me today are Sean Browne, President and Chief Executive Officer, and Scott Neils, Chief Financial Officer. Today's call is being webcast and will be posted on the company's website for playback. During the course of this call, management may make certain forward-looking statements regarding future events and the company's expected future performance. These forward-looking statements reflect Xtant's current perspective on existing trends and information and can be identified by such words as expect, plan, will, may, anticipate, believe, should, intends, and other words with similar meaning. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, including those noted in the Risk Factors section of the company's annual report on the Form 10-K filed with the SEC and in subsequent SEC reports and press releases.

[Kevin Gardner, Managing Director at LifeSci Advisors]

Actual results may differ materially. The company's financial results press release and today's discussion include certain non-GAAP financial measures. Please refer to the non-GAAP to GAAP reconciliations, which appear in our press release and are otherwise available on our website. Note that the Form 8-K that we file with our financial results press releases provide detailed narratives that describe our use of such measures. For the benefit of those of you who may be listening to a replay, this call was held and recorded on May 13, 2026 at approximately 8:30 A.M. Eastern Time. The company declines any obligation to update its forward-looking statements except as required by applicable law. Now I'd like to turn the call over to Sean Browne, CEO. Sean?

[Sean Browne, President and CEO at Xtant Medical]

Thank you, Kevin, and good morning, everyone. Thank you for joining our first quarter update call. As has been our practice, I will begin with a few prepared remarks about our operations, and then Scott will provide a deeper dive into the financials. We will then open the call to your questions. Since our last quarterly update, Xtant Medical has achieved multiple significant milestones that position us for sustained growth. We strengthened our balance sheet with proceeds from the Companion Spine transaction, secured transformational license agreement with Dilon Technologies that moves us into the multibillion-dollar hemostatic agent market, and advanced our innovation track record with the commercial launch of Trivium Shaped. With that as a backdrop, we are raising our full year 2026 revenue guidance to $101 million-$105 million.

[Sean Browne, President and CEO at Xtant Medical]

First, I'd like to begin this morning with a recap of the Dilon Technologies distribution agreement that we announced in April. Through this agreement, we acquired exclusive U.S. distribution rights to Dilon's HEMOBLAST Bellows product for high-performance hemostasis following certain surgical procedures. This agreement adds a highly complementary hemostatic technology to our portfolio and gives us entry into an estimated $2 billion global addressable market for hemostatic products. HEMOBLAST is highly differentiated as the only hemostat containing collagen, human-derived thrombin, and bovine-derived chondroitin sulfate, which provides cohesion between the wound and surrounding tissue. It is indicated across a range of bleeding types, minimal, mild, and moderate, and requires no preparation prior use. The addition of HEMOBLAST Bellows, together with our recent product launches, further broaden and differentiate our biologics portfolio, positioning us to better address the needs of surgeons and patients alike.

[Sean Browne, President and CEO at Xtant Medical]

As part of the agreement, we have hired Dilon's team of 21 sales professional. This is in addition to our own investments that we've been making in our commercial organization, including doubling the number of regional sales reps in the field in 2026. We still plan to add significant resources to our national accounts team, which will expand our ability to drive institutional adoption and scale across hospital systems and large practice groups. Together, this combined team will further extend the reach of not only HEMOBLAST Bellows, but our entire line of biologic solutions. There is significant opportunity to leverage each team's call points and drive our entire portfolio to its full commercial potential.

[Sean Browne, President and CEO at Xtant Medical]

To reflect the addition of HEMOBLAST, along with the growth of our base business, we are raising our full-year revenue guidance to be in the range of $101 million-$105 million. Moving over to our Companion Spine transaction, we were pleased to announce that in March that we received the final $10.7 million from the Companion Spine related to its purchase of our non-core Coflex assets and Paradigm OUS businesses in December 2025. The total purchase price for the two divestitures was $21.4 million. The transactions have now been finalized. As mentioned previously, we used those proceeds to reduce our borrowings and strengthen our cash position.

[Sean Browne, President and CEO at Xtant Medical]

We reduced total indebtedness by $13.3 million in the first quarter of 2026, including a $10.4 million reduction in amounts outstanding under the company's revolving line of credit and a $2.8 million dollar reduction in our term loan balance. More strategically, this transaction allows us to further sharpen our focus on our core high-margin biologics business, which is where our competitive differentiation and where our future growth lies. In terms of innovation, just a few weeks ago, we announced the commercial launch of Trivium Shaped, an extension of our Trivium Bone Graft portfolio that comes in pre-shaped configurations designed to support handling, preparation, and placement across a range of surgical applications. Trivium is a composite allograft that combines cortical fibers, cancellous bone, and demineralized bone matrix into a single connected graft matrix.

[Sean Browne, President and CEO at Xtant Medical]

Trivium Shaped builds on the success of the Trivium sculptable format, which we launched in April 2025, by offering surgeons ready-to-use graft forms, including blocks and strips designed to enhance consistency and handling in the operating room. The introduction of the pre-shaped configurations represents a significant advancement in graft convenience and clinical utility, allowing surgeons to optimize surgical workflow while maintaining the exceptional performance characteristics of the Trivium platform. As we've noted previously, we internally produce solutions across all five major orthopedic categories: demineralized bone matrix, cellular allograft, synthetics, structural allografts, and growth factors. This is a key point of differentiation for us relative to our peers. Additionally, with our amnio and collagen product lines, we're also well-positioned to grow in the surgical repair and wound care markets.

[Sean Browne, President and CEO at Xtant Medical]

Now, with the addition of a hemostatic biologic, we're giving hospital systems a single partner who can meet most of their needs. This breadth positions us as a partner of choice in regenerative medicine, a position that has been further reinforced by the positive feedback we continue to receive from surgeons on these recent innovations. Building on these milestones, Xtant Medical delivered solid first quarter results with revenue of $20.9 million. Strong prior year, bolstered by royalties from our amnio business and proceeds from the Coflex Paradigm Spine divestiture, enabled us to significantly strengthen our balance sheet by reducing debt and strategically investing in our commercial enterprise. Now, with recent and planned addition to our sales organization and an expanded product portfolio, we are well-positioned to drive top-line growth throughout 2026 and beyond.

[Sean Browne, President and CEO at Xtant Medical]

With that, I will turn the call over to Scott Neils for a more detailed review of our financial results. Scott?

[Scott Neils, CFO at Xtant Medical]

Thank you, Sean, and good morning, everyone. Total revenue for the first quarter of 2026 was $20.9 million, compared to $32.9 million for the first quarter of 2025, or $23.9 million for the first quarter of 2025 on a pro forma basis, excluding the revenue from the non-core products and businesses that we sold to Companion Spine and license revenue not repeating in 2026. Note that a reconciliation of actual to pro forma revenue results for each quarter of 2025 can be found on the company's website at www.xtantmedical.com. With respect to the comparison on a pro forma basis, headwinds related to our amnio product revenue directly tied to the advanced wound care market were the main driver for the decline in 2026 revenue compared to the pro forma 2025 period.

[Scott Neils, CFO at Xtant Medical]

As Sean mentioned a moment ago, the Dilon Technologies license agreement, together with contributions from new product introductions and the measured investments that we're making in our field sales force on both a regional and national basis, should drive accelerated biologics growth for the remainder of 2026 and beyond. Gross margin for the first quarter of 2026 was 57.3%, compared to 61.5% for the same period in 2025. The decrease is primarily attributable to the cessation of Q-code license revenue from our amniotic membrane agreements that terminated at the end of 2025 due to changes in the reimbursement environment, partly offset by improvements in product mix. First quarter 2026 operating expenses were $14.9 million, compared to $19.2 million for the first quarter of 2025.

[Scott Neils, CFO at Xtant Medical]

The decrease was primarily due to our sale of non-core Coflex and CoFix assets and international hardware business to Companion Spine in December 2025. General and administrative expenses were $6.3 million for the three months ended March 31st, 2026, compared to $7.5 million for the same period in 2025. The decrease was primarily due to the divestiture of assets and businesses to Companion Spine in December of last year. Sales and marketing expenses were $8.2 million for the three months ended March 31st, 2026, compared to $11.2 million for the same quarter last year. Approximately $2.5 million of the decrease resulted from the Companion Spine divestitures. The remaining decrease was primarily due to lower independent agent commissions of $0.4 million and $0.6 million in decrease in professional fees.

[Scott Neils, CFO at Xtant Medical]

Research and development expenses were $435,000 for the three months ended March 31, 2026, essentially flat with $443,000 in the first quarter of 2025. Net loss for the first quarter of 2026 was $3.1 million, or $0.02 per basic and diluted share, compared to net income of $58,000 for the first quarter of 2025, or break even per share. Adjusted EBITDA for the fourth quarter of 2025 was a loss of $1.6 million, compared to positive adjusted EBITDA of approximately $3 million for the same period in 2025. As of March 31, 2026, we had $12.2 million of cash and cash equivalents, total indebtedness of $12.2 million, and availability under a revolving credit facility of $11.8 million.

[Scott Neils, CFO at Xtant Medical]

This compares to $17.3 million of cash and cash equivalents, total indebtedness of $25.4 million, and availability under a revolving credit facility of $3.8 million as of December 31, 2025. The reduction in total indebtedness was primarily due to a term loan payment of $2.8 million from some of the February 2026 proceeds from the Companion Spine transaction and net repayments of $10.4 million on the revolving credit facility from cash and cash equivalents. The resulting increase in our availability under our revolving credit agreement from $3.8 million as of December 31, 2025, to $11.8 million as of March 31, 2026, is due to an effort to reduce interest expense by minimizing the outstanding balance on a revolving credit facility. That concludes the financial overview. Operator, may now open the line for questions.

[Operator]

Certainly. At this time we will be conducting a question-and-answer session. If you would like to ask a question please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it maybe necessary to pick up your handset before pressing the star keys. One moment please while we poll for question. Your first question for today is from Chase Knickerbocker with Craig-Hallum.

[Chase Knickerbocker, Analyst at Craig-Hallum]

Good morning. Thanks for taking the questions. Maybe first, guys, just on HEMOBLAST. Can you, maybe just kind of give us an overview on kind of the relationships and capabilities this new sales force will be bringing over? You know, hemostatic agents have, you know, a couple different use cases, obviously from a specialty perspective. Maybe just speak to kind of where the volume has been, you know, in 2025 and then, you know, your opportunities for growth, which obviously will largely be spine focused, but just kind of where you see that going in 2060 and beyond.

[Sean Browne, President and CEO at Xtant Medical]

Yeah, great question. You know, one of the things about what made this a nice or I should say a really good opportunity for us is that today, the HEMOBLAST business, which is, you know, a very small business starting out of the gate, but most of their business is in general surgery. For us, the idea that we could bring them into the spine world, where it is the largest market within that hemostatic market. It's something that we saw this as a real opportunity. Plus from their end, their reach into other call points within the hospital where, for instance, our collagen products and our amnio products could be used more readily as well as the rest of our portfolio.

[Sean Browne, President and CEO at Xtant Medical]

Their call point generally has been general surgery, trauma. They've also done some really nice work in some other areas. For instance, they just got clearance, or I should say, they now can go into urology. That's another opportunity for us that we normally wouldn't have had. It is an area that, quite frankly, our collagen and our amnio products can be used. We're really excited about their focus and what they do, and the idea that we could actually bring them into the spine world is opening up all kinds of opportunities for us.

[Chase Knickerbocker, Analyst at Craig-Hallum]

Will the expectation kind of be, Sean, that they'll kind of have access to the entire bag? How do you kind of expect to kind of segment things?

[Sean Browne, President and CEO at Xtant Medical]

Yeah.

[Chase Knickerbocker, Analyst at Craig-Hallum]

Just secondly, Scott, maybe just talk about, kind of how you expect this to impact expenses, maybe with a little bit of a greater kind of detail. You know, largely sales and marketing line, I would imagine a couple million a quarter, but just kind of give us some thoughts there. Thanks.

[Sean Browne, President and CEO at Xtant Medical]

Yeah. To give you a sense, out of the gate, what we're trying to do is, first and foremost, make sure they continue to hit their HEMOBLAST number. That is a commitment we made to the Dilon organization. We want to make sure that they stay focused, A, in hitting the number they're supposed to hit. Also, B, what we're initially gonna do is give them those product lines, like our collagen product line, like our amnio product line, that are nice complementary products to what they do already. Eventually they'll get the entire bag, as, you know, they become more comfortable and we are living up to, or not living up to, but just making sure that we're doing first things first.

[Sean Browne, President and CEO at Xtant Medical]

Initially giving them just the amnio and collagen lines, then ultimately they will have our full bag. That's gonna be a little bit down the path here.

[Scott Neils, CFO at Xtant Medical]

Sean, I'll jump in on the expense impact. I think the way to think about this is, you know, as we mentioned, we're bringing on 21 employees. These, for the most part, are generally seasoned reps. When you think about the compensation associated with such an individual, then you would add to that travel and marketing expense to the tune of $1.5 million annually, you're probably looking at at least $2.5 million quarterly in way of additional sales and marketing expense.

[Operator]

Your next question for today is from Ryan Zimmerman with BTIG.

[Izzy McMahon, Analyst at BTIG]

Hi, Sean, Scott. This is Izzy on for Ryan. Thank you for taking the question.

[Sean Browne, President and CEO at Xtant Medical]

Hi, Izzy. How are you?

[Izzy McMahon, Analyst at BTIG]

Doing well. Thank you. I was hoping you guys could spend some time talking about what you're seeing in the orthobiologic segment. Mostly curious about where your underlying unit growth is and how that's tracking relative to the broader market.

[Sean Browne, President and CEO at Xtant Medical]

Yeah. Where I would say that our broader, you know, where the unit growth is coming again from these new products that we've introduced. When you think about, like, our OsteoFactor Pro, which is a growth factor product, that's done very, very well. As has our Trivium product lines are all really starting to take off just like we expected they would. If we've seen any little bit of weakness, it has a little bit more to do with kind of how some of this is also OEM-based, and OEM is a kind of a lumpy way in which we see our business going. It's been the stem cell side. It's still a really great product.

[Sean Browne, President and CEO at Xtant Medical]

It's still one of our largest product lines, but that's an area that we've done a fair amount in the OEM world. As I mentioned, we're seeing. It was soft in the first quarter. That's one, though, that we expect, you know, throughout the year that'll do very well. Our growth has really been driving by our advanced biologic sales, so including collagen and we expect that the amnio business, both in the surgical and in the advanced wound care side, should start to see some pickup again in the second half of this year. I think you're seeing it with other companies that are out there today that, you know, had some really difficult first quarter numbers in the advanced wound care side.

[Sean Browne, President and CEO at Xtant Medical]

Happily, that's not a lot of what we do. It is something, though, that is an OEM base for us, so we do expect that, though, to hopefully settle and be better in the second half of this year.

[Izzy McMahon, Analyst at BTIG]

Got it. That's helpful. Scott, I was hoping you could spend some time just walking through the gross margin cadence for the remainder of the year. I believe last quarter you were expecting it to be somewhere in the low 60s%. If you could talk about if that's still the right range and what we could see for 2Q through 4Q. Thanks for taking the question.

[Scott Neils, CFO at Xtant Medical]

Yeah. Low 60s% is still the way to look at it. We deviated a little bit from that here in Q1 just for some additional, excess and obsolete expense and then a little bit for product mix. We expect that to bounce back in Q3 through Q4.

[Operator]

Your next question for today is from Naz Rahman with Maxim Group.

[Naz Rahman, Analyst at Maxim Group]

Good morning, everyone. Congrats on the progress, and thanks for taking my questions. I only have two. The first one is, I understand you only had HEMOBLAST for a little while in your bag. Could you give some comments or color on what kind of feedback you receive from physicians or institutes regarding the product? My second question is on Trivium, the Trivium Shaped. Could you kind of talk about the opportunity there and how the utilization may be a little different from your prior Trivium product and what the growth potential there is? Thanks.

[Sean Browne, President and CEO at Xtant Medical]

Sure. Starting off with HEMOBLAST. First of all, HEMOBLAST is a terrific product. When you compare it to all the other hemostatic agents that are out there today, it really goes across the entire. Certain product lines are very good in certain cases. This is one that has, you know, broad global use. Just again, it basically sells itself because of the way the product performs, so it's an outstanding product. With that, it's one that, quite frankly, because they're a really small and unknown company, and the companies that they compete against are the J&Js, the Baxter, the Bard, it's not really well known.

[Sean Browne, President and CEO at Xtant Medical]

The idea that we can then put it into our, you know, 500+ independent agents' hands, in the spine side as well as in other orthopedic cases, we think that this thing could have a lot of run for us, certainly in where we are. Where we see a really great opportunity is that their reach into other parts of the hospital with these 21 salespeople, are areas that we haven't touched and that we really feel good about where our other products can start playing. That's really on the hemostatic side. When we think about Trivium Molded, or Trivium Shaped, excuse me, what you're looking at is that if you think about our what we do, there's three main product lines that we have in our base DBM offering.

[Sean Browne, President and CEO at Xtant Medical]

You know, it's really our OsteoSelect, our OsteoSponge, and it's our Trivium. The OsteoSelect and Trivium, those have been two of our three. Those three were the main workhorses for our business. What we've done with our Trivium, both the base Trivium and the Trivium Shaped, is really giving a better solution or a higher end or a more advanced solution to what that OsteoSelect, which is basically a 510(k) putty. We've now really upgraded that to what you look at and what we do with Trivium. Then the Trivium Shaped is really something that would be an answer to what we do with our Trivium product line.

[Sean Browne, President and CEO at Xtant Medical]

Again, a more advanced, a better product, or at least a product that performs better and one that, quite frankly, we're really excited about because for all the reasons, the handling to the, you know, all the pieces that's made this a really terrific product line for us, writ large. Hopefully that answers your question.

[Naz Rahman, Analyst at Maxim Group]

It does. Thanks for the color.

[Operator]

We have reached the end of the question and answer session and conference call. You may disconnect your lines at this time. Thank you for your participation.

Participants

Executives

• Scott Neils, CFO
• Sean Browne, President and CEO

Analysts

• Chase Knickerbocker, Analyst at Craig-Hallum
• Izzy McMahon, Analyst at BTIG
• Kevin Gardner, Managing Director at LifeSci Advisors
• Naz Rahman, Analyst at Maxim Group