Alphatec drops due to lower-than-expected revenue guidance for 2026

Investing.com – Alphatec Holdings, Inc. (NASDAQ:ATEC) reported Q4 earnings that exceeded analyst expectations, but due to the company’s full-year revenue guidance for 2026 falling short of Wall Street estimates, its stock plummeted 13% in after-hours trading on Tuesday.

The spine surgery solutions provider posted adjusted earnings per share of $0.06 for the quarter, beating the consensus estimate of $0.04. Revenue reached $213 million, surpassing the expected $209.22 million and up from $176 million in the same period last year. Surgical revenue was $190 million, a 21% year-over-year increase driven by continued growth in surgical volume.

For fiscal 2026, Alphatec expects total revenue of approximately $890 million, slightly below the consensus estimate of $890.7 million. This guidance represents a 17% increase from the full-year revenue of $764 million in 2025. The company raised its adjusted EBITDA guidance to about $134 million, representing 15% of revenue, up from the previous $130 million.

In Q4, the company achieved a significant milestone by generating $8 million in free cash flow, compared to $3 million for the full year of 2025, marking its transition toward cash generation. Adjusted EBITDA for the quarter reached $33 million, accounting for 16% of revenue, a 390 basis point increase year-over-year.

Chairman and CEO Pat Miles stated, “2025 was a pivotal year for ATEC. Achieving positive free cash flow marks a key milestone as we transition toward cash generation and self-sustaining growth.”

The company reported a 23% increase in new surgical physician users in Q4, and a 20% increase for the full year. Alphatec also announced the approval and release of its Valence intraoperative platform during the quarter. For 2026, the company expects to generate at least $20 million in free cash flow.

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