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1. Company Snapshot

1.a. Company Description

Alphatec Holdings, Inc., a medical technology company, designs, develops, and advances technologies for the surgical treatment of spinal disorders.The company offers SafeOp Neural InformatiX System, an Alpha InformatiX product platform designed to reduce the risk of intraoperative nerve injury; Sigma transforaminal lumbar interbody fusion pedicle-based access system that provides direct visualization of anatomical landmarks; Sigma PTP Access and Patient Positioning System; squadron lateral retractor designed to maximize patient outcomes; Invictus Spinal Fixation System, a thoracolumbar fixation system to treat a range of pathologies; and Invictus MIS SingleStep System that provides minimally invasive pedicle screw placement.It also provides Invictus Modular Fixation Systems designed to increase adaptability with the power of screw modularity; OsseoScrew system to restore the integrity of the spinal column; Arsenal spinal fixation system, a comprehensive thoracolumbar fixation platform to fix a range of degenerative to deformity pathologies and surgical procedures; Aspida Anterior Lumbar Plating System, a fixation system for anterior lumbar interbody fusion; AMP Anti-Migration Plate; OCT Spinal Fixation System; trestle luxe anterior cervical plate system; and Insignia Anterior Cervical Plate System.


In addition, the company offers IdentiTi Porous Ti, Transcend Lateral, and Battalion Posterior Interbody Implants; and biologics consisting of Cervical Structural Allograft Spacers, 3D ProFuse Demineralized Bone Scaffold, Neocore Osteoconductive Matrix, Alphagraft Demineralized and Cellular Bone Matrix, and Amnioshield Amniotic Tissue Barrier, as well as EOS imaging products.It sells its products through a network of independent distributors and direct sales representatives in the United States.The company was founded in 1990 and is headquartered in Carlsbad, California.

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1.b. Last Insights on ATEC

Alphatec Holdings, Inc. has been driven by positive developments in the past three months. The company's Q4 2024 earnings call highlighted its innovative solutions for spine surgery, with CEO Pat Miles emphasizing the company's commitment to revolutionizing the approach to spine surgery. Additionally, Alphatec priced an upsized $350 million convertible senior notes offering, providing the company with a significant influx of capital to drive future growth. The consensus price target suggests a 73.42% upside potential, according to analysts, indicating a positive outlook for the company.

1.c. Company Highlights

2. ATEC's Q3 Earnings: A Strong Performance

ATEC reported a robust Q3 with total revenue of $197 million, up 30% year-over-year and 5% sequentially. The company's adjusted EBITDA reached a record $26 million, or 13% of sales, with a significant 1,100 basis point expansion in operating margin year-over-year. The earnings per share (EPS) came in at $0.03, beating estimates of -$0.03. The strong financial performance was driven by surgical revenue growth of 31%, fueled by surgeon adoption and increased utilization.

Publication Date: Nov -29

📋 Highlights
  • 30% Revenue Growth: Q3 surgical revenue surged 31% YoY to $197M, with sequential 5% growth, driven by surgeon adoption and EOS integration.
  • 13% Adjusted EBITDA Margin: Record $26M adjusted EBITDA (13% of sales) achieved, with 1,100 bps YoY margin expansion.
  • $216M Cash Position: $156M cash on hand and $60M available borrowing, alongside $5M positive free cash flow for the quarter.
  • $760M Full-Year Revenue Guidance: Raised by $18M to $760M, with surgical revenue targeting $684M and adjusted EBITDA of $91M.
  • 2027 Financial Commitments: Aiming for $1B revenue, 18% adjusted EBITDA, and $65M free cash flow, underpinned by deformity growth and Valence integration.

Financial Highlights

The company's balance sheet remains solid, with $156 million in cash on hand and access to $60 million of available borrowing on its revolving credit line, totaling $216 million in cash and available cash. ATEC generated $5 million in positive free cash flow and expects to deliver positive free cash flow for the full year 2025. The company's guidance for full-year revenue has been raised to $760 million, with adjusted EBITDA expected to reach $91 million.

Growth Drivers

ATEC's growth is being driven by its focus on creating clinical distinction, compelling surgeon adoption, and driving outcome improvement. The company's expanding indications, increasing complexity, and integration of technology are expected to continue to fuel growth. As Patrick Miles noted, "We're in the infancy of our influence in deformity... We have a significant opportunity in the deformity space, particularly in idiopathic and adult deformity." The EOS deformity opportunity is creating another growth driver, with the company's integrated product effort advancing deformity treatment.

Valuation Metrics

ATEC's valuation metrics indicate a premium valuation, with a P/S Ratio of 6.29 and an EV/EBITDA ratio of -51.8. The company's P/E Ratio is -22.03, and the ROE is -10368.75%. Analysts estimate next year's revenue growth at 16.6%, which may justify some of the premium valuation. However, investors should carefully consider these metrics when evaluating the company's prospects.

Outlook

ATEC's management is confident in the company's ability to continue delivering on its financial commitments and translating revenue growth into profit and cash flow. The company is well-positioned to meet or exceed its 2027 financial commitments of $1 billion in revenue, 18% adjusted EBITDA, and $65 million of free cash flow. With a strong foundation in place, ATEC is poised for continued growth and success in the spine market.

3. NewsRoom

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ATEC Mourns Passing of Board Member Jeffrey P. Rydin

Nov -07

Source: businesswire.com

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Alphatec Holdings, Inc. (ATEC) Q3 2025 Earnings Call Transcript

Oct -31

Source: seekingalpha.com

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Alphatec (ATEC) Q3 Earnings and Revenues Surpass Estimates

Oct -30

Source: zacks.com

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Alphatec (ATEC) to Release Earnings on Thursday

Oct -23

Source: defenseworld.net

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These 3 health tech stocks spiked 37% in a day; Time to buy?

Aug -04

Source: finbold.com

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Alphatec (ATEC) Q2 Revenue Jumps 27%

Aug -01

Source: fool.com

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Alphatec Holdings, Inc. (ATEC) Q2 2025 Earnings Call Transcript

Aug -01

Source: seekingalpha.com

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Alphatec (ATEC) Beats Q2 Earnings and Revenue Estimates

Jul -31

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.50%)

6. Segments

Spinal Fusion Technology Products for the Treatment of Spinal Disorders

Expected Growth: 8.5%

Increasing prevalence of spinal disorders, growing demand for minimally invasive surgeries, advancements in spinal fusion technology, and strategic partnerships driving adoption of Alphatec's products, particularly in the degenerative spine and deformity correction markets, contributing to an 8.5% growth rate.

7. Detailed Products

Skeletal Fixation Systems

Alphatec's Skeletal Fixation Systems provide surgeons with a comprehensive range of implants and instruments for treating various spinal disorders and deformities.

Biologics

Alphatec's Biologics portfolio offers a range of biomaterials and bioactive factors designed to enhance bone growth and fusion.

Motion Preservation and Restoration

Alphatec's Motion Preservation and Restoration products are designed to preserve and restore natural spinal motion, reducing the need for fusion.

Minimally Invasive Surgery (MIS) Systems

Alphatec's MIS Systems provide surgeons with a range of instruments and implants for minimally invasive spinal procedures.

Cervical Products

Alphatec's Cervical Products are designed to treat a range of cervical spine conditions, including herniated discs and spinal stenosis.

8. Alphatec Holdings, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Alphatec Holdings, Inc. operates in a niche market with limited substitutes, but the threat of substitutes is still present due to the evolving nature of spinal surgery and the potential for new technologies to emerge.

Bargaining Power Of Customers

Alphatec Holdings, Inc.'s customers, primarily surgeons and hospitals, have limited bargaining power due to the specialized nature of the company's products and the lack of alternative suppliers.

Bargaining Power Of Suppliers

Alphatec Holdings, Inc. relies on a limited number of suppliers for its raw materials, which gives them some bargaining power, but the company's size and scale also provide it with some negotiating leverage.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the spinal surgery market, including the need for significant capital investment, regulatory approvals, and specialized expertise.

Intensity Of Rivalry

The spinal surgery market is highly competitive, with several established players competing for market share, which drives innovation and pricing pressure.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 83.59%
Debt Cost 3.95%
Equity Weight 16.41%
Equity Cost 11.34%
WACC 5.16%
Leverage 509.25%

11. Quality Control: Alphatec Holdings, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Alphatec Holdings

A-Score: 4.5/10

Value: 6.6

Growth: 5.4

Quality: 2.9

Yield: 0.0

Momentum: 10.0

Volatility: 2.3

1-Year Total Return ->

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Paragon 28

A-Score: 4.5/10

Value: 6.6

Growth: 1.7

Quality: 4.6

Yield: 0.0

Momentum: 10.0

Volatility: 4.3

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Senseonics Holdings

A-Score: 3.7/10

Value: 6.0

Growth: 5.6

Quality: 2.5

Yield: 0.0

Momentum: 7.0

Volatility: 1.0

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Biomerica

A-Score: 3.6/10

Value: 8.2

Growth: 2.8

Quality: 3.5

Yield: 0.0

Momentum: 6.5

Volatility: 0.7

1-Year Total Return ->

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Inogen

A-Score: 3.6/10

Value: 8.8

Growth: 1.4

Quality: 4.5

Yield: 0.0

Momentum: 4.0

Volatility: 2.7

1-Year Total Return ->

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Sight Sciences

A-Score: 3.1/10

Value: 7.0

Growth: 5.8

Quality: 4.1

Yield: 0.0

Momentum: 1.0

Volatility: 1.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

21.45$

Current Price

21.45$

Potential

-0.00%

Expected Cash-Flows