Alphatec (ATEC)
NASDAQ:ATEC
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Alphatec Holdings
(NASDAQ:ATEC)
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Rating:53Neutral
Price Target:
$8.50
▼(-23.42% Downside)
Action:Reiterated
Date:06/12/26
The score is driven primarily by improving operating trends (strong revenue growth, high gross margin, and a shift to positive operating/free cash flow) but capped by meaningful balance-sheet leverage and ongoing GAAP losses. Technicals remain a headwind with a negative MACD and price below key longer-term moving averages, while valuation is constrained by a negative P/E and no dividend support. The latest earnings call was constructive, with reiterated growth and profitability/FCF guidance, though EOS execution and mix-driven revenue-per-case pressure remain notable risks.
Positive Factors
Surgeon & Procedure Adoption
Sustained surgeon adoption and rising procedure volumes indicate expanding clinical footprint and stickiness. A growing installed user base supports recurring implant and instrument sales, increases lifetime surgeon value, and creates durable revenue growth as new users broaden case volume and implant pull‑through over time.
Negative Factors
High Leverage
Very high absolute debt and a thin equity base leave the company vulnerable to operational setbacks. Leverage constrains strategic optionality, increases interest coverage risk, and amplifies downside in slower growth periods, meaning continued cash generation is required to avoid balance‑sheet stress.
Read all positive and negative factors
Positive Factors
Negative Factors
Surgeon & Procedure Adoption
Sustained surgeon adoption and rising procedure volumes indicate expanding clinical footprint and stickiness. A growing installed user base supports recurring implant and instrument sales, increases lifetime surgeon value, and creates durable revenue growth as new users broaden case volume and implant pull‑through over time.
Read all positive factors
Alphatec Holdings (ATEC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.25B
Dividend YieldN/A
Average Volume (3M)4.04M
Price to Earnings (P/E)―
Beta (1Y)0.66
Revenue Growth22.55%
EPS Growth27.87%
CountryUS
Employees867
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)-0.83
Shares Outstanding153,789,300
10 Day Avg. Volume2,404,115
30 Day Avg. Volume4,040,743
Financial Highlights & Ratios
PEG Ratio1.46
Price to Book (P/B)87.63
Price to Sales (P/S)4.13
P/FCF Ratio1.14K
Enterprise Value/Market Cap1.32
Enterprise Value/Revenue2.10
Enterprise Value/Gross Profit3.22
Enterprise Value/Ebitda-1.22K
Forecast
1Y Price Target
$18.50Price Target Upside66.67% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
EPS Forecast (FY)0.31
Revenue Forecast (FY)$883.68M
Alphatec Holdings Business Overview & Revenue Model
Company Description
Alphatec Holdings, Inc. is a medical technology firm dedicated to engineering and advancing solutions for the surgical management of spinal conditions. Its product array includes the Alpha InformatiX platform, notably the SafeOp Neural InformatiX ...
How the Company Makes Money
ATEC primarily makes money by selling spine-surgery products and related procedural solutions to hospitals and surgical centers, largely through direct sales and distributor channels. Key revenue streams include: (1) spinal fixation systems (e.g.,...
Alphatec Holdings Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call presented a largely constructive operational and financial picture: healthy top-line growth (14% total, 17% surgical), strong surgeon and case adoption (23% and 21%), margin expansion, and substantial adjusted EBITDA improvement (97% YoY). Key near-term execution challenges center on EOS system deliveries and installation timing, mix-driven revenue-per-case pressure, and temporary working-capital investments (inventory/instruments). Management updated EOS near-term expectations but maintained surgical and adjusted EBITDA guidance, emphasized corrective actions (sales/marketing/support hires), and closed a favorable refinancing to improve the capital structure. On balance, the positive scale, profitability, and strategic momentum outweigh the execution-related headwinds noted for the quarter.Positive Updates
Top-line Revenue Growth
Total Q1 revenue of $192M, up 14% year over year; surgical revenue $178M, up 17% year over year.
Negative Updates
EOS Sales and Installation Execution Issues
EOS revenue was $14M in Q1, down $3M year over year; company cited lower-than-expected system deliveries and installation timing/construction-related buildout delays that reduced revenue recognition and caused quarter-to-quarter lumpiness.
Read all updates
Q1-2026 Updates
Positive
Negative
Top-line Revenue Growth
Total Q1 revenue of $192M, up 14% year over year; surgical revenue $178M, up 17% year over year.
Read all positive updates
Company Guidance
Management reiterated full‑year 2026 guidance for total revenue of about $882M (≈15% YoY) with surgical revenue ~ $805M (≈17% YoY, +$118M) and EOS revenue ~ $77M; Q1 actuals were $192M (+14% YoY) with surgical $178M (+17%), cases +21%, new surgeons +23%, revenue per case down ~3% YoY, EOS Q1 $14M (‑$3M YoY) while global EOS units +7% YoY, U.S. EOS Edge +39% and EOS Insight accounts >2x; margins and cash metrics showed gross margin 71.6% (+120 bps), adj. EBITDA Q1 $21M (11% of revenue, +97% YoY) with 45% drop‑through on incremental revenue and FY adj. EBITDA guidance of ~$134M (15% margin, ~35% drop‑through), free cash flow at least $20M (Q2 ~0), ending cash ≈$140M after ~$11M cash used in Q1 and ~$33M invested in inventory/instruments, plus a new credit facility at SOFR+275 bps maturing May 2031 expected to reduce interest >$6M/year and save up to ~$35M over its life.Alphatec Holdings Financial Statement Overview
Summary
Income Statement
48
Neutral
Balance Sheet
30
Negative
Cash Flow
57
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 787.08M | 764.15M | 611.56M | 482.26M | 350.87M | 243.21M |
| Gross Profit | 514.13M | 531.89M | 424.26M | 310.20M | 233.06M | 157.76M |
| EBITDA | -1.35M | -39.70M | -53.87M | -110.59M | -102.58M | -106.88M |
| Net Income | -125.36M | -143.36M | -162.12M | -186.64M | -151.29M | -143.03M |
Balance Sheet | ||||||
| Total Assets | 799.48M | 791.21M | 775.71M | 805.21M | 520.97M | 572.05M |
| Cash, Cash Equivalents and Short-Term Investments | 139.91M | 160.81M | 138.84M | 220.97M | 84.70M | 187.25M |
| Total Debt | 603.06M | 619.95M | 609.94M | 541.68M | 395.86M | 355.43M |
| Total Liabilities | 781.22M | 755.18M | 766.28M | 703.49M | 555.63M | 492.63M |
| Stockholders Equity | 18.26M | 36.03M | 9.43M | 101.72M | -34.67M | 79.42M |
Cash Flow | ||||||
| Free Cash Flow | 6.95M | 2.78M | -137.79M | -165.46M | -133.41M | -141.86M |
| Operating Cash Flow | 51.56M | 45.23M | -44.65M | -78.48M | -75.13M | -73.32M |
| Investing Cash Flow | -61.69M | -53.41M | -93.14M | -141.97M | -58.28M | -157.76M |
| Financing Cash Flow | -2.52M | 30.02M | 56.21M | 356.92M | 31.23M | 311.97M |
Alphatec Holdings Technical Analysis
Neutral
11.10
Price Trends
9.15
Negative
11.24
Negative
14.57
Negative
Market Momentum
-0.25
Negative
49.22
Neutral
81.61
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATEC, the sentiment is Neutral. The current price of 11.1 is above the 20-day moving average (MA) of 7.98, above the 50-day MA of 9.15, and below the 200-day MA of 14.57, indicating a neutral trend. The MACD of -0.25 indicates Negative momentum. The RSI at 49.22 is Neutral, neither overbought nor oversold. The STOCH value of 81.61 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ATEC.
Alphatec Holdings Risk Analysis
Alphatec Holdings disclosed 39 risk factors in its most recent earnings report. Alphatec Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Alphatec Holdings Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $1.85B | 26.43 | 16.61% | ― | 11.19% | 7.61% | |
71 Outperform | $4.39B | 40.53 | 9.13% | ― | 12.40% | ― | |
57 Neutral | $2.50B | -55.63 | -225.86% | ― | 34.86% | 52.13% | |
54 Neutral | $999.99M | 82.66 | 2.66% | ― | 17.59% | ― | |
54 Neutral | $1.37B | -17.32 | -5.11% | ― | 1.24% | -202.42% | |
53 Neutral | $1.25B | -10.18 | -443.09% | ― | 22.55% | 27.87% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
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Alphatec Holdings Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Alphatec Shareholders Approve 2026 Equity and ESPP Plans
Positive
Jun 11, 2026
On June 10, 2026, Alphatec Holdings, Inc. shareholders approved the company’s 2026 Equity Incentive Plan and 2026 Employee Stock Purchase Plan at the 2026 annual meeting, making both plans effective upon approval and reinforcing equity-based...
Business Operations and StrategyPrivate Placements and Financing
Alphatec Establishes New Syndicated Credit Facility for Growth
Positive
May 5, 2026
On May 1, 2026, Alphatec Holdings entered into a new senior secured credit agreement comprising a $175 million Term Loan A and a $125 million revolving credit facility led by JPMorgan Chase and TD Securities, its first syndicated bank facility. Th...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.