Xtant Medical (XTNT) Q2 FY26 earnings call: guidance and Q&A

Which specific orthobiologics products are underperforming relative to earlier expectations?

Sean Browne identified older product lines like OsteoSelect, OsteoSponge, and 3Demin, as well as the Amnio product line, as having shown more softness than originally expected.

“I'd say there's a couple of key areas. One of the big areas has been like our old line like our OsteoSelect, OsteoSponge, 3Demin product lines, which have workhorses of our product line, and they're older product lines. And so those have been down more than we expected. The other area, too, that's been down, of course, has been the Amnio side, which we mentioned, which has been due and was somewhat expected we did think that they would start to see green shoots of growth in that world in the annual world. But those would be the key areas that I would say that we have seen much more softness than we originally expected.”

asked by Jake Knickerbocker · answered by Sean Browne

How will the Dilon reps cross-sell Xtant's products, and what are the HEMOBLAST revenue assumptions in the updated guidance?

Sean Browne explained that Dilon reps operate in areas Xtant typically doesn't, but their bag now includes Collagen X and Amnio products. They also extend Xtant's reach to lesser-covered independent agents and have strong relationships in materials management. Scott Neils clarified that the transactional volume expectation for HEMOBLAST is over $1 million per month on a gross basis, and they are working to transition all sales through Xtant's network for full recognition.

“First and foremost, so this is a group that when you look at the hemostasis business, they're in areas that we're typically not in. However, there are products -- we have products that fit perfectly within what they do, specifically our Collagen X products as well as our AMNIO products. And so at a minimum, we've got these guys now carrying these products into these other areas that are not -- that are really nonorthobiologics in their normal space.”

asked by Jake Knickerbocker · answered by Sean Browne

When did the Dilon sales force start promoting products after training, and were they given access to Xtant's full product portfolio immediately or incrementally?

Sean Browne stated that the deal closed in mid-April. The first part of Q2 was spent on HR integration. Collagen X and Amnio products were added to their bag for training during Q2. After June, they began training on the entire orthobiologics portfolio. This training period temporarily impacted sales momentum.

“So we closed the deal on April I guess, 13 is the official announcement of the day. So right as the quarter got going, -- so in the first couple of weeks, it was literally just the integration of these guys into our payroll system, our human resources elements, all those things. And then we quickly put in their bag, our collagen X and our AMNIO products... Then at the flip of the -- after really after June, we then started giving them the entire bag.”

asked by Nazibur Rahman · answered by Sean Browne