10-Q · August 4, 2026
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.…
Earnings analysis · 10-Q
ATEC earnings analysis
Filed October 29, 2026 · Our reading of the company's report
The latest report
ATEC delivered strong year-over-year improvement in Q3 2026, with revenue up 13%, gross margin expanding to approximately 71.5%, and operating income turning positive at $3.245 million. GAAP EPS remained negative at…
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ATEC delivered strong year-over-year improvement in Q3 2026, with revenue up 13%, gross margin expanding to approximately 71.5%, and operating income turning positive at $3.245 million. GAAP EPS remained negative at $(0.03), but losses narrowed materially and nine-month operating cash flow improved to $40.659 million. The principal offset is financial flexibility: cash fell to $79.936 million while net debt was $546.999 million, and inventory increased to $206.873 million. Management provided no new quantitative guidance in the 10-Q and stated that no material risk-factor changes occurred.
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.
Reported figures
- Earnings per share
- $-0.03
- Segment
- The company operates in one reportable segment; Q3 2026 revenue was $221.172 million, up 13% from $196.503 million in Q3 2025.
- Segment
- United States revenue was $206.257 million, up from $184.376 million year over year; international revenue was $14.915 million, up from $12.127 million.
What stood out
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Revenue grew 13% year over year
Revenue increased to $221.172 million from $196.503 million in Q3 2025, a 13% year-over-year increase, driven by higher product volume, a larger surgeon user base, new products, and technology adoption. Revenue also increased from $214 million in Q2 2026.
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Gross margin expanded year over year
Gross profit rose to $158.246 million from $137.300 million, lifting gross margin to approximately 71.5% from 69.9% in Q3 2025, although margin declined from approximately 72.2% in Q2 2026.
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Operations reached profitability
Operating income improved to $3.245 million from an operating loss of $15.933 million in Q3 2025, producing an approximately 1.5% operating margin versus negative 8.1% a year earlier.
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GAAP loss narrowed materially
GAAP diluted loss per share improved to $(0.03) from $(0.19) in Q3 2025 and $(0.16) in Q2 2026. Net loss narrowed to $5.471 million from $28.578 million year over year.
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Operating cash flow improved
Nine-month operating cash flow increased to $40.659 million from $24.549 million in the prior-year period. Management attributed the 2026 result primarily to cash collections, partly offset by business expansion costs and inventory purchases.
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Growth remained broad-based
U.S. revenue increased to $206.257 million from $184.376 million, while international revenue increased to $14.915 million from $12.127 million, indicating growth across both geographic markets.
What to watch
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Liquidity declined significantly
Cash and cash equivalents declined to $79.936 million from $160.806 million at December 31, 2025. Management says it may need to access capital markets as current borrowing sources become due, despite stating that existing liquidity and financing access are currently adequate.
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Substantial debt and covenant risk
Total debt was $546.999 million net of unamortized debt discount and issuance costs at September 30, 2026, including $405.000 million of 2030 Notes and $173.9 million outstanding under the JPM Term Loan. The JPM facilities require a Senior Secured Net Leverage Ratio no greater than 3.00 to 1.00 and a Fixed Charge Coverage Ratio of at least 2.00 to 1.00.
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Inventory growth and obsolescence
Inventory increased to $206.873 million from $169.444 million at December 31, 2025, while the company recorded an $11.241 million excess-and-obsolete inventory write-down in the first nine months. Management notes that substantial inventory levels and product variety create obsolescence risk.
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Litigation remains unpredictable
Litigation-related expense was $6.520 million in Q3 2026, despite falling from $20.327 million in the first nine months of 2025. Management states that litigation is inherently unpredictable and an unfavorable resolution could materially affect future results, cash flows, or financial position.
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Capital spending exceeded operating cash flow
Investing cash use increased to $64.420 million in the first nine months, including $45.311 million for property and equipment, $11.503 million for intangible assets, and a $5.000 million note receivable. These investments exceeded nine-month operating cash flow of $40.659 million.
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No material risk-factor updates
The company states that there were no material changes to the risk factors in its December 31, 2025 Form 10-K. Accordingly, no new material risk-factor change was identified in this 10-Q; the filing nonetheless identifies potential funding needs and litigation uncertainty as ongoing risks.
Management's outlook
The 10-Q provides no new quantitative revenue or EPS guidance. Management states that existing funds, operating cash flow, and financing access are adequate, while noting it may need to access capital markets as borrowing sources become due.
Earlier filings 4
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…
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…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.