Full Press Release Details
Xtant Medical Reports Fourth Quarter and Full Year
2024 Financial Results
Full Year 2024 Revenue Growth of 28%
Expects 2025 Revenue of $126 Million to $130 Million
Without Need for Additional Capital
BELGRADE, Mont., March 6, 2025 - Xtant Medical
Holdings, Inc. (NYSE American: XTNT), a global medical technology company focused on surgical solutions for the treatment of spinal
disorders, today reported financial and operating results for the fourth quarter and year ended December 31, 2024 and provided full year
revenue guidance for 2025.
Fourth Quarter 2024 Financial Highlights
| Revenue of $31.5 million, up 12%, compared to the prior year quarter | ||
| Gross margin of 50.8% compared to 61.0% for the prior year quarter | ||
| Net loss of $3.2 million compared to a net loss of $4.3 million in the prior year quarter | ||
| Adjusted EBITDA of $438,000 compared to Adjusted EBITDA loss of $695,000 in the prior year quarter |
Full Year 2024 Financial Highlights
| Revenue of $117.3 million, up 28%, compared to the prior year | ||
| Gross margin of 58.2% compared to 60.8% for the prior year | ||
| Net loss of $16.4 million compared to net income of $660,000 in the prior year, which included a $11.7 million bargain purchase gain related to the acquisition of Surgalign Holdings | ||
| Adjusted EBITDA loss of $2.3 million compared to an Adjusted EBITDA loss of $1.4 million in the prior year |
Recent Business Highlights
| Subsequent to year end, in the first quarter of 2025, entered into a two-year manufacture and license agreement with automatic renewals with a distributor granting the right to manufacture and supply Xtant's SimpliGraft product that provides for an upfront payment of $1.5 million and minimum purchase obligations | ||
| Reduced operating expenses by more than $5 million on an annualized basis since third quarter of 2024. A portion of the savings will be reinvested to drive future growth. |
Sean Browne, President and
CEO of Xtant Medical, stated, "2024 was a year of significant accomplishments. We delivered total revenue of $117.3 million, representing
growth of 28% and in-line with our guidance, launched multiple new offerings and began capturing the operational and financial benefits
of internally producing our own products. Fourth quarter 2024 revenue growth was 12% year-over-year, and importantly, it was all organic
Browne continued, "The work we completed in
2024 to streamline our product portfolio and increase reliance on our own supply chain has enhanced product quality, reduced costs and,
importantly, strengthened our business for sustainable, profitable growth. During the course of the fourth quarter of 2024, we identified
over $5 million of expenses for removal, which will benefit our 2025 financial position. Most of these cost reductions were tied to the
integration of the Surgalign business into Xtant."
Brown concluded, "Today, we are providing full
year 2025 revenue guidance of $126 million to $130 million. Notably, we expect to begin generating free cash flow in the second half of
2025, enabling us to support our expected organic growth without the need for additional external capital."
Fourth Quarter and Full Year 2024 Financial Results
Fourth quarter 2024 revenue grew 12% to $31.5 million,
compared to $28.1 million for the same quarter in 2023. Full year 2024 revenue grew 28% to $117.3 million, compared to $91.3 million for
2023. The revenue increase compared to the prior year quarter is due primarily to growth within our biologics product family and upfront
revenue generated from a licensing agreement. The year- over-year revenue increase also included additional sales resulting from the acquisition
of the Surgalign Holdings' hardware and biologics business.
Gross margin for the fourth quarter of 2024 was 50.8%,
compared to 61.0% for the same period in 2023 and 58.2% for the full year 2024, compared to 60.8% for the full year 2023. These decreases
were primarily attributable to reduced production throughput and charges for the write-off of inventory associated with the acquisition
of Surgalign Holdings' hardware and biologics business.
Operating expenses for the fourth quarter of 2024
totaled $17.9 million, compared to $20.9 million for the fourth quarter of 2023, and were $80.3 million for the full year 2024 compared
to $65.6 million for the full year 2023. The reduction in fourth quarter 2024 operating expenses compared to the prior year quarter is
primarily attributable to reductions in various compensation plans and reduced professional fees. The increase in operating expenses year
over year was primarily due to additional independent agent sales commissions and higher employee compensation expenses, amortization
of intangible assets associated with the Coflex and CoFix product lines, and increased research and development expenses.
Fourth quarter 2024 net loss totaled $3.2 million,
or $(0.02) per share, compared to a net loss in the fourth quarter 2023 of $4.3 million, or $(0.03) per share. Net loss for 2024 was $16.4
million, or $(0.12) per share, compared to net income of $660,000, inclusive of a $11.7 million bargain purchase gain related to the acquisition
of Surgalign Holdings, or $0.01 per share, for 2023.
Non-GAAP adjusted EBITDA for the fourth quarter of
2024 totaled $438,000, compared to Adjusted EBITDA loss of $695,000 for the same period in 2023. Non-GAAP adjusted EBITDA for 2024 was
a loss of $2.3 million, compared to an adjusted EBITDA loss of $1.4 million for 2023. Beginning in the fourth quarter of 2024, phasing
of the bargain purchase gain on sell through of inventory acquired as part of the purchase of Surgalign Holdings' hardware and biologics
business is no longer included in acquisition-related fair value adjustments in the non-GAAP adjusted EBITDA calculation and prior period
calculations as presented herein have been recast to conform to the current presentation and calculation. The Company defines adjusted
EBITDA as net income/loss from operations before depreciation, amortization and interest expense and provision for income tax/benefit,
and as further adjusted to add back in or exclude, as applicable, separation related expenses, legal settlements, non-cash compensation,
acquisition-related expense, acquisition-related fair value adjustments, gain on bargain purchase and unrealized foreign currency translation
gain or loss. A calculation and reconciliation of adjusted EBITDA to net loss can be found in the attached financial tables.
As of December 31, 2024, the Company had $6.2 million
of cash and cash equivalents compared to $5.7 million as of December 31, 2023.
2025 Financial Guidance
Xtant Medical initiated revenue guidance for the full
year 2025 of $126 million to $130 million, representing organic growth of 7% to 11%.
Xtant Medical will host a webcast and conference call
to discuss fourth quarter and full year 2024 financial results at 4:30 pm ET on Thursday, March 6, 2025.
To access the webcast, visit https://www.webcaster4.com/Webcast/Page/3039/52116.
To access the conference call, dial 888-506-0062 within
the U.S. or 973-528-0011 outside the U.S. Conference Call Name: Xtant Medical Q4 and Year End 2024 Financial Results.
A replay of the call will be available on the Investor
section of the Company's website at www.xtantmedical.com.
About Xtant Medical Holdings, Inc.
Xtant Medical's mission of honoring the gift
of donation so that our patients can live as full and complete a life as possible, is the driving force behind our company. Xtant Medical
Holdings, Inc. (www.xtantmedical.com) is a global medical technology company focused on the design, development, and commercialization
of a comprehensive portfolio of orthobiologics and spinal implant systems to facilitate spinal fusion in complex spine, deformity and
degenerative procedures. Xtant people are dedicated and talented, operating with the highest integrity to serve our customers.
The symbols and denote trademarks and
registered trademarks of Xtant Medical Holdings, Inc. or its affiliates, registered as indicated in the United States, and in other countries.
All other trademarks and trade names referred to in this release are the property of their respective owners.
Non-GAAP Financial Measures
To supplement the Company's consolidated financial
statements prepared in accordance with U.S. generally accepted accounting principles (GAAP), the Company uses certain non-GAAP financial
measures in this release, including adjusted EBITDA. Reconciliations of the non-GAAP financial measures used in this release to the most
comparable GAAP measures for the respective periods can be found in tables later in this release. The Company's management believes
that the presentation of these measures provides useful information to investors. These measures may assist investors in evaluating the
Company's operations, period over period. Management uses the non-GAAP measures in this release internally for evaluation of the
performance of the business, including the allocation of resources. Investors should consider non-GAAP financial measures only as a supplement
to, not as a substitute for or as superior to, measures of financial performance prepared in accordance with GAAP.
Cautionary Statement Regarding Forward-Looking
This press release contains forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements that are predictive
in nature, that depend upon or refer to future events or conditions, or that include words such as "intends," expects,''
anticipates,'' plans,'' believes,'' estimates,''
"continue," "future," will,'' "potential," "going forward,"
"guidance," similar expressions or the negative thereof, and the use of future dates. Forward-looking statements in this
release include the Company's full year 2025 revenue guidance and the statement that it expects to begin generating free cash flow
in the second half of 2025, enabling the Company to support expected organic growth without the need for additional external capital.
The Company cautions that its forward-looking statements by their nature involve risks and uncertainties, and actual results may differ
materially depending on a variety of important factors, including, among others: the Company's future operating results and financial
performance; its ability to increase or maintain revenue; the Company's ability to become operationally self-sustaining and less
reliant on third-party manufacturers and suppliers; risks associated with its acquisitions and the integration of those businesses; anticipated