XTNT earnings analysis
What we found in XTNT's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Xtant Medical reported Q2 2026 revenue of $23.031 million and diluted EPS of $(0.07), missing consensus revenue of $24.8755 million and EPS of $(0.02). Gross margin declined to 57.9% from 68.6% a year earlier, while the $5.0 million Dilon exclusivity-fee charge materially pressured operating results. Management lowered 2026 revenue guidance to $99 million-$103 million from $101 million-$105 million, and the filing continues to identify ineffective controls related to inventory valuation.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue recovered sequentially but missed consensus
- Q2 2026 revenue was $23.031 million, up from $21 million in Q1 2026 but down from $35 million in Q2 2025. Revenue missed the $24.8755 million consensus estimate.
- Gross margin contracted sharply
- Gross margin was 57.9%, down from 68.6% in Q2 2025, a 10.7-percentage-point year-over-year contraction.
- EPS missed and swung to a loss
- Diluted EPS was $(0.07), versus $0.02 in Q2 2025 and the $(0.02) consensus estimate.
- Full-year revenue outlook reduced
- The company lowered full-year 2026 revenue guidance to $99 million-$103 million from $101 million-$105 million.
- Dilon fee created a significant charge
- Xtant paid a $5.0 million exclusivity fee to Dilon and recognized a $5.0 million operating-expense charge in Q2 2026 because recovery was not considered probable.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Dilon integration may not offset added costs
- Xtant hired approximately 20 Dilon sales personnel and expects sales and marketing expenses to increase substantially. Management stated that additional revenue may eventually offset these expenses but cannot assure that outcome.
- Single-source supply and termination exposure
- Dilon is the sole manufacturer of HEMOBLAST Bellows, with no alternative suppliers, and Xtant believes supply is sufficient only through the end of Q3 2026. Dilon may terminate the agreement on 30 days' notice, and termination could result in loss of distribution rights and the $5.0 million refundable exclusivity payment.
- Material weakness remains unresolved
- As of June 30, 2026, disclosure controls and procedures were not effective because of a previously reported material weakness involving inventory net realizable value controls. Management stated there is a reasonable possibility that a material misstatement may not be prevented or detected on a timely basis.
- Debt amendments increase repayment burden
- The April 2026 credit amendments eliminated the Q2 2026 minimum net revenue covenant but increased quarterly term-loan principal payments by $0.15 million in Q4 2026 and by $0.3 million thereafter until repayment.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.07
- Gross margin
- 57.9%
What they said about what is next.
Full-year 2026 revenue guidance was lowered to $99 million-$103 million from $101 million-$105 million, reflecting lower-than-expected Q2 biologics revenue and ongoing amnio product-line headwinds.
The filing reads worse than the one before it.
What came before.
- 10-Q · May 13, 2026
- Xtant Medical's Q1 2026 results demonstrate significant challenges, with revenues decreasing to $20.9 million, a 37% decline from last year, while operating income suffered substantially as gross margins dropped to…
- 10-K · March 31, 2026
- Xtant reports it generated net income for the year ended December 31, 2025, driven in part by $18.7 million of license revenue recognized in 2025 and one-time divestiture activity. On December 1, 2025 the company…
- 10-Q · November 10, 2025
- Xtant reported Q3 revenue of $33,255,000 and GAAP net income of $1,308,000 (EPS $0.01), driven primarily by $5,483,000 of license revenue; revenue was up 19.1% year-over-year but down versus the prior quarter. Gross…
- 10-Q · August 8, 2024
- Xtant reported quarterly revenue of $29,943,000 (Q2 2024), up $9,711,000 (+48.0%) versus $20,232,000 in Q2 2023, with gross profit rising to $18,582,000 from $12,459,000. Despite top-line growth and a ~62.1% gross…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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