Alphatec Holdings Inc (ATEC)

ATEC Reports First Quarter Financial ResultsMay 5, 2026 4:05 PM
Business Wire Surgical revenue grew 17%; total revenue grew 14% Company announces refinancing of existing debt with inaugural bank facility, reducing interest expense by more than $6 million annually and extending maturities to 2031 Alphatec Holdings, Inc. (Nasdaq: ATEC), a spine-focused provider of innovative solutions dedicated to revolutionizing the approach to spine surgery, today announced financial results for the quarter ended March 31, 2026, and business highlights. First Quarter 2026 Financial Results Quarter Ended
March 31, 2026 Total revenue $192 million GAAP gross margin 71% Non-GAAP gross margin 72% GAAP operating expenses $159 million Non-GAAP operating expenses $132 million GAAP net income / (loss) ($34) million Non-GAAP net income / (loss) $0 million Non-GAAP adjusted EBITDA $21 million Non-GAAP adjusted EBITDA margin 11% Ending cash balance $140 million First Quarter Highlights Surgical revenue of $178 million grew 17% year over year, driven by 21% growth in case volume Net new surgeon users increased 23% year over year, reinforcing durable growth Adjusted EBITDA of $21 million, or 11% of revenue, expanded 460 basis points year over year Free cash use of $11 million; trailing twelve-month free cash flow improved to $7 million “ATEC’s surgical business continues to demonstrate strong momentum, with volume-driven growth and increasing surgeon adoption reinforcing the strength of our procedural approach,” said Pat Miles, Chairman and Chief Executive Officer. “We are adjusting our EOS expectations, but the underlying fundamentals of our business are strong and our conviction in the long-term opportunity has not changed. We are confident that our data-driven procedural ecosystem improves patient outcomes, which in turn drives durable growth, expanding margins, and long-term value.” Financial Outlook for the Full Year 2026 The Company now expects total revenue for the fiscal year ending December 31, 2026 to approximate $882 million, representing approximately 15% total revenue growth, including 17% growth in surgical revenue. The Company reiterates surgical revenue guidance of approximately $805 million and adjusts EOS revenue to approximately $77 million. The Company continues to expect adjusted EBITDA of approximately $134 million, or 15% of revenue, reflecting ongoing and disciplined operating leverage. The Company also continues to expect at least $20 million of free cash flow for the full year 2026. Company Refinances Existing Debt with Inaugural Bank Facility The Company announced it has entered into an inaugural bank facility, including a revolving credit facility and Term Loan A, led by JPMorgan Chase Bank, N.A. and TD Securities (USA) LLC. The new facility refinances the Company’s existing debt, reduces borrowing costs, and extends maturities to 2031. The facility will reduce interest expense by more than $6 million annually, with the potential to generate more than $35 million of savings over the life of the facility. Additional details regarding the transaction are included in a separate press release issued today. Financial Results Webcast The Company will host a live webcast today at 1:30 p.m. PT / 4:30 p.m. ET. To access the live webcast, please visit the Investor Relations section of ATEC’s corporate website. A replay of the webcast will remain available through the Investor Relations section of ATEC’s corporate website for twelve months. Analyst Webcast Participation To participate in the question-and-answer session, analysts must register in advance using this link. Upon registration, access details, including a unique code, will be provided via email. Non-GAAP Financial Information To supplement the Company’s financial statements presented in accordance with generally accepted accounting principles in the United States of America (GAAP), the Company reports certain non-GAAP financial measures listed below under “Non-GAAP Financial Measures.” The Company believes that these non-GAAP financial measures provide investors with an additional tool for evaluating the Company's core performance, which management uses in its own evaluation of continuing operating performance, and provides a baseline for assessing the Company’s future earnings potential. The Company’s non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in the Company’s industry, as other companies in the industry may calculate non-GAAP financial measures differently, particularly related to non-recurring, unusual items. Non-GAAP financial measures should be considered in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. We have not reconciled our non-GAAP financial measures for the full year 2026 because certain items that impact these figures are either uncertain or outside our control and cannot be reasonably predicted. Accordingly, a reconciliation of forward-looking, non-GAAP financial measures is not available. Included below are definitions of the non-GAAP financial measures the Company uses. Non-GAAP Financial Measures Free cash flow: Calculated by subtracting capital expenditures from cash flow provided by or used in operating activities. Management uses free cash flow to measure progress on its capital efficiency and cash flow initiatives. Non-GAAP Gross Profit and Non-GAAP Gross Margin: Non-GAAP gross profit represents GAAP gross profit with adjustments to exclude the impact of certain items recorded to cost of goods sold. Such potential adjustments are described within the section below under "Non-GAAP Adjustments" and included in the non-GAAP reconciliation attached below. Non-GAAP gross margin represents non-GAAP gross profit as a percentage of GAAP net sales. Non-GAAP Operating Expenses: Non-GAAP operating expenses represent GAAP operating expenses, such as sales, general, and administrative expense, and research and development expense, with adjustments to exclude the impact of certain items recorded in GAAP operating expenses. Such potential adjustments are described within the section below under "Non-GAAP Adjustments" and included in the non-GAAP reconciliation. Non-GAAP Net Income (Loss) and Non-GAAP EPS: Non-GAAP net income (loss) represents GAAP net loss with adjustments to exclude the impact of certain items recorded in GAAP net loss. Such potential adjustments are described within the sections below under "Non-GAAP Adjustments" and included in the non-GAAP reconciliation. Non-GAAP EPS represents non-GAAP net income (loss) divided by weighted-average shares outstanding. EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin: EBITDA represents earnings before non-operating income/expense, taxes, depreciation and amortization. Adjusted EBITDA consists of EBITDA with adjustments to exclude certain items described within the section below under "Non-GAAP Adjustments" and included in the non-GAAP reconciliation. Adjusted EBITDA margin represents adjusted EBITDA as a percentage of GAAP net sales. Non-GAAP Adjustments The Company's non-GAAP financial measures reflect the exclusion of the following items: Amortization of acquired intangible assets: Represents amortization expense associated with intangible assets including, but not limited to customer relationships, intellectual property, and trade names acquired in business combinations and asset acquisitions. This adjustment does not include amortization from other intangibles. Litigation-related expenses: We are involved in various litigation matters that from time to time result in settlements. Litigation matters can vary in their characteristics, frequency and significance to our operating results and core business operations. We review litigation matters from both a qualitative and quantitative perspective to determine whether such matters are a normal and recurring part of our business. We include in our GAAP financial statements litigation fees and settlement expenses that we determine to be normal, recurring and routine to our business. When we determine that certain litigation matters are not normal and recurring to our core business operations, we believe excluding these expenses will provide our management and investors with useful incremental information. Litigation fees and settlement expenses excluded from our non-GAAP financial measures in the periods presented relate primarily to patent litigation and other litigation matters that relate directly to the business transformation that we started in 2018 and are discussed more fully in our periodic reports filed with the Securities and Exchange Commission. Purchase accounting adjustments on acquisitions: Includes non-cash expenses incurred as a result of fair value step-ups associated with tangible assets acquired in business combinations or asset acquisitions. Restructuring expenses: From time to time, in order to realign the Company’s operations or to realize synergies from acquisitions, the Company may eliminate roles or restructure its operations and footprint. In such cases, the Company may incur one-time severance and personnel costs associated with workforce reductions, or costs associated with exiting and/or relocating facilities. We exclude these costs as we do not consider such amounts to be part of the ongoing operations. Stock-based compensation: Stock-based compensation is charged to cost of revenue and operating expenses. We exclude stock-based compensation from certain of our non-GAAP financial measures because we believe that excluding these non-cash expenses provides meaningful supplemental information regarding operational performance. Because of the variety of equity awards used by companies, the varying methodologies for determining stock-based compensation expense, the subjective assumptions involved in those determinations, and the volatility in valuations that can be driven by market conditions outside the Company’s control, the Company believes excluding stock-based compensation expense enhances the ability of management and investors to understand and assess the underlying performance of its business over time. Transaction-related expenses: Represent one-time costs incurred in connection with business combinations, asset acquisitions, or debt financing and modification activities. These expenses may include, but are not limited to, legal and advisory fees, due diligence costs, contract termination charges, and other third-party expenses directly related to the planning or execution of these transactions. We exclude these costs because they can vary significantly from period to period and are not indicative of the underlying trends in our core business. Foreign currency exchange impact: Gains and losses related to foreign currency transactions, which are recorded as other income (expense), net. Management excludes these items when evaluating the Company's operating results as they are primarily non-cash and non-operating in nature. Loss on debt extinguishment: Represents charges recognized in connection with the early repayment, refinancing, or settlement of debt, including write-offs of unamortized debt discounts, premiums, or deferred financing costs, and any associated prepayment penalties. We exclude these items from non-GAAP results because they are non-recurring in nature, not indicative of ongoing operating performance, and can vary significantly from period to period based on financing activity. Loss (gain) on derivative liability: Represents non-cash fair value adjustments associated with embedded derivative features related to our convertible debt. These mark-to-market changes are driven by fluctuations in our stock price and other valuation inputs, and do not reflect current operating performance. We exclude these amounts from non-GAAP results because they are non-cash, volatile, and unrelated to the Company’s core business operations. Non-cash interest expense: Consists primarily of interest expense related to the amortization of debt discounts, deferred financing costs, and other non-cash components associated with our convertible notes and other long-term debt instruments. We exclude this item from non-GAAP net income because it is non-cash in nature and does not reflect our core operating performance or current period cash expenditures. Long-term income tax rate adjustment: The Company employs a structural long-term projected non-GAAP income tax rate of 26% for greater consistency across reporting periods. This long-term projected non-GAAP tax rate reflects historical and expected tax positions and excludes any benefit from deferred tax assets or valuation allowance changes. The long-term rate considers various factors, including the Company’s anticipated tax structure, its tax positions in different jurisdictions, and current impacts from key U.S. legislation where the Company operates. We will reevaluate this tax rate, as necessary, for events such as major changes in the U.S. tax environment, substantial changes in the Company’s geographic earnings mix due to acquisition activity, or other shifts in the Company’s strategy or business operations. Other non-recurring expenses: These represent items that are unusual or infrequent in nature and that we believe are not indicative of our ongoing operating performance. Examples may include discrete costs associated with tax strategy implementation or one-time expenses related to customer restructuring or reorganization events. We evaluate such items based on their nature and significance and disclose material adjustments in our non-GAAP reconciliations. About Alphatec Holdings, Inc. ATEC, through its wholly owned subsidiaries, Alphatec Spine, Inc., EOS imaging S.A.S., and SafeOp Surgical, Inc., is a medical device company dedicated to revolutionizing the approach to spine surgery through clinical distinction. ATEC’s Organic Innovation MachineTM is focused on developing new approaches that integrate seamlessly with the Company’s expanding InformatiXTM platform to better inform surgery and more safely and reproducibly achieve the goals of spine surgery. ATEC’s vision is to be the Standard Bearer in Spine. For more information, visit us at www.atecspine.com. Forward-Looking Statements This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. Such statements are based on management's current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The Company cautions investors that there can be no assurance that actual results will not differ materially from those projected or suggested in such forward-looking statements as a result of various factors. Forward-looking statements include, but are not limited to: references to the Company’s revenue, balance sheet, growth, and financial outlook and commitments; planned product launches, timelines, introductions, regulatory submissions or clearances; and the Company's ability to compel surgeon adoption and drive procedural growth; and the expected reduction in interest expense and related cost savings over the life of the new credit facility, including assumptions regarding borrowing costs, interest rates, and the utilization of the facility. Important factors that could cause actual operating results to differ significantly from those expressed or implied by such forward-looking statements include, but are not limited to: the uncertainty of success in developing new products or products currently in the pipeline; the uncertainties in the Company’s ability to execute upon its strategic operating plan; the uncertainties regarding the ability to successfully license or acquire new products, and the commercial success of such products; failure to achieve acceptance of the Company’s products by the surgeon community; failure to obtain FDA or other regulatory clearance or approval or unexpected or prolonged delays in the process; continuation of favorable third-party reimbursement; unanticipated expenses or liabilities or other adverse events affecting cash flow or the Company’s ability to achieve profitability; uncertainty of additional funding and the form of such funding; product liability exposure; an unsuccessful outcome in any litigation; patent infringement claims; claims related to the Company’s intellectual property; and the Company’s ability to meet its financial obligations; changes in interest rates or credit market conditions that could affect the anticipated borrowing cost savings; and the Company’s ability to satisfy the terms and covenants of the new credit facility. A further list and description of these and other factors, risks and uncertainties can be found in the Company's most recent annual report, and any subsequent quarterly and current reports, filed with the U.S. Securities and Exchange Commission. ATEC disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, unless required by law. ALPHATEC HOLDINGS, INC. Condensed Consolidated Statements of Operations (in thousands, except per share amounts) Three Months Ended March 31   2026       2025   (unaudited) Revenue from products and services $ 192,108   $ 169,180   Cost of sales   55,632     53,184   Gross profit   136,476     115,996   Operating expenses: Research and development   17,560     16,582   Sales, general and administrative   137,057     127,017   Litigation-related expenses   525     12,214   Amortization of acquired intangible assets   3,915     4,103   Restructuring expenses   —     371   Total operating expenses   159,057     160,287   Operating loss   (22,581 )   (44,291 ) Other expense, net: Cash interest expense, net   (4,953 )   (5,356 ) Noncash interest expense, net   (6,768 )   (2,485 ) Loss on debt extinguishment   —     (17,576 ) Gain on derivative liability   —     17,400   Other income, net   446     337   Total other expense, net   (11,275 )   (7,680 ) Net loss before taxes   (33,856 )   (51,971 ) Income tax provision (benefit)   50     (64 ) Net loss $ (33,906 ) $ (51,907 ) Net loss per share, basic and diluted $ (0.22 ) $ (0.35 ) Weighted average shares outstanding, basic and diluted   154,051     146,732   Stock-based compensation included in: Cost of sales $ 970   $ 3,043   Research and development   4,001     3,644   Sales, general and administrative   18,688     15,631   $ 23,659   $ 22,318     Alphatec Holdings, Inc. Condensed Consolidated Balance Sheets (in thousands) March 31,
2026 December 31,
2025 ASSETS Current assets: Cash and cash equivalents $ 139,912   $ 160,806 Accounts receivable, net   106,379     97,304 Inventories   186,027     169,444 Prepaid expenses and other current assets   23,849     23,322 Total current assets   456,167     450,876 Property and equipment, net   138,045     135,324 Right-of-use assets   30,601     31,225 Goodwill   74,470     75,208 Intangible assets, net   90,023     93,454 Other assets   10,172     5,121 Total assets $ 799,478   $ 791,208   LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY Current liabilities: Accounts payable $ 46,044   $ 40,893 Accrued expenses and other current liabilities   111,567     97,019 Contract liabilities   10,466     10,439 Short-term debt   65,522     64,526 Current portion of operating lease liabilities   6,645     6,298 Total current liabilities   240,244     219,175 Total long-term liabilities   540,978     536,004 Redeemable preferred stock   23,603     23,603 Stockholders' (deficit) equity   (5,347 )   12,426 Total liabilities and stockholders' (deficit) equity $ 799,478   $ 791,208   Alphatec Holdings, Inc. Reconciliation of Non-GAAP Financial Measures (in thousands) Three Months Ended March 31,   2026       2025   (unaudited) Gross profit, GAAP $ 136,476   $ 115,996   Add: amortization of acquired intangible assets   66     50   Add: stock-based compensation   970     3,043   Non-GAAP gross profit $ 137,512   $ 119,089   Gross margin, GAAP   71.0 %   68.6 % Add: amortization of acquired intangible assets   0.0 %   0.0 % Add: stock-based compensation   0.5 %   1.8 % Non-GAAP gross margin   71.6 %   70.4 %   Three Months Ended March 31,   2026       2025   (unaudited) Operating expenses, GAAP $ 159,057   $ 160,287   Adjustments: Stock-based compensation   (22,689 )   (19,275 ) Litigation-related expenses   (525 )   (12,214 ) Amortization of acquired intangible assets   (3,915 )   (4,103 ) Restructuring expenses   —     (371 ) Non-GAAP operating expenses $ 131,928   $ 124,324         Alphatec Holdings, Inc. Reconciliation of Non-GAAP Financial Measures (in thousands) Three Months Ended March 31,   2026       2025   (unaudited) Net loss, GAAP $ (33,906 ) $ (51,907 ) Cash interest expense, net   4,953     5,356   Noncash interest expense, net   6,768     2,485   Loss on debt extinguishment   —     17,576   Gain on derivative liability   —     (17,400 ) Other income, net   (446 )   (337 ) Income tax provision (benefit)   50     (64 ) Depreciation   14,629     15,754   Amortization expense   4,506     4,153   EBITDA   (3,446 )   (24,384 ) Add back significant items: Stock-based compensation   23,659     22,318   Litigation-related expenses   525     12,214   Restructuring expenses   —     371   Adjusted EBITDA $ 20,738   $ 10,519     Adjusted EBITDA margin   10.8 %   6.2 % Adjusted EBITDA margin expansion   460 bps     Three Months Ended March 31,   2026       2025   (unaudited) Net loss, GAAP $ (33,906 ) $ (51,907 ) Stock-based compensation   23,659     22,318   Litigation-related expenses   525     12,214   Amortization of acquired intangible assets   3,981     4,153   Restructuring expenses   —     371   Loss on debt extinguishment   —     17,576   Gain on derivative liability   —     (17,400 ) Non-cash interest expense   6,768     2,485   Foreign currency exchange impact   (429 )   (312 ) Long-term income tax rate adjustment   (218 )   2,811   Non-GAAP net income (loss) $ 380   $ (7,691 )   Non-GAAP net income (loss) per share $ 0.00   $ (0.05 ) Weighted average shares outstanding, basic and diluted   154,051     146,732       View source version on businesswire.com: https://www.businesswire.com/news/home/20260505659249/en/ Investor/Media Contact:
Robert Judd
Investor Relations
(760) 494-6790
investorrelations@atecspine.com Company Contact:
J. Todd Koning
Chief Financial Officer
investorrelations@atecspine.com Original: ATEC Reports First Quarter Financial Results

ATEC to Report First Quarter 2026 Financial Results on May 5, 2026April 23, 2026 9:05 AM
Business Wire
Alphatec Holdings, Inc. (Nasdaq: ATEC), a provider of innovative solutions dedicated to revolutionizing the approach to spine surgery, announced today that it will report first quarter 2026 financial results on May 5, 2026, after the market close. The Company will host a live webcast that day at 1:30 p.m. PT / 4:30 p.m. ET.


Webcast


To access the live webcast, please visit the Investor Relations section of ATEC’s corporate website.


Analyst Participation


To participate in the question-and-answer session, analysts must register in advance using this link. Upon registration, access details, including a unique code, will be provided via email.


Replay


A replay of the webcast will remain available through the Investor Relations section of ATEC’s corporate website for twelve months.


ATEC to Participate in Upcoming Events


The Company also announced today that management will participate in the following events:



Bank of America Securities 2026 Healthcare Conference at the Encore Hotel in Las Vegas, NV. On Tuesday, May 12 management will take 1x1 meetings and host a fireside chat at 5:15pm PT.



If applicable and when available, live webcast information will be accessible through the Investor Relations section of ATEC’s corporate website.


Inducement Awards Granted


As an inducement material to accepting employment with the Company, and in accordance with Nasdaq Listing Rule 5635(c)(4), ATEC today announced that the independent Compensation Committee of the Board of Directors has approved an aggregate of 43 grants to new employees (who are not executive officers) of, collectively, 59,431 restricted stock units (“RSUs”) under the Company’s 2016 Employment Inducement Award Plan. The RSUs will vest in equal annual installments on each of the first four anniversaries of the grant date, provided that the recipient remains continuously employed by ATEC as of such vesting date. In addition, the RSUs will vest fully upon a change of control of ATEC.


About Alphatec Holdings, Inc.


ATEC, through its wholly owned subsidiaries, Alphatec Spine, Inc., EOS imaging S.A.S. and SafeOp Surgical, Inc., is a medical device company dedicated to revolutionizing the approach to spine surgery through clinical distinction. ATEC’s Organic Innovation MachineTM is focused on developing new approaches that integrate seamlessly with the Company’s expanding InformatiXTM platform to better inform surgery and more safely and reproducibly achieve the goals of spine surgery. ATEC’s vision is to be the Standard Bearer in Spine. For more information, visit us at www.atecspine.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260423458457/en/
Investor/Media Contact:

Robert Judd

Investor Relations

(760) 494-6790

investorrelations@atecspine.com


Company Contact:

J. Todd Koning

Chief Financial Officer

investorrelations@atecspine.com


Original: ATEC to Report First Quarter 2026 Financial Results on May 5, 2026

ATEC Reports Fourth Quarter and Full-Year 2025 Financial ResultsFebruary 24, 2026 4:05 PM
Business Wire

Full-year 2025 total revenue grew 25% to $764 million, enabling significant profit margin expansion



Full-year 2026 total revenue expected to approximate $890 million



Alphatec Holdings, Inc. (Nasdaq: ATEC), a spine-focused provider of innovative solutions dedicated to revolutionizing the approach to spine surgery, today announced financial results for the quarter and year ended December 31, 2025, and business highlights.


Fourth Quarter and Full-Year 2025 Financial Results





Quarter Ended

December 31, 2025






Year Ended

December 31, 2025








Total revenue






$213 million






$764 million








GAAP gross margin






70%






70%








Non-GAAP gross margin






71%






70%








GAAP operating expenses






$158 million






$614 million








Non-GAAP operating expenses






$132 million






$506 million








GAAP net income / (loss)






($22) million






($143) million








Non-GAAP net income / (loss)






$9 million






$8 million








Non-GAAP adjusted EBITDA






$33 million






$93 million








Non-GAAP adjusted EBITDA margin






16%






12%








Ending cash balance






$161 million







Fourth Quarter Highlights



Surgical revenue of $190 million grew 21% year over year, driven by continued case volume growth



Net new surgeon users increased 23%, and 20% for the full year, reinforcing durable growth



Adjusted EBITDA of $33 million, or 16% of revenue, expanding 390 basis points year over year



Generated $8 million of free cash flow in the fourth quarter and $3 million for the full year



“2025 was a defining year for ATEC,” said Pat Miles, Chairman and Chief Executive Officer. “Our performance reflects the trust surgeons are placing in us, and our team’s dedication in advancing patient care. Continued momentum in lateral and deformity, along with the launch of Valence® and the proliferation of EOS Insight®, demonstrate how our procedural ecosystem is transforming the surgical experience. Achieving positive free cash flow marks a pivotal milestone, as we transition to cash generation and self-sustaining growth. We are redefining the spine market, building a company designed for longevity – one that will continue to deliver clinical distinction and earn deep surgeon loyalty. ATEC is now undeniably the preferred destination in spine.”


Valence® System Release


The Company announced the clearance and release of the Valence® intraoperative platform.


Financial Outlook for the Full Year 2026


The Company continues to expect total revenue for the fiscal year ending December 31, 2026 to approximate $890 million, representing growth of approximately $126 million, or 17% compared to full year 2025. This includes surgical revenue of approximately $805 million and EOS revenue of approximately $85 million. The Company is increasing its adjusted EBITDA guidance to approximately $134 million, or 15% of revenue, up from $130 million previously, reflecting continued operating leverage. The Company expects to generate at least $20 million of free cash flow for the full year 2026.


ATEC to Participate in Upcoming Conferences


The Company announced today that management will participate in the Barclays 28th Annual Global Healthcare Conference at Loews Miami Beach Hotel in Miami, FL on March 11, 2026, with a fireside chat at 9:00 a.m. ET. If available, the live webcasts will be accessible on ATEC’s Investor Relations website.


Inducement Awards Granted


As an inducement material to accepting employment with the Company, and in accordance with Nasdaq Listing Rule 5635(c)(4), ATEC today announced that the independent Compensation Committee of the Board of Directors has approved aggregate grants to 11 new employees (who are not executive officers) of, collectively, 9,281 restricted stock units (“RSUs”) under the Company’s 2016 Employment Inducement Award Plan. The RSUs will vest in equal annual installments on each of the first four anniversaries of the grant date, provided that the recipient remains continuously employed by ATEC as of such vesting date. In addition, the RSUs will vest fully upon a change of control of ATEC.


Financial Results Webcast


The Company will host a live webcast today at 1:30 p.m. PT / 4:30 p.m. ET. To access the live webcast, please visit the Investor Relations section of ATEC’s corporate website.


To view the live webcast, please register at this link. Access details will be shared via email. To listen to the live webcast, via audio only, please dial in: (888) 220-6125, Conference ID: 97241.


A replay of the webcast will remain available through the Investor Relations section of ATEC’s corporate website for twelve months.


Non-GAAP Financial Information


To supplement the Company’s financial statements presented in accordance with generally accepted accounting principles in the United States of America (GAAP), the Company reports certain non-GAAP financial measures listed below under “Non-GAAP Financial Measures.” The Company believes that these non-GAAP financial measures provide investors with an additional tool for evaluating the Company's core performance, which management uses in its own evaluation of continuing operating performance, and a baseline for assessing the Company’s future earnings potential. The Company’s non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in the Company’s industry, as other companies in the industry may calculate non-GAAP financial measures differently, particularly related to non-recurring, unusual items. Non-GAAP financial measures should be considered in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. We have not reconciled our non-GAAP financial measures for the full year 2026 because certain items that impact these figures are either uncertain or outside our control and cannot be reasonably predicted. Accordingly, a reconciliation of forward-looking, non-GAAP financial measures is not available. Included below are definitions of the non-GAAP financial measures the Company uses.


Non-GAAP Financial Measures


Free cash flow: Calculated by subtracting capital expenditures from cash flow provided by or used in operating activities. Management uses free cash flow to measure progress on its capital efficiency and cash flow initiatives.


Non-GAAP Gross Profit and Non-GAAP Gross Margin: Non-GAAP gross profit represents GAAP gross profit with adjustments to exclude the impact of certain items recorded to cost of goods sold. Such potential adjustments are described within the section below under "Non-GAAP Adjustments" and included in the non-GAAP reconciliation attached below. Non-GAAP gross margin represents non-GAAP gross profit as a percentage of GAAP net sales.


Non-GAAP Operating Expenses: Non-GAAP operating expenses represent GAAP operating expenses, such as sales, general, and administrative expense, and research and development expense, with adjustments to exclude the impact of certain items recorded in GAAP operating expenses. Such potential adjustments are described within the section below under "Non-GAAP Adjustments" and included in the non-GAAP reconciliation attached below.


Non-GAAP Net Income (Loss) and Non-GAAP EPS: Non-GAAP net income (loss) represents GAAP net loss with adjustments to exclude the impact of certain items recorded in GAAP net loss. Such potential adjustments are described within the sections below under "Non-GAAP Adjustments" and included in the non-GAAP reconciliation attached below. Non-GAAP EPS represents non-GAAP net income (loss) divided by weighted-average shares outstanding.


EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin: EBITDA represents earnings before non-operating income/expense, taxes, depreciation and amortization. Adjusted EBITDA consists of EBITDA with adjustments to exclude certain items described within the section below under "Non-GAAP Adjustments" and included in the non-GAAP reconciliation attached below. Adjusted EBITDA margin represents adjusted EBITDA as a percentage of GAAP net sales.


Non-GAAP Adjustments


The Company's non-GAAP financial measures reflect the exclusion of the following items:


Amortization of acquired intangible assets: Represents amortization expense associated with intangible assets including, but not limited to customer relationships, intellectual property, and trade names acquired in business combinations and asset acquisitions. This adjustment does not include amortization from other intangibles.


Litigation-related expenses: We are involved in various litigation matters that from time to time result in settlements. Litigation matters can vary in their characteristics, frequency and significance to our operating results and core business operations. We review litigation matters from both a qualitative and quantitative perspective to determine whether such matters are a normal and recurring part of our business. We include in our GAAP financial statements litigation fees and settlement expenses that we determine to be normal, recurring and routine to our business. When we determine that certain litigation matters are not normal and recurring to our core business operations, we believe excluding these expenses will provide our management and investors with useful incremental information. Litigation fees and settlement expenses excluded from our non-GAAP financial measures in the periods presented relate primarily to patent litigation and other litigation matters that relate directly to the business transformation that we started in 2018 and are discussed more fully in our periodic reports filed with the Securities and Exchange Commission.


Purchase accounting adjustments on acquisitions: Includes non-cash expenses incurred as a result of fair value step-ups associated with tangible assets acquired in business combinations or asset acquisitions.


Restructuring expenses: From time-to-time, in order to realign the Company’s operations or to realize synergies from acquisitions, the Company may eliminate roles or restructure its operations and footprint. In such cases the Company may incur one-time severance and personnel costs associated with workforce reductions, or costs associated with exiting and/or relocating facilities. We exclude these costs as we do not consider such amounts to be part of the ongoing operations.


Stock-based compensation: Stock-based compensation is charged to cost of revenue and operating expenses. We exclude stock-based compensation from certain of our non-GAAP financial measures because we believe that excluding these non-cash expenses provides meaningful supplemental information regarding operational performance. Because of the variety of equity awards used by companies, the varying methodologies for determining stock-based compensation expense, the subjective assumptions involved in those determinations, and the volatility in valuations that can be driven by market conditions outside the Company’s control, the Company believes excluding stock-based compensation expense enhances the ability of management and investors to understand and assess the underlying performance of its business over time.


Transaction-related expenses: Represent one-time costs incurred in connection with business combinations, asset acquisitions, or debt financing and modification activities. These expenses may include, but are not limited to, legal and advisory fees, due diligence costs, contract termination charges, and other third-party expenses directly related to the planning or execution of these transactions. We exclude these costs because they can vary significantly from period to period and are not indicative of the underlying trends in our core business.


Foreign currency exchange impact: Gains and losses related to foreign currency transactions, which are recorded as other income (expense), net. Management excludes these items when evaluating the Company's operating results as they are primarily non-cash and non-operating in nature.


Loss on debt extinguishment: Represents charges recognized in connection with the early repayment, refinancing, or settlement of debt, including write-offs of unamortized debt discounts, premiums, or deferred financing costs, and any associated prepayment penalties. We exclude these items from non-GAAP results because they are non-recurring in nature, not indicative of ongoing operating performance, and can vary significantly from period to period based on financing activity.


Loss (gain) on derivative liability: Represents non-cash fair value adjustments associated with embedded derivative features related to our convertible debt. These mark-to-market changes are driven by fluctuations in our stock price and other valuation inputs, and do not reflect current operating performance. We exclude these amounts from non-GAAP results because they are non-cash, volatile, and unrelated to the Company’s core business operations.


Non-cash interest expense: Consists primarily of interest expense related to the amortization of debt discounts, deferred financing costs, and other non-cash components associated with our convertible notes and other long-term debt instruments. We exclude this item from non-GAAP net income because it is non-cash in nature and does not reflect our core operating performance or current period cash expenditures.


Long-term income tax rate adjustment: The Company employs a structural long-term projected non-GAAP income tax rate of 26% for greater consistency across reporting periods. This long-term projected non-GAAP tax rate reflects historical and expected tax positions and excludes any benefit from deferred tax assets or valuation allowance changes. The long-term rate considers various factors, including the Company’s anticipated tax structure, its tax positions in different jurisdictions, and current impacts from key U.S. legislation where the Company operates. We will reevaluate this tax rate, as necessary, for events such as major changes in the U.S. tax environment, substantial changes in the Company’s geographic earnings mix due to acquisition activity, or other shifts in the Company’s strategy or business operations.


Other non-recurring expenses: These represent items that are unusual or infrequent in nature and that we believe are not indicative of our ongoing operating performance. Examples may include discrete costs associated with tax strategy implementation or one-time expenses related to customer restructuring or reorganization events. We evaluate such items based on their nature and significance and disclose material adjustments in our non-GAAP reconciliations.


About Alphatec Holdings, Inc.


ATEC, through its wholly owned subsidiaries, Alphatec Spine, Inc., EOS imaging S.A.S. and SafeOp Surgical, Inc., is a medical device company dedicated to revolutionizing the approach to spine surgery through clinical distinction. ATEC’s Organic Innovation MachineTM is focused on developing new approaches that integrate seamlessly with the Company’s expanding InformatiXTM platform to better inform surgery and more safely and reproducibly achieve the goals of spine surgery. ATEC’s vision is to be the Standard Bearer in Spine. For more information, visit us at www.atecspine.com.


Forward-Looking Statements


This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. Such statements are based on management's current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The Company cautions investors that there can be no assurance that actual results will not differ materially from those projected or suggested in such forward-looking statements as a result of various factors. Forward-looking statements include, but are not limited to: references to the Company’s revenue, balance sheet, growth, and financial outlook and commitments; planned product launches, timelines, introductions, regulatory submissions or clearances; and the Company's ability to compel surgeon adoption and drive procedural growth. Important factors that could cause actual operating results to differ significantly from those expressed or implied by such forward-looking statements include, but are not limited to: the uncertainty of success in developing new products or products currently in the pipeline; the uncertainties in the Company’s ability to execute upon its strategic operating plan; the uncertainties regarding the ability to successfully license or acquire new products, and the commercial success of such products; failure to achieve acceptance of the Company’s products by the surgeon community; failure to obtain FDA or other regulatory clearance or approval or unexpected or prolonged delays in the process; continuation of favorable third-party reimbursement; unanticipated expenses or liabilities or other adverse events affecting cash flow or the Company’s ability to achieve profitability; uncertainty of additional funding and the form of such funding; product liability exposure; an unsuccessful outcome in any litigation; patent infringement claims; claims related to the Company’s intellectual property; and the Company’s ability to meet its financial obligations. A further list and description of these and other factors, risks and uncertainties can be found in the Company's most recent annual report, and any subsequent quarterly and current reports, filed with the U.S. Securities and Exchange Commission. ATEC disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, unless required by law.



ALPHATEC HOLDINGS, INC.


CONSOLIDATED STATEMENTS OF OPERATIONS


(in thousands)










 




Three Months Ended

Year Ended




December 31

December 31





2025







2024







2025







2024









(unaudited)




Revenue from products and services


$






212,928






 







$






176,793






 







$






764,155






 







$






611,562






 







Cost of sales


 






63,437






 







 






55,205






 







 






232,267






 







 






187,300






 







Gross profit


 






149,491






 







 






121,588






 







 






531,888






 







 






424,262






 







Operating expenses:










Research and development


 






22,281






 







 






23,244






 







 






76,268






 







 






80,718






 







Sales, general and administrative


 






128,699






 







 






114,541






 







 






498,526






 







 






450,199






 







Litigation-related expenses


 






3,457






 







 






1,188






 







 






23,784






 







 






9,799






 







Amortization of acquired intangible assets


 






3,873






 







 






4,720






 







 






15,060






 







 






16,258






 







Transaction-related expenses


 






—






 







 






327






 







 






—






 







 






210






 







Restructuring expenses


 






—






 







 






1,386






 







 






378






 







 






3,247






 







Total operating expenses


 






158,310






 







 






145,406






 







 






614,016






 







 






560,431






 







Operating loss


 






(8,819






)







 






(23,818






)







 






(82,128






)







 






(136,169






)







Other expense, net:










Cash interest expense, net


 






(5,184






)







 






(5,968






)







 






(21,141






)







 






(20,422






)







Noncash interest expense, net


 






(7,710






)







 






(1,183






)







 






(24,781






)







 






(4,457






)







Loss on debt extinguishment


 






—






 







 






—






 







 






(17,576






)







 






—






 







Gain on derivative liability


 






—






 







 






—






 







 






620






 







 






—






 







Other (expense) income, net


 






(34






)







 






(1,922






)







 






1,603






 







 






(1,025






)







Total other expense, net


 






(12,928






)







 






(9,073






)







 






(61,275






)







 






(25,904






)







Net loss before taxes


 






(21,747






)







 






(32,891






)







 






(143,403






)







 






(162,073






)







Income tax (benefit) provision


 






(18






)







 






441






 







 






(45






)







 






50






 







Net loss


$






(21,729






)







$






(33,332






)







$






(143,358






)







$






(162,123






)







Net loss per share, basic and diluted


$






(0.14






)







$






(0.23






)







$






(0.96






)







$






(1.13






)







Weighted average shares outstanding, basic and diluted


 






152,106






 







 






144,583






 







 






150,064






 







 






142,946






 







Stock-based compensation included in:










Cost of sales


$






519






 







$






2,485






 







$






4,529






 







$






4,961






 







Research and development


 






8,421






 







 






9,894






 







 






19,531






 







 






27,030






 







Sales, general and administrative


 






10,458






 







 






9,154






 







 






49,659






 







 






41,286






 










$






19,398






 







$






21,533






 







$






73,719






 







$






73,277






 








ALPHATEC HOLDINGS, INC.


CONDENSED CONSOLIDATED BALANCE SHEETS


(in thousands)






 






 




December 31,
2025

December 31,
2024






 


ASSETS


Current assets:






Cash and cash equivalents


$






160,806







$






138,840






 







Accounts receivable, net


 






97,304







 






82,987






 







Inventories


 






169,444







 






175,264






 







Prepaid expenses and other current assets


 






23,322







 






20,308






 







Total current assets


 






450,876







 






417,399






 







Property and equipment, net


 






135,324







 






156,394






 







Right-of-use assets


 






31,225







 






34,701






 







Goodwill


 






75,208







 






70,976






 







Intangible assets, net


 






93,454







 






93,518






 







Other assets


 






5,121







 






2,722






 







Total assets


$






791,208







$






775,710






 











 


LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)


Current liabilities:






Accounts payable


$






40,893







$






52,984






 







Accrued expenses and other current liabilities


 






97,019







 






81,466






 







Contract liabilities


 






10,439







 






10,467






 







Short-term debt


 






64,526







 






1,656






 







Current portion of operating lease liabilities


 






6,298







 






6,453






 







Total current liabilities


 






219,175







 






153,026






 







Total long-term liabilities


 






536,004







 






613,250






 







Redeemable preferred stock


 






23,603







 






23,603






 







Stockholders' equity (deficit)


 






12,426







 






(14,169






)







Total liabilities and stockholders' equity (deficit)


$






791,208







$






775,710






 








ALPHATEC HOLDINGS, INC.


RECONCILIATION OF NON-GAAP FINANCIAL MEASURES


(in thousands)










 




Three Months Ended

Year Ended




December 31,

December 31,





2025







2024







2025







2024







(unaudited)






Gross profit, GAAP


$






149,491






 







$






121,588






 







$






531,888






 







$






424,262






 







Add: amortization of acquired intangible assets


 






66






 







 






(814






)







 






245






 







 






108






 







Add: stock-based compensation


 






519






 







 






2,485






 







 






4,529






 







 






4,961






 







Add: purchase accounting adjustments on acquisitions


 






—






 







 






—






 







 






—






 







 






197






 







Non-GAAP gross profit


$






150,076






 







$






123,259






 







$






536,662






 







$






429,528






 







Gross margin, GAAP


 






70.2






%







 






68.8






%







 






69.6






%







 






69.4






%







Add: amortization of acquired intangible assets


 






0.0






%







 






(0.5






%)







 






0.0






%







 






0.0






%







Add: stock-based compensation


 






0.2






%







 






1.4






%







 






0.6






%







 






0.8






%







Add: purchase accounting adjustments on acquisitions


 






0.0






%







 






0.0






%







 






0.0






%







 






0.0






%







Non-GAAP gross margin


 






70.5






%







 






69.7






%







 






70.2






%







 






70.2






%















 




Three Months Ended

Year Ended




December 31,

December 31,





2025







2024







2025







2024







(unaudited)






Operating expenses, GAAP


$






158,310






 







$






145,406






 







$






614,016






 







$






560,431






 







Adjustments:










Stock-based compensation


 






(18,879






)







 






(19,048






)







 






(69,190






)







 






(68,316






)







Litigation-related expenses


 






(3,457






)







 






(1,188






)







 






(23,784






)







 






(9,799






)







Amortization of acquired intangible assets


 






(3,873






)







 






(4,720






)







 






(15,060






)







 






(16,258






)







Transaction-related expenses


 






—






 







 






(327






)







 






—






 







 






(210






)







Restructuring expenses


 






—






 







 






(1,386






)







 






(378






)







 






(3,247






)







Other non-recurring expenses


 






—






 







 






—






 







 






—






 







 






(1,608






)







Non-GAAP operating expenses


$






132,101






 







$






118,737






 







$






505,604






 







$






460,993






 















 





Three Months Ended

Year Ended




December 31,

December 31,





2025







2024







2025







2024







(unaudited)






Net loss, GAAP


$






(21,729






)







$






(33,332






)







$






(143,358






)







$






(162,123






)







Cash interest expense, net


 






5,184






 







 






5,968






 







 






21,141






 







 






20,422






 







Noncash interest expense, net


 






7,710






 







 






1,183






 







 






24,781






 







 






4,457






 







Loss on debt extinguishment


 






—






 







 






—






 







 






17,576






 







 






—






 







Gain on derivative liability


 






—






 







 






—






 







 






(620






)







 






—






 







Other (expense) income, net


 






34






 







 






1,922






 







 






(1,603






)







 






1,025






 







Income tax (benefit) expense


 






(18






)







 






441






 







 






(45






)







 






50






 







Depreciation


 






14,695






 







 






16,102






 







 






60,350






 







 






62,052






 







Amortization expense


 






4,406






 







 






3,906






 







 






17,142






 







 






16,366






 







EBITDA


 






10,282






 







 






(3,810






)







 






(4,636






)







 






(57,751






)







Add back significant items:










Stock-based compensation


 






19,398






 







 






21,533






 







 






73,719






 







 






73,277






 







Purchase accounting adjustments on acquisitions


 






—






 







 






—






 







 






—






 







 






197






 







Litigation-related expenses


 






3,457






 







 






1,188






 







 






23,784






 







 






9,799






 







Transaction-related expenses


 






—






 







 






327






 







 






—






 







 






210






 







Restructuring expenses


 






—






 







 






1,386






 







 






378






 







 






3,247






 







Other non-recurring expenses


 






—






 







 






—






 







 






—






 







 






1,608






 







Adjusted EBITDA


$






33,137






 







$






20,624






 







$






93,245






 







$






30,587






 















 


Adjusted EBITDA margin


 






15.6






%







 






11.7






%







 






12.2






%







 






5.0






%







Adjusted EBITDA margin expansion


 






390






 





bps


 






720






 





bps










 




Three Months Ended

Year Ended




December 31,

December 31,





2025







2024







2025







2024







(unaudited)






Net loss, GAAP


$






(21,729






)







$






(33,332






)







$






(143,358






)







$






(162,123






)







Stock-based compensation


 






19,398






 







 






21,533






 







 






73,719






 







 






73,277






 







Amortization of acquired intangible assets


 






3,939






 







 






3,906






 







 






15,305






 







 






16,366






 







Restructuring expenses


 






—






 







 






1,386






 







 






378






 







 






3,247






 







Transaction-related expenses


 






—






 







 






—






 







 






—






 







 






210






 







Litigation-related expenses


 






3,457






 







 






1,188






 







 






23,784






 







 






9,799






 







Loss on debt extinguishment


 






—






 







 






—






 







 






17,576






 







 






—






 







Gain on derivative liability


 






—






 







 






—






 







 






(620






)







 






—






 







Non-cash interest expense


 






7,710






 







 






1,183






 







 






24,781






 







 






4,457






 







Foreign currency exchange impact


 






(60






)







 






1,592






 







 






(708






)







 






805






 







Long-term income tax rate adjustment


 






(3,283






)







 






106






 







 






(2,766






)







 






13,967






 







Non-GAAP net income (loss)


$






9,432






 







$






(2,438






)







$






8,091






 







$






(39,995






)















 


Non-GAAP net income (loss) per share


$






0.06






 







$






(0.02






)







$






0.05






 







$






(0.28






)







Weighted average shares outstanding, basic and diluted


 






152,106






 







 






144,583






 







 






150,064






 







 






142,946






 







 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260224093592/en/
Investor/Media Contact:

Robert Judd

Investor Relations

(760) 494-6790

investorrelations@atecspine.com


Company Contact:

J. Todd Koning

Chief Financial Officer

investorrelations@atecspine.com


Original: ATEC Reports Fourth Quarter and Full-Year 2025 Financial Results