| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 28 | — | 17.8x | Bottom tier | |
Growth | 86 | 19.5% | 7.1% | Top tier | |
Quality | 60 | -7.8% | 4.5% | Around median | |
Safety | 24 | 19.9x | 2.6x | Bottom tier | |
Capital Return | 22 | — | 2.12% | Bottom tier | |
Momentum | 8 | -40.8% | 2.9% | Bottom tier | |
Sentiment | 90 | 5 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Alphatec Holdings operates in spinal surgery technologies, building its business model around integrated procedural solutions rather than selling implants individually. The ecosystem includes EOS and EOS Insight technologies for imaging and planning, Valence for navigation and operating room integration, and SafeOp for real-time neural information, alongside lateral and cervical surgery solutions, posterior fixation, and patient-specific rods. The company generates its revenue primarily from surgical products, while also using EOS to gain access to medical institutions and increase adoption of its procedural solutions after system installation.
In Q2 fiscal 2026, revenue reached $214 million, representing year-over-year growth of 15%. The surgical business contributed approximately $196 million, or about 92% of the total, and grew 17%, while EOS revenue was approximately $17 million and was nearly flat year over year. Surgical case volume increased approximately 20% and the number of active surgeons increased approximately 24%, but average revenue per case declined 2.7% due to case mix, international growth, and weak biologics attachment.
Gross margin reached 72.5% in Q2 fiscal 2026, up 260 basis points year over year, while adjusted earnings before interest, taxes, depreciation, and amortization were $36 million, with a 17% margin and year-over-year growth of approximately 53%. The company generated $34 million in operating cash flow and approximately $1 million in free cash flow, despite investing $33 million in inventory and instrument sets. Nevertheless, the company continued to report net losses according to the August 7, 2026 results, so it does not have a positive price-to-earnings ratio.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus is "Buy," with an average price target of $16.22, a high of $24, and a low of $12. The average target is approximately 30% below the top of the 52-week range of $23.29, while the highest target slightly exceeds that peak, reflecting broad disagreement over the potential magnitude of improvement in growth and margins. A positive price-to-earnings ratio is unavailable because net losses persist, so the valuation depends heavily on achieving the fiscal 2026 guidance of $140 million in adjusted earnings and at least $20 million in free cash flow.
Figures in the text are as of 2026-09-01; the live price is shown at the top of the page.
Revenue reached $214 million in Q2 fiscal 2026, an increase of 15% year over year. Surgical revenue rose 17% to $196 million, supported by approximately 20% growth in case volume and approximately 24% growth in the number of active surgeons. EOS revenue also increased to $17 million from $14 million in the previous quarter, despite remaining nearly flat year over year.
EOS Insight connects imaging data with surgical planning, alignment, bone-density assessment, and patient-specific rods. Existing accounts that used the software recorded an approximately 32% increase in implant revenue within six months of implementation. On August 4, 2026, management estimated software penetration at only approximately 15% to 20% of the installed EOS device base, leaving room for expansion within existing accounts.
The company generated $34 million in operating cash flow and approximately $1 million in free cash flow in Q2 fiscal 2026. This came after investing approximately $33 million in inventory and instrument sets to support growth in surgeon additions exceeding 20%. Management expects free cash flow of between $4 million and $6 million in Q3 fiscal 2026 and at least $20 million for the full fiscal 2026.
Average revenue per case declined 2.7% year over year in Q2 fiscal 2026 due to case mix, international growth, and weak biologics attachment. Management said approximately three-quarters of the shortfall from the desired level in this metric was related to biologics, whose attachment rate stabilized rather than improved. The company therefore expects average revenue per case to decline in the low single digits during fiscal 2026, while revenue per case remains strong in lateral, ALIF, and cervical procedures.
The company maintained its revenue outlook at approximately $882 million, representing growth of approximately 15% in fiscal 2026. This includes approximately $805 million in surgical revenue, growing approximately 17%, and approximately $77 million in EOS revenue. On August 4, 2026, it raised its adjusted earnings before interest, taxes, depreciation, and amortization guidance from $134 million to approximately $140 million, while maintaining its free cash flow outlook of at least $20 million.
Alphatec ended Q2 fiscal 2026 with approximately $119 million in cash and $85 million in available borrowing capacity, for total liquidity of approximately $204 million. During the quarter, it combined two previous loans into a single financing structure through a term loan and revolving facility with JPMorgan and TD Cowen. The transaction extended maturities to 2031, and the company expects it to reduce annual interest expense by more than $6 million.
