Alphatec Hlds (ATEC) Stock Forecast & Price Target

Alphatec Holdings Inc. has demonstrated significant financial improvements, evidenced by a year-over-year surgical revenue growth of 31% to $177 million, surpassing consensus expectations. The company's adjusted operating margin has notably improved, rising 1,150 basis points year-over-year to (5.5%), which also exceeded consensus estimates of (8.9%). Furthermore, Alphatec's adjusted gross margin of 70.1% reflects a solid increase of 80 basis points year-over-year, reinforcing the company's strong performance and positive outlook in the competitive medical technology market.

Alphatec Holdings is facing a negative outlook primarily due to lower-than-expected revenue growth in the U.S. market, coupled with diminished free cash flow projections that raise concerns about financial stability. Despite maintaining an optimistic EOS 2025 revenue outlook, the sequential growth forecast from 3Q25 to 4Q25 has been downgraded compared to previous quarters, indicating potential operational weaknesses. Additionally, risks such as poor sales execution, increased competition, and ongoing disruptions from the COVID-19 pandemic further complicate the company's ability to sustain financial performance.