Alphatec Holdings Reports 27% Revenue Growth to $185.5 Million in Q2 2025

Alphatec Holdings, Inc. reported significant financial performance improvements in its latest quarterly filing, with total revenue from products and services reaching $185.5 million for the three months ended June 30, 2025, a 27% increase from $145.6 million in the same period last year. For the first half of 2025, revenue rose to $354.7 million, up 25% from $284.1 million in the prior year. The growth was attributed to increased product volume driven by a larger surgeon user base and the expansion of the company’s product portfolio. Despite the revenue growth, Alphatec recorded a net loss of $41.1 million for the quarter, slightly higher than the $40.7 million loss reported in the same quarter of 2024.

The company’s cost of sales also increased, totaling $56.4 million for the second quarter of 2025, a 31% rise compared to $43.0 million in the previous year. This increase was primarily due to higher product volumes. Operating expenses saw a modest increase of 3% year-over-year, totaling $142.2 million, with notable rises in sales, general, and administrative expenses, which grew by 5% to $118.5 million. Research and development expenses decreased slightly, reflecting a reduction in stock-based compensation.

In terms of strategic developments, Alphatec issued $405 million in unsecured senior convertible notes in March 2025, with proceeds aimed at general corporate purposes and the repurchase of 80% of its 2026 convertible notes. The company also engaged in capped call transactions to mitigate potential dilution from the convertible notes. As of June 30, 2025, Alphatec's cash and cash equivalents stood at $157.1 million, an increase from $138.8 million at the end of 2024, indicating improved liquidity.

Operationally, Alphatec's customer base has expanded, contributing to a 40% compound annual growth rate in revenue since its transformation began in 2018. The company continues to focus on enhancing its sales force and penetrating new markets, particularly in the U.S., where it generated the majority of its revenue. The company’s total liabilities decreased slightly to $766.5 million from $779.5 million at the end of 2024, while stockholders' equity improved to $23.8 million, a significant turnaround from a deficit of $14.2 million at the end of the previous year.

Looking ahead, Alphatec remains optimistic about its growth trajectory, driven by ongoing product innovation and market expansion. The company plans to continue investing in its sales and marketing efforts to further penetrate existing accounts and reach new customers. However, it acknowledges the potential need for additional funding to support its growth initiatives and maintain liquidity as it navigates the evolving market landscape.