Xtant Medical Reports 18% Revenue Growth to $35.4 Million in Q2 2025

Xtant Medical Holdings, Inc. reported a significant increase in financial performance for the second quarter of 2025, with total revenue reaching $35.4 million, an 18% increase from $29.9 million in the same period of 2024. For the first half of 2025, revenue totaled $68.3 million, up from $57.8 million year-over-year. The growth was primarily driven by a rise in orthobiologics sales and the recognition of $5.0 million in licensing revenue during the quarter. The company also achieved a gross profit of $24.3 million for the quarter, resulting in a gross margin of 68.6%, compared to 62.1% in the prior year, reflecting improved production efficiency and a favorable sales mix.

In terms of profitability, Xtant Medical reported a net income of $3.6 million for the second quarter of 2025, a notable recovery from a net loss of $3.9 million in the same quarter of 2024. This positive shift is attributed to increased revenues and a reduction in operating expenses, which fell to $19.7 million from $21.5 million year-over-year. The company’s operating expenses included a decrease in sales and marketing costs, which dropped by 12% to $11.6 million, primarily due to lower commission expenses and headcount reductions.

Operationally, Xtant Medical has made strides in expanding its product offerings and market presence. The company launched its next-generation demineralized bone matrix, Trivium™, and has focused on four key growth initiatives: introducing new products, expanding its distribution network, penetrating adjacent markets, and leveraging technology through strategic acquisitions. The company’s workforce has also seen an increase, with employee headcount rising to support these initiatives.

Geographically, approximately 91% of Xtant Medical's revenue for the second quarter came from the United States, with the remainder from international markets. The company has also entered into significant agreements, including an Asset Purchase Agreement with Companion Spine, LLC, for the sale of certain assets related to its Coflex and CoFix products for a total purchase price of $17.5 million. This transaction, along with the sale of its subsidiary Paradigm Spine GmbH for $1.7 million, is expected to close in the third quarter of 2025, pending financing.

Looking ahead, Xtant Medical anticipates continued growth driven by its strategic initiatives and product launches. However, the company acknowledges potential risks, including market conditions and regulatory changes that could impact its operations. The management remains focused on maintaining compliance with financial covenants and ensuring sufficient liquidity to support ongoing operations and future growth.