ATEC Filings — Alphatec Holdings, Inc. - FilingSpy
ATEC
Alphatec Holdings, Inc.
A designer and seller of spinal implants, fixation systems, biologics, and surgical instruments for treating spine disorders, Alphatec centers its lineup on the Prone TransPsoas (PTP) lateral approach, SafeOp nerve monitoring, and an imaging-and-robotics platform built on EOS whole-body scans and Valence surgical navigation. The company began in 1990 as a contract manufacturer for other medical-device firms, renamed itself Alphatec Spine in 2005 to mark its shift to its own spine products, and later folded EOS imaging into its platform in 2021.
Operating loss narrows to near breakeven as gross margin reaches 72.2% and litigation costs fade.
Alphatec's operating loss nearly disappeared this quarter. rose 15% to $213.5 million and widened 2.6 points to 72.2%, as cost of sales grew just 5%, while a prior-year litigation settlement cleared. The company is now one step from operating profitability, but a debt refinancing added an $11.9 million extinguishment loss that deepened the net loss.
Key takeaways
The operating loss narrowed to $1.9 million from $13.1 million a year ago, driven by a $28.0 million increase in that more than absorbed a $15.4 million rise in SG&A expenses.
reached 72.2%, up 2.6 points and 1.1 points sequentially, as cost of sales rose only 5%—well below the 15% increase—reflecting improved on higher volumes.
Litigation-related expenses fell to $0.4 million from $2.1 million a year ago because the prior-year period included a settlement, removing a cost that had weighed on recent quarters.
Section summaries
Management's Discussion and Analysis
Revenue grew 15% YoY in Q2 FY2026 to $213.5M driven by surgeon base expansion and new product adoption.
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Total rose 15% to $213.5M in Q2 and 14% to $405.6M in H1 FY2026, driven by higher product volume from an expanding surgeon user base and new product adoption.
Cost of sales increased only 5% in both periods, slower than growth, indicating improved on higher volumes.
The company refinanced its debt in May 2026, entering a $175 million term loan and $125 million with JPMorgan, and recorded an $11.9 million that pushed the net loss to $25.8 million.
was $20.5 million, up from $15.5 million a year ago, and was $0.6 million, as $19.9 million in for surgical instruments and other assets consumed most of the cash generated.
SG&A expenses grew 13% to $134.0 million, an acceleration from the 5% growth in Q2 2025, reflecting higher compensation, variable selling costs tied to , and continued investment in the distribution channel.
What changed
The Q1 2026 watch item on growth deceleration is partly answered: revenue growth ticked up to 15% in Q2 from 14% in Q1, though it remains below the 22% to 30% pace of FY2025.
not only held above 70% but widened to 72.2%, exceeding the 69.6% reported in Q2 2025 and suggesting the lower that helped Q1 2026 was not a one-quarter effect.
rebounded to $20.5 million after dipping to $1.3 million in Q1 2026, returning to the $14 million to $21 million range seen in the prior three quarters of FY2025.
The debt maturity concern flagged repeatedly in prior filings has been addressed: the company refinanced with a new JPMorgan term loan and , though the transaction added an $11.9 million extinguishment loss and shifts the focus to the cost of the new floating-rate debt.
What to watch
Whether the 72.2% is sustainable or whether the factors that suppressed cost of sales growth to 5%—including lower —begin to reverse in coming quarters.
Whether SG&A expense growth, which accelerated to 13% in Q2 from 8% in Q1, can be held below the growth rate to allow the operating loss to cross into profitability.
The trajectory of under the new debt structure, given the $175 million term loan carries a floating rate and non-cash of the debt discount on the 2030 Notes continues to add pressure below the operating line.
Whether can remain positive after narrowing to $0.6 million this quarter, given $19.9 million in that nearly consumed the $20.5 million in .
SG&A expenses grew 13% in Q2 to $134.0M, primarily due to higher compensation, variable selling costs, and continued investment in the strategic distribution channel.
Litigation-related expenses fell sharply (down $1.7M in Q2) due to a prior-year settlement, while restructuring costs dropped to zero.
The company refinanced its debt in May 2026, entering a $175M term loan and $125M with JPMorgan, and recorded an $11.9M .
improved to $21.8M in H1 FY2026 from $10.5M a year earlier, while cash and equivalents declined to $118.7M partly due to $42.6M used in investing activities.
Quantitative and Qualitative Disclosures About Market Risk
We have evaluated the information required under this item that was disclosed under Item 7A in our Annual Report on Form 10-K for the year ended December 31, 2025, and there have been no significant changes to this information.
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We have evaluated the information required under this item that was disclosed under Item 7A in our Annual Report on Form 10-K for the year ended December 31, 2025, and there have been no significant changes to this information.
For a description of our material legal proceedings, refer to Note 8 of our Notes to Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q, which is incorporated herein by reference.
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For a description of our material legal proceedings, refer to Note 8 of our Notes to Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q, which is incorporated herein by reference.
There have been no material changes to the risk factors described under Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the SEC on February 24, 2026.
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There have been no material changes to the risk factors described under Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the SEC on February 24, 2026.