Alphatec (ATEC)
NASDAQ:ATEC
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Alphatec Holdings
(NASDAQ:ATEC)
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Rating:50Neutral
Price Target:
$7.50
▼(-32.43% Downside)
Action:Reiterated
Date:05/09/26
The score is held back primarily by weak overall financial quality (continued losses and a highly leveraged balance sheet) and bearish technical trends. These are partially offset by a constructive earnings call with reaffirmed guidance, improving margins/adjusted EBITDA, and refinancing benefits, plus improving operating cash flow; valuation support is limited due to negative earnings and no dividend yield provided.
Positive Factors
Revenue Growth and Scale
Multi-year revenue expansion demonstrates durable market adoption of Alphatec’s spine products and growing procedure volume. Scale supports distribution leverage, broadens surgeon footprint, and increases the addressable base for higher‑margin attachments, improving the odds of sustained margin and cash‑flow improvement.
Negative Factors
High Leverage and Thin Equity
The capital structure is highly leveraged with very thin equity, leaving limited balance‑sheet cushion. This elevated leverage increases sensitivity to execution setbacks, tightens covenant and refinancing constraints, and reduces ability to absorb cyclical weakness without dilutive or costly capital actions.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth and Scale
Multi-year revenue expansion demonstrates durable market adoption of Alphatec’s spine products and growing procedure volume. Scale supports distribution leverage, broadens surgeon footprint, and increases the addressable base for higher‑margin attachments, improving the odds of sustained margin and cash‑flow improvement.
Read all positive factors
Alphatec Holdings (ATEC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.27B
Dividend YieldN/A
Average Volume (3M)4.13M
Price to Earnings (P/E)―
Beta (1Y)0.73
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. Volume4,600,791
30 Day Avg. Volume4,128,015
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 Cap1.37
Enterprise Value/Revenue2.20
Enterprise Value/Gross Profit3.37
Enterprise Value/Ebitda-1.36K
Forecast
1Y Price Target
$18.91Price Target Upside70.35% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
EPS Forecast (FY)0.31
Revenue Forecast (FY)$883.68M
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 t...
How the Company Makes Money
Alphatec primarily makes money by selling spine-surgery products to healthcare providers, generating revenue from the commercial sale of spinal implants (e.g., fixation systems and interbody devices) and the specialized instruments and procedural ...
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 | -1.28M | -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
Negative
11.10
Price Trends
10.35
Negative
13.01
Negative
15.15
Negative
Market Momentum
-0.76
Negative
42.11
Neutral
94.01
Negative
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 11.1 is above the 20-day moving average (MA) of 8.66, above the 50-day MA of 10.35, and below the 200-day MA of 15.15, indicating a bearish trend. The MACD of -0.76 indicates Negative momentum. The RSI at 42.11 is Neutral, neither overbought nor oversold. The STOCH value of 94.01 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 | $1.75B | 21.36 | 16.61% | ― | 11.19% | 7.61% | |
72 Outperform | $4.05B | 38.98 | 9.13% | ― | 12.40% | ― | |
57 Neutral | $2.10B | -31.42 | -225.86% | ― | 34.86% | 52.13% | |
54 Neutral | $1.11B | 310.60 | 2.66% | ― | 17.59% | ― | |
54 Neutral | $1.43B | -25.75 | -5.11% | ― | 1.24% | -202.42% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | $1.27B | -12.36 | -443.09% | ― | 22.55% | 27.87% |
* Healthcare Sector Average
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Alphatec Holdings Corporate Events
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...
Executive/Board Changes
Alphatec Holdings Announces Board Director Retirement and Changes
Neutral
Mar 3, 2026
On February 25, 2026, Alphatec Holdings, Inc. announced that director Ward W. Woods would retire from its Board of Directors, effective February 27, 2026, citing personal reasons and confirming there was no disagreement with the company’s op...
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.