Alphatec Holdings (ATEC) AI Stock Analysis

• Market Cap: $2.20B
• Dividend Yield: N/A
• Average Volume (3M): 3.08M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.77
• Revenue Growth: 27.11%
• EPS Growth: 17.66%
• Country: US
• Employees: 867
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 0.03
• Shares Outstanding: 148,550,190
• 10 Day Avg. Volume: 2,813,986
• 30 Day Avg. Volume: 3,080,909
• PEG Ratio: 0.30
• Price to Book (P/B): 139.10
• Price to Sales (P/S): 2.15
• P/FCF Ratio: -9.52
• Enterprise Value/Market Cap: 1.20
• Enterprise Value/Revenue: 3.62
• Enterprise Value/Gross Profit: 5.24
• Enterprise Value/Ebitda: -50.53
• 1Y Price Target: $24.33
• Price Target Upside: 64.06% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: $14.50 ▼(-2.23% Downside)

The score is held down primarily by weak financial fundamentals—ongoing losses, negative free cash flow, and very high leverage—alongside soft technical momentum (negative MACD and price below key short-term averages). This is partly offset by a strong and improving operating narrative from the earnings call, including rapid revenue growth, record adjusted EBITDA, positive quarterly free cash flow, and raised guidance.

Positive Factors

Revenue Growth & Adoption

Sustained 30% YoY revenue growth and strong surgical revenue expansion reflect durable demand and expanding clinical adoption. Consistent top-line momentum and rising surgeon users underpin scalable procedure volume, supporting multi-year revenue runway and market share gains.

Improving Cash Generation

Turning operating cash flow positive and posting quarterly free cash flow signals improving cash conversion and operational discipline. This reduces reliance on external financing, enhances funding for R&D and commercialization, and materially strengthens near-term liquidity flexibility.

High Gross Margin & Product Pipeline

A ~69% gross margin provides structural insulation for operating leverage as sales scale. Coupled with an expanding pipeline (proceduralization, Valence system and other spine products), the margin profile supports durable profitability improvement as new offerings gain adoption.

Negative Factors

Very High Leverage

Extremely high leverage and negative ROE constrain financial flexibility and increase refinancing and interest-rate risk. Heavy debt limits ability to invest in growth initiatives without dilutive or costly capital, making the company more vulnerable during slower demand periods.

Historic Free Cash Flow Volatility

Despite recent quarter-level improvement, historically negative and highly volatile free cash flow impairs capacity to self-fund R&D, commercialization, and working capital needs. Persistent FCF weakness raises execution risk on multi-year growth plans.

Tariff and Market Disruption Risk

Ongoing tariff-driven cost pressure and multi-year market disruption increase margin uncertainty and could slow adoption or raise prices. These structural headwinds can compress realized margins and require sustained management focus to preserve profitability as volumes scale.

Alphatec Holdings Business Overview & Revenue Model

Company Description

Alphatec Holdings, Inc., a medical technology company, designs, develops, and advances technologies for the surgical treatment of spinal disorders. The company offers SafeOp Neural InformatiX System, an Alpha InformatiX product platform designed to reduce the risk of intraoperative nerve injury; Sigma transforaminal lumbar interbody fusion pedicle-based access system that provides direct visualization of anatomical landmarks; Sigma PTP Access and Patient Positioning System; squadron lateral retractor designed to maximize patient outcomes; Invictus Spinal Fixation System, a thoracolumbar fixation system to treat a range of pathologies; and Invictus MIS SingleStep System that provides minimally invasive pedicle screw placement. It also provides Invictus Modular Fixation Systems designed to increase adaptability with the power of screw modularity; OsseoScrew system to restore the integrity of the spinal column; Arsenal spinal fixation system, a comprehensive thoracolumbar fixation platform to fix a range of degenerative to deformity pathologies and surgical procedures; Aspida Anterior Lumbar Plating System, a fixation system for anterior lumbar interbody fusion; AMP Anti-Migration Plate; OCT Spinal Fixation System; trestle luxe anterior cervical plate system; and Insignia Anterior Cervical Plate System. In addition, the company offers IdentiTi Porous Ti, Transcend Lateral, and Battalion Posterior Interbody Implants; and biologics consisting of Cervical Structural Allograft Spacers, 3D ProFuse Demineralized Bone Scaffold, Neocore Osteoconductive Matrix, Alphagraft Demineralized and Cellular Bone Matrix, and Amnioshield Amniotic Tissue Barrier, as well as EOS imaging products. It sells its products through a network of independent distributors and direct sales representatives in the United States. The company was founded in 1990 and is headquartered in Carlsbad, California.

How the Company Makes Money

Alphatec Holdings generates revenue primarily through the sale of its spinal surgery products, which include surgical implants, instruments, and biologics. The company operates on a model that combines direct sales to hospitals and healthcare providers with partnerships with distributors and surgical centers. Key revenue streams include sales of spinal fusion devices, motion preservation products, and surgical instruments used in various spinal procedures. Additionally, ATEC may benefit from strategic partnerships with healthcare professionals and institutions that facilitate the adoption of its products in clinical settings, leading to increased sales and market penetration.

Alphatec Holdings Financial Statement Overview

Summary

Revenue growth and a strong gross margin are positives, and operating cash flow turning positive helps. However, profitability remains weak (negative net income/EBIT), free cash flow is still negative with very weak growth, and the balance sheet is highly leveraged with a very high debt-to-equity ratio and negative ROE.

Income Statement

Alphatec Holdings shows a positive revenue growth trend with a 6.71% increase in TTM, indicating potential market expansion. However, the company struggles with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin is strong at 69.37% in the latest annual report, but the net profit margin remains negative, reflecting ongoing challenges in cost management and operational efficiency.

Balance Sheet

The balance sheet reveals significant leverage with a high debt-to-equity ratio of 51.38 in TTM, posing financial risk. Return on equity is negative, indicating that the company is not generating profit from shareholders' investments. The equity ratio is low, suggesting limited financial stability and a heavy reliance on debt financing.

Cash Flow

Cash flow analysis shows improvement in operating cash flow, turning positive in TTM, which is a positive sign. However, free cash flow remains negative, and the free cash flow growth rate is concerning at -99.95%. The operating cash flow to net income ratio indicates some ability to cover net losses, but overall cash flow management needs improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	728.02M	611.56M	482.26M	350.87M	243.21M	144.86M
Gross Profit	503.99M	424.26M	310.20M	233.06M	157.76M	102.50M
EBITDA	-52.22M	-53.87M	-110.59M	-102.58M	-106.88M	-54.84M
Net Income	-154.96M	-162.12M	-186.64M	-151.29M	-143.03M	-78.99M
Balance Sheet
Total Assets	787.25M	775.71M	805.21M	520.97M	572.05M	265.22M
Cash, Cash Equivalents and Short-Term Investments	155.74M	138.84M	220.97M	84.70M	187.25M	107.77M
Total Debt	591.15M	609.94M	541.68M	395.86M	355.43M	43.16M
Total Liabilities	775.74M	766.28M	703.49M	555.63M	492.63M	107.74M
Stockholders Equity	11.51M	9.43M	101.72M	-34.67M	79.42M	157.48M
Cash Flow
Free Cash Flow	-14.00K	-137.79M	-165.46M	-133.41M	-141.86M	-70.30M
Operating Cash Flow	35.07M	-44.65M	-78.48M	-75.13M	-73.32M	-46.41M
Investing Cash Flow	-41.42M	-93.14M	-141.97M	-58.28M	-157.76M	-23.86M
Financing Cash Flow	80.45M	56.21M	356.92M	31.23M	311.97M	130.83M

Alphatec Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.83
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATEC, the sentiment is Negative. The current price of 14.83 is below the 20-day moving average (MA) of 17.89, below the 50-day MA of 19.59, and below the 200-day MA of 15.23, indicating a bearish trend. The MACD of -1.43 indicates Positive momentum. The RSI at 28.21 is Positive, neither overbought nor oversold. The STOCH value of 13.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ATEC.

Alphatec Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UFPT	75 Outperform	$1.94B	29.11	18.31%	―	29.47%	23.24%
AHCO	74 Outperform	$1.36B	18.44	4.77%	―	-0.23%	―
LIVN	63 Neutral	$3.59B	-16.38	-17.63%	―	8.97%	-1024.86%
ESTA	61 Neutral	$1.98B	-23.95	-338.19%	―	24.76%	-10.41%
AORT	58 Neutral	$1.93B	-168.47	-2.45%	―	9.81%	-1067.00%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ATEC	47 Neutral	$2.20B	-14.16	-540.40%	―	27.11%	17.66%

Alphatec Holdings Corporate Events

Alphatec Holdings Mourns Loss of Board Member

On November 7, 2025, Alphatec Holdings announced the passing of Jeffrey P. Rydin, a respected member of its Board of Directors, who died on November 3, 2025, after a lengthy illness. Rydin, who joined ATEC in 2016, played a pivotal role in transforming the company’s sales channel and was instrumental in its turnaround efforts. His contributions were highly valued by the company, and his passing is deeply mourned by the ATEC community, highlighting his significant impact on the company’s culture and momentum.

The most recent analyst rating on (ATEC) stock is a Buy with a $23.00 price target. To see the full list of analyst forecasts on Alphatec Holdings stock, see the ATEC Stock Forecast page.