Alphatec Holdings, Inc. (ATEC) reported its fourth‑quarter and full‑year 2025 financial results, marking the company’s first earnings announcement of the year. The company posted Q4 revenue of $213 million, up 20% year‑over‑year, and full‑year revenue of $764 million, a 25% increase from 2024.
GAAP gross margin stood at 70% and non‑GAAP gross margin at 71%, reflecting a 0.5‑percentage‑point improvement over the prior year driven by higher mix of high‑margin surgical products and volume leverage. Non‑GAAP adjusted EBITDA reached $33 million for the quarter, a 16% margin, and $93 million for the year, a 12% margin.
The company reported a GAAP net loss of $22 million for Q4, a slight decline from the $21.7 million loss reported in the same period a year earlier, while non‑GAAP net income was $9 million. Positive free cash flow of $8 million was generated in the quarter, and the company achieved $3 million in free cash flow for the full year, the first time it has generated positive cash flow from operations.
Revenue was driven by $190 million in surgical revenue and $23 million in EOS imaging revenue. Surgical revenue grew 21% year‑over‑year, supported by a 23% increase in net new surgeon users, while EOS revenue remained flat. The company’s integrated ecosystem of SafeOp neural monitoring, EOS imaging, and the newly cleared Valence intra‑operative platform is expected to deepen surgeon adoption and drive future revenue growth.
Management guided for full‑year 2026 revenue of $890 million, including $805 million in surgical revenue and $85 million in EOS revenue, and adjusted EBITDA of $134 million, a 15% margin. Free cash flow guidance of at least $20 million reflects confidence in continued cash generation. The company also reiterated its long‑term target of $1 billion in revenue and an 18% EBITDA margin by 2027.
Alphatec’s CEO Patrick Miles highlighted the company’s 100% spine focus and the milestone of achieving positive free cash flow, noting that "2025 was a defining year for ATEC. Achieving positive free cash flow marks a pivotal milestone, as we transition to cash generation and self‑sustaining growth." CFO J. Koning added that "Our fourth quarter exit rate of 16% adjusted EBITDA margin reinforces confidence in our 2026 guidance and long‑range plan commitments." The company also emphasized that its non‑GAAP gross margin is expected to "approach 71% as we exit 2026," with operating expenses growing 11% versus the 17% revenue growth assumption, driving "nearly 400 basis points" of operating margin improvement compared to 2025.
The company’s Valence platform, a navigation and robotics system, was cleared for release and is slated for controlled rollout throughout 2026, with Patrick Miles stating, "We are very excited for controlled release throughout 2026." The launch is expected to accelerate adoption of the company’s integrated ecosystem and support the company’s transition from a cash‑burning growth phase to a self‑funding model.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.