Alphatec (US:ATEC)2025-10-30 20:57Revenue Performance - Total revenue for the three months ended September 30, 2025, was $196.5 million, representing a 30% increase compared to $150.7 million in the same period of 2024[124] - Revenue for the nine months ended September 30, 2025, reached $551.2 million, a 27% increase from $434.8 million in the same period of 2024[125] - The company has experienced a 40% compound annual growth rate in revenue since its transformation began in 2018[111] Expenses - Cost of sales for the three months ended September 30, 2025, was $59.2 million, up 23% from $48.0 million in 2024[126] - Operating expenses totaled $153.2 million for the three months ended September 30, 2025, a 12% increase from $136.4 million in 2024[127] - Research and development expenses decreased by $1.7 million, or 8%, for the three months ended September 30, 2025, compared to the same period in 2024[128] - Sales, general and administrative expenses increased by $15.1 million, or 14%, for the three months ended September 30, 2025, compared to the same period in 2024[129] - Litigation-related expenses surged by $4.4 million, or 212%, for the three months ended September 30, 2025, compared to the same period in 2024[130] Interest and Debt - Interest expense, net increased by $6.3 million, or 96%, and $15.3 million, or 86%, for the three and nine months ended September 30, 2025, respectively, compared to the same period in 2024[132] - Loss on debt extinguishment increased by $17.6 million, or 100%, during the nine months ended September 30, 2025, primarily due to the redemption of 80% of the 2026 Notes[133] - Gain on derivative liability increased by $0.6 million, or 100%, during the nine months ended September 30, 2025, related to the change in valuation of the derivative liability associated with 2030 Notes[134] Cash Flow - Cash provided by operating activities was $24.5 million for the nine months ended September 30, 2025, primarily driven by favorable working capital changes[143] - Cash used in investing activities was $37.7 million for the nine months ended September 30, 2025, primarily related to the purchase of surgical instruments and an equity investment[144] - Financing activities provided cash of $29.8 million for the nine months ended September 30, 2025, primarily from proceeds of the 2030 Notes[145] - As of September 30, 2025, cash and cash equivalents were $155.7 million, an increase from $138.8 million at December 31, 2024[141] Commitments and Obligations - As of September 30, 2025, the company had $200.0 million outstanding under the Braidwell Term Loan, maturing on January 6, 2028[146] - The remaining minimum purchase commitment under the inventory purchase agreement was $6.2 million as of September 30, 2025[150] Business Strategy and Market Conditions - The company plans to continue expanding its sales team to penetrate untapped markets and enhance existing accounts[112] - The company is assessing the impact of existing and future federal, state, or international regulations on its business operations[159] - The business strategy relies on underlying assumptions about market data, demographic trends, reimbursement trends, and pricing trends[159] - The company aims to maintain an adequate global sales network, focusing on attracting and retaining independent sales agents and direct sales representatives[159] - There is an emphasis on increasing the use and promotion of products through training and educating spine surgeons and the global sales network[159] - The company is focused on attracting and retaining a qualified management team and other personnel[159] - The ability to enter into licensing and business combination agreements with third parties is crucial for integrating acquired technology and businesses[159] - Global economic and political conditions, as well as public health crises, are factors affecting the business and industry[159] - There have been no significant changes to the market risk disclosures from the previous fiscal year[160]