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

Alphatec (NASDAQ:ATEC) issued 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. Alphatec had a negative return on equity of 6,752.24% and a negative net margin of 10.35%. The firm had revenue of $221.17 million during the quarter, compared to the consensus estimate of $225.16 million. During the same period last year, the business earned $0.03 earnings per share. The firm’s revenue for the quarter was up 12.6% compared to the same quarter last year.

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

Alphatec stock opened at $7.04 on Friday. The business has a 50 day simple moving average of $10.14 and a 200 day simple moving average of $10.62. The company has a market capitalization of $1.09 billion, a PE ratio of -12.80 and a beta of 0.78. Alphatec has a one year low of $6.81 and a one year high of $23.29.

Key Stories Impacting Alphatec

Here are the key news stories impacting Alphatec this week:

• Positive Sentiment: Third-quarter revenue increased 12.6% year over year to approximately $221.2 million, while earnings of $0.09 per share improved from $0.03 a year earlier. Management continues to target a 16% adjusted EBITDA margin for 2026. Alphatec third-quarter results
• Positive Sentiment: Wells Fargo lowered its price target from $14 to $12 but maintained an “overweight” rating, implying substantial potential upside if Alphatec stabilizes growth and executes on its profitability plans. Wells Fargo rating
• Neutral Sentiment: Analyst expectations remain divided: BMO Capital Markets downgraded the stock to “market perform” with an $8 price target, while other analysts continue to see valuation upside. BMO Capital Markets rating
• Negative Sentiment: Alphatec reduced its 2026 revenue outlook to approximately $862 million from roughly $882 million, below the prior market expectation. Management cited fewer surgeons purchasing its bone-graft products used in spinal-fusion procedures. Alphatec guidance reduction
• Negative Sentiment: Third-quarter adjusted earnings of $0.09 per share and revenue of $221.2 million both missed analyst estimates, reinforcing concerns about slowing demand despite year-over-year growth. Alphatec earnings miss
• Negative Sentiment: Levi & Korsinsky and Ademi LLP announced investigations into potential securities-law violations related to Alphatec’s outlook and subsequent decline. These notices may add reputational and legal risk, although they do not establish wrongdoing. Alphatec investor investigation

Analyst Upgrades and Downgrades

A number of equities analysts have recently issued reports on ATEC shares. BMO Capital Markets cut shares of Alphatec from an “outperform” rating to a “market perform” rating and set a $8.00 price objective for the company. in a research note on Friday. Stephens assumed coverage on shares of Alphatec in a research report on Thursday, July 23rd. They set an “overweight” rating and a $15.00 target price on the stock. Weiss Ratings reiterated a “sell (d-)” rating on shares of Alphatec in a research report on Monday, August 3rd. JPMorgan Chase & Co. lowered their target price on shares of Alphatec from $16.00 to $15.00 and set an “overweight” rating on the stock in a research note on Friday. Finally, TD Cowen lowered their target price on shares of Alphatec from $13.00 to $10.00 and set a “buy” rating on the stock in a research note on Friday. Twelve investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Alphatec currently has an average rating of “Moderate Buy” and a consensus price target of $16.60.

Insiders Place Their Bets

In related news, CEO Patrick Miles acquired 115,000 shares of the company’s stock in a transaction on Thursday, September 10th. The stock was purchased at an average cost of $8.81 per share, for a total transaction of $1,013,150.00. Following the completion of the purchase, the chief executive officer directly owned 5,893,551 shares of the company’s stock, valued at $51,922,184.31. The trade was a 1.99% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, General Counsel Tyson Marshall sold 8,168 shares of the stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $9.65, for a total value of $78,821.20. Following the transaction, the general counsel owned 630,398 shares of the company’s stock, valued at $6,083,340.70. This represents a 1.28% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 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. Corporate insiders own 13.48% of the company’s stock.

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.