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Alphatec Holdings (ATEC)
NASDAQ:ATEC
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Alphatec Holdings
(NASDAQ:ATEC)
56Neutral
Positive Factors
Financial Performance
ATEC outperformed Street revenue targets while also raising full-year guidance.
Market Position
ATEC's performance implies that it took share in the US spine market as the company comfortably outpaced peers in the quarter.
Negative Factors
Net Loss
The company reported a net loss of $1.13 per share, compared to consensus estimated net loss of $0.44 per share.
Alphatec Holdings (ATEC) vs. S&P 500 (SPY)
Market Cap
$1.78B
Dividend YieldN/A
Average Volume (3M)2.18M
Price to Earnings (P/E)―
Beta (1Y)1.11
Revenue Growth25.53%
EPS Growth23.22%
CountryUS
Employees867
SectorHealthcare
Sector Strength54
IndustryMedical - Devices
Share Statistics
EPS (TTM)-0.11
Shares Outstanding146,172,700
10 Day Avg. Volume2,119,454
30 Day Avg. Volume2,179,071
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.09
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit4.57
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$17.86Price Target Upside40.19% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
Alphatec Holdings Business Overview & Revenue Model
Company DescriptionAlphatec 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 MoneyAlphatec Holdings generates revenue through the sale of its spinal fusion products and solutions to hospitals, surgeons, and healthcare facilities. The company's key revenue streams include direct sales of implants and surgical instruments, as well as biologic products designed to support the spinal fusion process. Additionally, Alphatec leverages strategic partnerships and collaborations within the healthcare sector to enhance its distribution network and expand its market reach. Revenue is also driven by offering value-added services and training to healthcare professionals to ensure effective utilization of its products.
Alphatec Holdings Financial Statement Overview
Summary
Alphatec Holdings has demonstrated strong revenue growth in the medical devices industry, reaching $589 million TTM from $144 million in 2020. However, challenges exist with profitability, evidenced by negative net income and EBIT margins. A high debt-to-equity ratio and consistently negative free cash flow underscore financial risks, although 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.55
Neutral
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.40
Negative
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.45
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 611.56M | 482.26M | 350.87M | 243.21M | 144.86M | Gross Profit |
| 424.26M | 310.20M | 233.06M | 157.76M | 102.50M | EBIT |
| -136.17M | -173.40M | -121.10M | -108.87M | -46.09M | EBITDA |
| -53.87M | -110.59M | -102.58M | -106.88M | -54.84M | Net Income Common Stockholders |
| -162.12M | -186.64M | -152.15M | -144.33M | -78.99M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 138.84M | 220.97M | 84.70M | 187.25M | 107.77M | Total Assets |
| 775.71M | 805.21M | 513.38M | 572.05M | 261.22M | Total Debt |
| 609.94M | 541.68M | 395.86M | 4.55M | 5.08M | Net Debt |
| 471.10M | 320.71M | 311.17M | -182.69M | -102.68M | Total Liabilities |
| 789.88M | 703.49M | 550.09M | 492.63M | 131.34M | Stockholders Equity |
| -14.17M | 101.72M | -36.71M | 79.42M | 129.88M |
| Cash Flow | Free Cash Flow | |||
| -137.79M | -165.46M | -133.42M | -141.98M | -70.30M | Operating Cash Flow |
| -44.65M | -78.48M | -75.14M | -73.43M | -46.41M | Investing Cash Flow |
| -93.14M | -141.97M | -58.28M | -157.76M | -23.86M | Financing Cash Flow |
| 56.21M | 356.92M | 31.23M | 311.97M | 130.83M |
Alphatec Holdings Technical Analysis
Positive
12.74
Price Trends
10.62
Positive
10.56
Positive
8.88
Positive
Market Momentum
0.54
Negative
72.04
Negative
95.98
Negative
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 12.74 is above the 20-day moving average (MA) of 11.07, above the 50-day MA of 10.62, and above the 200-day MA of 8.88, indicating a bullish trend. The MACD of 0.54 indicates Negative momentum. The RSI at 72.04 is Negative, neither overbought nor oversold. The STOCH value of 95.98 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ATEC.
Alphatec Holdings Risk Analysis
Alphatec Holdings disclosed 38 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
Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $1.73B | 14.93 | 12.96% | 1.43% | 4.20% | 43.62% | |
70 Neutral | $699.60M | ― | -15.96% | ― | 22.60% | 41.26% | |
57 Neutral | $531.39M | ― | -11.33% | ― | 31.28% | -81.86% | |
56 Neutral | $1.78B | ― | -291.71% | ― | 25.53% | 23.22% | |
52 Neutral | $5.21B | 3.55 | -41.91% | 2.83% | 15.12% | 0.42% | |
52 Neutral | $470.61M | ― | -27.82% | ― | 5.85% | -8.92% | |
50 Neutral | $1.02B | ― | -3.04% | ― | -13.79% | 82.82% |
* Healthcare Sector Average
Performance Comparison
ATEC
Alphatec Holdings
12.74
1.22
10.59%
CNMD
Conmed
57.75
-12.58
-17.89%
OPK
Opko Health
1.26
-0.02
-1.56%
OFIX
Orthofix
12.31
-2.33
-15.92%
KIDS
OrthoPediatrics
23.08
-8.01
-25.76%
SIBN
SI-Bone
18.33
3.00
19.57%
Alphatec Holdings Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q1-2025)
| % Change Since: 15.19%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
ATEC reported a strong start to 2025 with significant revenue growth, increased surgeon adoption, and improved cash flow management. However, the company faced challenges with gross margin declines and tariff-related costs. The strategic expansion in international markets and advancements in their procedural solutions provide a positive outlook.Q1-2025 Updates
Positive Updates
Strong Revenue Growth
ATEC reported a 22% revenue growth to $169 million in Q1 2025, with surgical revenue growing by 24% year-over-year.
Surgeon Adoption Increase
The number of surgeons utilizing ATEC procedures increased by 18%, contributing to a 17% procedural volume growth.
Adjusted EBITDA Improvement
Adjusted EBITDA was $11 million, representing an 800 basis point improvement compared to the prior year and marking the second best quarter ever for ATEC.
EOS Order Growth
Record EOS order volume fueled a 28% year-over-year increase in the order book, indicating strong demand for ATEC's informatics solutions.
Cash Flow Management
Free cash use improved by $55 million over Q1 2024, and ATEC ended the quarter with $153 million in cash on hand.
International Expansion Success
ATEC is making progress in international markets, including Australia, New Zealand, and Japan, with notable adoption of their lateral procedures.
Negative Updates
Gross Margin Decline
Non-GAAP gross margin dropped by 50 basis points compared to the previous year, driven by product mix changes.
Tariff Exposure
ATEC expects low single-digit millions of dollars in costs related to tariffs in the second half of 2025, affecting EOS systems imported from France.
Working Capital Headwinds
Modest and transient working capital headwinds affected cash flow performance, though metrics are expected to improve over the year.
Company Guidance
In the call, ATEC's leadership provided guidance for the fiscal year 2025, highlighting strong financial performance and optimistic projections. The company reported a 22% year-over-year increase in total revenue for the first quarter, reaching $169 million, with surgical revenue growing by 24% to $152 million. ATEC's adjusted EBITDA for the quarter was $11 million, marking the second-best quarter in its history and indicating significant profitability improvements. The company also noted a positive cash flow trajectory, with cash burn in the first quarter at the low end of expectations at $15 million. Looking forward, ATEC expects full-year revenue growth of 20%, reaching approximately $734 million, and an adjusted EBITDA of $78 million, up from previous guidance of $75 million. The guidance reflects confidence in continued strong revenue growth, profitability, and cash flow, fueled by surgical volume growth and strategic investments in sales infrastructure and procedural innovations.Alphatec Holdings Corporate Events
Executive/Board Changes
Alphatec Holdings Implements Executive Salary Conversion Plan
Neutral
Apr 3, 2025
On March 31, 2025, Alphatec Holdings implemented a salary conversion plan for its executives, reducing their cash salaries by 10%, 25%, or 50% in exchange for restricted stock units (RSUs). This plan, affecting Named Executive Officers, grants RSUs based on the stock’s closing price on March 31, 2025, with vesting scheduled for August 5 and December 5, 2025. The plan does not alter existing employment agreements or incentive programs, maintaining the original base salary as the reference for 2025 incentive compensation.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.