Alphatec Holdings, Inc. (ATEC)

Price$8.84Cached quoteAs of 2026-09-11 06:08 UTC

AI: Overvalued

Price checkThe price requires years of stronger cash generation despite heavy debt and more shares.

At the observed quote, 154.5 million shares imply an equity value near $1.63 billion. Adding $550 million of debt net of cash gives an enterprise value—what a buyer effectively pays for the operations—near $2.18 billion. That is about 2.5 times management’s $882 million 2026 sales outlook and 15.6 times its $140 million adjusted earnings target. Yet the $20 million minimum free-cash-flow goal implies over 80 times cash left after operations and investment. That is too demanding for a still-loss-making, leveraged company.

Big pictureSales are expanding quickly, but durable owner earnings have only begun to appear.

Revenue climbed 25% to $764 million in 2025, and second-quarter 2026 revenue rose 15% to $214 million. The quarterly operating loss narrowed to $1.9 million from $13.1 million a year earlier, but the net loss remained $25.8 million. Over the four quarters through June, operating cash flow was about $56.5 million and capital spending was $54.2 million, leaving only $2.3 million of free cash flow—cash left after running and investing in the business. Procedure slowdowns would pressure sales while substantial selling, development, and interest costs remain.

Business strengthSurgeon adoption and wide profit margins support growth, while leverage limits protection.

Second-quarter surgical case volume grew 20%, net new surgeon users increased 24%, and surgical revenue rose 17% to $196 million. Gross margin—the share of sales remaining after product costs—improved to 72.2%, suggesting meaningful value in Alphatec’s integrated spine platform. The balance sheet is less reassuring: June cash was $119 million against $669 million of debt, producing $550 million of net debt and a $12 million equity deficit. Current assets of $449 million covered $238 million of current liabilities, but that near-term liquidity does not remove refinancing or interest risk.

What could change the storyReliable cash growth without new borrowing or issuing many shares would make the valuation easier to defend.

The strongest bull case requires Alphatec to meet its $882 million sales and $140 million adjusted earnings targets, then lift annual free cash flow toward roughly $100 million; at that level, the observed equity value would equal about 16 times cash generation. The bear case is cash remaining near the $20 million target while net debt stays around $550 million. Shares outstanding increased 7.2% from year-end 2024 to June 2026, while first-half stock compensation was $41.8 million and repurchases were only $2.2 million. Cash growth must outpace dilution.

AI: News

Chief executive buys sharesA large personal purchase signaled confidence and coincided with a sharp one-day rebound.

An SEC filing showed that Chief Executive Patrick Miles bought 115,000 shares on September 10 for about $1.01 million, increasing his direct holding to roughly 5.9 million shares. The stock closed 19.7% higher in the following session on unusually heavy volume. Contemporary coverage connected the move to the disclosure, although the broader market also rose and timing cannot prove the purchase caused the entire gain. The transaction may strengthen confidence, but it does not directly improve Alphatec’s cash flow or debt position.

Growth, margins, cash improveSecond-quarter growth stayed strong, losses narrowed, and management raised its underlying profit outlook.

On August 4, Alphatec reported $214 million of second-quarter revenue, up 15%, as surgical revenue rose 17% and case volume grew 20%. The operating loss narrowed sharply, and management lifted its adjusted earnings before interest, taxes, depreciation, and amortization target to $140 million from $134 million. It retained an $882 million revenue outlook and at least $20 million of free cash flow. Shares closed about 7.5% lower in the next session; the timing suggests disappointment somewhere in the update but does not establish a single cause.

Debt refinanced through 2031New bank financing lowered expected interest costs and pushed major maturities farther away.

Announced May 5, the facility combined a $175 million term loan with a $125 million revolving credit line and refinanced older secured borrowings. The initial rate was a floating benchmark plus 2.75 percentage points, and management projected more than $6 million of annual interest savings and over $35 million across the facility’s life. Extending maturity to 2031 reduced near-term refinancing pressure. However, total debt still reached $669 million by June, so the transaction improved the debt structure without removing the balance-sheet risk.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009
Revenue	$764.2M	$611.6M	$482.3M	$350.9M	$243.2M	$144.9M	$113.4M	$91.7M	$101.7M	$120.2M	$134.4M	$154.6M	$204.7M	$196.3M	$197.7M	$171.6M	$120.6M
Gross profit	$531.9M	$424.3M	$310.2M	$233.1M	$157.8M	$102.5M	$77.6M	$63.2M	$68.2M	$76.1M	$88.0M	$109.7M	$124.3M	$123.8M	$116.9M	$112.8M	$81.0M
Gross margin	69.60%	69.37%	64.32%	66.42%	64.87%	70.76%	68.41%	68.97%	67.06%	63.31%	65.50%	70.92%	60.73%	63.06%	59.14%	65.74%	67.16%
Research & development	$76.3M	$80.7M	$70.1M	$44.0M	$32.0M	$18.7M	$13.8M	$9.9M	$4.9M	$9.2M	$17.6M	$16.6M	$14.2M	$14.9M	$16.9M	$16.4M	$13.5M
Operating expenses	$614.0M	$560.4M	$483.6M	$380.0M	$285.8M	$161.4M	$124.9M	$85.7M	$77.2M	$91.5M	$263.9M	$108.2M	$197.8M	$133.6M	$141.4M	$124.6M	$91.2M
Operating income	−$82.1M	−$136.2M	−$173.4M	−$147.0M	−$128.1M	−$58.9M	−$47.3M	−$22.4M	−$9.0M	−$15.4M	−$175.9M	$1.5M	−$73.4M	−$9.8M	−$24.5M	−$11.8M	−$10.2M
Operating margin	−10.75%	−22.27%	−35.95%	−41.89%	−52.65%	−40.63%	−41.68%	−24.47%	−8.85%	−12.79%	−130.86%	0.96%	−35.87%	−5.01%	−12.40%	−6.87%	−8.44%
EBITDA	−$4.6M	−$57.8M	−$117.3M	−$105.8M	−$101.3M	−$47.9M	−$39.7M	−$15.7M	−$1.5M	−$3.0M	−$156.8M	$19.9M	−$47.2M	$14.0M	−$4.6M	$5.5M	$1.8M
EBITDA margin	−0.61%	−9.44%	−24.31%	−30.16%	−41.65%	−33.08%	−35.00%	−17.07%	−1.50%	−2.51%	−116.69%	12.85%	−23.03%	7.11%	−2.35%	3.18%	1.47%
Net income	−$143.4M	−$162.1M	−$186.6M	−$151.3M	−$143.0M	−$79.0M	−$57.0M	−$29.0M	−$2.3M	−$29.9M	−$178.7M	−$12.9M	−$82.2M	−$15.5M	−$22.2M	−$14.4M	−$13.3M
Net profit margin	−18.76%	−26.51%	−38.70%	−43.12%	−58.81%	−54.53%	−50.25%	−31.60%	−2.25%	−24.89%	−132.96%	−8.33%	−40.16%	−7.88%	−11.22%	−8.36%	−11.02%
Basic EPSper basic share	-$0.96	-$1.13	-$1.54	-$1.46	-$1.49	-$1.18	-$1.09	-$1.20	-$0.18	-$3.49	-$21.53	-$1.59	-$10.20	-$2.04	-$3.00	-$2.16	-$3.24
Diluted EPSper diluted share	-$0.96	-$1.13	-$1.54	-$1.46	-$1.49	-$1.18	-$1.09	-$1.20	-$1.08	-$3.49	-$21.53	-$1.90	-$10.20	-$2.04	-$3.00	-$2.16	-$3.24

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

≈8.72%of listed shares

Pritzker Jennifer N.13.47M shares · Dec 9, 2025

View holders

Top 20 reported holders of ATEC
Holder	% owned
Pritzker Jennifer N.	≈8.72%13.47M shares
BlackRock, Inc.	7.33%11.33M shares
Pelizzon David R	≈6.97%10.77M shares
Squadron Capital LLC	≈6.89%10.65M shares
Squadron Capital Holdings LLC	≈6.89%10.65M shares
BRAIDWELL LP	4.23%6.53M shares
AMERICAN CENTURY COMPANIES INC	4.22%6.52M shares
Miles Patrick	≈3.91%6.04M shares
VANGUARD CAPITAL MANAGEMENT LLC	3.32%5.12M shares
BNP PARIBAS ASSET MANAGEMENT Holding S.A.	2.29%3.54M shares
STATE STREET CORP	2.25%3.48M shares
JACOBS LEVY EQUITY MANAGEMENT, INC	2.17%3.35M shares
GEODE CAPITAL MANAGEMENT, LLC	2.06%3.19M shares
ROYAL BANK OF CANADA	1.94%3M shares
Nuveen, LLC	1.68%2.6M shares
TREMBLANT CAPITAL GROUP	1.67%2.58M shares
CITADEL ADVISORS LLC	1.59%2.46M shares
AQR CAPITAL MANAGEMENT LLC	1.54%2.39M shares
WOODS WARD W JR	≈1.43%2.21M shares
EMERALD ADVISERS, LLC	1.36%2.1M shares

Percentages use 154.49M shares of this listed class outstanding on Jun 30, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 4 ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys9$2.15M disclosed value

Sells (SEC code S)86$120.06M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 11, 2026Form 4 · 10b5-1	MCGINNIS KAREN KDirector	SellCommon Stock	6.0K	$8.01	$48.5K	94.7K
May 11, 2026Form 4	Valentine KeithDirector	BuyCommon Stock	35.0K	$7.00	$245.0K	232.3K
May 8, 2026Form 4	Valentine KeithDirector	BuyCommon Stock	43.8K	$7.54	$330.6K	197.3K
May 7, 2026Form 4	Valentine KeithDirector	BuyCommon Stock	56.2K	$7.49	$420.6K	153.4K
Mar 13, 2026Form 4	Lish ScottCHIEF OPERATING OFFICER	SellCommon Stock	260.5K	$12.30	$3.20M	815.7K

Review ownership filings at SEC.gov ↗

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Alphatec Holdings, Inc. (ATEC)

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