Xtant Medical Holdings, Inc. completed the sale of its non‑core Coflex® spinal implant assets and all overseas entities of Paradigm Spine GmbH to Companion Spine, LLC and its affiliates on December 1 2025. The transaction generated $19.2 million in proceeds, consisting of $11.0 million in cash and $8.2 million in short‑term seller financing. The promissory note issued by Companion Spine will mature on January 15 2026.
The divestiture is a key element of Xtant’s strategy to streamline its product portfolio and strengthen its balance sheet. Management said the net proceeds will be used to reduce long‑term debt and provide additional liquidity, enabling the company to operate without the need for external capital. By shedding the Coflex line—an asset that historically delivered lower gross margins and higher operating costs than Xtant’s orthobiologics and spinal implant offerings—the company expects to improve overall profitability and free management to invest in new biologics launches such as Trivium and OsteoFactor Pro.
Xtant’s Q3 2025 results, released on November 10 2025, showed revenue of $33.3 million, a modest 1.5% year‑over‑year increase, and an earnings per share of $0.01 versus a consensus estimate of –$0.01. Gross margin expanded to 66.1% from 58.4% in Q3 2024, reflecting a stronger mix of high‑margin orthobiologics and tighter cost control. The sale is expected to further lift the margin profile by removing the lower‑margin Coflex segment.
The sale included all overseas entities of Paradigm Spine GmbH, which operated in multiple European and Asian markets. While the specific countries were not disclosed, the transaction expands Companion Spine’s portfolio of posterior dynamic spine stabilization and motion‑preservation implants, positioning it as a leading provider for lumbar spinal stenosis and degenerative disc disease.
President and CEO Sean Browne said the transaction “represents a significant step forward for Xtant as we enhance our focus on our core biologics business, driving innovation for surgeons and patients, and delivering sustained improvements in our financial performance.” He added that the proceeds, combined with anticipated cash flows, will allow Xtant to continue operating without additional external capital and that the company is “immensely proud” to have reached this inflection point.
Following Xtant’s Q3 2025 earnings, BTIG lowered its price target from $2.00 to $1.50 while maintaining a Buy rating. The adjustment reflects a cautious view of the company’s valuation despite the positive earnings beat, and the asset sale may have contributed to the recalibration of expectations.
The divestiture aligns with Xtant’s broader goal of achieving a self‑sustaining, cash‑flow‑positive operation by the end of 2025. The proceeds will reduce debt, improve liquidity, and enable investment in high‑margin biologics, positioning the company for accelerated growth in its core segments.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.