Alphatec Holdings, Inc. (Nasdaq: ATEC) released its financial results for the third quarter ended September 30, 2026, and updated its guidance for the full fiscal year. The company reported total revenue of $221 million for the quarter, a 13% increase compared to the same period in the prior year.
Within the results, surgical revenue was $202 million, representing a 14% increase year-over-year. This growth was driven by a 20% increase in case volumes and a 25% rise in net new surgeon users. Surgical hardware revenue specifically grew 17% year-over-year, contributing $26 million to the overall surgical growth.
Despite the revenue growth, the company reported a GAAP net loss of $5 million for the quarter. However, on a non-GAAP basis, the company reported a net income of $15 million and adjusted EBITDA of $38 million, which represents a 17.3% margin. The company also generated $6 million in free cash flow during the quarter.
Alphatec adjusted its financial outlook for fiscal year 2026. The company now expects total revenue of approximately $862 million, which includes approximately $789 million in surgical revenue and approximately $73 million in EOS revenue. This outlook reflects approximately 13% total revenue growth and 15% surgical revenue growth for the year. The company also expects adjusted EBITDA of approximately $137 million and free cash flow of approximately $10 million for the full year.
Management cited lower biologics attachment as the primary reason for the revenue shortfall in the third quarter. CEO Pat Miles stated that improving biologics performance is a priority, while noting strong demand for procedural solutions and continued progress with the OsteoAdapt (Theradaptive) platform.
