Alphatec Holdings, Inc. (NASDAQ: ATEC) Q2 2025 Earnings | 08/01/2025

18 days ago

54:07

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Summary of Alphatec Holdings (ATEC) Q2 2025 Earnings Call

Key Financial Highlights

Revenue Growth:
- Total revenue: $186M (+27% YoY).
- Surgical revenue: $168M (+29% YoY; 6x market growth).
- EOS imaging revenue: $17M (+11% YoY).
Profitability:
- Adjusted EBITDA: $23M (13% margin; 4x YoY growth).
- Free cash flow: $5M (first positive quarter; trailing 12-month cash use improved to $22M).
2025 Guidance Raised:
- Revenue: $742M (up from $732M; surgical: $666M, EOS: $76M).
- Adjusted EBITDA: $83M (up from $78M; implies 11% margin).

Operational & Strategic Updates

Market Share & Growth Drivers:
- Now the #3 U.S. spine player; same-store sales up 29% YoY (demand in established markets).
- Surgeon adoption +21% YoY; procedural volume +28% (driven by lateral/PTP platforms).
- New product launches: Cervical retractor, segmental plating, corpectomy solutions.
EOS Imaging:
- Strong U.S. demand; installed base drives future implant pull-through.
- Higher market share in accounts with EOS due to integrated ecosystem.
Robotics/Navigation (Valence):
- On track for early 2026 launch; alpha testing underway.
- Focus on seamless integration with ATEC’s procedural workflows (e.g., PTP).
- Small footprint (portable) vs. competitors’ bulky systems.
Margin Expansion:
- Gross margin: 70% (flat QoQ; biologics mix offset cervical growth).
- SG&A leverage: Down 1,100 bps YoY (cost discipline + scalable infrastructure).

Q&A Highlights

Robotics Differentiation: ATEC’s system integrates navigation + neurophysiology (SAFOP) into procedural workflows (e.g., PTP) for precision.
Cash Flow Outlook: Positive FCF expected for full-year 2025 ($1–5M in Q3).
Lateral/Deformity Growth: PTP (prone transpsoas) gaining traction; EOS informs deformity planning.
ASC Opportunity: <10% of revenue today but growing (patient selection via EOS).
Capital Allocation: No need for additional financing; prioritizing organic growth + robotics launch.

Long-Term Vision

Ecosystem Strategy: Combines EOS imaging, SAFOP neurophysiology, Valence robotics, and AI-driven Insight Portal to reduce spine surgery variables (targeting 18% EBITDA margin at $1B revenue by 2027).
Focus on "Variable Mitigation": Objective data (vs. "widgets") to improve durability (vs. industry’s 15–30% revision rates).

About this video

Alphatec Holdings, Inc. reported exceptional second quarter 2025 results, delivering GAAP revenue of $186 million—up 27.5% year-over-year and above analyst expectations. The company swung to non-GAAP profitability with earnings per share of $0.02, compared to a non-GAAP loss of ($0.08) per share in Q2 2024. Adjusted EBITDA surged to $23.5 million, a 282% increase from the prior year period, while adjusted EBITDA margin climbed to 13%. Free cash flow turned positive at $5 million, and Alphatec grew its cash reserves to $157 million. The company’s momentum was fueled by continued strength in its core surgical solutions business, highlighted by a 29% jump in surgical revenue to $168 million. Market share gains, 21% growth in surgeon adoption, and robust uptake of the PTP (Prone Transpsoas) and LTP (Lateral Transpsoas) procedural platforms contributed to accelerating performance. EOS imaging and informatics technology continued to support clinical innovation and drive pre-operative and post-operative value for providers. Non-GAAP operating expenses rose just 7% year-over-year, reflecting disciplined investment alongside rapid top-line growth. Management raised full-year 2025 guidance, now expecting total revenue to reach $742 million (up from $734 million) and adjusted EBITDA to $83 million (up from $78 million), citing confidence in surgeon adoption, technology leadership, and leverage from an expanding distribution network. Alphatec remains focused on procedural innovation, clinical differentiation, and operational excellence to sustain its strong growth trajectory in the competitive spinal surgery technology sector. About Inside Ticker: For more expert analysis and real-time updates on Alphatec Holdings, Inc. (NASDAQ: ATEC) and other market movers, follow Inside Ticker and visit http://www.insideticker.com/ for in-depth reports, financial insights, and the latest news on leading companies. #Alphatec #ATEC #Q22025 #Earnings #FinancialResults #RevenueGrowth #Profitability #SpineSurgery #SurgicalInnovation #PTP #LTP #EOSImaging #AdjustedEBITDA #CashFlow #Guidance #SurgeonAdoption #TechLeadership #HealthTech #InsideTicker #2025Outlook

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