Alphatec (NASDAQ:ATEC) Issues Quarterly Earnings Results

Key Points

• Earnings miss: Alphatec reported Q1 EPS of ($0.22), missing the ($0.01) consensus, and revenue of $192.1M versus $197.5M expected.
• Surgical momentum and improving profitability: Surgical revenue rose to $178M (+17% YoY) with cases +21% and new surgeons +23%, gross margin expanded to 71.6% and adjusted EBITDA was $21M (11% of revenue, +97% YoY); a new term loan and revolver extend maturities to 2031 and should cut interest expense.
• EOS execution strain but strategic long‑term asset: EOS revenue fell to $14M, prompting a reduced FY EOS outlook (~$77M) due to delivery/installation timing, although EOS Insight adoption (U.S. installed base +39% YoY, Insight accounts doubled) is cited as driving meaningful implant pull‑through and ~30% revenue lift per surgeon over time.

Alphatec (NASDAQ:ATEC - Get Free Report) announced its quarterly earnings results on Tuesday. The medical technology company reported ($0.22) EPS for the quarter, missing the consensus estimate of ($0.01) by ($0.21), Zacks reports. The business had revenue of $192.11 million for the quarter, compared to the consensus estimate of $197.51 million.

Here are the key takeaways from Alphatec's conference call:

• Strong surgical momentum: Q1 revenue was $192M with surgical revenue of $178M (+17% YoY), driven by cases up 21% and new surgeons up 23%, which management says demonstrates a durable, compounding adoption model.
• Improving profitability and balance sheet: Gross margin expanded to 71.6% and adjusted EBITDA was $21M (11% of revenue, +97% YoY) while a new term loan and revolver extend maturities to 2031 and are expected to cut interest expense materially.
• Near-term EOS execution shortfall and guidance impact: EOS revenue fell to $14M in Q1 (down $3M YoY) due to fewer system deliveries and installation timing issues, prompting a reduced FY EOS outlook (~$77M) though the company is adding sales, marketing, and support resources.
• EOS Insight remains a strategic long-term asset: Management highlights EOSedge installed base growth (U.S. +39% YoY), EOS Insight accounts more than doubled, meaningful implant pull-through post-go‑live, and a claimed ~30% revenue lift per surgeon after Insight adoption, supporting the platform/moat thesis.

Alphatec Stock Performance

ATEC stock traded down $0.10 during trading on Tuesday, hitting $10.23. The company had a trading volume of 7,527,616 shares, compared to its average volume of 3,005,302. The firm has a 50-day moving average price of $11.78 and a 200-day moving average price of $15.98. Alphatec has a 1-year low of $9.11 and a 1-year high of $23.29. The firm has a market cap of $1.57 billion, a PE ratio of -10.77 and a beta of 0.96. The company has a quick ratio of 1.28, a current ratio of 2.06 and a debt-to-equity ratio of 40.35.

Insider Buying and Selling

In other news, EVP Craig E. Hunsaker sold 82,765 shares of the business's stock in a transaction that occurred on Monday, March 9th. The stock was sold at an average price of $12.45, for a total value of $1,030,424.25. Following the transaction, the executive vice president owned 1,726,209 shares of the company's stock, valued at approximately $21,491,302.05. The trade was a 4.58% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP David Sponsel sold 163,452 shares of the stock in a transaction on Wednesday, March 11th. The stock was sold at an average price of $12.52, for a total value of $2,046,419.04. Following the sale, the executive vice president directly owned 504,932 shares of the company's stock, valued at approximately $6,321,748.64. This represents a 24.45% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 689,614 shares of company stock worth $8,634,850. 22.80% of the stock is currently owned by company insiders.

Institutional Trading of Alphatec

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Voloridge Investment Management LLC purchased a new stake in shares of Alphatec in the fourth quarter valued at about $321,000. Susquehanna Portfolio Strategies LLC acquired a new stake in Alphatec in the fourth quarter valued at about $681,000. Numerai GP LLC acquired a new stake in Alphatec in the fourth quarter valued at about $757,000. Occudo Quantitative Strategies LP lifted its position in Alphatec by 235.4% in the fourth quarter. Occudo Quantitative Strategies LP now owns 269,798 shares of the medical technology company's stock valued at $5,677,000 after purchasing an additional 189,348 shares during the period. Finally, Millennium Management LLC lifted its position in Alphatec by 292.2% in the fourth quarter. Millennium Management LLC now owns 2,225,927 shares of the medical technology company's stock valued at $46,834,000 after purchasing an additional 1,658,349 shares during the period. Hedge funds and other institutional investors own 66.35% of the company's stock.

Wall Street Analyst Weigh In

Several equities analysts have commented on ATEC shares. HC Wainwright reiterated a "buy" rating and issued a $24.00 price target on shares of Alphatec in a research note on Monday, January 12th. Needham & Company LLC reiterated a "buy" rating and issued a $22.00 price target on shares of Alphatec in a research note on Monday, January 12th. Piper Sandler reissued an "overweight" rating on shares of Alphatec in a report on Wednesday, February 25th. Lake Street Capital reissued a "buy" rating on shares of Alphatec in a report on Wednesday, February 25th. Finally, Wall Street Zen raised Alphatec from a "hold" rating to a "buy" rating in a report on Saturday, January 31st. One analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, Alphatec has an average rating of "Moderate Buy" and an average price target of $22.82.

About Alphatec

Alphatec Holdings, Inc NASDAQ: ATEC is a medical technology company focused on the design, development and commercialization of products for the surgical correction of degenerative spinal conditions. The company's portfolio centers on interbody implants, biologics, fixation devices and surgical planning tools intended to improve patient outcomes in spinal fusion procedures. Alphatec's flagship offerings include customizable interbody cages, bone graft materials and specialized instrumentation designed for minimally invasive and open spinal surgeries.

Founded as Alphatec Spine in 1985 and rebranded as Alphatec Holdings in 2018, the company has grown from a single-product organization into a multi-platform innovator in the spine market.

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