# Alphatec Holdings (ATEC.US)

Canonical: https://gigainvestors.com/s/ATEC

Analysis as of: 2026-10-16T07:26:39.039Z. Financial observations: FY2001–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $10.93 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 3 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- negative average operating margin

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 10

- Operating margin variation: 0.50×

Chart: Operating margin; fiscal year observations.

- FY2016: -0.13×

- FY2017: -0.09×

- FY2018: -0.24×

- FY2019: -0.42×

- FY2020: -0.41×

- FY2021: -0.53×

- FY2022: -0.42×

- FY2023: -0.36×

- FY2024: -0.22×

- FY2025: -0.11×

### moat: fail

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: -52.7%

- ROIC, second-lowest year: -98.6%

- Typical minus recent gross margin: -2.0 pp

- Typical gross margin (annual median): 67.4%

- Recent gross margin (lower of latest and 3-year median): 69.4%

- Years with nonpositive capital: 2

- Capital spending / revenue: 13.4%

- ROIC including acquisitions, ten-year median: -61.2%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: -258.4%

- FY2017: -49.3%

- FY2018: -87.8%

- FY2019: -98.6%

- FY2020: -90.6%

- FY2021: -54.7%

- FY2022: -50.7%

- FY2023: -42.0%

- FY2024: -27.9%

- FY2025: -16.4%

### economics: fail

- owner earnings cash conversion below threshold

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: -$761M

- Net income, five-year total: -$786M

- Return on incremental invested capital: 30.9%

- Working capital / revenue, annual change: -0.7 pp

- Working capital / revenue, change between three-year averages: -5.8 pp

- Working capital / revenue, final three-year average: 32.1%

Chart: Owner earnings · five years; fiscal year observations.

- FY2021: -$158M

- FY2022: -$151M

- FY2023: -$187M

- FY2024: -$162M

- FY2025: -$103M

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: -87.8% vs -27.9%

- Per-share earnings: -3.53 to -1.13 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 33.6%

- Ordinary dilution, 5-year annual growth: 17.5%

- Market cap gain: $3.1B

- Cumulative retained earnings: -$967M

- Diluted shares, 10-year annual growth: 33.6%

- Diluted shares, 5-year annual growth: 17.5%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value change: $2.40

- Per-share value, starting three-year median: -$3.53

- Per-share value, ending three-year median: -$1.13

- Buybacks concentrated in cheaper years (correlation): -1.00

- Average buyback yield: 1.0%

- Buyback history: 3 years

- Debt-funded buybacks: Yes

- Acquisition spending: $176M

- Cumulative net income, 10 years: -$984M

- ROIC, first three-year median: -87.8%

- ROIC, last three-year median: -27.9%

Chart: Earnings per share; fiscal year observations.

- FY2016: -$3.53

- FY2017: -$0.17

- FY2018: -$0.82

- FY2019: -$1.09

- FY2020: -$1.18

- FY2021: -$1.49

- FY2022: -$1.46

- FY2023: -$1.54

- FY2024: -$1.13

- FY2025: -$0.96

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -23.8%

- Receivables to sales index (DSRI): 0.94×

- Restructuring years, last five: 1

- Stock compensation / operating cash flow: 163.0%

- Earnings backed by cash: Yes

- Accounting red flags: 1

- Goodwill and intangibles / equity: 13.57×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -21.6%

- FY2017: 7.6%

- FY2018: -2.6%

- FY2019: -14.1%

- FY2020: -12.5%

- FY2021: -12.2%

- FY2022: -14.6%

- FY2023: -13.4%

- FY2024: -15.1%

- FY2025: -23.8%

## Holders

- [Matthew McLennan](https://gigainvestors.com/FE): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 52% since Nov 2025 · "Alphatec Holdings (ATEC) Is Down 27.4% After Issuing 2026 Revenue Guidance And OsteoAdapt Deal" (finance.yahoo.com, Jan 2026) · sales +25%

Story as of 2026-10-16T09:58:20.354Z; price observation 2026-10-15.

- 2025-05-01: ATEC Reports First Quarter 2025 Financial Results and Raises Full-Year Guidance ([finance.yahoo.com](https://finance.yahoo.com/news/atec-reports-first-quarter-2025-200500231.html))

- 2025-08-01: Alphatec Holdings outlines $742M revenue target for 2025 amid record EBITDA and expanding ecosystem ([seekingalpha.com](https://seekingalpha.com/news/4476618-alphatec-holdings-outlines-742m-revenue-target-for-2025-amid-record-ebitda-and-expanding?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2025-11-01: Why Alphatec (ATEC) Is Up 17.9% After Beating Earnings and Lifting 2025 Revenue Guidance ([finance.yahoo.com](https://finance.yahoo.com/news/why-alphatec-atec-17-9-131609834.html))

- 2026-01-15: Alphatec Holdings (ATEC) Is Down 27.4% After Issuing 2026 Revenue Guidance And OsteoAdapt Deal ([finance.yahoo.com](https://finance.yahoo.com/news/alphatec-holdings-atec-down-27-081158239.html))

### Sales · FY2024–2025

sales +25%; source https://www.sec.gov/Archives/edgar/data/1350653/000119312526067393/atec-20251231.htm; observed 2026-02-24.

- FY2016: $120M 

- FY2017: $102M 

- FY2018: $92M 

- FY2019: $113M 

- FY2020: $145M 

- FY2021: $243M 

- FY2022: $351M 

- FY2023: $482M 

- FY2024: $612M 

- FY2025: $764M 

### Gross margin · FY2025

gross margin 69.6%; source https://www.sec.gov/Archives/edgar/data/1350653/000119312526067393/atec-20251231.htm; observed 2026-02-24.

- FY2016: 63.3% 

- FY2017: 61.3% 

- FY2018: 69.0% 

- FY2019: 68.4% 

- FY2020: 70.8% 

- FY2021: 64.9% 

- FY2022: 66.4% 

- FY2023: 64.3% 

- FY2024: 69.4% 

- FY2025: 69.6% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in medical devices; annual sales are USD 764.2 million.

- Source: https://www.sec.gov/Archives/edgar/data/1350653/000119312526067393/atec-20251231.htm (filed 2026-02-24); FY2025: revenue 764155000; grossProfit 531888000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); ATEC.US: Alphatec Holdings, Inc., a medical technology company, designs, develops, and advances technologies for the surgical treatment of spinal disorders in the United States and internationally. The company manufactures and sells implants, instruments, imaging equipment, and spare parts. It offers Alpha InformatiX product platform, including EOS imaging system that provides full-body imaging; SafeOp Neural InformatiX System that automates electromyographic, somatosensory evoked potential, and motor evoked potential monitoring; and Valence, an intra-operative system that integrates navigation and robotics into spine procedures, as well as Sigma Prone TransPsoas (PTP) Access and PTP Patient Positioning Systems. It also provides split-blade retractors; Sigma-ALIF Access System, a procedure-specific access system; spinal implants and fixation systems comprising NanoTec and Invictus, as well as various standalone implants for height restoration and stabilization. In addition, the company provides biologics comprising 3D ProFuse Osteoconductive Bioscaffold; AlphaGRAFT Demineralized Bone Matrix (DBM) comprising demineralized human tissue; BioCORE Moldable Bioactive Graft, a synthetic mineral-collagen composite matrix that can be molded to fit the bone defect; AlphaGRAFT DBM Fibers comprising demineralized fibers; AlphaGRAFT Cellular Bone Matrix (CBM), a growth factor-enriched cellular bone matrix; AlphaGRAFT CBM that is delivered in granular, fiber, or structural form; and Amnioshield Amniotic Tissue Barrier, an allograft for spinal surgical barrier applications. The company sells its products through a network of independent sales agents and direct sales representatives. The company was founded in 1990 and is headquartered in Carlsbad, California.

### Why customers stay

Margins ranged from 64.3% to 69.6% during 2023–25; it lost 52.7% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2023: grossProfit / revenue = 64.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2024: grossProfit / revenue = 69.4%.

- Source: https://www.sec.gov/Archives/edgar/data/1350653/000119312526067393/atec-20251231.htm (filed 2026-02-24); FY2025: grossProfit / revenue = 69.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); 10-year return on capital observations [[2016,-2.584094873431185],[2017,-0.4934006243496358],[2018,-0.8776908604812358],[2019,-0.9861649767638361],[2020,-0.9058139353682529],[2021,-0.5474890680809611],[2022,-0.506737353414829],[2023,-0.42041989184278533],[2024,-0.2787232317055792],[2025,-0.1636924008477142]]; median -0.5271132107478951. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 3 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); Dividend observations: [[2016,0],[2017,0],[2018,0],[2019,0],[2020,0],[2021,316250000],[2022,3041000],[2023,1064000],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 20.6% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); ATEC.US SharesStats.PercentInsiders = 20.587 percentage points; cache date 2026-10-15.

### What the price says

The price is 2.1 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); Closing price 10.93 USD; reporting-to-trading FX 1; FY2025 annual sales per share 5.09219399722785; price multiple 2.1464225451642664. FY2025 cash earnings/share -0.6880397696982621. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $6.23 per share

- 2016-11: $5.23 per share

- 2016-12: $3.21 per share

- 2017-01: $2.89 per share

- 2017-02: $3.37 per share

- 2017-03: $2.33 per share

- 2017-04: $2.03 per share

- 2017-05: $1.95 per share

- 2017-06: $1.85 per share

- 2017-07: $1.63 per share

- 2017-08: $2.02 per share

- 2017-09: $2.26 per share

- 2017-10: $3.59 per share

- 2017-11: $2.62 per share

- 2017-12: $2.66 per share

- 2018-01: $3.20 per share

- 2018-02: $3.19 per share

- 2018-03: $3.21 per share

- 2018-04: $3.84 per share

- 2018-05: $3.83 per share

- 2018-06: $2.98 per share

- 2018-07: $2.70 per share

- 2018-08: $3.51 per share

- 2018-09: $3.37 per share

- 2018-10: $3.00 per share

- 2018-11: $2.71 per share

- 2018-12: $2.29 per share

- 2019-01: $1.30 per share

- 2019-02: $1.59 per share

- 2019-03: $2.65 per share

- 2019-04: $4.25 per share

- 2019-05: $3.94 per share

- 2019-06: $4.54 per share

- 2019-07: $4.70 per share

- 2019-08: $5.23 per share

- 2019-09: $5.02 per share

- 2019-10: $6.88 per share

- 2019-11: $7.05 per share

- 2019-12: $7.10 per share

- 2020-01: $6.96 per share

- 2020-02: $5.85 per share

- 2020-03: $3.45 per share

- 2020-04: $4.53 per share

- 2020-05: $4.45 per share

- 2020-06: $4.70 per share

- 2020-07: $4.97 per share

- 2020-08: $5.99 per share

- 2020-09: $6.64 per share

- 2020-10: $8.54 per share

- 2020-11: $10.50 per share

- 2020-12: $14.52 per share

- 2021-01: $14.88 per share

- 2021-02: $16.05 per share

- 2021-03: $15.79 per share

- 2021-04: $15.99 per share

- 2021-05: $14.50 per share

- 2021-06: $15.32 per share

- 2021-07: $14.74 per share

- 2021-08: $14.48 per share

- 2021-09: $12.19 per share

- 2021-10: $11.73 per share

- 2021-11: $11.10 per share

- 2021-12: $11.43 per share

- 2022-01: $10.34 per share

- 2022-02: $11.02 per share

- 2022-03: $11.50 per share

- 2022-04: $10.85 per share

- 2022-05: $7.68 per share

- 2022-06: $6.54 per share

- 2022-07: $7.54 per share

- 2022-08: $7.59 per share

- 2022-09: $8.74 per share

- 2022-10: $10.24 per share

- 2022-11: $10.26 per share

- 2022-12: $12.35 per share

- 2023-01: $13.02 per share

- 2023-02: $14.81 per share

- 2023-03: $15.60 per share

- 2023-04: $14.44 per share

- 2023-05: $15.16 per share

- 2023-06: $17.98 per share

- 2023-07: $17.67 per share

- 2023-08: $16.35 per share

- 2023-09: $12.97 per share

- 2023-10: $9.18 per share

- 2023-11: $11.87 per share

- 2023-12: $15.11 per share

- 2024-01: $16.09 per share

- 2024-02: $13.43 per share

- 2024-03: $13.79 per share

- 2024-04: $12.62 per share

- 2024-05: $9.71 per share

- 2024-06: $10.45 per share

- 2024-07: $10.10 per share

- 2024-08: $6.90 per share

- 2024-09: $5.56 per share

- 2024-10: $7.85 per share

- 2024-11: $10.48 per share

- 2024-12: $9.18 per share

- 2025-01: $11.79 per share

- 2025-02: $12.53 per share

- 2025-03: $10.14 per share

- 2025-04: $10.98 per share

- 2025-05: $12.43 per share

- 2025-06: $11.10 per share

- 2025-07: $10.58 per share

- 2025-08: $15.90 per share

- 2025-09: $14.54 per share

- 2025-10: $18.99 per share

- 2025-11: $22.55 per share

- 2025-12: $21.04 per share

- 2026-01: $14.83 per share

- 2026-02: $13.62 per share

- 2026-03: $10.88 per share

- 2026-04: $9.76 per share

- 2026-05: $7.75 per share

- 2026-06: $8.65 per share

- 2026-07: $9.52 per share

- 2026-08: $9.37 per share

- 2026-09: $10.32 per share

- 2026-10: $10.93 per share

## Annual estimated value (USD per share)

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1350653/000119312526067393/atec-20251231.htm); period 2025-12-31, filed 2026-02-24.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations

- [Matthew McLennan](https://gigainvestors.com/FE): 996,637 ATEC shares; USD 8,620,910 reported position value; 0.01% of portfolio; add; quarter 2026 Q2.

# ATEC — Alphatec Holdings Inc.

Held by 1 investor · USD 8,620,910 total · 2026 Q2 · reported price USD 8.65 (split-adjusted).
Page: https://gigainvestors.com/s/ATEC

## Holders (2026 Q2)

| Investor | Value | % of their portfolio | This quarter |
|---|---:|---:|---|
| Matthew McLennan (https://gigainvestors.com/FE) | USD 8,620,910 | <0.1% | add +43.06% |

## Total held by quarter

- 2024 Q2: USD 1,071,125 · 1 holder · USD 10.45
- 2024 Q3: USD 2,680,115 · 1 holder · USD 5.56
- 2024 Q4: USD 6,044,452 · 1 holder · USD 9.18
- 2025 Q1: USD 7,203,831 · 1 holder · USD 10.14
- 2025 Q2: USD 7,863,651 · 1 holder · USD 11.10
- 2025 Q3: USD 10,150,912 · 1 holder · USD 14.54
- 2025 Q4: USD 14,225,922 · 1 holder · USD 21.04
- 2026 Q1: USD 7,579,411 · 1 holder · USD 10.88
- 2026 Q2: USD 8,620,910 · 1 holder · USD 8.65