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Alphatec (ATEC)
:ATEC
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Alphatec Holdings
(NASDAQ:ATEC)
Rating:66Neutral
Price Target:
$16.00
▲(4.30% Upside)
Positive Factors
Financial Performance
Alphatec reported total revenues of $186M for the quarter, higher than consensus estimate of $179M.
Growth Outlook
Year-over-year growth is accelerating, with a 27% increase compared to 22% in the previous quarter.
Innovation
The innovation engine is not slowing down with the Valence robotic system primed to launch in 2026.
Negative Factors
International Revenue Impact
International revenues are not expected to make a material impact to the topline in 2025.
Market Disruption
Management believes it is benefiting from the disruption in the Spine market, which points to potential volatility.
Reimbursement Challenges
ATEC has not seen any change or disruption to its SafeOp franchise despite changes in reimbursement by a large insurance provider affecting competitors.
Alphatec Holdings (ATEC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.27B
Dividend YieldN/A
Average Volume (3M)2.22M
Price to Earnings (P/E)―
Beta (1Y)0.94
Revenue Growth26.27%
EPS Growth15.58%
CountryUS
Employees867
SectorHealthcare
Sector Strength38
IndustryMedical - Devices
Share Statistics
EPS (TTM)0.02
Shares Outstanding147,983,780
10 Day Avg. Volume3,739,474
30 Day Avg. Volume2,224,616
Financial Highlights & Ratios
PEG Ratio0.30
Price to Book (P/B)-92.61
Price to Sales (P/S)2.15
P/FCF Ratio-9.52
Enterprise Value/Market Cap0.93
Enterprise Value/Revenue3.10
Enterprise Value/Gross Profit4.51
Enterprise Value/Ebitda-31.08
Forecast
1Y Price Target
$18.83Price Target Upside22.75% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
Alphatec Holdings Business Overview & Revenue Model
Company DescriptionAlphatec Holdings, Inc. (ATEC) is a medical technology company specializing in the design, development, and advancement of spinal fusion technologies. The company operates primarily in the healthcare sector, focusing on providing solutions that improve surgical outcomes for patients with spine disorders. Alphatec's core products include a range of spinal implants and surgical instruments that are used in various procedures to treat conditions such as scoliosis, degenerative disc disease, and other spinal deformities.
How the Company Makes MoneyAlphatec Holdings generates revenue primarily through the sale of its spinal fusion products to hospitals and healthcare providers. The company's key revenue streams include the direct sale of spinal implants and surgical instruments. Significant partnerships with distributors and healthcare institutions also play a crucial role in expanding its market reach and enhancing product adoption. Alphatec's growth strategy involves continuous innovation in product development, leveraging clinical data to validate the efficacy of its solutions, and expanding its sales force to increase market penetration.
Alphatec Holdings Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q2-2025)
| % Change Since: 44.99%|
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Positive
The earnings call reflects a robust performance with significant revenue growth, increased guidance, and strong cash flow generation. Despite some challenges like flat gross margins and expected tariff impacts, the company's expansion in clinical offerings and strong market position indicate a positive outlook.Q2-2025 Updates
Positive Updates
Strong Revenue and Growth Metrics
Total revenue of $186 million, a 27% increase year-over-year. Surgical revenue grew by 29%, significantly outpacing the market.
Record Adjusted EBITDA
$23 million in adjusted EBITDA, marking the fifth consecutive quarter of positive adjusted EBITDA and a 4x improvement over the same quarter last year.
Positive Cash Flow Generation
The company generated $5 million in free cash flow, reflecting improved asset management and infrastructure investments.
Surgeon User Growth
Surgeon user growth increased by 21%, reflecting strong adoption of ATEC's portfolio.
Market Position and Share
ATEC has become the third largest spine player in the U.S. market.
Expansion in Clinical Offerings
New product launches, including a cervical retractor system and segmental cervical plating system, expanding the procedural offering.
Increased Full Year Revenue Guidance
Full year revenue guidance increased by $8 million to $742 million, highlighting confidence in continued growth.
Negative Updates
Flat Gross Margin
Non-GAAP gross margin was flat sequentially and down 130 basis points compared to the previous year, driven by increased biologics attach rate and product mix.
Impact of Expected Tariffs
Expected tariffs are anticipated to impact cost of goods sold by low single-digit millions of dollars for the full year.
Limited ASC Presence
ASC mix remains sub-10%, representing an area of potential growth that has yet to be fully realized.
Company Guidance
During ATEC's second quarter 2025 earnings call, the company reported a strong performance with several key metrics highlighted. Total revenue reached $186 million, marking a 27% growth year-over-year, driven by a 29% increase in surgical revenue, which significantly outpaced market growth rates. The company achieved a record adjusted EBITDA of $23 million, representing 13% of revenue and an 880 basis point improvement from the previous year. ATEC also reported $5 million in free cash flow and maintained a cash position of $217 million. The company experienced strong surgeon user growth of 21% and an average revenue per procedure growth of 1%. Looking ahead, ATEC raised its full-year revenue guidance to $742 million and anticipates adjusted EBITDA of $83 million, reflecting confidence in sustained growth and operational efficiency.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.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 | 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
Positive
15.34
Price Trends
11.53
Positive
11.25
Positive
10.46
Positive
Market Momentum
0.63
Negative
80.23
Negative
98.73
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 15.34 is above the 20-day moving average (MA) of 11.41, above the 50-day MA of 11.53, and above the 200-day MA of 10.46, indicating a bullish trend. The MACD of 0.63 indicates Negative momentum. The RSI at 80.23 is Negative, neither overbought nor oversold. The STOCH value of 98.73 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 (51)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $1.86B | 27.91 | 19.29% | ― | 34.43% | 31.90% | |
68 Neutral | $1.37B | ― | -7.25% | ― | 5.94% | -115.82% | |
66 Neutral | $2.27B | ― | -376.89% | ― | 26.27% | 15.58% | |
66 Neutral | $1.36B | 18.42 | 4.76% | ― | -0.05% | ― | |
62 Neutral | $1.20B | ― | -186.68% | ― | 9.27% | 1.51% | |
56 Neutral | $0.00 | 30.62 | -19.69% | ― | 7.97% | -592.40% | |
51 Neutral | $7.38B | 0.52 | -67.26% | 2.36% | 16.67% | -0.20% |
* Healthcare Sector Average
Performance Comparison
ATEC
Alphatec Holdings
15.34
9.01
142.34%
AORT
Artivion
32.15
6.82
26.92%
UFPT
Ufp Technologies
240.75
-69.39
-22.37%
LIVN
LivaNova
42.61
-2.39
-5.31%
AHCO
AdaptHealth
10.11
0.63
6.65%
ESTA
Establishment Labs Holdings
44.03
5.04
12.93%
Alphatec Holdings Corporate Events
Executive/Board ChangesShareholder Meetings
Alphatec Holdings Approves Key Proposals at Annual Meeting
Neutral
Jun 13, 2025
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.
The most recent analyst rating on (ATEC) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on Alphatec Holdings stock, see the ATEC Stock Forecast page.
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.