Alphatec (ATEC) Q2 Revenue Jumps 27%

Core Insights - Alphatec reported strong earnings for Q2 2025, with GAAP revenue of $186 million, surpassing analyst estimates of $178.78 million, and non-GAAP EPS of $0.02, compared to an expected loss of ($0.04) [1][2] Financial Performance - Revenue (GAAP) increased by 27.4% year-over-year from $146 million in Q2 2024 to $186 million in Q2 2025 [2] - Non-GAAP EPS improved from a loss of ($0.08) in Q2 2024 to a gain of $0.02 in Q2 2025 [2] - Adjusted EBITDA reached $23 million, with a margin of 13%, up from $6 million and 3.8% in Q2 2024 [7] - Free cash flow was reported at $5 million, and cash reserves grew to $157 million [7] Business Model and Strategy - Alphatec focuses on developing technology and procedural solutions for spine surgery, aiming for predictability and efficiency through integrated systems [3] - The company emphasizes clinical innovation, surgeon adoption, and regulatory compliance, with a strategy centered on procedural innovation, particularly the PTP and LTP systems [4] Growth and Adoption Metrics - Surgical revenue increased by 29% year-over-year, reaching $168 million, driven by the PTP and LTP procedural families [5] - Surgeon adoption grew by 21% compared to the previous year, indicating successful engagement through the "ATEC Experience" education program [6] - Procedural volume rose by 17% in Q1 2025, reflecting contributions from both new and existing surgeons [6] Research and Development - The company invested $18.3 million in R&D during Q2 2025, representing approximately 9.8% of sales [8] Future Outlook - For fiscal 2025, Alphatec raised its revenue guidance to $742 million from $734 million, with adjusted EBITDA guidance increasing to $83 million from $78 million [9] - The company forecasts continued strength in surgical revenue at $666 million and EOS imaging revenue at $76 million [9]