US Market News
2 months ago
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
US Market News
5 months ago
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
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