Xtant Medical Reports Second Quarter 2026 Financial Results

Launched Trivium™ Shaped, an extension of its Trivium line of premium, next-generation demineralized bone matrix allograft for bone grafting procedures

Company to host investor conference call and webcast today, August 11 th, at 8:30am ET

BELGRADE, Mont., Aug. 11, 2026 /PRNewswire/ -- Xtant Medical Holdings, Inc. (NYSE American: XTNT), a medical technology company focused on surgical solutions for spinal and other orthopedic conditions, today reported financial and operating results for the second quarter ended June 30, 2026.

• Generated total revenue of $23.0 million for the second quarter of 2026, as compared to $35.4 million for the second quarter of 2025. The decline in revenue relates primarily to the sale of the non-core Coflex/CoFix assets and international hardware business to Companion Spine in December 2025 as well as license revenue that ceased at the end of 2025 due to changes in the reimbursement environment.

• Announced an exclusive U.S. distribution agreement with privately held Dilon Technologies whereby Xtant has acquired the exclusive U.S. commercial rights to Dilon's HEMOBLAST® Bellows product for high-performance hemostasis following certain surgical procedures. As part of the transaction, Xtant has hired Dilon's approximately 20-person U.S. sales team, who will support Xtant's entire biologics portfolio.

• Launched Trivium™ Shaped, an extension of its Trivium line of premium, next-generation demineralized bone matrix allograft for bone grafting procedures. Trivium™ Shaped is available in pre‑shaped configurations designed to support handling, preparation, and placement across a range of surgical applications.

Sean Browne, President and CEO of Xtant Medical, stated, "The second quarter reflected continued execution of our strategy to broaden our core biologics portfolio while expanding access to more hospitals and surgeons. The Dilon distribution agreement added a complementary hemostatic technology and significant commercial resources, which, together with the introduction of Trivium Shaped, strengthen our platform and position us for sustained long-term growth."

Revenue for the second quarter of 2026 was $23.0 million, compared to $35.4 million for the same period in 2025. The year-over-year decline is primarily due to the sale of the Company's non-core Coflex/CoFix assets and international hardware business to Companion Spine in December of 2025, as well as license revenue from Xtant's Q-code and amniotic membrane agreements in the second quarter of 2025 that did not repeat in the second quarter of 2026 due to changes in the reimbursement environment.

Gross margin for the second quarter of 2026 was 57.9%, compared to 68.6% for the same period in 2025. The decrease was primarily due to the cessation of Q-code high-margin license revenue from the amniotic membrane agreements that ceased at the end of 2025, together with reduced production efficiencies and increased charges for excess and obsolete inventory.

Operating expenses for the second quarter of 2026 totaled $22.5 million, compared to $19.7 million for the second quarter of 2025. The increase was primarily due to a $5.0 million exclusivity fee paid to Dilon Technologies in connection with the Company's distribution agreement, partially offset by lower general and administrative and sales and marketing expenses following the Company's December 2025 sale of its Coflex/CoFix assets and international hardware business to Companion Spine.

Second quarter 2026 net loss was $9.4 million, compared to net income of $3.6 million for the second quarter of 2025.

Non-GAAP adjusted EBITDA loss for the second quarter of 2026 totaled $2.7 million, compared to positive adjusted EBITDA of $6.9 million for the same period in 2025.

The Company defines adjusted EBITDA as net income/loss from operations before depreciation, amortization and interest income/expense and provision for income tax/benefit, and as further adjusted to add back in or exclude, as applicable, non-cash compensation, the write-off of the distribution agreement deposit, disposition/acquisition-related income and expenses, acquisition-related fair value adjustments, unrealized foreign currency translation gain or loss, and separation-related expenses. A calculation and reconciliation of adjusted EBITDA to net income (loss) can be found in the attached financial tables.

As of June 30, 2026, the Company had $9.9 million of cash and cash equivalents, total indebtedness of $23.0 million, and availability under its revolving credit facility of $0.7 million, compared to $17.3 million of cash and cash equivalents, total indebtedness of $25.4 million, and availability under its revolving credit facility of $3.8 million as of December 31, 2025. The decrease in total indebtedness reflects a $3.8 million reduction in term loan principal, including $2.8 million from proceeds received from Companion Spine in the first quarter of 2026, partially offset by net borrowings of $1.1 million under the Company's revolving credit facility during the first half of 2026, used primarily to fund the $5.0 million exclusivity fee paid to Dilon Technologies and for working capital.

The Company believes its current cash and availability under its credit facility are sufficient to fund operations, as currently planned, for at least the next 12 months.

Reflecting lower-than-expected biologics revenue in the second quarter, as well as ongoing headwinds related to its amnio product line directly tied to the advanced wound care market, Xtant is today modestly reducing its full-year guidance to a range of $99 million to $103 million, from $101 million to $105 million previously.

Xtant Medical will host a webcast and conference call to discuss its second quarter 2026 financial and operating results at 8:30 am ET today, August 11, 2026.

To access the webcast: https://www.webcaster5.com/Webcast/Page/3039/54128

To access the conference call, dial 888-506-0062 (US) or 973-528-0011 (International) and reference Participant Access Code 844793.

A replay of the call will be available on the Investor section of the Company's website at www.xtantmedical.com for a period of one year.

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 medical technology company focused on the design, development, and commercialization of a comprehensive portfolio of orthobiologics serving the chronic and surgical wound care and sports medicine markets, as well as spinal implant systems. 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.

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, adjusted EBITDA as a percentage of total revenue. 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 this release or 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.

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,'' "continue," "future," ''will,'' "potential," "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 2026 revenue guidance. 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, financial performance and need for additional capital; the Company's ability to achieve sustained long-term growth; the success of the distribution arrangement and the HEMOBLAST® Bellows product, including future U.S. sales and the additional U.S. sales personnel and their impact on the Company's business and operating results; the possibility that the distribution agreement may be terminated by either party and the effect of any such termination on the Company and its ability to recapture the $5.0 million exclusivity fee it paid Dilon; the effect of the distribution agreement on the Company's business, including its relationships with other distributors, independent sales representatives and personnel, and its business and operating results; the ability of Dilon to continue to manufacture and supply the Company the HEMOBLAST® Bellows product and the effect of any such non-performance on the Company and its business and operating results; the success of the Company's expanded field sales force to improve the Company's reach and leverage its contract portfolio and independent agent network; the Company's ability to become operationally self-sustaining and less reliant on third-party manufacturers and suppliers; risks associated with acquisitions and dispositions; its ability to implement successfully its future growth initiatives and risks associated therewith; possible future impairment charges to long-lived assets and goodwill and write-downs of excess and obsolete inventory; its ability to continue to innovate, develop and introduce new products and the success of those products; its ability to remain competitive; its ability to engage and retain new and existing independent distributors and agents and qualified sales and other personnel and its dependence on key independent agents for a significant portion of its revenue; the effect of inflation, elevated interest rates and other recessionary factors and supply chain disruptions; the effect of product sales mix changes on its financial results; the effect of government and third-party coverage and reimbursement for its products; its ability to obtain and maintain regulatory approvals and comply with government regulations; the effect of product liability claims and other litigation to which the Company may be subject; the effect of product recalls and defects; its ability to license intellectual property on commercially reasonable terms and to maintain any such licenses and its ability to obtain and protect its intellectual property and proprietary rights and operate without infringing the rights of others; its ability to service its debt, comply with debt covenants, and access additional indebtedness or financing on favorable terms or at all, if and when needed; and other factors described in its Annual Report on Form 10-K for the year ended December 31, 2025 filed with the Securities and Exchange Commission (SEC) on March 30, 2026 and subsequent SEC reports, including its Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2026 to be filed with the SEC on or about August 11, 2026. Investors are encouraged to read the Company's filings with the SEC, available at www.sec.gov, for a discussion of these and other risks and uncertainties. The Company undertakes no obligation to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as required by law. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by this cautionary statement.

(In thousands, except number of shares and par value)

ASSETS

Current Assets:

Cash and cash equivalents

$

9,870

$

17,053

Restricted cash

347

275

Trade accounts receivable, net of allowance for credit losses and doubtful accounts of $2,234 and $2,165, respectively

19,416

17,803

Inventories

33,287

30,263

Note receivable

—

10,462

Prepaid and other current assets

1,857

2,389

Total current assets

64,777

78,245

Property and equipment, net

5,542

6,202

Right-of-use asset, net

2,894

3,192

Goodwill

6,074

6,074

Intangible assets, net

252

299

Other assets

128

133

Total Assets

$

79,667

$

94,145

LIABILITIES & STOCKHOLDERS' EQUITY

Current Liabilities:

Accounts payable

$

6,154

$

3,844

Accrued liabilities

7,481

10,626

Current portion of long-term debt

3,720

3,500

Current portion of lease liability

594

622

Current portion of finance lease obligations

29

35

Line of credit

11,985

10,857

Total current liabilities

29,963

29,484

Long-term Liabilities:

Lease liability, less current portion

2,397

2,665

Finance lease obligation, less current portion

—

12

Long-term debt, plus premium and less issuance costs

7,287

11,026

Other liabilities

5

5

Total Liabilities

39,652

43,192

Commitments and Contingencies

Stockholders' Equity:

Preferred stock, $0.000001 par value; 10,000,000 shares authorized; no shares issued and outstanding

—

—

Common stock, $0.000001 par value; 300,000,000 shares authorized; 140,262,960 shares issued and outstanding as of June 30, 2026 and 140,039,557 shares issued and outstanding as of December 31, 2025

—

—

Additional paid-in capital

307,004

305,439

Accumulated other comprehensive loss

(1)

—

Accumulated deficit

(266,988)

(254,486)

Total Stockholders' Equity

40,015

50,953

Total Liabilities & Stockholders' Equity

$

79,667

$

94,145

(Unaudited, in thousands, except number of shares and per share amounts)

Revenue

Product revenue

$

23,031

$

30,436

$

43,915

$

59,720

License revenue

—

4,975

—

8,595

Total Revenue

23,031

35,411

43,915

68,315

Cost of sales

9,701

11,127

18,614

23,788

Gross Profit

13,330

24,284

25,301

44,527

Operating Expenses

General and administrative

6,436

7,478

12,709

15,011

Sales and marketing

10,368

11,616

18,554

22,820

Research and development

695

566

1,130

1,009

Write-off of distribution agreement deposit

5,000

—

5,000

—

Total Operating Expenses

22,499

19,660

37,393

38,840

(Loss) Income from Operations

(9,169)

4,624

(12,092)

5,687

Other Expense

Interest expense

(542)

(1,004)

(1,141)

(2,049)

Interest income

1

—

220

—

Unrealized foreign currency translation gain

23

178

22

202

Other income (expense)

347

7

589

(2)

Total Other Expense

(171)

(819)

(310)

(1,849)

Net (Loss) Income from Operations Before Provision for Income Taxes

(9,340)

3,805

(12,402)

3,838

Provision for Income Taxes Current and Deferred

(73)

(255)

(100)

(230)

Net (Loss) Income

$

(9,413)

$

3,550

$

(12,502)

$

3,608

Net (Loss) Income Per Share:

Basic

$

(0.07)

$

0.03

$

(0.09)

$

0.03

Dilutive

$

(0.07)

$

0.02

$

(0.09)

$

0.02

Shares used in the computation:

Basic

140,258,667

139,310,589

140,159,255

139,190,378

Dilutive

140,258,667

148,574,242

140,159,255

148,339,423

(Unaudited, in thousands)

Operating activities:

Net (loss) income

$

(12,502)

$

3,608

Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:

Depreciation and amortization

1,042

2,243

Loss (gain) on sale of fixed assets

5

(49)

Non-cash interest

251

289

Stock-based compensation

1,621

1,524

Provision for reserve on accounts receivable

463

395

Provision for excess and obsolete inventory

1,496

490

Write-off of distribution agreement deposit

5,000

—

Other

3

46

Changes in operating assets and liabilities:

Accounts receivable

(2,076)

(6,873)

Inventories

(3,591)

(1,349)

Prepaid and other assets

(298)

347

Accounts payable

2,309

(880)

Accrued liabilities

(3,145)

2,763

Net cash (used in) provided by operating activities

(9,422)

2,554

Investing activities:

Purchases of property and equipment

(441)

(1,557)

Proceeds from sale of fixed assets

102

97

Distribution agreement deposit

(5,000)

—

Proceeds from divestitures

10,368

—

Net cash provided by (used in) investing activities

5,029

(1,460)

Financing activities:

Borrowings on line of credit

27,895

51,812

Repayments on line of credit

(26,767)

(51,925)

Payments on long-term debt

(3,771)

—

Debt issuance costs

—

(49)

Payments on financing leases

(18)

(34)

Payment of taxes from withholding of common stock on settlement of restricted stock units

(56)

(61)

Net cash used in financing activities

(2,717)

(257)

Effect of exchange rate changes on cash and cash equivalents and restricted cash

(1)

(21)

Net change in cash and cash equivalents and restricted cash

(7,111)

816

Cash and cash equivalents and restricted cash at beginning of period

17,328

6,221

Cash and cash equivalents and restricted cash at end of period

$

10,217

$

7,037

Reconciliation of cash and cash equivalents and restricted cash reported in the condensed consolidated balance sheets

Cash and cash equivalents

$

9,870

$

6,923

Restricted cash

347

114

Total cash and restricted cash reported in condensed consolidated balance sheets

$

10,217

$

7,037

(in thousands)

Net (Loss) Income

$

(9,413)

$

3,550

$

(12,502)

$

3,608

Depreciation and amortization

508

1,169

1,042

2,243

Interest expense, net

541

1,004

921

2,049

Tax expense

73

255

100

230

Non-GAAP EBITDA

(8,291)

5,978

(10,439)

8,130

Net (Loss) Income/Total Revenue

(40.9)

%

10.0

%

(28.5)

%

5.3

%

Non-GAAP EBITDA/Total Revenue

(36.0)

%

16.9

%

(23.8)

%

11.9

%

NON-GAAP ADJUSTED EBITDA CALCULATION

Non-cash compensation

875

766

1,621

1,524

Write-off of distribution agreement deposit

5,000

—

5,000

—

Divestiture/acquisition-related expenses

(283)

295

(518)

295

Acquisition-related fair value adjustments

44

60

95

171

Unrealized foreign currency translation gain

(23)

(178)

(22)

(202)

Separation related expenses

—

(17)

—

23

Non-GAAP Adjusted EBITDA

$

(2,678)

$

6,904

$

(4,263)

$

9,941

Non-GAAP Adjusted EBITDA/Total Revenue

(11.6)

%

19.5

%

(9.7)

%

14.6

%