The following is a summary of the Xtant Medical Holdings, Inc. (XTNT) Q3 2024 Earnings Conference Call Transcript:

Financial Performance:

• Xtant Medical Holdings reported a Q3 2024 revenue of $27.9 million, indicating a 12% year-over-year increase.

• The company reaffirmed its full-year revenue guidance for 2024 between $116 to $120 million, reflecting an approximate total annual growth of 27% to 31% compared to 2023.

• Third quarter Adjusted EBITDA was reported as a loss of $193,000, compared to a positive $458,000 in the same period of 2023.

• Gross margin for Q3 2024 slightly decreased due to scale-related issues and stood at 58.4%.

• Net loss for Q3 2024 was $5 million, compared to a net income of $9.2 million in Q3 2023, primarily due to lack of gains that were present in the previous fiscal year.

Business Progress:

• Successfully launched two new products: OsteoVive Plus and Cortera, after overcoming initial challenges.

• Signed a licensing agreement with a major player in the wound care market, expected to generate minimum royalty revenues of $3.75 million in 2025.

• Implemented operational enhancements and product manufacturing in-house, which aims to increase profitability and reduce dependency on external manufacturers.

• Expansion and integration of the product range following the Surgalign acquisition, notably in hardware segments such as spinal implants.

Opportunities:

• The shift to internal manufacturing of biologics to gain better control over supply chain and increase production margins.

• Expansion into the Orthobiologics sector with a complete product line and new growth opportunities in OEM sales which do not carry sales and marketing expenses.

Risks:

• Experienced softer sales than expected due to delays in product launches and a reduction in surgical procedures which impacted revenue streams.

• Potential disruptions in the healthcare sector affecting procedural volumes, as seen in the seasonal reductions during summer months.

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