Xtant Med | 8-K: FY2025 Q3 Revenue Beats Estimate at USD 33.26 M

Revenue: As of FY2025 Q3, the actual value is USD 33.26 M, beating the estimate of USD 32.7 M.

EPS: As of FY2025 Q3, the actual value is USD 0.01.

EBIT: As of FY2025 Q3, the actual value is USD 3.445 M.

The Company defines non-GAAP adjusted EBITDA as net income (loss) from operations before depreciation and amortization expense, interest expense, and tax benefit (expense), and as further adjusted to add back in or exclude, separation-related expenses, non-cash compensation, divestiture/acquisition-related expenses, acquisition-related fair value adjustments, and unrealized foreign currency translation loss or gain, in each case as applicable.

Separation-related expenses: Excluded because they are not reflective of ongoing operating results and are not used by management to assess core profitability.
Non-cash compensation: Excluded due to reliance on future event valuations, such as market price of common stock, which are difficult to predict and affected by market factors beyond the Company’s control.
Divestiture/acquisition-related expenses: Excluded as they are not reflective of ongoing operating results and are not used by management to assess core profitability. These include legal and accounting fees and transition-related services.
Acquisition-related fair value adjustments: Excluded because they are not reflective of ongoing operating results and are not used by management to assess core profitability.
Unrealized foreign currency translation gain or loss: Excluded as they are not reflective of ongoing operating results and are not used by management to assess core profitability.

Non-GAAP financial measures are not in accordance with, or an alternative for, GAAP measures and may differ from non-GAAP financial measures used by other companies.
Non-GAAP financial measures have limitations as they do not reflect all amounts associated with the Company’s financial results as determined in accordance with GAAP and should only be used in conjunction with corresponding GAAP measures.

Revenue: Total revenue for the third quarter of 2025 was $33.3 million, representing a 19% increase compared to the prior year quarter, primarily driven by licensing revenue.
Gross Margin: The gross margin improved to 66.1% from 58.4% in the prior year quarter, attributed to a favorable sales mix and greater scale.
Net Income: Xtant Medical reported a net income of $1.3 million, compared to a net loss of $5.0 million in the same quarter of 2024.
Adjusted EBITDA: The adjusted EBITDA was $4.5 million, a significant improvement from an adjusted EBITDA loss of $1.0 million in the prior year quarter.
Operating Cash Flow: Cash generated from operations was $4.6 million, compared to cash used in operations of $1.7 million in the prior year quarter.

Xtant Medical reiterated its full-year 2025 revenue guidance of $131 million to $135 million, representing growth of 11% to 15% over FY24 revenue.
The company anticipates the sale of certain non-core spinal implant assets and international businesses to Companion Spine to close by the end of 2025, which will allow a sharper focus on its core biologics business.
New product launches and investments in sales force expansion are expected to drive accelerating biologics product revenue growth while managing expenses prudently.