Alphatec Cuts 2026 Revenue Outlook to $862 Million as Quarterly Revenue Grows 13%
Key Facts
Alphatec cut its fiscal 2026 revenue outlook to about $862 million, from about $882 million reaffirmed in August, after reporting $221 million in the third quarter, up 13% year over year. CEO Pat Miles said quarterly revenue fell short of the company’s expectations "primarily due to lower biologics attachment." The results came as the company reported growth in surgical activity and case volumes, but that momentum did not prevent it from cutting its annual outlook. In premarket trading on October 30, the stock fell 32.3% to $7.70, according to Investing.com. The stock had closed at $11.37 on October 29, according to EL7 data.
Surgical revenue was $202 million in the third quarter, up 14% from the same period a year earlier, while case volumes rose 20% and the number of new surgeons using the products increased 25%, according to the company’s filing with the U.S. Securities and Exchange Commission. Alphatec said total quarterly revenue was $221 million, up 13% year over year. But the CEO linked the shortfall against expectations to lower biologics attachment, highlighting the gap between broader procedural activity and the revenue it generates overall. Revenue came in at $221.17 million, below analysts’ consensus of $225.44 million, according to Investing.com. Adjusted earnings per share were $0.09, compared with an estimate of $0.10.
In August, Alphatec expected 2026 revenue of about $882 million, comprising about $805 million from surgery and $77 million from EOS. In its new outlook, the company cut surgical revenue to about $789 million and EOS revenue to about $73 million, bringing the total to about $862 million. It said the revised outlook still implies growth of about 13% in total revenue and 15% in surgical revenue during the year. The total revenue reduction is about $20 million compared with the August outlook, with both the surgical and EOS components lowered. The figures show that the company maintained its forecast for annual growth but lowered its expected revenue level after its third-quarter performance.
The outlook revision also extended to profitability: the company now expects adjusted earnings before interest, taxes, depreciation and amortization of about $137 million in 2026, down from about $140 million in its previous estimate. It reported $38 million in adjusted earnings before interest, taxes, depreciation and amortization in the third quarter, with a margin of 17.3%, as the margin widened 400 basis points year over year. Alphatec ended the quarter with $80 million in cash on September 30. It also expects free cash flow of about $10 million for fiscal 2026. These profitability and liquidity indicators add to the picture of the company’s financial performance for the rest of the year alongside the revenue cut.
Price targets were lowered by two research firms, both of which maintained buy ratings, according to Investing.com. Needham cut its target to $12 from $14, while TD Cowen lowered its target to $10 from $13. Needham said a year or more without growth in biologics would pose a material risk to the company’s long-term plan for 2027. That comes as management explains the quarterly revenue shortfall, attributing it primarily to lower attachment of these products. The revised 2026 outlook, including free cash flow, remains the framework the company has set for its financial performance over the rest of the year.