Alphatec’s Earnings Call: Strong Growth and Positive Outlook

Alphatec ((ATEC)) has held its Q3 earnings call. Read on for the main highlights of the call.

Alphatec’s recent earnings call painted a picture of robust financial health and strategic growth, with the company showcasing significant revenue increases, enhanced surgeon engagement, and a solid cash flow position. Despite facing some challenges from tariffs and market disruptions, the overall sentiment was optimistic, underscoring a positive outlook for the future.

Strong Revenue Growth

Alphatec reported a remarkable total revenue of $197 million for the third quarter of 2025, marking a 30% increase compared to the same period last year. This growth was driven by a 31% rise in surgical revenue, highlighting the company’s successful expansion in its core market.

Increased Surgeon Adoption

The company saw a 26% increase in new surgeon users during Q3 2025, reflecting strong adoption of Alphatec’s surgical procedures. Additionally, same-store sales experienced a 30% year-over-year growth, indicating a strengthening relationship with existing clients.

Positive Free Cash Flow

Alphatec reported a positive free cash flow of $5 million for the quarter, alongside $14 million in cash generated from operating activities. This financial health underscores the company’s effective cash management and operational efficiency.

Raising Full Year Guidance

Thanks to its strong performance, Alphatec raised its full-year revenue guidance by $18 million, bringing the total to $760 million. This adjustment reflects the company’s confidence in sustaining its growth trajectory.

Record Adjusted EBITDA

The company achieved a record adjusted EBITDA of $26 million in Q3 2025, with an impressive 840 basis points improvement year-over-year. This milestone highlights Alphatec’s operational excellence and profitability.

Expansion of Product Offerings

Alphatec is broadening its product portfolio with several new products in development, including mechanized arms and innovative solutions for lateral and cervical spine surgeries. This expansion is expected to drive future growth and market penetration.

Strong Balance Sheet

Ending the third quarter with $156 million in cash and $60 million available on its revolving credit line, Alphatec boasts a robust balance sheet with $216 million in total cash and available resources.

Tariff Impact on Costs

The company’s adjusted EBITDA guidance accounts for anticipated tariff impacts, estimated to be in the low single-digit millions for the entire year. This foresight demonstrates Alphatec’s proactive approach to managing external cost pressures.

Challenges in Market Disruption

While market disruptions present opportunities, they also pose challenges due to their complex and long-term nature. Alphatec acknowledges these dynamics as part of its strategic planning.

Forward-Looking Guidance

Alphatec’s forward-looking guidance remains optimistic, with a 30% year-over-year revenue increase and a raised full-year revenue target of $760 million. The company anticipates an adjusted EBITDA of $91 million, with strategic initiatives focused on proceduralization and spine-focused technologies, aiming for $1 billion in revenue by 2027.

In conclusion, Alphatec’s earnings call reflects a company on a strong growth path, with impressive financial performance and strategic initiatives that position it well for future success. Despite some challenges, the overall sentiment is positive, with key takeaways highlighting revenue growth, increased surgeon adoption, and a robust balance sheet.