Xtant Medical's Q2 2025 Earnings Call: Unpacking Contradictions in Revenue, Strategy, and Growth Drivers

Revenue and royalty income expectations, hardware business strategy and focus, gross margin expectations, royalty revenue growth and expectations, growth drivers in orthobiologics segment are the key contradictions discussed in Xtant Medical Holdings, Inc.'s latest 2025Q2 earnings call.



Strong Financial Performance and Growth:
- Xtant Medical reported total revenue of $35.4 million for the second quarter of 2025, representing an 18% growth compared to the same period in 2024.
- The growth was primarily driven by year-over-year growth in the biologics product family and $5 million in licensing revenue.

Biologics Performance and New Product Launches:
- The biologics segment grew by over 20% compared to the previous year's second quarter.
- The growth was attributed to recent product launches like OsteoFactor Pro and Trivium, which have expanded the company's offerings in the orthobiologics space.

Impact of Licensing Revenue and CMS Decision:
- Licensing revenue of $5 million was recorded during Q2 2025, with an anticipated additional $5 million in royalty revenue expected during the second half of 2025.
- The favorable outlook is based on the CMS extended local coverage determination, which opens the door for additional royalty income.

Asset Sale and Debt Reduction:
- Xtant Medical entered into an agreement to sell certain noncore assets for approximately $19.2 million, to be used for long-term debt reduction and cash liquidity.
- The sale will help focus resources on driving growth in the biologics platform, further enhancing the company's strategy and financial health.