Alphatec (NASDAQ:ATEC) Announces Quarterly Earnings Results, Misses Expectations By $0.01 EPS

Alphatec (NASDAQ:ATEC) posted its earnings results on Thursday. The medical technology company reported $0.09 EPS for the quarter, missing the consensus estimate of $0.10 by ($0.01), FiscalAI reports. The company had revenue of $221.17 million for the quarter, compared to analyst estimates of $225.16 million. Alphatec had a negative return on equity of 6,752.24% and a negative net margin of 13.49%. The firm’s revenue was up 12.6% on a year-over-year basis. During the same period last year, the business earned $0.03 earnings per share.

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

• ATEC reported 13% revenue growth to $221 million, driven by 17% surgical hardware growth, approximately 20% procedural-volume growth, and 25% new-surgeon growth. Management said these adoption metrics support its long-term growth strategy despite revenue missing expectations.
• Profitability continued to improve: adjusted EBITDA rose 46% year over year to $38 million, with margin expanding to 17%, while the company generated approximately $6 million of free cash flow. Gross margin reached 72%, up nearly 200 basis points.
• ATEC lowered full-year 2026 guidance to approximately $862 million of revenue, $137 million of adjusted EBITDA, and $10 million of free cash flow. The reduction reflects weaker biologics attachment, softer thoracolumbar procedure volumes, and an international supply constraint expected to affect sales by about $3 million.
• Biologics revenue declined about $1 million year over year in the third quarter, reducing revenue per case by 5% and leaving biologics revenue contribution flat for the full year. Management acknowledged execution and sales-discipline issues, though it expects sequentially flat biologics performance in Q4 rather than an immediate recovery.
• EOS revenue was $20 million, essentially flat year over year, as hospital capital budgets and installation timing remained lumpy despite what management described as healthy underlying demand. ATEC continues to position EOS Insight, Valence, and SafeOp as long-term drivers of deeper surgeon adoption and procedural growth.

Alphatec Price Performance

Shares of Alphatec stock opened at $11.37 on Friday. The business has a 50-day moving average of $10.18 and a 200 day moving average of $10.67. Alphatec has a 12 month low of $6.82 and a 12 month high of $23.29. The stock has a market capitalization of $1.76 billion, a price-to-earnings ratio of -16.01 and a beta of 0.78.

Insiders Place Their Bets

In other Alphatec news, General Counsel Tyson Marshall sold 8,168 shares of the business’s stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $9.65, for a total transaction of $78,821.20. Following the transaction, the general counsel owned 630,398 shares in the company, valued at approximately $6,083,340.70. The trade was a 1.28% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Patrick Miles acquired 115,000 shares of the company’s stock in a transaction that occurred on Thursday, September 10th. The stock was purchased at an average cost of $8.81 per share, with a total value of $1,013,150.00. Following the completion of the purchase, the chief executive officer directly owned 5,893,551 shares in the company, valued at $51,922,184.31. This represents a 1.99% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. 13.48% of the stock is currently owned by corporate insiders.

Analysts Set New Price Targets

ATEC has been the subject of several recent research reports. UBS Group increased their price objective on Alphatec from $15.00 to $16.00 and gave the company a “buy” rating in a research note on Wednesday, August 5th. Needham & Company LLC reiterated a “buy” rating on shares of Alphatec in a research report on Friday. Weiss Ratings reissued a “sell (d-)” rating on shares of Alphatec in a research note on Monday, August 3rd. Wall Street Zen downgraded shares of Alphatec from a “buy” rating to a “hold” rating in a report on Sunday, October 11th. Finally, TD Cowen reissued a “buy” rating on shares of Alphatec in a research report on Friday. Thirteen analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $17.40.

About Alphatec

Alphatec Holdings, Inc is a medical technology company focused on the design, development and commercialization of products and procedural solutions for spine surgery. The company aims to improve the treatment of spinal disorders through technologies that support spinal fusion, deformity correction, reconstruction and minimally invasive procedures.

Its portfolio includes spinal implants, surgical instruments, navigation and imaging technologies, and intraoperative monitoring solutions.