Revenue growth decelerated to 15.1% YoY in 2026Q2, yet gross margin expanded to 72.2%, and operating margin improved to -0.9%, indicating early operating leverage despite persistent net losses of -$25.8M.
Alphatec Holdings, Inc. (ATEC) annual income statement — 22-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 |
|---|
| Sales/Revenue | 815.05M | 764.15M | 611.56M | 482.26M | 350.87M | 243.21M | 144.86M | 113.43M | 91.69M | 101.74M | 120.25M | 185.28M | 206.98M | 204.72M | 196.28M | 197.71M | 171.61M | 132.16M | 101.31M | 80.03M | 74M | 42.33M | 17.82M |
| Revenue Growth % | 19.47% | 24.95% | 26.81% | 37.45% | 44.26% | 67.89% | 27.71% | 23.7% | -9.87% | -15.39% | -35.1% | -10.48% | 1.1% | 4.3% | -0.72% | 15.21% | 29.85% | 30.44% | 26.59% | 8.14% | 74.85% | 137.5% | - |
| Cost of Goods Sold | 275.92M | 232.27M | 187.3M | 172.06M | 117.81M | 85.45M | 42.36M | 35.83M | 28.46M | 39.41M | 44.11M | 63.74M | 61.83M | 78.67M | 70.76M | 80.78M | 58.79M | 48.02M | 36.6M | 29.82M | 25.7M | 17.72M | 5.46M |
| COGS % of Revenue | - | 30.4% | 30.63% | 35.68% | 33.58% | 35.13% | 29.24% | 31.59% | 31.03% | 38.73% | 36.69% | 34.4% | 29.87% | 38.43% | 36.05% | 40.86% | 34.26% | 36.33% | 36.13% | 37.27% | 34.73% | 41.87% | 30.64% |
| Gross Profit | 539.13M | 531.89M | 424.26M | 310.2M | 233.06M | 157.76M | 102.5M | 77.59M | 63.24M | 62.33M | 76.13M | 121.54M | 145.15M | 126.06M | 125.52M | 116.93M | 112.82M | 84.14M | 64.71M | 50.21M | 48.3M | 24.6M | 12.36M |
| Gross Margin % | 66.15% | 69.6% | 69.37% | 64.32% | 66.42% | 64.87% | 70.76% | 68.41% | 68.97% | 61.27% | 63.31% | 65.6% | 70.13% | 61.57% | 63.95% | 59.14% | 65.74% | 63.67% | 63.87% | 62.73% | 65.27% | 58.13% | 69.36% |
| Gross Profit Growth % | - | 25.37% | 36.77% | 33.1% | 47.73% | 53.91% | 32.1% | 22.7% | 1.45% | -18.13% | -37.36% | -16.27% | 15.14% | 0.43% | 7.34% | 3.65% | 34.08% | 30.03% | 28.88% | 3.94% | 96.33% | 99.04% | - |
| Operating Expenses | 584.39M | 614.02M | 560.43M | 483.6M | 380.03M | 285.82M | 161.36M | 124.87M | 83.23M | 69.99M | 87.48M | 127.62M | 142.6M | 143.84M | 134.27M | 130.6M | 122.22M | 87.31M | 89.76M | 60.55M | 70.42M | 39.65M | 12.18M |
| OpEx % of Revenue | - | 80.35% | 91.64% | 100.28% | 108.31% | 117.52% | 111.39% | 110.09% | 90.77% | 68.79% | 72.75% | 68.88% | 68.89% | 70.26% | 68.41% | 66.05% | 71.22% | 66.07% | 88.6% | 75.66% | 95.15% | 93.67% | 68.36% |
| Selling, General & Admin | 508.83M | 498.53M | 450.2M | 374.08M | 300.01M | 229.27M | 129.16M | 101.71M | 72.51M | 64.38M | 77.3M | 105.72M | 120.56M | 124.91M | 115.12M | 111.56M | 101.29M | 73.83M | 65.8M | 54.19M | 66.83M | 35.58M | 11.01M |
| SG&A % of Revenue | - | 65.24% | 73.61% | 77.57% | 85.51% | 94.27% | 89.16% | 89.67% | 79.08% | 63.28% | 64.28% | 57.06% | 58.25% | 61.01% | 58.65% | 56.42% | 59.02% | 55.86% | 64.95% | 67.71% | 90.3% | 84.06% | 61.76% |
| Research & Development | 77.14M | 76.27M | 80.72M | 70.11M | 44.03M | 32.02M | 18.75M | 13.85M | 9.98M | 4.92M | 9.25M | 18.04M | 17.33M | 14.19M | 15.23M | 16.89M | 19.4M | 13.49M | 12.96M | 6.36M | 3.59M | 4.07M | 1.18M |
| R&D % of Revenue | - | 9.98% | 13.2% | 14.54% | 12.55% | 13.16% | 12.94% | 12.21% | 10.89% | 4.84% | 7.69% | 9.74% | 8.37% | 6.93% | 7.76% | 8.54% | 11.3% | 10.21% | 12.8% | 7.95% | 4.85% | 9.61% | 6.6% |
| Other Operating Expenses | 1000K | 39.22M | 29.51M | 39.4M | 35.99M | 24.53M | 13.46M | 9.31M | 738K | 0 | -715K | 6.98M | -33K | -1.66M | -794K | 2.15M | 1.53M | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -45.26M | -82.13M | -136.17M | -173.4M | -146.97M | -128.06M | -58.86M | -47.28M | -22.44M | -9M | -15.38M | -172.44M | 1.84M | -73.43M | -9.84M | -24.52M | -11.79M | -9.56M | -27.81M | -19.69M | -22.11M | -15.04M | 177.81K |
| Operating Margin % | -5.55% | -10.75% | -22.27% | -35.95% | -41.89% | -52.65% | -40.63% | -41.68% | -24.47% | -8.85% | -12.79% | -93.07% | 0.89% | -35.87% | -5.01% | -12.4% | -6.87% | -7.23% | -27.45% | -24.6% | -29.88% | -35.54% | 1% |
| Operating Income Growth % | - | 39.69% | 21.47% | -17.98% | -14.77% | -117.55% | -24.51% | -110.68% | -149.25% | 41.45% | 91.08% | -9451.36% | 102.51% | -646.5% | 59.88% | -107.96% | -23.35% | 65.63% | -41.25% | 10.98% | -47% | -8560.46% | - |
| EBITDA | 37.18M | 435K | -52.85M | -113.71M | -103.05M | -97.88M | -47.23M | -38.77M | -15.65M | -1.52M | -3.01M | -168.59M | 6.55M | -68.69M | -5.91M | -22.36M | -10.25M | 2.4M | -19.07M | -9.06M | -13.1M | -11.5M | 811.66K |
| EBITDA Margin % | 4.56% | 0.06% | -8.64% | -23.58% | -29.37% | -40.25% | -32.6% | -34.18% | -17.07% | -1.5% | -2.51% | -90.99% | 3.17% | -33.55% | -3.01% | -11.31% | -5.98% | 1.82% | -18.83% | -11.33% | -17.7% | -27.18% | 4.55% |
| EBITDA Growth % | 224.5% | 100.82% | 53.52% | -10.35% | -5.28% | -107.24% | -21.83% | -147.7% | -928.32% | 49.49% | 98.21% | -2672.26% | 109.54% | -1062.68% | 73.58% | -118.1% | -527.43% | 112.58% | -110.42% | 30.8% | -13.87% | -1517.24% | - |
| D&A (Non-Cash Add-back) | 82.44M | 82.56M | 83.32M | 59.68M | 43.93M | 30.17M | 11.63M | 8.51M | 6.79M | 7.48M | 12.36M | 3.85M | 4.71M | 4.74M | 3.93M | 2.15M | 1.53M | 11.96M | 8.73M | 10.62M | 9.02M | 3.54M | 633.85K |
| EBIT | -68.98M | -122.26M | -137.19M | -170.27M | -146.5M | -137.05M | -66.47M | -47.28M | -23.03M | 3.04M | -25.57M | -168.4M | 3.33M | -75.09M | -10.51M | -23.66M | -10.54M | -9.92M | -26.95M | -18.74M | -22.11M | -15.04M | 917.09K |
| Net Interest Income | -40.75M | -21.14M | -24.88M | -16.64M | -5.5M | -7.11M | -12.37M | -9.87M | -7.14M | -7.62M | -5.37M | -3.99M | -3.01M | -3.95M | -5.99M | -2.88M | -5.87M | -3.4M | -1.5M | -75K | -1.43M | -1.93M | -311.51K |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 9.87M | 0 | 0 | 0 | 11K | 10K | 6K | 118K | 148K | 81K | 67K | 374K | 793K | 701K | 0 | 0 |
| Interest Expense | 40.75M | 21.14M | 24.88M | 16.64M | 5.5M | 7.11M | 12.37M | 0 | 7.14M | 7.62M | 5.37M | 4M | 3.02M | 3.96M | 6.11M | 3.03M | 4.7M | 3.49M | 1.88M | 868K | 2.13M | 1.93M | 311.51K |
| Other Income/Expense | -64.47M | -61.27M | -25.9M | -13.52M | -5.03M | -16.11M | -19.99M | -9.87M | -7.73M | 4.43M | -15.56M | 3.46M | -13.28M | -5.62M | -1.16M | -4.51M | -2.05M | -9.87M | -1.01M | 74K | -3.43M | -2.05M | 427.77K |
| Pretax Income | -109.73M | -143.4M | -162.07M | -186.91M | -152.01M | -144.16M | -78.85M | -57.14M | -30.17M | -4.57M | -30.93M | -178M | -11.79M | -79.05M | -16.62M | -26.69M | -16.49M | -13.05M | -28.82M | -19.61M | -25.55M | -17.09M | 605.58K |
| Pretax Margin % | -13.46% | -18.77% | -26.5% | -38.76% | -43.32% | -59.27% | -54.43% | -50.38% | -32.9% | -4.5% | -25.73% | -96.07% | -5.7% | -38.61% | -8.47% | -13.5% | -9.61% | -9.87% | -28.45% | -24.51% | -34.52% | -40.38% | 3.4% |
| Income Tax | 262K | -45K | 50K | -277K | -716K | -1.13M | 145K | -239K | -1.36M | -34K | -4.49M | 681K | 1.09M | 3.18M | -1.16M | -4.51M | -2.05M | 243K | 468K | 590K | 270K | -3.04M | 96.13K |
| Effective Tax Rate % | -0.24% | 0.03% | -0.03% | 0.15% | 0.47% | 0.78% | -0.18% | 0.42% | 4.51% | 0.74% | 14.51% | -0.38% | -9.22% | -4.02% | 6.97% | 16.89% | 12.46% | -1.86% | -1.62% | -3.01% | -1.06% | 17.77% | 15.87% |
| Net Income | -109.99M | -143.36M | -162.12M | -186.64M | -151.29M | -143.03M | -78.99M | -57M | -28.98M | -2.29M | -30.32M | -178.68M | -12.88M | -82.23M | -15.46M | -22.18M | -14.36M | -13.29M | -29.29M | -20.2M | -25.82M | -14.05M | 509.45K |
| Net Margin % | -13.5% | -18.76% | -26.51% | -38.7% | -43.12% | -58.81% | -54.53% | -50.25% | -31.6% | -2.25% | -25.21% | -96.44% | -6.22% | -40.16% | -7.88% | -11.22% | -8.36% | -10.06% | -28.91% | -25.24% | -34.88% | -33.2% | 2.86% |
| Net Income Growth % | 33.74% | 11.57% | 13.14% | -23.36% | -5.78% | -81.07% | -38.58% | -96.73% | -1163.08% | 92.43% | 83.03% | -1287.02% | 84.33% | -431.9% | 30.31% | -54.52% | -8.02% | 54.63% | -44.98% | 21.75% | -83.69% | -2858.67% | - |
| Net Income (Continuing) | -109.99M | -143.36M | -162.12M | -186.64M | -151.29M | -143.03M | -78.99M | -56.9M | -28.81M | -4.54M | -26.3M | -171.25M | -98K | -82.23M | -15.46M | -22.18M | -14.43M | -13.29M | -29.29M | -20.2M | -25.82M | -14.05M | 509.45K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -100K | 0 | 2.25M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2.72M | 1.91M | 0 |
| EPS (Diluted) | -0.71 | -0.96 | -1.13 | -1.54 | -1.47 | -1.50 | -1.18 | -1.09 | -0.82 | -0.17 | -3.53 | -21.53 | -1.58 | -10.25 | -2.06 | -3.00 | -2.19 | -3.24 | -7.59 | -6.50 | -11.37 | -9.27 | 0.60 |
| EPS Growth % | 36.28% | 15.04% | 26.62% | -4.76% | 2% | -27.12% | -8.26% | -32.93% | -382.35% | 95.18% | 83.6% | -1262.66% | 84.59% | -397.57% | 31.33% | -36.99% | 32.41% | 57.31% | -16.77% | 42.83% | -22.65% | -1645% | - |
| EPS (Basic) | - | -0.96 | -1.13 | -1.54 | -1.47 | -1.50 | -1.18 | -1.09 | -0.82 | -0.18 | -3.53 | -21.53 | -1.59 | -10.25 | -2.06 | -3.00 | -2.19 | -3.24 | -7.59 | -6.50 | -11.37 | -9.27 | 0.72 |
| Diluted Shares Outstanding | 155.33M | 150.06M | 142.95M | 121.24M | 103.37M | 96.2M | 67.02M | 52.23M | 35.31M | 13.28M | 8.58M | 8.3M | 8.14M | 8.02M | 7.52M | 7.4M | 6.55M | 4.11M | 3.86M | 3.11M | 2.27M | 1.18M | 801.69K |
| Basic Shares Outstanding | 155.33M | 150.06M | 142.95M | 121.24M | 103.37M | 96.2M | 67.02M | 52.23M | 35.31M | 12.79M | 8.58M | 8.3M | 8.11M | 8.02M | 7.52M | 7.4M | 6.55M | 4.11M | 3.86M | 3.11M | 2.27M | 1.16M | 764.9K |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying ATEC stock.
For fiscal year 2025, Alphatec Holdings, Inc. (ATEC) reported total revenue of $764.2M. This represents a 4187.9% increase compared to $17.8M in 2004.
Alphatec Holdings, Inc. (ATEC) reported a net loss of $143.4M for the fiscal year ending 2025.
Alphatec Holdings, Inc. (ATEC) reported an operating income of $-82.1M, resulting in an operating profit margin of -10.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Alphatec Holdings, Inc. (ATEC) generated $531.9M in gross profit for the year, representing a gross profit margin of 69.6%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Persistent negative operating margins
Metrics are mathematically derived from official filings.
Growth Deceleration Amidst Share Gains
ATEC's revenue growth slowed to 15.1% YoY in 2026Q2 from 30.4% in 2025Q3, per reported figures, suggesting a maturing growth curve despite continued market share gains.
The sequential deceleration from 30.4% to 15.1% over four quarters indicates that while the procedural differentiation strategy is still working, the law of large numbers is beginning to bite. The absolute revenue increase of $21.4M in 2026Q2 versus the same quarter last year is still substantial, but the growth rate is clearly decelerating. Investors should monitor whether this trend continues as the base expands, and whether the company can sustain mid-teens growth without a significant new product catalyst.
Gross Margin Volatility Raises Questions
Gross margin swung from 61.1% in 2026Q1 to 72.2% in 2026Q2, a 1,110 basis point swing, based on reported financials, suggesting potential mix shifts or one-time items.
The gross margin in 2026Q2 rebounded to 72.2%, the highest in the ten-quarter period, but the prior quarter's 61.1% was an outlier. This volatility may reflect changes in product mix, distributor stocking orders, or accounting adjustments. The average gross margin over the period is around 68%, which is consistent with the company's structural positioning, but the quarterly swings warrant scrutiny. If the high margin is sustainable, it could support future profitability, but the inconsistency suggests that pricing power may not be as stable as the headline number implies.
Operating Leverage Finally Emerging
Operating margin improved to -0.9% in 2026Q2 from -26.2% in 2025Q1, per SEC filings, as SG&A growth lagged revenue growth, indicating early signs of operating leverage.
The dramatic improvement in operating margin from -31.3% in 2024Q1 to -0.9% in 2026Q2 suggests that the heavy investment in sales force and infrastructure is beginning to pay off. SG&A as a percentage of revenue has declined from over 80% in early 2024 to 62.8% in 2026Q2, while gross profit has grown. This is a critical inflection point; if the trend continues, ATEC could approach breakeven operating income within the next few quarters. However, the absolute SG&A dollar amount remains high, and any slowdown in revenue growth could stall this leverage.
Losses Persist Despite Revenue Growth
Net margin improved to -12.1% in 2026Q2 from -35.0% in 2024Q1, but the company still reported a net loss of $25.8M, according to reported data, with SBC of $18.1M.
The net loss has narrowed significantly, but the company remains unprofitable. Stock-based compensation of $18.1M in 2026Q2 represents a significant non-cash expense, and when added to the net loss, the cash burn is even higher. The extreme negative ROE of -630.7% is a red flag, though it is partly due to a small equity base. Investors should focus on the path to positive free cash flow, as the company continues to rely on external financing to fund operations.
SG&A Dominates Cost Structure
SG&A expenses of $134.0M in 2026Q2 were 62.8% of revenue, per financial statements, far exceeding R&D and COGS, underscoring the sales-driven nature of the business.
The cost structure is heavily weighted toward SG&A, reflecting the aggressive recruitment of sales representatives and marketing efforts. While SG&A as a percentage of revenue has declined from over 80% in early 2024, it remains the largest expense line. R&D spending has been relatively stable at around 8-10% of revenue, indicating a mature product portfolio. The company's ability to control SG&A growth while maintaining revenue growth will be key to achieving profitability.
2025Q1 Marks a Turning Point
The most significant inflection occurred in 2025Q1, when operating margin hit -26.2%, the worst in the period, before improving sharply to -0.9% by 2026Q2, based on reported figures.
The 2025Q1 quarter appears to have been a trough, with operating income of -$44.3M and a net margin of -30.7%. This likely reflects heavy investments in sales force and EOS placements. Since then, the company has shown consistent improvement in operating leverage, with operating margin improving each quarter. This inflection suggests that the company's growth strategy is starting to translate into financial efficiency, but it remains to be seen if this trend can be sustained.
Growth at All Costs May Not Pay Off
Despite revenue growth of 24.95% YoY, ATEC's operating margin of -10.75% and net margin of -18.8% indicate persistent losses, per reported data, raising doubts about the sustainability of its strategy.
Short-sellers would argue that ATEC's growth is being bought with unsustainable spending. The company has yet to demonstrate a clear path to profitability, and its reliance on debt (debt/equity of 17.21) and equity financing could become problematic if growth decelerates further. The competitive landscape is intensifying, with incumbents launching similar prone-lateral systems, which could erode ATEC's differentiation. If revenue growth falls below 15%, the operating leverage could reverse, leading to wider losses. Investors should monitor whether the company can achieve positive operating income without sacrificing growth.