Jake [on for Chase Knickerbocker]'s questions to Xtant Medical Holdings (XTNT) leadership • Q3 2024
Question
Inquired about the expected contribution from the Viable Bone Matrix (VBM) product in Q4 and 2025, the mix between white-label and distributor sales, and the primary drivers for profitability next year.
Answer
The company expects the VBM contribution in Q4 to be primarily from the white-label side, with the distributor side picking up in Q1 2025 as existing inventories are depleted. Profitability improvements in 2025 are expected from both gross margin expansion (3-4 points) and improved operating leverage, driven by a better product mix and cost controls.