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    XTNT
    Earnings call· Jun 2026(Q2 FY26)

    Xtant Medical Holdings Q2 FY26 earnings call XTNT

    Aug 11, 2026 Source

    Executive summary

    Xtant Medical Q2 FY26 — Revenue Guidance Reduced Amidst Sales Force Integration and Amnio Headwinds

    Xtant Medical reported a challenging Q2 FY26 with reduced revenue and profitability, primarily due to the cessation of license revenue, headwinds in the Amnio product line, and the temporary impact of integrating the Dilon sales force. Despite a modest reduction in full-year revenue guidance, the company is optimistic about future growth driven by its expanded commercial presence and new product launches like Trivium Shaped and HEMOBLAST, which are expected to drive sequential biologics growth in the second half of the year.

    Highlights

    3

    • Successful integration of 17 Dilon sales reps and 2 regional managers into the commercial organization.

    • Strong early sales traction for Trivium Shaped since its May launch, contributing to biologics growth.

    • HEMOBLAST orders were in line with expectations, adding entry into an estimated $1 billion global addressable market.

    Concerns

    5

    • Full-year revenue guidance modestly reduced from $101 million-$105 million to $99 million-$103 million.

    • Total revenue decreased to $23 million in Q2 FY26 compared to $24.8 million on a pro forma basis in Q2 FY25.

    • Gross margin decreased to 57.9% in Q2 FY26 from 68.6% in Q2 FY25 due to license revenue cessation and production inefficiencies.

    • Net loss of $9.4 million in Q2 FY26 compared to net income of $3.6 million in Q2 FY25.

    • Adjusted EBITDA was a loss of $2.7 million in Q2 FY26 compared to positive $6.9 million in Q2 FY25.

    Guidance & targets

    1
    CategoryTargetConfidence
    Full-year revenue
    $99 million to $103 million
    high materiality
    Medium

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    Biologics
    Biologics revenue was lower than expected in Q2 FY26 due to headwinds in the Amnio product line and softness in older product lines. Partially offset by HEMOBLAST sales.
    Amnio product line performance: main driver for decline in 2026 Biologics revenue, headwinds expected to persist through H2 FY26Legacy product lines (OsteoSelect, OsteoSponge, 3Demin): down more than expected
    		————
    Hardware
    Hardware revenue was higher than anticipated in Q2 FY26, driven by sales of the Cortera spinal fixation system.
    Cortera spinal fixation system: higher-than-anticipated sales
    		————

    Operational metrics

    19
    Total Revenue (pro forma)
    $24.8 millionvs $23.0 million Q2 FY26
    Q2 FY25

    Pro forma revenue, excluding revenue from noncore products and businesses sold to Companion Spine and nonrecurring license revenue.

    HEMOBLAST Sales
    $1.5 million
    Q2 FY26

    Recognized revenue from HEMOBLAST orders. An additional $600,000-$700,000 was not fully recognized as transactions were processed through Dilon.

    Gross Margin
    57.9%down from 68.6% Q2 FY25
    Q2 FY26

    Decrease primarily attributable to the cessation of Q-Code license revenue from amniotic membrane agreements that terminated at the end of 2025.

    Adjusted EBITDA
    -$2.7 millioncompared to positive $6.9 million Q2 FY25
    Q2 FY26

    Non-GAAP financial measure.

    Cash and Cash Equivalents
    $9.9 millionvs $17.3 million as of Dec 31, 2025
    as of June 30, 2026

    Balance sheet item.

    Total Indebtedness
    $23.0 millionvs $25.4 million as of Dec 31, 2025
    as of June 30, 2026

    Balance sheet item.

    Availability under Revolving Credit Facility
    $0.7 millionvs $3.8 million as of Dec 31, 2025
    as of June 30, 2026

    Liquidity metric.

    Dilon Sales Reps Hired
    17
    Q2 FY26

    Sales representatives integrated into Xtant's commercial organization.

    Dilon Regional Managers Hired
    2
    Q2 FY26

    Regional managers integrated into Xtant's commercial organization.

    Xtant Core Sales Reps
    8up from 4 last year
    current

    Number of regional sales reps in Xtant's core commercial group.

    Total Commercial Footprint
    over 25
    current

    Includes reps and regional managers.

    Independent Agent Agreements
    650
    current

    Total number of agreements with independent agents.

    HEMOBLAST Revenue Recognition Impact
    $600,000-$700,000lower than expected
    Q2 FY26

    Amount of HEMOBLAST revenue not fully recognized in Q2 FY26 because transactions were processed through Dilon's customer agreements.

    HEMOBLAST Transactional Volume Expectation
    over $1 million
    per month

    Company's expectation for HEMOBLAST transactional volume.

    Addressable Market (Hemostatic products)
    $1 billion
    global

    Estimated global addressable market for hemostatic products, entered via HEMOBLAST.

    Addressable Market (Chronic wound care & surgical repair)
    $6.5 billion
    combined

    Combined addressable market for chronic wound care and surgical repair, which Xtant aims to enter with its expanded portfolio.

    Research and Development Expenses
    $695,000increase from $566,000 in Q2 FY25
    Q2 FY26

    GAAP figure, explicitly requested by user.

    Net Loss
    $9.4 millioncompared to net income of $3.6 million in Q2 FY25
    Q2 FY26

    GAAP figure, explicitly requested by user.

    Basic and Diluted EPS
    -$0.07compared to $0.03 basic and $0.02 diluted in Q2 FY25
    Q2 FY26

    GAAP figure, explicitly requested by user.

    Industry KPIs

    3
    MetricValueDetails
    New product launch rampTrivium Shapedproduct
    Sales force commercial capacity build17 Dilon sales reps, 2 regional managerspeople
    Indicated addressable patient population$1 billionUSD

    Product announcements

    1
    ProductTypeDetails
    Trivium Shapedlaunch

    Deals & partnerships

    2
    Dilon TechnologiesExclusive U.S. distribution rights to Dilon's HEMOBLAST product for high-performance hemostasis.$5 million

    Xtant acquired exclusive U.S. distribution rights to HEMOBLAST and hired Dilon's U.S. team of 17 salespeople and 2 regional managers, integrating them into Xtant's commercial organization.

    Companion SpineSale of certain noncore products and businesses, including Coflex and CoFix assets and international hardware businesses.

    Divestiture completed in December 2025.

    Risks & headwinds

    5
    Challenging year-over-year revenue comparisonsQ2 FY26 and ongoing

    Q2 FY26 total revenue $23 million vs Q2 FY25 $35.4 million (reported) or $24.8 million (pro forma).

    Mitigation: Focus on new product launches and expanded commercial presence to drive future growth.

    Headwinds in Amnio product lineExpected to persist through the back half of FY26.

    Main driver for decline in 2026 Biologics revenue.

    Mitigation: Diversifying portfolio and leveraging expanded sales force for cross-selling.

    Temporary impact on Q2 sales from Dilon sales team integration and trainingQ2 FY26, expected to abate in H2 FY26.

    Modest additional headwind to Q2 revenue.

    Mitigation: Training completed, full deployment of sales resources expected to drive sequential biologics growth.

    Lower-than-expected biologics revenue from older product linesQ2 FY26

    Older product lines (OsteoSelect, OsteoSponge, 3Demin) were down more than expected.

    Mitigation: New product launches like Trivium Shaped and HEMOBLAST, and expanded sales force are expected to offset this.

    Lower gross margin due to various factorsQ2 FY26

    Gross margin decreased to 57.9% in Q2 FY26 from 68.6% in Q2 FY25.

    Mitigation: Improvements in production mix partially offset the decline; company is focusing on portfolio breadth and quality control.

    What to watch in Q3 FY26

    4

    Biologics growth acceleration

    Q3 FY26 and beyond
    CurrentSoft in Q2 FY26
    TargetAccelerating growth

    Why it matters

    Indicates successful integration of the Dilon sales force and traction from new product launches, crucial for overall revenue growth.

    As specialty reps continue to get comfortable selling our other product lines, we anticipate that this will translate into accelerating biologics growth in Q3 and beyond.

    Q&A highlights

    3

    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

    2 min read4 chapters

    Detailed Narrative

    01

    Dilon Technologies Distribution Agreement and Commercial Expansion

    Xtant acquired exclusive U.S. distribution rights to Dilon's HEMOBLAST product, adding a complementary hemostatic technology and entry into an estimated $1 billion global addressable market. As part of the agreement, 17 Dilon salespeople and 2 regional managers were hired and integrated into Xtant's commercial organization, undergoing training on Xtant's full portfolio. This expansion, alongside doubling Xtant's regional sales reps and investing in marketing and national accounts, significantly enhances the company's commercial footprint, despite consuming resources and temporarily impacting Q2 sales momentum.

    02

    Trivium Shaped Product Launch and Portfolio Breadth

    The company launched Trivium Shaped in May, an extension of its Trivium bone graft portfolio offering pre-shaped configurations designed to improve handling and placement in surgical applications. This product, along with collagen and OsteoFactor Pro, is a key driver for biologics growth. With the addition of HEMOBLAST, Xtant's portfolio now addresses adjacent high-value markets like chronic wound care and surgical repair, representing a combined TAM of approximately $6.5 billion, positioning the company as a partner of choice in regenerative medicine.

    03

    Q2 Revenue Performance and Headwinds

    Total revenue for Q2 FY26 was $23 million, down from $35.4 million reported in Q2 FY25, or $24.8 million on a pro forma basis (excluding divested assets and nonrecurring license revenue). The decline in biologics revenue was primarily driven by headwinds in the Amnio product line, tied to the advanced wound care market, and softer performance in older product lines like OsteoSelect, OsteoSponge, and 3Demin. The time spent integrating and training the new Dilon sales team also created a modest additional headwind to Q2 sales.

    04

    Gross Margin and Operating Expense Dynamics

    Gross margin for Q2 FY26 decreased to 57.9% from 68.6% in Q2 FY25. This reduction was mainly due to the cessation of Q-Code license revenue from amniotic membrane agreements, reduced production efficiencies, and increased charges for excess and obsolete inventory, partially offset by improvements in production mix. Operating expenses increased to $22.5 million from $19.7 million, primarily due to a $5 million exclusive fee paid to Dilon Technologies, partially offset by lower G&A and S&M expenses following the December 2025 divestiture to Companion Spine.

    AI-generated summary of the company’s earnings call. Not investment advice.