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Xtant Medical Reports First Quarter 2026 Financial Results

Overview
On May 13, 2026, Xtant Medical Holdings, Inc., listed on NYSE American as XTNT, revealed its financial report for the first quarter ending March 31, 2026. The company, known for its innovative surgical solutions targeting spinal and orthopedic conditions, reported a total revenue of $20.9 million. This figure shows a decline compared to the $32.9 million recorded in the same quarter of 2025, attributed primarily to the asset sales concluded in December 2025.

Financial Highlights

• - Revenue Overview: Xtant Medical's revenue for Q1 2026 was significantly lower due to previous high earnings from asset sales and licensing agreements that are not expected to recur this year. The sale of core assets to Companion Spine marked a notable change, impacting overall financial performance.
• - Debt Reduction: On a positive note, the company successfully reduced its total debt by $13.3 million during the quarter. This included a significant $10.4 million decrease in amounts owed on its revolving line of credit.
• - Updated Revenue Guidance: Reflecting positively on future expectations, Xtant Medical has raised its full-year revenue guidance to a range of $101 million to $105 million, up from a previous estimate of $95 million to $99 million. This increase is largely driven by the anticipated contributions from the newly licensed HEMOBLAST® Bellows product.

Business Developments
Shortly before the earnings release, Xtant Medical announced an exclusive distribution agreement with Dilon Technologies for the HEMOBLAST® Bellows product, marking a significant expansion into the multi-billion-dollar hemostatic category in the U.S. market. Additionally, the appointment of Dilon's U.S. sales team to Xtant's workforce aims to optimize sales efforts under this new partnership.

Further enhancing its product portfolio, Xtant also launched Trivium™ Shaped, an advanced version of the Trivium line, tailored for various surgical applications. This new offering underscores the company’s commitment to innovate and provide superior solutions in the orthopedic space.

Performance Analysis
In analyzing results, the gross margin for Q1 stood at 57.3%, slightly down from 61.5% in 2025. This decline is primarily linked to the cessation of high-margin licensing revenues related to the amniotic membrane agreements that expired at the end of last year. Operating expenses fell to $14.9 million from $19.2 million in the previous year, attributed to the ongoing restructuring following asset divestments.

A net loss of $3.1 million was reported for the quarter, contrasting sharply with a negligible profit of $58,000 in Q1 2025. Non-GAAP adjusted EBITDA was also in the red at a loss of $1.6 million, down from a positive adjusted EBITDA of $3.0 million year-over-year.

Financial Position
By the end of the first quarter 2026, Xtant Medical had $12.2 million in cash and equivalents with total debt reduced significantly from $25.4 million to $12.2 million, showcasing improved liquidity and financial health. The company noted that refinements in their revolving credit facility have increased availability and reduced interest expenses effectively.

Looking Ahead
Xtant Medical’s leadership, expressed through CEO Sean Browne's comments, emphasizes the strategic maneuvers being taken to revitalize and expand market reach. The integration of Dilon's sales team and launching advanced products represent a commitment to growth despite the challenges seen in Q1 results. Through these enhancements, the company aims to support surgeons and patients with better orthopedic solutions, further establishing its presence in the medical technology field.

Conclusion
The first quarter of 2026 highlights a turning point for Xtant Medical, with revenue declines tempered by strategic partnerships and product launches aimed at future growth. Investors and stakeholders will be keenly watching the developments as the company works to restore profitability and expand within the dynamic healthcare market.