Alphatec Revenue Reaches $221.17 Million as Surgical Activity Grows 14% in Third Quarter
Key Facts
Alphatec recorded revenue of $221.17 million in the third quarter of 2026, below the analyst estimate average of $225.44 million, according to Investing.com data. Revenue from surgical activities rose 14% to $202 million, an increase of $25 million year over year, according to the company statement published via Business Wire. CEO Pat Miles said third-quarter revenue "came in below our expectations, primarily due to lower attachment of biologics." He said improving performance in this area had become a company priority. By contrast, indicators of surgical activity showed growth in case volumes and surgeons' adoption of the company's products.
Surgical devices contributed $26 million to growth in surgical revenue, which rose 17% year over year, according to the company. The number of surgical cases also increased about 20%, and adoption of Alphatec products by new surgeons rose 25%. These figures put growth in surgical activity at the heart of the quarter's performance, alongside an expanding base of use among surgeons. But revenue falling short of management expectations highlights weakness in sales of biologics attached to procedures, according to Miles' explanation. The CEO said addressing this area had become a priority, without the statement specifying when an improvement would take effect.
Gross margin under GAAP was about 71.5% for the quarter, compared with 71.9% on a non-GAAP basis, according to the company's disclosure. Alphatec posted a GAAP net loss of $5 million, while non-GAAP net income was $15 million. Adjusted earnings before interest, taxes, depreciation and amortization were $38 million. These metrics reflect differences in results depending on the basis used, with the company reporting a loss under its stated accounting basis and positive income under the adjusted measure. The disclosure did not include further details in the available information explaining the difference between the two measures.
The company generated free cash flow of $6 million during the third quarter and said free cash flow remained positive on a trailing twelve-month basis. The result links quarterly performance to cash generation, alongside the revenue and profitability figures reported by the company. Alphatec forecast revenue of about $862 million in fiscal 2026, including about $789 million from surgical activities and about $73 million from EOS. That represents, according to the company, total growth of about 13% and growth in surgical revenue of about 15%. It also forecast adjusted earnings before interest, taxes, depreciation and amortization of about $137 million and free cash flow of about $10 million for the year.
Quarterly earnings per share were $0.09, one cent below the analyst estimate of $0.10, according to Investing.com. Alphatec shares closed at $11.37 on October 29, 2026, the day results were announced, according to the same source. The stock had risen 19.43% in the three months before the announcement, while declining 30.37% in the preceding twelve months. In EL7 data, ATEC closed at $11.45 on October 28, 2026. The company's annual forecast sets out a path for revenue, profitability and cash flow through the end of 2026, with improving attachment of biologics remaining a stated focus in addressing the gap against quarterly expectations.