Scooping Up Share: ATEC Q1 Sales + 22%

Alphatec Holdings, Inc., reported Q1 2025 sales of $169 million, up 22%. Operating losses, however, rose 2% to -$44.3 million for the quarter ending March 31, 2025, just exceeding Wall Street’s estimates. EPS, however, lagged expectations.

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ATEC Sales Grow 22%, Operating Losses Increase 2%

ATEC’s Chairman and Chief Executive Officer Patrick Miles and Chief Financial Officer Todd Koning shared an update on ATEC’s first quarter 2025 earnings in a recent earnings call.

Miles reported that the new year is off to a great start with sales growing 22%—and with surgical volumes growing even more—24%.

He explained that despite all the typical first quarter challenges—tax resets, typically slower case volumes and the usual Q1 surgeon meetings and events—the company still posted up the second-best quarter ever with a revenue of $169 million, higher than Wall Street (or perhaps top management) expected.

“Really, the key thing I’d like to highlight is the strength of the surgical growth, where we saw 24% year-over-year growth. Underpinning this growth was an 18% increase in the number of surgeons utilizing ATEC procedures. The fact that revenues grew 23% in established territories demonstrates how we continue to gain surgeon and territory penetration where we have established representation,” Miles said.

Koning offered more details on the quarter’s financials and expectations for the rest of the year. He reported the first quarter surgical revenue of $152 million grew 24% compared to the prior year period, representing almost $30 million in year-over-year growth.

“Our financial outlook for the year expects continued strong revenue growth to drive incremental profit margin expansion. As we exited the first quarter of the year and contemplated our full year outlook, we felt it prudent to simply flow through the beat on the top and bottom line. This approach is consistent with our philosophy of guiding the numbers we believe we can achieve and have a reasonable opportunity to exceed,” he explained.

Analysts Raise Concerns Over Current Economic Uncertainty

Brooks O’Neil with Lake Street Capital Markets asked about the new corpectomy system and how big a market is expected for it.

Miles said that from a marketplace perspective they are the only ones doing corpectomies from the prone position and that when you have instability from tumor or trauma you want access to both the front and back of the spine in the same setting.

Vikramjeet Chopra with Wells Fargo asked about the expected tariff exposure in 2025.

Koning said it is expected to be about low single-digit millions, and it will largely hit the cost of goods in the second half of the year.

He added, “Our exposure is really limited to our EOS equipment and any related replacement parts associated with EOS, largely because we manufacture our EOS machines in France, and we import the U.S. volume into America for the installed base.”

Young Li with Jefferies asked about the resiliency of the spine market during an economic downturn and the company’s experiences during the 2008 recession.

Miles said that he was around in 2008 and that since spine is not an elective surgery, it usually is not delayed. He added that in the current economic uncertainty they haven’t seen any changes in volume of cases.

“There’s a robust backlog of things to do, and we’re leaning in as aggressively as we can to this market. We love this market. We think it’s helping people. We know it’s helping people and so that will continue,” he added.

Koning also added, “I think the analysis we’ve done would suggest that our market was reasonably robust during that point in time. And I think the other point is, as you looked at volumes that went through COVID, while there was certainly some staffing influence to the volume moving around, the fundamental demand did not go away.”