Core Insights - Alphatec reported strong financial performance for Q4 and full-year 2025, highlighting continued share gains in spine surgery and improved profitability, marking its first full year of positive free cash flow [4][7][12] Financial Performance - Q4 total revenue reached $213 million, a 20% increase year-over-year, with surgical revenue at $190 million and EOS revenue at $23 million [3][10] - Full-year 2025 revenue was $764 million, up 25% year-over-year, driven by a 22% increase in procedural volume and a 3% rise in average revenue per procedure [10][11] - Adjusted EBITDA for Q4 was $33 million, reflecting a 61% year-over-year increase, with a 16% exit margin [6][9] Growth Drivers - Strategic growth initiatives include leadership in lateral procedures, a controlled rollout of the Valence navigation/robotics platform in 2026, and expanded adoption of EOS/EOS Insight to enhance deformity cases [5][13] - The company signed an exclusive partnership with Theradaptive for a future BMP product, expected to enhance its market position [17] Profitability and Cash Flow - Non-GAAP gross margin for Q4 was 70.5%, up 80 basis points year-over-year, attributed to mix, volume leverage, and improved asset efficiency [8] - The company generated $45 million in cash from operations during 2025, resulting in $3 million of free cash flow, marking a transition to a cash-generating business [12] 2026 Outlook - For 2026, Alphatec projects revenue growth of 17% to approximately $890 million, with surgical revenue expected to be around $805 million [18] - Adjusted EBITDA guidance for 2026 is set at $134 million, implying a margin of about 15%, with expectations for non-GAAP gross margin to approach 71% by year-end [18][19]