Alphatec Holdings Inc
NASDAQ:ATEC
Alphatec Holdings Inc
Alphatec Holdings Inc., often recognized under its brand ATEC, is a dynamic entity within the spinal solutions market. The company, based in Carlsbad, California, has passionately committed to transforming spinal surgeries, focusing on surgical innovation to solve the most persistent challenges faced by surgeons. ATEC started with a vision to shake up the staid, conventional spine surgery landscape by leveraging technology to improve surgical techniques and patient outcomes. This commitment to innovation is evident in its robust pipeline of products designed for various spinal disorders and conditions. By investing heavily in research and development, ATEC consistently brings to market cutting-edge solutions that align with its goal of revolutionizing surgical spine treatment. Its approach to problem-solving sets it apart: rather than an off-the-shelf attitude, ATEC works closely with surgeons to create tailored solutions that meet the individualized needs of their patients.
The financial engine of Alphatec revolves around the commercial reach of its proprietary spinal hardware and biologics portfolio. The company taps into a growing demand for advanced spinal surgery technologies, channeling its expansive product line through its sales team and collaboration with distribution partners. Revenues primarily stem from product sales, where the integration of new technologies such as its AlphaInformatiX platform, an integrated software suite, enhances the surgical experience through real-time analytics and visualization, creating additional value for healthcare providers. By focusing on high-margin, innovative products, while continually expanding its distribution networks and scaling its operations to meet increasing demand, ATEC positions itself as an essential player with the potential for sustainable revenue growth in the competitive spine surgery market.
Alphatec Holdings Inc., often recognized under its brand ATEC, is a dynamic entity within the spinal solutions market. The company, based in Carlsbad, California, has passionately committed to transforming spinal surgeries, focusing on surgical innovation to solve the most persistent challenges faced by surgeons. ATEC started with a vision to shake up the staid, conventional spine surgery landscape by leveraging technology to improve surgical techniques and patient outcomes. This commitment to innovation is evident in its robust pipeline of products designed for various spinal disorders and conditions. By investing heavily in research and development, ATEC consistently brings to market cutting-edge solutions that align with its goal of revolutionizing surgical spine treatment. Its approach to problem-solving sets it apart: rather than an off-the-shelf attitude, ATEC works closely with surgeons to create tailored solutions that meet the individualized needs of their patients.
The financial engine of Alphatec revolves around the commercial reach of its proprietary spinal hardware and biologics portfolio. The company taps into a growing demand for advanced spinal surgery technologies, channeling its expansive product line through its sales team and collaboration with distribution partners. Revenues primarily stem from product sales, where the integration of new technologies such as its AlphaInformatiX platform, an integrated software suite, enhances the surgical experience through real-time analytics and visualization, creating additional value for healthcare providers. By focusing on high-margin, innovative products, while continually expanding its distribution networks and scaling its operations to meet increasing demand, ATEC positions itself as an essential player with the potential for sustainable revenue growth in the competitive spine surgery market.
Revenue Growth: ATEC reported Q4 revenue of $213 million, up 20% year-over-year, with full-year 2025 revenue reaching $764 million, a 25% increase.
Surgical Revenue: Surgical revenue rose 21% in Q4 and 26% for the year, driven by strong procedural volume and new surgeon adoption.
Profitability: Q4 adjusted EBITDA was $33 million, up 61% year-over-year, while full-year adjusted EBITDA was $93 million, about 12% of sales.
Margin Expansion: Gross margin improved, and operating expenses grew slower than revenue, supporting nearly 400 basis points of operating margin expansion.
Cash Generation: The company turned free cash flow positive for the first time in 2025, with $8 million in Q4 and $3 million for the year.
2026 Guidance: Management guided 2026 revenue to $890 million, raised adjusted EBITDA guidance to $134 million (15% margin), and expects at least $20 million in free cash flow.
Product & Ecosystem Innovation: Multiple new technology releases and an expanding procedural approach are fueling adoption and differentiation.
Surgeon Adoption: Net new surgeon users increased 23% in Q4, with the company emphasizing sustained growth from both new and existing users.
