Alphatec Holdings (ATEC) AI Stock Analysis

• Market Cap: $2.38B
• Dividend Yield: N/A
• Average Volume (3M): 2.61M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.91
• Revenue Growth: 26.27%
• EPS Growth: 15.58%
• Country: US
• Employees: 867
• Sector: Healthcare
• Sector Strength: 47
• Industry: Medical - Devices
• EPS (TTM): 0.02
• Shares Outstanding: 147,983,780
• 10 Day Avg. Volume: 1,878,440
• 30 Day Avg. Volume: 2,612,344
• PEG Ratio: 0.30
• Price to Book (P/B): -92.61
• Price to Sales (P/S): 2.15
• P/FCF Ratio: -9.52
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 3.10
• Enterprise Value/Gross Profit: 4.51
• Enterprise Value/Ebitda: -31.08
• 1Y Price Target: $18.27
• Price Target Upside: 12.92% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

• Rating: 58 Neutral
• Price Target: $15.50 ▼(-4.20% Downside)

Alphatec Holdings' overall stock score is driven by strong earnings call results and positive technical indicators, offset by significant financial performance challenges and a weak valuation. The company's robust revenue growth and market positioning are promising, but financial risks and liquidity concerns remain critical factors.

Positive Factors

Earnings

Alphatec reported total revenues of $186M for the quarter, higher than consensus estimate of $179M.

Financial Performance

The company achieved its consecutive quarter of positive adjusted EBITDA of $23M, an increase of $18M YoY.

Market Position

ATEC's work to drive clinical differentiation with its enabling technologies and procedural solutions appears to be paying off, as ATEC notes it is an 8% market share player, the largest pure-play spine company.

Negative Factors

International Expansion

International revenues are not expected to make a material impact to the topline in 2025.

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 through the sale of its spinal surgical products, which include implants, surgical instruments, and related technologies. The company's primary revenue streams come from direct sales to hospitals, surgical centers, and healthcare providers. Additionally, ATEC engages in strategic partnerships and collaborations with healthcare institutions and surgical experts, which not only enhance its product offerings but also expand its market reach. The company's focus on innovation, including the development of advanced technologies and minimally invasive surgical solutions, contributes to its competitive advantage and revenue growth.

Alphatec Holdings Financial Statement Overview

Summary

Alphatec Holdings shows strong revenue growth but struggles with profitability and high leverage. Consistently negative net income and high debt-to-equity ratio are concerning, though strategic financing supports liquidity.

Income Statement

Alphatec Holdings has shown significant revenue growth over the years, with TTM revenue at $589 million compared to $144 million in 2020. However, the company is struggling with profitability as indicated by consistently negative net income and EBIT margins. The gross profit margin remains healthy, but low EBIT and EBITDA margins indicate high operating expenses.

Balance Sheet

The company has a high debt-to-equity ratio due to significant leverage, with total debt at $581 million against equity of $55 million in the latest TTM. Although assets have been growing, equity remains low, suggesting potential solvency concerns. Positive cash and short-term investments provide some liquidity cushion.

Cash Flow

Alphatec Holdings has consistently negative free cash flow, indicating challenges in generating cash from operations after capital expenditures. The operating cash flow to net income ratio is negative, reflecting operational inefficiencies. However, financing activities have provided cash inflows, supporting liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	682.24M	611.56M	482.26M	350.87M	243.21M	144.86M
Gross Profit	469.41M	424.26M	310.20M	233.06M	157.76M	102.50M
EBITDA	-68.13M	-53.87M	-110.59M	-102.58M	-106.88M	-54.84M
Net Income	-166.00M	-162.12M	-186.64M	-152.15M	-144.33M	-78.99M
Balance Sheet
Total Assets	790.29M	775.71M	805.21M	513.38M	572.05M	261.22M
Cash, Cash Equivalents and Short-Term Investments	157.06M	138.84M	220.97M	84.70M	187.25M	107.77M
Total Debt	586.63M	609.94M	541.68M	395.86M	4.55M	5.08M
Total Liabilities	742.92M	789.88M	703.49M	550.09M	492.63M	131.34M
Stockholders Equity	47.37M	-14.17M	101.72M	-36.71M	79.42M	129.88M
Cash Flow
Free Cash Flow	-28.19M	-137.79M	-165.46M	-133.42M	-141.98M	-70.30M
Operating Cash Flow	15.69M	-44.65M	-78.48M	-75.14M	-73.43M	-46.41M
Investing Cash Flow	-47.41M	-93.14M	-141.97M	-58.28M	-157.76M	-23.86M
Financing Cash Flow	88.46M	56.21M	356.92M	31.23M	311.97M	130.83M

Alphatec Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATEC, the sentiment is Positive. The current price of 16.18 is above the 20-day moving average (MA) of 15.27, above the 50-day MA of 12.67, and above the 200-day MA of 11.21, indicating a bullish trend. The MACD of 1.04 indicates Positive momentum. The RSI at 73.97 is Negative, neither overbought nor oversold. The STOCH value of 57.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ATEC.

Alphatec Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UFPT	73 Outperform	$1.68B	24.87	19.29%	―	40.98%	34.80%
AHCO	67 Neutral	$1.25B	17.22	4.76%	―	-0.61%	―
LIVN	61 Neutral	$3.09B	30.62	-17.87%	―	8.57%	-1154.64%
ATEC	58 Neutral	$2.38B	―	-376.89%	―	26.27%	15.58%
AORT	55 Neutral	$2.08B	―	-5.01%	―	7.44%	-109.83%
Sector *	51 Neutral	$7.83B	-0.18	-40.10%	2.29%	21.46%	-2.03%
ESTA	48 Neutral	$1.21B	―	-261.18%	―	17.22%	1.65%

Alphatec Holdings Corporate Events

Alphatec Holdings Approves Key Proposals at Annual Meeting

On June 11, 2025, Alphatec Holdings, Inc. held its annual meeting of stockholders where several key proposals were approved. The stockholders agreed to amend the company’s Certificate of Incorporation to increase the number of authorized shares, elected members to the Board of Directors, ratified Deloitte & Touche LLP as the independent accounting firm, and approved amendments to the Equity Incentive Plan and executive compensation. These decisions are poised to impact the company’s operational flexibility and governance structure.