XTNT · Xtant Medical Holdings, Inc.

Xtant Medical Holdings, Inc. delivered a strong turnaround in FY 2025, achieving GAAP profitability across key metrics. Revenue grew 14.2% to $133.9 million from $117.3 million in FY 2024, attributed primarily to higher volumes in orthobiologics sales. This growth occurred despite risks of sustained demand decreases that could elevate excess inventory levels, as noted in management discussion. Gross profit expanded more robustly at 23.5% to $84.3 million, lifting the gross margin to 62.9% from the prior year. Management explained this as resulting from favorable revenue mix and scale benefits, though partially tempered by increased charges for excess and obsolete inventory. These charges, recorded to cost of sales, were offset by lower product costs from transitioning to internal production in 2025 versus 2024, demonstrating operational leverage.

Cash generation marked a pivotal shift, with net cash from operating activities at $12.5 million against a $12.0 million use previously, yielding $10.2 million in free cash flow after $2.4 million capex (down from $4.1 million). Lower capex reflects a strategic pivot from growth capex to efficiency amid inventory management. While specific debt details were unsupported, the cash positivity strengthens liquidity to support operations, though management notes potential needs for additional capital before March 2027 to fund strategy.