Good morning, everyone, and thank you, and welcome to the Xtant Medical First Quarter 2026 Financial Results. Operator Instructions: Please note, this conference is being recorded. I will now turn the conference over to your host, Kevin Gardner of LifeSci Advisors.

Thank you, operator, and welcome to Xtant Medical's First Quarter 2026 Financial Results Call. Joining me today are Sean Browne, President and Chief Executive Officer; and Scott Neils, Chief Financial Officer. Today's call is being webcast and will be posted on the company's website for playback. During the course of this call, management may make certain forward-looking statements regarding future events and the company's expected future performance. These forward-looking statements reflect Xtant's current perspective on existing trends and information and can be identified by such words as expect, plan, will, may, anticipate, believe, should, intends and other words with similar meaning. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, including those noted in the Risk Factors section of the company's annual report on the Form 10-K filed with the SEC and in subsequent SEC reports and press releases. Actual results may differ materially. The company's financial results press release and today's discussion include certain non-GAAP financial measures. Please refer to the non-GAAP to GAAP reconciliations, which appear in our press release and are otherwise available on our website. Note that the Form 8-Ks that we filed with our financial results press releases provide detailed narratives that describe our use of such measures. For the benefit of those of you who may be listening to a replay, this call was held and recorded on May 13, 2026, at approximately 8:30 a.m. Eastern Time. The company declines any obligation to update its forward-looking statements, except as required by applicable law. Now I'd like to turn the call over to Sean Browne, CEO. Sean?

Thank you, Kevin, and good morning, everyone. Thank you for joining our first quarter update call. As has been our practice, I'll begin with a few prepared remarks about our operations, and then Scott will provide a deeper dive into the financials. We will then open the call to your questions. Since our last quarterly update, Xtant Medical has achieved multiple significant milestones that position us for sustained growth. We strengthened our balance sheet with proceeds from the Companion Spine transaction, secured a transformational license agreement with Dilon Technologies that moves us into the multibillion-dollar hemostatic agent market and advanced our innovation track record with the commercial launch of Trivium Shaped. With that as a backdrop, we are raising our full year 2026 revenue guidance to $101 million to $105 million. First, I'd like to begin this morning with a recap of the Dilon Technologies distribution agreement that we announced in April. Through this agreement, we acquired exclusive U.S. distribution rights to Dilon's HEMOBLAST Bellows product for high-performance hemostasis following certain surgical procedures. This agreement adds a highly complementary hemostatic technology to our portfolio and gives us entry into an estimated $2 billion global addressable market for hemostatic products. HEMOBLAST is highly differentiated as the only hemostat containing collagen, human-derived thrombin and bovine-derived chondroitin sulfate, which provides cohesion between the wound and surrounding tissue. It is indicated across a range of bleeding types—minimal, mild and moderate—and requires no preparation prior to use. The addition of HEMOBLAST Bellows, together with our recent product launches, further broaden and differentiate our biologics portfolio, positioning us to better address the needs of surgeons and patients alike. As part of the agreement, we have hired Dilon's team of 21 sales professionals. This is in addition to our own investments that we've been making in our commercial organization, including doubling the number of regional sales reps in the field in 2026. We still plan to add significant resources to our national accounts team, which will expand our ability to drive institutional adoption and scale across hospital systems and large practice groups. Together, this combined team will further extend the reach of not only HEMOBLAST Bellows, but our entire line of biologic solutions. There is significant opportunity to leverage each team's call points and drive our entire portfolio to its full commercial potential. To reflect the addition of HEMOBLAST, along with the growth of our base business, we are raising our full year revenue guidance to be in the range of $101 million to $105 million. Moving over to our Companion Spine transaction. We are pleased to announce that in March we received the final $10.7 million from Companion Spine related to its purchase of our noncore Coflex assets and Paradigm OUS businesses in December 2025. The total purchase price for the two divestitures was $21.4 million. The transactions have now been finalized. As mentioned previously, we used those proceeds to reduce our borrowings and strengthen our cash position. We reduced total indebtedness by $13.3 million in the first quarter of 2026, including a $10.4 million reduction in amounts outstanding under the company's revolving line of credit and a $2.8 million reduction in our term loan balance. More strategically, this transaction allows us to further sharpen our focus on our core high-margin biologics business, which is where our competitive differentiation and our future growth lies. In terms of innovation, just a few weeks ago, we announced the commercial launch of Trivium Shaped, an extension of our Trivium bone graft portfolio that comes in pre-shaped configurations designed to support handling, preparation and placement across a range of surgical applications. Trivium is a composite allograft that combines cortical fibers, cancellous bone and demineralized bone matrix into a single connected graft matrix. Trivium Shaped builds on the success of the Trivium sculptable format, which we launched in April 2025, by offering surgeons ready-to-use graft forms, including boats and strips designed to enhance consistency and handling in the operating room. The introduction of the pre-shaped configurations represents a significant advancement in graft convenience and clinical utility, allowing surgeons to optimize surgical workflow while maintaining the exceptional performance characteristics of the Trivium platform. As we've noted previously, we internally produce solutions across all five major orthopedic categories: demineralized bone matrix, cellular allografts, synthetics, structural allografts and growth factors. This is a key point of differentiation for us relative to our peers. Additionally, with our amnio and collagen product lines, we are also well positioned to grow in the surgical repair and wound care markets. Now with the addition of a hemostatic biologic, we are giving hospital systems a single partner who can meet most of their needs. This breadth positions us as a partner of choice in regenerative medicine, a position that has been further reinforced by the positive feedback we continue to receive from surgeons on these recent innovations. Building on these milestones, Xtant Medical delivered solid first quarter results with revenue of $20.9 million. Strong prior year results, bolstered by royalties from our amnio business and proceeds from the Coflex Paradigm divestiture, enabled us to significantly strengthen our balance sheet by reducing debt and strategically investing in our commercial enterprise. Now with recent and planned additions to our sales organization and an expanded product portfolio, we are well positioned to drive top-line growth throughout 2026 and beyond. With that, I will turn the call over to Scott for a more detailed review of our financial results. Scott?

Thank you, Sean, and good morning, everyone. Total revenue for the first quarter of 2026 was $20.9 million compared to $32.9 million for the first quarter of 2025 on a pro forma basis, excluding the revenue from the noncore products and businesses that we sold to Companion Spine and license revenue not repeating in 2026. Note that a reconciliation of actual to pro forma revenue results for each quarter of 2025 can be found on the company's website at www.xtantmedical.com. With respect to the comparison on a pro forma basis, headwinds related to our amnio product revenue directly tied to the advanced wound care market were the main driver for the decline in 2026 revenue compared to the pro forma 2025 period. As Sean mentioned a moment ago, the Dilon Technologies license agreement, together with contributions from new product introductions and the measured investments that we are making in our field sales force on both a regional and national basis, should drive accelerating biologics growth for the remainder of 2026 and beyond. Gross margin for the first quarter of 2026 was 57.3% compared to 61.5% for the same period in 2025. The decrease is primarily attributable to the cessation of Q-code license revenue from our amniotic membrane agreements that terminated at the end of 2025 due to changes in the reimbursement environment, partly offset by improvements in product mix. First quarter 2026 operating expenses were $14.9 million compared to $19.2 million for the first quarter of 2025. The decrease was primarily due to our sale of noncore Coflex and CoFix assets and international hardware business to Companion Spine in December 2025. General and administrative expenses were $6.3 million for the three months ended March 31, 2026, compared to $7.5 million for the same period in 2025. The decrease was primarily due to the divestiture of assets and businesses to Companion Spine in December of last year. Sales and marketing expenses were $8.2 million for the three months ended March 31, 2026, compared to $11.2 million for the same quarter last year. Approximately $2.5 million of the decrease resulted from the Companion Spine divestitures. The remaining decrease was primarily due to lower independent agent commissions of $0.4 million and a $0.6 million decrease in professional fees. Research and development expenses were $435,000 for the three months ended March 31, 2026, essentially flat with $443,000 in the first quarter of 2025. Net loss for the first quarter of 2026 was $3.1 million or $0.02 per basic and diluted share compared to net income of $58,000 for the first quarter of 2025, or break-even per share. Adjusted EBITDA for the first quarter of 2026 was a loss of $1.6 million compared to positive adjusted EBITDA of approximately $3 million for the same period in 2025. As of March 31, 2026, we had $12.2 million of cash and cash equivalents, total indebtedness of $12.2 million and availability under our revolving credit facility of $11.8 million. This compares to $17.3 million of cash and cash equivalents, total indebtedness of $25.4 million and availability under our revolving credit facility of $3.8 million as of December 31, 2025. The reduction in total indebtedness was primarily due to a term-loan payment of $2.8 million from some of the February 2026 proceeds from the Companion Spine transaction and net repayments of $10.4 million on the revolving credit facility with cash and cash equivalents. The resulting increase in our availability under our revolving credit agreement from $3.8 million as of December 31, 2025, to $11.8 million as of March 31, 2026, is due to an effort to reduce interest expense by minimizing the outstanding balance on our revolving credit facility. That concludes the financial overview. Operator, you may now open the line for questions.

Operator Instructions: Your first question for today is from Chase Knickerbocker with Craig-Hallum.

Maybe first, guys, just on HEMOBLAST. Can you maybe just kind of give us an overview on kind of the relationships and capabilities this new sales force will be bringing over. Hemostatic agents have a couple of different use cases, obviously, from a specialty perspective. Maybe just speak to kind of where the volume has been in 2025 and then your opportunities for growth, which obviously will largely be spine focused, but just kind of where you see that going in '26 and beyond?

Yes. Great question. One of the things about what made this a really good opportunity for us is that today the HEMOBLAST business, which is a very small business starting out of the gate, has most of its business in general surgery. For us, the idea that we could bring them into the spine world, which is the largest market within that hemostatic market, is attractive. Their reach into other call points within the hospital where, for instance, our collagen products and our amnio products could be used more readily as well creates additional opportunity. Their call point generally has been general surgery and trauma. They've also done some really nice work in other areas; for instance, they just got clearance to go into urology, and that's another opportunity for us that we normally wouldn't have had. So we're really excited about their focus and what they do and the idea that we could actually bring them into the spine world, which is opening up all kinds of opportunities for us. To give you a sense, out of the gate, what we're trying to do is, first and foremost, make sure they continue to hit their HEMOBLAST number. That is a commitment we made to the Dilon organization. So we want to make sure that they stay focused and hit the number they're supposed to hit. Initially, we are going to give them product lines like our collagen product line and our amnio product line that are complementary to what they already do. Eventually, they'll have the opportunity to sell our entire portfolio as they become more comfortable and we demonstrate execution. Initially giving them the amnio and collagen lines and then ultimately opening the full portfolio is the plan as we move down the path here.

And then I'll jump in on the expense impact. I think the way to think about this is, as we mentioned, we're bringing on 21 employees. These, for the most part, are generally seasoned representatives. When you think about the compensation associated with such individuals and then you add travel and marketing expense to the tune of $1.5 million annually, you're probably looking at at least $2.5 million in additional sales and marketing expense on an annualized basis. That equates to roughly $0.6 million to $0.7 million per quarter, though timing and onboarding can affect quarter-to-quarter impacts.

Your next question for today is from Ryan Zimmerman with BTIG.

Sean, Scott, this is Izzy on for Ryan. I was hoping you guys could spend some time talking about what you're seeing in the ortho-biologics segment. Mostly curious about where your underlying unit growth is and how that's tracking relative to the broader market?

I would say that our unit growth is coming from these new products that we've introduced. For example, our OsteoFactor Pro growth factor product has done very well, as has our Trivium product line; these are all starting to take off as we expected. If we've seen any weakness, it has more to do with how some of our business is OEM based, which can be lumpy. The stem-cell side has been soft in the first quarter; it's still a strong product and one of our largest product lines, but OEM timing affected the quarter. We expect that area to perform better throughout the year. Our growth has really been driven by our advanced biologics sales, including collagen, and we expect that the amnio business—both in the surgical and in the advanced wound care side—should start to see some pickup again in the second half of this year. You're seeing similar trends with other companies that had difficult first quarter numbers in advanced wound care. That said, that is not a major part of what we do, and much of it is OEM based for us, so we expect it to settle and be better in the second half.

Got it. That's helpful. And then Scott, I was hoping you could spend some time just walking through the gross margin cadence for the remainder of the year. I believe last quarter, you were expecting it to be somewhere in the low 60s. So if you could talk about if that's still the right range and what we could see for 2Q through 4Q.

Low 60s is still the way to look at it. We deviated a little bit from that in Q1 due to some additional excess and obsolete expense and a bit of product mix shift, but we expect gross margin to bounce back in Q3 through Q4 and to trend toward the low 60s for the year.

Your next question for today is from Naz Rahman with Maxim Group.

Congrats on the progress. I only have two questions. The first one is, I understand you only had HEMOBLAST for a little while in your bag. Could you give some comments or color on what kind of feedback you received from physicians or institutions regarding the product? And my second question is on the Trivium Shaped. Could you talk about the opportunity there and how utilization may be a little different from your prior Trivium product and what the growth potential there is?

Starting off with HEMOBLAST—HEMOBLAST is a terrific product. When you compare it to other hemostatic agents on the market, it has broad utility across the hemostatic spectrum because certain products are very good in certain cases, whereas HEMOBLAST has broader application. It performs very well and, frankly, sells itself because of its performance characteristics. It is a small and relatively unknown company compared to competitors like J&J, Baxter and Bard, so the idea that we can put it into the hands of our 500-plus independent agents in the spine side and in other orthopedic cases gives it significant runway. Their reach into other parts of the hospital with these 21 salespeople opens areas that we haven't touched and where our other products can play. Regarding Trivium Shaped, if you think about our base DBM offering, the main product lines include OsteoSelect, OsteoSponge and 3Demin. OsteoSelect and 3Demin have been two of the primary workhorses for our business. What we've done with Trivium, including Trivium Shaped, is provide a higher-end or more advanced solution compared to OsteoSelect, which is essentially a 510(k) putty. Trivium upgrades that offering with improved performance characteristics. Trivium Shaped addresses use cases similar to our 3Demin product line by offering ready-to-use, pre-shaped configurations that enhance consistency and handling in the operating room. It's a more advanced product and one that we're very excited about because it builds on the strengths of our platform and the handling characteristics that have made our product line successful.

We have reached the end of the question-and-answer session and conference call. You may disconnect your lines at this time. Thank you for your participation.