10-Q · May 5, 2026
Alphatec Holdings, Inc. reported Q1 2026 results with total revenue of $192.1 million, missing estimates by 2.58%, while EPS was at $0.00, beating estimates of -$0.03. Overall, the company continues to focus on capital…
Earnings analysis · 10-Q
ATEC earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
Alphatec delivered $213.513 million of Q2 revenue, up 15% year over year and 11.2% sequentially, while gross margin expanded to 72.2% and operating margin improved to negative 0.9% from negative 7.1% a year earlier.…
Read full summary
Alphatec delivered $213.513 million of Q2 revenue, up 15% year over year and 11.2% sequentially, while gross margin expanded to 72.2% and operating margin improved to negative 0.9% from negative 7.1% a year earlier. Operating cash flow for the first half rose to $21.803 million, but cash fell to $118.7 million as investing outflows reached $42.609 million. The May refinancing extends the new JPM facilities to 2031, though the company retains approximately $684.6 million of disclosed borrowings and $63.3 million of notes due in August 2026.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
What stood out
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Revenue growth remained double digit
Q2 revenue increased $28.0 million, or 15%, year over year to $213.513 million. Revenue also rose $21.513 million, or 11.2%, from $192 million in Q1 2026, driven by a larger surgeon user base, new-product portfolio expansion, and technology adoption.
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Gross margin expanded about 260 bps
Gross margin was 72.2% in Q2 2026, calculated from $213.513 million of revenue and $59.415 million of cost of sales, versus 69.6% a year earlier. Cost of sales rose only 5%, or $2.972 million, against 15% revenue growth.
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Operating margin approached breakeven
Operating loss narrowed materially: operating margin improved to negative 0.9%, calculated from a $1.908 million operating loss, from negative 7.1% in Q2 2025. The sequential improvement was also substantial from negative 11.8% in Q1 2026.
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Operating cash flow more than doubled
Six-month operating cash flow increased to $21.803 million from $10.509 million in the prior-year period. Management attributed the inflow to cash collections, partly offset by growth-related operating costs and inventory purchases.
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Debt maturities extended to 2031
The company refinanced its credit facilities in May, borrowing $175.0 million under a term loan and $40.0 million under a revolver, both maturing May 1, 2031, and used proceeds plus cash to repay prior Braidwell and MidCap facilities.
What to watch
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Cash balance fell amid high investment
Cash and cash equivalents declined $42.1 million to $118.7 million at June 30, 2026 from $160.8 million at December 31, 2025. Six-month investing cash use was $42.609 million, including surgical-instrument purchases and a $5.0 million note receivable.
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Leverage remains high; near-term notes mature
Total disclosed borrowings were approximately $684.6 million at June 30, 2026: $175.0 million JPM term loan, $40.0 million JPM revolver, $63.3 million of 2026 Notes, $405.0 million of 2030 Notes, and $1.3 million of other debt. The $63.3 million 2026 Notes mature in August 2026.
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Interest and refinancing charges weigh on earnings
The company recorded $23.717 million of Q2 other expense, including $10.964 million of net interest expense and an $11.883 million loss on debt extinguishment. Although operating loss narrowed to $1.908 million, these financing costs remain a significant drag on GAAP profitability.
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No material risk-factor updates
No material changes were reported to risk factors from the 2025 Form 10-K. However, the filing notes a remaining $2.4 million minimum inventory purchase commitment through December 2026, adding a fixed procurement obligation.
Management's outlook
The 10-Q does not provide quantitative revenue or EPS guidance in MD&A. Quantitative FY2026 outlook was addressed in the separately filed earnings release rather than this quarterly report.
Earlier filings 4
10-K · February 24, 2026
Alphatec reported total revenue of $764.2 million for the year ended December 31, 2025, a 25% increase versus $611.6 million in 2024, driven by surgeon adoption and higher surgical volume. Margins and cash flow trended…
10-Q · May 1, 2025
Alphatec reported Q1 revenue of $169.18M (up $30.703M or 22.2% vs $138.477M a year ago) with gross profit of $115.996M (68.6% margin) and an operating loss of $44.291M (−26.2% operating margin). Operating cash use…
10-Q · May 7, 2024
Alphatec reported Q1 revenue of $138,477,000, up $29,367,000 or 26.9% versus Q1 2023 ($109,110,000), with gross profit rising to $97,351,000 (70.3% gross margin). Despite top-line and gross-margin improvement, operating…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.