Xtant Medical Q2 revenue up 18%, raises FY25 guidance

Overview

• Xtant Medical Q2 revenue rises 18% yr/yr to $35.4 mln

• Net income for Q2 totals $3.6 mln, reversing prior year loss

• Company raises FY25 revenue guidance

Outlook

• Xtant raises FY25 revenue guidance to $131-$135 mln

• Company anticipates 11%-15% revenue growth over FY24

• Xtant plans to update outlook post asset sale to Companion Spine

• Company expects strategic focus on biologics to drive growth

Result Drivers

• ORTHOBIOLOGICS SALES - Revenue growth driven by increased orthobiologics sales and licensing revenue

• GROSS MARGIN IMPROVEMENT - Gross margin rose to 68.6% from 62.1% due to royalty revenue and lower product costs

• EXPENSE MANAGEMENT - Operating expenses reduced due to lower compensation and commission expenses

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the medical equipment, supplies & distribution peer group is "buy."

• Wall Street's median 12-month price target for Xtant Medical Holdings Inc is $1.75, about 62.3% above its July 10 closing price of $0.66

Press Release: ID:nPn5j2f9za