Xtant Medical Reports 18% Revenue Growth to $32.9 Million in Q1 2025

Xtant Medical Holdings, Inc. reported a total revenue of $32.9 million for the first quarter of 2025, marking an 18% increase from $27.9 million in the same period of the previous year. This growth was primarily driven by increased sales in orthobiologics and the introduction of $3.6 million in licensing revenue. The company's gross profit also rose to $20.2 million, resulting in a gross margin of 61.5%, although this represented a slight decline from 62.1% in the prior year due to inventory write-offs and changes in sales mix.

In terms of operational efficiency, Xtant Medical's cost of sales increased to $12.7 million, up from $10.6 million a year earlier, largely reflecting the higher revenue. The company managed to reduce its operating expenses, which totaled $19.2 million, down from $20.8 million in the previous year. Notably, general and administrative expenses decreased by 3% to $7.5 million, while sales and marketing expenses fell by 10% to $11.2 million, attributed to lower commissions and reduced headcount.

The company’s net income for the quarter was $58,000, a significant turnaround from a net loss of $4.4 million in the first quarter of 2024. This improvement was supported by a net cash provided by operating activities of $1.3 million, compared to a cash outflow of $5.8 million in the same quarter last year. Xtant Medical's cash and cash equivalents stood at $5.4 million as of March 31, 2025, down from $6.2 million at the end of 2024, while total current assets increased to $69.1 million.

Strategically, Xtant Medical has focused on expanding its product offerings and distribution network. The company recently entered into a manufacturing and licensing agreement for its SimpliGraft® product, which includes a one-time cash payment of $1.5 million and minimum purchase obligations. Additionally, the company is navigating changes in reimbursement policies from the Centers for Medicare and Medicaid Services (CMS), which may impact future revenue recognition.

Looking ahead, Xtant Medical aims to leverage its growth initiatives, including the introduction of new products and strategic acquisitions, to enhance its market position. However, the company acknowledges potential risks, including economic conditions and regulatory changes, that could affect its financial performance. The management remains committed to maintaining compliance with its credit agreements and ensuring sufficient liquidity to support ongoing operations.