Xtant Medical Holdings, Inc. — financial distress indicators
Financial-health summary
Xtant Medical Holdings, Inc.'s reported numbers place it in the 'Watch' financial-health band (distress score 37/100). The main indicators are thin interest coverage, trading below $1 and elevated market-implied default probability. Independently, the Ohlson accounting model puts its 1-year failure probability at 11% and the market-implied (Merton) default probability is 5.6%. In its favour: operating cash flow is positive over the latest 12 months.
Stress by dimension
Share price — last 12 months
Indicators behind the score
Each red flag shows the evidence from the company’s own filings and the financial or legal principle behind it. Points add to the 0–100 score.
Interest coverage is only 1.02× (lenders typically require ≥ 2–3×).
Low coverage leaves little buffer against a profit dip before a debt-service or covenant breach.
Last price $0.32.
Below the $1 minimum-bid listing standard (Nasdaq Rule 5550(a)(2) / NYSE 802.01C); sustained breach leads to delisting and loss of capital-market access.
Merton distance-to-default 1.59 σ → PD 5.6%.
Investment-grade issuers typically have 1-year PD well below 1%.
Price is -65% from its 52-week high.
For financial firms a share-price run often precedes a deposit or funding run (confidence channel).
Operating cash flow negative in 2 of the last 3 years. The company is profitable, so this likely reflects working-capital or loan-book growth.
A business that cannot fund itself from operations depends on external capital to survive.
Revenue vs net income
Cash generation
Debt vs cash vs equity
✅ Mitigating factors
- Operating cash flow is positive over the latest 12 months.
- Strong current ratio (3.34).
- Revenue still growing (+14% YoY).
📰 Recent news scan
- Xtant Medical Holdings Inc (XTNT) (Q2 2026) Earnings Call Highlights: Strategic Expansion Amid ...Yahoo Finance · 2026-08-11
- Xtant Medical to Participate in the Canaccord Genuity 46th Annual Growth ConferenceYahoo Finance · 2026-08-04
- Xtant Medical Holdings, Inc. Q1 2026 Earnings Call SummaryYahoo Finance · 2026-05-14
- Xtant Medical Holdings Inc (XTNT) Q1 2026 Earnings Call Highlights: Navigating Challenges and ...Yahoo Finance · 2026-05-13
- Xtant Medical to Announce First Quarter 2026 Financial Results on May 13, 2026Yahoo Finance · 2026-05-07
- Xtant Medical and Dilon Technologies Announce Exclusive U.S. Distribution Agreement for Dilon's HEMOBLAST® Bellows ProductYahoo Finance · 2026-04-13
⚖️ U.S. legal pathway — Title 11, U.S. Code
Which chapter would apply?
- Chapter 11 — reorganisation. Management usually stays in control as debtor-in-possession; the automatic stay (§362) halts collection; a plan must meet the best-interests test (§1129(a)(7)) and the absolute priority rule (§1129(b)) — creditors are paid before shareholders, who are frequently wiped out.
- Chapter 7 — liquidation. A trustee sells assets and distributes proceeds by statutory priority (§§507, 726).
- Subchapter V (“Chapter 5”) is a fast track for small-business debtors under a statutory debt cap, but SEC-reporting companies are excluded (§101(51D)) — so it rarely applies to listed companies.
What typically triggers a filing
- Payment default or covenant breach lenders will not waive; a debt maturity that cannot be refinanced.
- Auditor going-concern doubt (ASC 205-40 / PCAOB AS 2415) — often itself a default trigger in loan agreements.
- Creditors can force a case with an involuntary petition (§303) if debts are not paid as they come due.
- Delisting after sustained sub-$1 prices or equity deficits cuts off equity funding.
Transactions shortly before filing can be clawed back (preferences — 90 days, §547; fraudulent transfers — 2 years, §548).
Frequently asked questions
What do Xtant Medical Holdings, Inc.'s financial-health indicators show?
As of 2026-10-08, Xtant Medical Holdings, Inc.'s public financial data places it in the 'Watch' band with a distress score of 37/100, driven by thin interest coverage, trading below $1 and elevated market-implied default probability. This is a statistical screen of reported numbers — it does not mean the company is insolvent, has defaulted or will enter insolvency proceedings.
What is Xtant Medical Holdings, Inc.'s financial distress score?
37/100 ('Watch'). Ohlson O-score -2.11 (model 1-year failure probability 11%). Merton distance-to-default 1.59 σ (model default probability 5.6%).
What works in Xtant Medical Holdings, Inc.'s favour?
Operating cash flow is positive over the latest 12 months. Strong current ratio (3.34). Revenue still growing (+14% YoY).
How are shareholders treated if a company enters insolvency?
In a Chapter 11 reorganisation the absolute priority rule pays secured lenders, then unsecured creditors, before shareholders — so existing shares are usually cancelled or heavily diluted. In Chapter 7 the company is liquidated and shareholders rarely recover anything.
Other Healthcare & MedTech companies with distress indicators
- Adagio Medical Holdings, Inc. (ADGM)Very weak 100/100
- DataMEDS AI, Inc. (MEDS)Very weak 100/100
- OneMedNet Corporation (ONMD)Very weak 100/100
- Profusa, Inc. (PFSA)Very weak 100/100
- Picard Medical, Inc. (PMI)Very weak 100/100
- Synergy CHC Corp. (SNYR)Very weak 100/100
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Methodology
Score = capped sum of rule-based red flags across seven dimensions (liquidity, solvency, profitability, cash flow, sales trend, market signal, news). Ohlson O-score (1980) gives an accounting-based 1-year failure probability; Merton distance-to-default (Bharath & Shumway 2008) gives a market-implied probability. Financial institutions use a capital-based rule set. Recalculated every trading day from the latest filings, prices and news.