Xtant Medical Holdings Maintains Buy Rating on Strong Financials and Strategic Initiatives

Xtant Medical Holdings reported 18.3% YoY revenue growth, surpassing estimates, driven by Orthobiologics sales growth and improved gross margins. The company raised FY25 guidance and plans to sell non-core assets to bolster its balance sheet and reduce debt. Despite some concerns, Xtant Medical's valuation remains attractive, trading at a discount to peers, supporting a Buy rating with a $2.00 price target.

Xtant Medical Holdings, Inc. (NYSE American: XTNT) reported its second-quarter 2025 financial results, with revenue growing 18% year-over-year (YoY) to $35.4 million, exceeding analysts' expectations. The company's net income for the quarter totaled $3.6 million, reversing a loss from the prior year. Additionally, Xtant Medical raised its full-year 2025 revenue guidance to a range of $131 million to $135 million, representing growth of 11% to 15% over 2024 [1].

The revenue growth was primarily driven by increased orthobiologics sales and licensing revenue. Gross margin improved to 68.6% from 62.1% in the prior year, largely due to royalty revenue and lower product costs. Operating expenses were reduced to $19.7 million from $21.5 million in the prior year, primarily due to lower compensation and commission expenses [2].

Xtant Medical also announced definitive agreements to sell its non-core Coflex® and CoFix® spinal implants and all OUS businesses to Companion Spine for approximately $19.2 million. The company expects this sale to strengthen its balance sheet and support the ongoing development of its advanced biologics pipeline. Sean Browne, President and CEO of Xtant Medical, stated, "Our recently announced agreements to sell certain non-core spinal implant and OUS businesses to Companion Spine represent another step toward the realization of our strategic vision for the company" [2].

Despite the positive results, some concerns remain. The company's valuation remains attractive, trading at a discount to peers, and analysts maintain a "strong buy" rating with a median 12-month price target of $1.75, about 62.3% above its July 10 closing price of $0.66 [1].

References:

[1] Reuters. (2025). Xtant Medical Q2 revenue rises 18% yr/yr to $35.4 mln. Retrieved from [https://www.tradingview.com/news/reuters.com,2025:newsml_PLX24873F:0-xtant-medical-q2-revenue-up-18-raises-fy25-guidance/](https://www.tradingview.com/news/reuters.com,2025:newsml_PLX24873F:0-xtant-medical-q2-revenue-up-18-raises-fy25-guidance/)

[2] Nasdaq. (2025). Xtant Medical Reports Second Quarter 2025 Financial Results. Retrieved from [https://www.nasdaq.com/press-release/xtant-medical-reports-second-quarter-2025-financial-results-2025-08-12](https://www.nasdaq.com/press-release/xtant-medical-reports-second-quarter-2025-financial-results-2025-08-12)