Alphatec Holdings Reports $169.2 Million Revenue in Q1 2025, 22% Year-Over-Year Increase

Alphatec Holdings, Inc. reported a revenue of $169.2 million for the first quarter of 2025, marking a 22% increase from $138.5 million in the same period of 2024. The company's gross profit also rose to $116.0 million, up from $97.4 million year-over-year. However, Alphatec recorded a net loss of $51.9 million, slightly higher than the $48.5 million loss reported in the prior year. The increase in revenue was attributed to a rise in product volume driven by an expanding surgeon user base and the adoption of new products.

The company experienced significant changes in its financial metrics compared to the previous fiscal period. Operating expenses increased to $160.3 million from $140.7 million, primarily due to higher sales, general, and administrative costs, which rose by 12% to $127.0 million. Litigation-related expenses surged by 176% to $12.2 million, reflecting costs associated with ongoing legal matters. Additionally, Alphatec's total liabilities increased to $703.4 million from $627.5 million, largely due to the issuance of $405 million in senior convertible notes in March 2025.

Strategically, Alphatec has made notable advancements, including the issuance of the 2030 Notes, which are convertible into shares of common stock. The net proceeds from this issuance, approximately $392.9 million, are intended for general corporate purposes, including the repurchase of 80% of its 2026 convertible notes for about $268.4 million. The company also engaged in capped call transactions to mitigate potential dilution from the conversion of these notes. As of March 31, 2025, Alphatec had 146.2 million shares of common stock outstanding.

Operationally, Alphatec's customer base has expanded, contributing to increased product adoption rates. The company reported a significant increase in its U.S. revenue, which reached $159.1 million, up from $129.8 million in the previous year. International revenue also grew, albeit at a slower pace, from $8.6 million to $10.1 million. The company continues to focus on enhancing its product offerings and expanding its market presence, which has resulted in a compound annual growth rate of approximately 40% since its transformation began in 2018.

Looking ahead, Alphatec remains optimistic about its growth trajectory, emphasizing its commitment to innovation in spinal surgery technology. The company plans to leverage its recent financing to support ongoing product development and market expansion efforts. However, it acknowledges potential risks, including market conditions and the impact of ongoing litigation, which could affect future performance.