Xtant Medical Holdings, Inc. reported a significant decline in financial performance for the first quarter of 2026, with total revenue falling 37% to $20.9 million compared to $32.9 million in the same period of 2025. The decrease was primarily attributed to the divestiture of the Coflex and CoFix product lines and the international hardware business, which accounted for a revenue loss of approximately $5.4 million. Additionally, the company experienced a reduction in license revenue of $3.6 million, largely due to changes in the reimbursement environment affecting its SimpliMax™ product. The gross profit margin also decreased to 57.3% from 61.5% year-over-year, reflecting the impact of reduced sales volume and changes in product mix.
In terms of operational changes, Xtant Medical completed the sale of certain non-core assets to Companion Spine, LLC for a total of $21.4 million in December 2025. This transaction included both cash payments and a promissory note, which has since been repaid. The company has also entered into a Distribution Agreement with Dilon Technologies, Inc., granting it exclusive rights to distribute the HEMOBLAST® Bellows product in the U.S. This agreement has led to the hiring of approximately 20 additional sales personnel to support the new product line.
The company’s operational metrics reflected a decrease in customer engagement, with product revenue from orthobiologics dropping to $15.6 million, down from $18.1 million in the previous year. The spinal implant segment also saw a decline, generating $5.3 million compared to $11.2 million in the prior year. Xtant's total current assets decreased to $62.6 million as of March 31, 2026, down from $78.2 million at the end of 2025, while total liabilities were reduced to $29.4 million from $43.2 million, primarily due to debt repayments from the proceeds of the asset sales.
Looking ahead, Xtant Medical anticipates continued challenges in revenue generation due to the loss of license revenue and the impact of divestitures on its product lines. The company is focused on enhancing its operational capabilities and expanding its market presence through strategic partnerships and product launches. However, it remains cautious about the potential effects of economic conditions, including inflation and supply chain disruptions, on its business performance. The management has indicated that it will continue to monitor its financial position closely and may seek additional financing to support its operations and growth initiatives in the future.
About Xtant Medical Holdings, Inc.
Xtant Medical Holdings, Inc. develops and markets orthobiologics and spinal implant systems for treating spinal disorders. Its products include biologics, fixation, and motion preservation devices used by spine surgeons worldwide. The company leverages extensive distribution channels, strategic acquisitions, and innovative biologics to enhance patient outcomes. Focused on quality and regulatory compliance, Xtant serves the orthopedic and neurosurgical markets with a competitive edge in minimally invasive and complex spine procedures.
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