Xtant Medical (XTNT) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $20.9M, down 37% year-over-year, mainly due to asset divestitures, non-recurring license revenue, and reimbursement changes.

• Net loss for Q1 2026 was $3.1M ($0.02 per share), compared to net income of $58K in Q1 2025.

• Raised full-year 2026 revenue guidance to $101M–$105M, reflecting new product launches, expanded sales force, and new distribution agreements.

• Strengthened balance sheet by reducing total indebtedness by $13.3M in Q1 2026, including $10.4M on revolving credit and $2.8M on term loan.

• Entered exclusive U.S. distribution agreement for HEMOBLAST® Bellows with Dilon Technologies, hiring 20–21 sales personnel and paying a $5M exclusivity fee.

Financial highlights

• Gross margin for Q1 2026 was 57.3%, down from 61.5% in Q1 2025, mainly due to loss of high-margin license revenue and sales mix shift.

• Operating expenses decreased to $14.9M from $19.2M year-over-year, reflecting asset divestitures.

• Adjusted EBITDA for Q1 2026 was a loss of $1.6M, compared to positive $3M in Q1 2025.

• Cash and cash equivalents as of March 31, 2026: $12.2M; down from $17.3M at year-end 2025.

• Net loss margin for Q1 2026 was approximately -14.8%.

Outlook and guidance

• Full-year 2026 revenue guidance raised to $101M–$105M, driven by HEMOBLAST® Bellows and base business growth.

• Gross margin expected to return to low 60s% in Q3–Q4 2026 after Q1 softness from excess/obsolete expense and product mix.

• Sales and marketing expenses projected to increase due to Dilon agreement and expanded sales team.

• Management believes current cash, anticipated cash flows, and credit availability are sufficient through at least May 2027.

• Anticipates biologics growth acceleration for the remainder of 2026 and beyond, supported by new products and expanded sales force.