Alphatec Hlds (ATEC) Stock Forecast & Price Target

Alphatec Holdings Inc. reported significant improvements in its financial performance, as evidenced by a 31% year-over-year increase in surgical revenue, reaching $177 million, which surpassed consensus expectations. The company's adjusted operating margin showed notable progress, increasing by 1,150 basis points to (5.5%), far exceeding consensus estimates and indicating effective cost management and operational improvements. Additionally, an adjusted gross margin of 70.1%, up 80 basis points year-over-year, reflects the company’s strong pricing power and competitive positioning in the spinal surgery market, contributing to a positive outlook for its stock.

Alphatec Holdings Inc. faces a negative outlook primarily due to anticipated lower-than-expected revenue growth in the U.S. market, coupled with a concerning Free Cash Flow (FCF) projection. Additionally, the company's growth from the third to the fourth quarter of 2025 is expected to be weaker than in previous quarters, which raises questions about its sales execution in a highly competitive spine market. Furthermore, potential risks such as revenue-dilutive acquisitions, a dilutive equity offering, and the ongoing impact of the COVID-19 pandemic on procedure volumes undermine the company’s financial stability.