Alphatec控股第二季收入2.135億美元增15% 淨虧損大幅收窄

10-Q
 
 
 
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 Table of Contents
 

  
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 10-Q
 
(Mark One)
☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2026
OR
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number: 000-52024
 
ALPHATEC HOLDINGS, INC.
(Exact name of registrant as specified in its charter)
 
 

 
 
 
 
 

 
 Delaware

 20-2463898

 

 
 ( State or other jurisdiction of
incorporation or organization)

 (I.R.S. Employer
Identification No.)

 

 
 1950 Camino Vida Roble, Carlsbad, CA

 92008

 

 
 (Address of principal executive offices)

 (Zip Code)

 

 Registrant’s telephone number, including area code: (760) 431-9286
 
Securities registered pursuant to Section 12(b) of the Act:
 

 
 
 
 
 
 

 
 Title of each class

 Trading Symbol(s)

 Name of each exchange on which registered

 

 
 Common stock, par value $0.0001 per share

 ATEC

 The NASDAQ Global Select Market

 

  
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
 

 
 
 
 
 
 
 
 

 
 Large accelerated filer

 ☒

  

 Accelerated filer

 ☐

 

 
 Non-accelerated filer

 ☐

  

 Smaller reporting company

 ☐

 

 
 Emerging growth company

 ☐

  

  

  

 

 If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) Yes ☐ No ☒ 
 
As of July 28, 2026, there were 154,451,076 shares of the registrant’s common stock outstanding.
 

  

 
 Table of Contents
 

 ALPHATEC HOLDINGS, INC.
QUARTERLY REPORT ON FORM 10-Q
June 30, 2026
Table of Contents
 

 
 
 
 
 
 
 
 

 
  

  

  

  

 Page

 

 
  

  

 PART I – FINANCIAL INFORMATION

  

  

 

 
  

  

  

  

  

 

 
 Item 1.

  

 Financial Statements 

  

 3

 

 
  

  

  

  

  

 

 
  

  

 Condensed Consolidated Balance Sheets

  

 3

 

 
  

  

  

  

  

 

 
  

  

 Condensed Consolidated Statements of Operations

  

 4

 

 
  

  

  

  

  

 

 
  

  

 Condensed Consolidated Statements of Comprehensive Loss

  

 5

 

 
  

  

  

  

  

 

 
  

  

 Condensed Consolidated Statements of Stockholders’ (Deficit) Equity

  

 6

 

 
  

  

  

  

  

 

 
  

  

 Condensed Consolidated Statements of Cash Flows

  

 8

 

 
  

  

  

  

  

 

 
  

  

 Notes to Condensed Consolidated Financial Statements 

  

 9

 

 
  

  

  

  

  

 

 
 Item 2.

  

 Management's Discussion and Analysis of Financial Condition and Results of Operations

  

 24

 

 
  

  

  

  

  

 

 
 Item 3.

  

 Quantitative and Qualitative Disclosures About Market Risk

  

 31

 

 
  

  

  

  

  

 

 
 Item 4.

  

 Controls and Procedures

  

 31

 

 
  

  

  

  

  

 

 
  

  

 PART II – OTHER INFORMATION

  

  

 

 
  

  

  

  

  

 

 
 Item 1.

  

 Legal Proceedings

  

 32

 

 
  

  

  

  

  

 

 
 Item 1A.

  

 Risk Factors

  

 32

 

 
  

  

  

  

  

 

 
 Item 2.

  

 Unregistered Sales of Equity Securities and Use of Proceeds

  

 32

 

 
  

  

  

  

  

 

 
 Item 5.

  

 Other Information

  

 33

 

 
  

  

  

  

  

 

 
 Item 6.

  

 Exhibits

  

 34

 

 
  

  

  

  

  

 

 
 SIGNATURES

  

 35

 

  

 2

 
 Table of Contents
 

 PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
ALPHATEC HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except for par value data)
 

 
 
 
 
 
 
 
 
 
 
 
 

 
  

  

 June 30,
2026

  

  

 December 31,
2025

  

 

 
 Assets

  

 (Unaudited)

  

  

  

  

 

 
 Current assets:

  

  

  

  

  

  

 

 
 Cash and cash equivalents

  

 $

 118,662

  

  

 $

 160,806

  

 

 
 Accounts receivable, net of allowances of $11,180 and $12,685, respectively

  

  

 110,126

  

  

  

 97,304

  

 

 
 Inventories

  

  

 194,888

  

  

  

 169,444

  

 

 
 Prepaid expenses and other current assets

  

  

 25,339

  

  

  

 23,322

  

 

 
 Total current assets

  

  

 449,015

  

  

  

 450,876

  

 

 
 Property and equipment, net

  

  

 139,237

  

  

  

 135,324

  

 

 
 Right-of-use assets

  

  

 29,186

  

  

  

 31,225

  

 

 
 Goodwill

  

  

 74,167

  

  

  

 75,208

  

 

 
 Intangible assets, net

  

  

 88,296

  

  

  

 93,454

  

 

 
 Other assets

  

  

 11,125

  

  

  

 5,121

  

 

 
 Total assets

  

 $

 791,026

  

  

 $

 791,208

  

 

 
 Liabilities and Stockholders’ (Deficit) Equity

  

  

  

  

  

  

 

 
 Current liabilities:

  

  

  

  

  

  

 

 
 Accounts payable

  

 $

 62,105

  

  

 $

 40,893

  

 

 
 Accrued expenses and other current liabilities

  

  

 93,145

  

  

  

 97,019

  

 

 
 Contract liabilities

  

  

 11,104

  

  

  

 10,439

  

 

 
 Short-term debt

  

  

 65,012

  

  

  

 64,526

  

 

 
 Current portion of operating lease liabilities

  

  

 6,600

  

  

  

 6,298

  

 

 
 Total current liabilities

  

  

 237,966

  

  

  

 219,175

  

 

 
 Long-term debt

  

  

 510,742

  

  

  

 501,412

  

 

 
 Operating lease liabilities, less current portion

  

  

 21,670

  

  

  

 23,856

  

 

 
 Other long-term liabilities

  

  

 9,114

  

  

  

 10,736

  

 

 
 Commitments and contingencies (Note 8)

  

  

  

  

  

  

 

 
 Redeemable preferred stock, $0.0001 par value; 20,000 shares authorized at
   June 30, 2026 and December 31, 2025; 3,319 shares issued and outstanding
   at June 30, 2026 and December 31, 2025

  

  

 23,603

  

  

  

 23,603

  

 

 
 Stockholders' (deficit) equity:

  

  

  

  

  

  

 

 
 Common stock, $0.0001 par value; 400,000 authorized; 154,491 shares issued and outstanding at June 30, 2026; and 150,257 shares issued and outstanding at December 31, 2025

  

  

 16

  

  

  

 15

  

 

 
 Treasury stock, 1,808 shares, at cost at June 30, 2026 and December 31, 2025

  

  

 (25,097

 )

  

  

 (25,097

 )

 

 
 Additional paid-in capital

  

  

 1,503,816

  

  

  

 1,466,377

  

 

 
 Accumulated other comprehensive loss

  

  

 (6,674

 )

  

  

 (4,426

 )

 

 
 Accumulated deficit

  

  

 (1,484,130

 )

  

  

 (1,424,443

 )

 

 
 Total stockholders’ (deficit) equity

  

  

 (12,069

 )

  

  

 12,426

  

 

 
 Total liabilities and stockholders’ (deficit) equity

  

 $

 791,026

  

  

 $

 791,208

  

 

  
See accompanying notes to unaudited condensed consolidated financial statements.

 3

 
 Table of Contents
 

 ALPHATEC HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(In thousands, except per share amounts)
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
  

  

 Three Months Ended

  

  

 Six Months Ended

  

 

 
  

  

 June 30,

  

  

 June 30,

  

 

 
  

  

 2026

  

  

 2025

  

  

 2026

  

  

 2025

  

 

 
 Revenue from products and services

  

 $

 213,513

  

  

 $

 185,544

  

  

 $

 405,621

  

  

 $

 354,724

  

 

 
 Cost of sales

  

  

 59,415

  

  

  

 56,443

  

  

  

 115,047

  

  

  

 109,627

  

 

 
 Gross profit

  

  

 154,098

  

  

  

 129,101

  

  

  

 290,574

  

  

  

 245,097

  

 

 
 Operating expenses:

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Research and development

  

  

 18,174

  

  

  

 18,276

  

  

  

 35,734

  

  

  

 35,308

  

 

 
 Sales, general and administrative

  

  

 134,001

  

  

  

 118,507

  

  

  

 271,058

  

  

  

 245,524

  

 

 
 Litigation-related expenses

  

  

 (86

 )

  

  

 1,593

  

  

  

 439

  

  

  

 13,807

  

 

 
 Amortization of acquired intangible assets

  

  

 3,917

  

  

  

 3,803

  

  

  

 7,832

  

  

  

 7,456

  

 

 
 Restructuring expenses

  

  

 —

  

  

  

 7

  

  

  

 —

  

  

  

 378

  

 

 
 Total operating expenses

  

  

 156,006

  

  

  

 142,186

  

  

  

 315,063

  

  

  

 302,473

  

 

 
 Operating loss

  

  

 (1,908

 )

  

  

 (13,085

 )

  

  

 (24,489

 )

  

  

 (57,376

 )

 

 
 Other expense, net:

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Interest expense, net

  

  

 (10,964

 )

  

  

 (12,309

 )

  

  

 (22,685

 )

  

  

 (20,150

 )

 

 
 Loss on debt extinguishment

  

  

 (11,883

 )

  

  

 —

  

  

  

 (11,883

 )

  

  

 (17,576

 )

 

 
 (Loss) gain on derivative liability

  

  

 —

  

  

  

 (16,780

 )

  

  

 —

  

  

  

 620

  

 

 
 Other (expense) income , net

  

  

 (870

 )

  

  

 993

  

  

  

 (424

 )

  

  

 1,330

  

 

 
 Total other expense, net

  

  

 (23,717

 )

  

  

 (28,096

 )

  

  

 (34,992

 )

  

  

 (35,776

 )

 

 
 Net loss before taxes

  

  

 (25,625

 )

  

  

 (41,181

 )

  

  

 (59,481

 )

  

  

 (93,152

 )

 

 
 Income tax provision (benefit)

  

  

 156

  

  

  

 (37

 )

  

  

 206

  

  

  

 (101

 )

 

 
 Net loss

  

 $

 (25,781

 )

  

 $

 (41,144

 )

  

 $

 (59,687

 )

  

 $

 (93,051

 )

 

 
 Net loss per share, basic and diluted

  

 $

 (0.16

 )

  

 $

 (0.27

 )

  

 $

 (0.38

 )

  

 $

 (0.63

 )

 

 
 Weighted average shares outstanding, basic and diluted

  

  

 156,575

  

  

  

 149,907

  

  

  

 155,328

  

  

  

 148,337

  

 

  
See accompanying notes to unaudited condensed consolidated financial statements.

 4

 
 Table of Contents
 

 ALPHATEC HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(UNAUDITED)
(In thousands)
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
  

  

 Three Months Ended

  

  

 Six Months Ended

  

 

 
  

  

 June 30,

  

  

 June 30,

  

 

 
  

  

 2026

  

  

 2025

  

  

 2026

  

  

 2025

  

 

 
 Net loss

  

 $

 (25,781

 )

  

 $

 (41,144

 )

  

 $

 (59,687

 )

  

 $

 (93,051

 )

 

 
 Foreign currency translation adjustments

  

  

 (228

 )

  

  

 6,208

  

  

  

 (2,248

 )

  

  

 9,423

  

 

 
 Comprehensive loss

  

 $

 (26,009

 )

  

 $

 (34,936

 )

  

 $

 (61,935

 )

  

 $

 (83,628

 )

 

  
See accompanying notes to unaudited condensed consolidated financial statements.

 5

 
 Table of Contents
 

 ALPHATEC HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ (DEFICIT) EQUITY
(UNAUDITED)
(In thousands)
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
  

  

 Common stock

  

  

 Additional
paid-in

  

  

 Treasury

  

  

 Accumulated other
comprehensive

  

  

 Accumulated

  

  

 Total
stockholders’

  

 

 
  

  

 Shares

  

  

 Par Value

  

  

 capital

  

  

 stock

  

  

 loss

  

  

 deficit

  

  

 (deficit) equity

  

 

 
 Balance at December 31, 2025

  

  

 150,257

  

  

 $

 15

  

  

 $

 1,466,377

  

  

 $

 (25,097

 )

  

 $

 (4,426

 )

  

 $

 (1,424,443

 )

  

 $

 12,426

  

 

 
 Stock-based compensation

  

  

 —

  

  

  

 —

  

  

  

 23,659

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 23,659

  

 

 
 Common stock issued for stock option exercises

  

  

 245

  

  

  

 —

  

  

  

 97

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 97

  

 

 
 Common stock issued for vesting of
   performance and restricted stock
   awards, net of shares retained
   for tax liability

  

  

 3,292

  

  

  

 1

  

  

  

 (5,604

 )

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 (5,603

 )

 

 
 Foreign currency translation adjustments

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 (2,020

 )

  

  

 —

  

  

  

 (2,020

 )

 

 
 Net loss

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 (33,906

 )

  

  

 (33,906

 )

 

 
 Balance at March 31, 2026

  

  

 153,794

  

  

 $

 16

  

  

 $

 1,484,529

  

  

 $

 (25,097

 )

  

 $

 (6,446

 )

  

 $

 (1,458,349

 )

  

 $

 (5,347

 )

 

 
 Stock-based compensation

  

  

 —

  

  

  

 —

  

  

  

 18,147

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 18,147

  

 

 
 Common stock issued for employee stock
   purchase plan and stock option exercises

  

  

 330

  

  

  

 —

  

  

  

 1,525

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 1,525

  

 

 
 Common stock issued for vesting of
   performance and restricted stock
   awards, net of shares retained
   for tax liability

  

  

 367

  

  

  

 —

  

  

  

 (385

 )

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 (385

 )

 

 
 Foreign currency translation adjustments

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 (228

 )

  

  

 —

  

  

  

 (228

 )

 

 
 Net loss

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 (25,781

 )

  

  

 (25,781

 )

 

 
 Balance at June 30, 2026

  

  

 154,491

  

  

  

 16

  

  

  

 1,503,816

  

  

  

 (25,097

 )

  

  

 (6,674

 )

  

  

 (1,484,130

 )

  

  

 (12,069

 )

 

  

 6

 
 Table of Contents
 

 ALPHATEC HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ (DEFICIT) EQUITY
(UNAUDITED)
(In thousands)
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
  

  

 Common stock

  

  

 Additional
paid-in

  

  

 Treasury

  

  

 Accumulated other
comprehensive

  

  

 Accumulated

  

  

 Total
stockholders’

  

 

 
  

  

 Shares

  

  

 Par Value

  

  

 capital

  

  

 stock

  

  

 loss

  

  

 deficit

  

  

 (deficit) equity

  

 

 
  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Balance at December 31, 2024

  

  

 144,129

  

  

 $

 14

  

  

 $

 1,305,677

  

  

 $

 (25,097

 )

  

 $

 (13,678

 )

  

 $

 (1,281,085

 )

  

 $

 (14,169

 )

 

 
 Stock-based compensation

  

  

 —

  

  

  

 —

  

  

  

 22,318

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 22,318

  

 

 
 Common stock issued for stock option exercises

  

  

 150

  

  

  

 —

  

  

  

 505

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 505

  

 

 
 Common stock issued for vesting of
   performance and restricted stock
   awards, net of shares retained
   for tax liability

  

  

 2,627

  

  

  

 1

  

  

  

 (3,417

 )

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 (3,416

 )

 

 
 Purchase of capped calls

  

  

 —

  

  

  

 —

  

  

  

 (42,485

 )

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 (42,485

 )

 

 
 Foreign currency translation adjustments

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 3,215

  

  

  

 —

  

  

  

 3,215

  

 

 
 Net loss

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 (51,907

 )

  

  

 (51,907

 )

 

 
 Balance at March 31, 2025

  

  

 146,906

  

  

 $

 15

  

  

 $

 1,282,598

  

  

 $

 (25,097

 )

  

 $

 (10,463

 )

  

 $

 (1,332,992

 )

  

 $

 (85,939

 )

 

 
 Stock-based compensation

  

  

 —

  

  

  

 —

  

  

  

 15,624

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 15,624

  

 

 
 Common stock issued for warrant exercises

  

  

 1,139

  

  

  

 —

  

  

  

 52

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 52

  

 

 
 Common stock issued for employee stock
   purchase plan and stock option exercises

  

  

 323

  

  

  

 —

  

  

  

 2,326

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 2,326

  

 

 
 Common stock issued for vesting of
   performance and restricted stock
   awards, net of shares retained
   for tax liability

  

  

 379

  

  

  

 —

  

  

  

 (98

 )

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 (98

 )

 

 
 Common stock issued for asset acquisition

  

  

 95

  

  

  

 —

  

  

  

 1,000

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 1,000

  

 

 
 Warrant modification

  

  

 —

  

  

  

 —

  

  

  

 2,301

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 2,301

  

 

 
 Reclassification of equity-based liability

  

  

 —

  

  

  

 —

  

  

  

 123,441

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 123,441

  

 

 
 Foreign currency translation adjustments

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 6,208

  

  

  

 —

  

  

  

 6,208

  

 

 
 Net loss

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 (41,144

 )

  

  

 (41,144

 )

 

 
 Balance at June 30, 2025

  

  

 148,842

  

  

 $

 15

  

  

 $

 1,427,244

  

  

 $

 (25,097

 )

  

 $

 (4,255

 )

  

 $

 (1,374,136

 )

  

 $

 23,771

  

 

  
See accompanying notes to unaudited condensed consolidated financial statements.

 7

 
 Table of Contents
 

 ALPHATEC HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(In thousands)

 
 
 
 
 
 
 
 
 
 
 
 

 
  

  

 Six Months Ended June 30,

  

 

 
  

  

 2026

  

  

 2025

  

 

 
 Operating activities:

  

  

  

  

  

  

 

 
 Net loss

  

 $

 (59,687

 )

  

 $

 (93,051

 )

 

 
 Adjustments to reconcile net loss to net cash provided by operating activities:

  

  

  

  

  

  

 

 
 Depreciation and amortization

  

  

 38,932

  

  

  

 39,235

  

 

 
 Stock-based compensation

  

  

 41,806

  

  

  

 37,942

  

 

 
 Amortization of debt discount and debt issuance costs

  

  

 15,003

  

  

  

 8,923

  

 

 
 Amortization of right-of-use assets

  

  

 2,646

  

  

  

 2,465

  

 

 
 Write-down for excess and obsolete inventories

  

  

 8,095

  

  

  

 7,944

  

 

 
 Loss on disposal of assets

  

  

 1,272

  

  

  

 1,700

  

 

 
 Loss on debt extinguishment

  

  

 11,883

  

  

  

 17,576

  

 

 
 Gain on derivative liability

  

  

 —

  

  

  

 (620

 )

 

 
 Other

  

  

 2,129

  

  

  

 4,148

  

 

 
 Changes in operating assets and liabilities:

  

  

  

  

  

  

 

 
 Accounts receivable

  

  

 (15,156

 )

  

  

 (16,249

 )

 

 
 Inventories

  

  

 (34,047

 )

  

  

 (915

 )

 

 
 Prepaid expenses and other current assets

  

  

 (800

 )

  

  

 423

  

 

 
 Other assets

  

  

 260

  

  

  

 152

  

 

 
 Accounts payable

  

  

 18,328

  

  

  

 (1,650

 )

 

 
 Accrued expenses

  

  

 (6,611

 )

  

  

 4,677

  

 

 
 Lease liabilities

  

  

 (2,557

 )

  

  

 (2,416

 )

 

 
 Contract liabilities

  

  

 710

  

  

  

 784

  

 

 
 Other long-term liabilities

  

  

 (403

 )

  

  

 (559

 )

 

 
 Net cash provided by operating activities

  

  

 21,803

  

  

  

 10,509

  

 

 
 Investing activities:

  

  

  

  

  

  

 

 
 Purchase of property and equipment

  

  

 (32,021

 )

  

  

 (20,258

 )

 

 
 Note receivable

  

  

 (5,000

 )

  

  

 —

  

 

 
 Purchase of intangible assets

  

  

 (4,387

 )

  

  

 (3,527

 )

 

 
 Other

  

  

 (1,201

 )

  

  

 —

  

 

 
 Net cash used in investing activities

  

  

 (42,609

 )

  

  

 (23,785

 )

 

 
 Financing activities:

  

  

  

  

  

  

 

 
 Repayment of term loan

  

  

 (200,000

 )

  

  

 —

  

 

 
 Proceeds from issuance of term loan

  

  

 172,385

  

  

  

 —

  

 

 
 Proceeds from revolving credit facility

  

  

 42,747

  

  

  

 7,792

  

 

 
 Repayment of revolving credit facility

  

  

 (18,214

 )

  

  

 (56,892

 )

 

 
 Payment of debt extinguishment costs

  

  

 (12,070

 )

  

  

 —

  

 

 
 Payments related to tax withholdings for share-based compensation

  

  

 (6,085

 )

  

  

 (645

 )

 

 
 Payment of debt issuance costs

  

  

 (1,868

 )

  

  

 (706

 )

 

 
 Proceeds from issuance of convertible notes, net

  

  

 —

  

  

  

 392,850

  

 

 
 Repurchase of convertible notes

  

  

 —

  

  

  

 (268,231

 )

 

 
 Purchase of capped calls

  

  

 —

  

  

  

 (42,485

 )

 

 
 Other

  

  

 1,803

  

  

  

 (558

 )

 

 
 Net cash (used in) provided by financing activities

  

  

 (21,302

 )

  

  

 31,125

  

 

 
 Effect of exchange rate changes on cash

  

  

 (36

 )

  

  

 374

  

 

 
 Net change in cash and cash equivalents

  

  

 (42,144

 )

  

  

 18,223

  

 

 
 Cash and cash equivalents at beginning of period

  

  

 160,806

  

  

  

 138,840

  

 

 
 Cash and cash equivalents at end of period

  

 $

 118,662

  

  

 $

 157,063

  

 

 
 Supplemental disclosure of cash flow information:

  

  

  

  

  

  

 

 
 Cash paid for interest

  

 $

 6,688

  

  

 $

 11,717

  

 

 
 Cash paid for income taxes

  

 $

 425

  

  

 $

 348

  

 

 
 Supplemental disclosure of noncash activities:

  

  

  

  

  

  

 

 
 Purchases of property and equipment in accounts payable and accrued expenses

  

 $

 10,800

  

  

 $

 695

  

 

 
 Purchase of intangible assets in accrued expenses and other long-term liabilities

  

 $

 3,750

  

  

 $

 1,681

  

 

 
 Financed insurance

  

 $

 1,020

  

  

 $

 1,347

  

 

 
 Recognition of lease liabilities

  

 $

 962

  

  

 $

 66

  

 

 
 Recognition of derivative liability

  

 $

 —

  

  

 $

 124,062

  

 

  
See accompanying notes to unaudited condensed consolidated financial statements.

 8

 
 Table of Contents
 

 ALPHATEC HOLDINGS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
1. Organization and Significant Accounting Policies
The Company

Alphatec Holdings, Inc. (the “Company”), through its wholly owned subsidiaries, Alphatec Spine, Inc. (“Alphatec Spine”), SafeOp Surgical, Inc. (“SafeOp”), and EOS imaging S.A.S. (“EOS”), is a medical technology company focused on the design, development, and advancement of technology for the better surgical treatment of spinal disorders. The Company, headquartered in Carlsbad, California, markets its products in the United States and internationally via a network of independent sales agents and direct sales representatives. 
Basis of Presentation and Principles of Consolidation
The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. The Company translates the financial statements of its foreign subsidiaries using end-of-period exchange rates for assets and liabilities and average exchange rates during each reporting period for results of operations. All intercompany balances and transactions have been eliminated in consolidation. 
The accompanying condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Pursuant to these rules and regulations, the Company has condensed or omitted certain information and footnotes it normally includes in its annual consolidated financial statements prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). The unaudited interim condensed consolidated financial statements reflect all adjustments, including normal recurring adjustments which, in the opinion of management, are necessary for a fair presentation of the financial position and results of operations for the periods presented. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2025, which are included in the Company’s Annual Report on Form 10-K that was filed with the SEC. Operating results for the six months ended June 30, 2026 are not necessarily indicative of the results that may be expected for the full year or any other future periods.

Use of Estimates

The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. 
Fair Value Measurements
The carrying amount of financial instruments consisting of cash and cash equivalents, accounts receivable, prepaid expenses and other current assets, other assets, accounts payable, accrued expenses, and short-term debt included in the Company’s condensed consolidated financial statements are reasonable estimates of fair value due to their short maturities. 
Authoritative guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:
 
Level 1: Quoted prices in active markets for identical assets or liabilities.
 
Level 2: Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active; or other inputs that can be corroborated by observable market data for substantially the full term of the assets or liabilities.
 
Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

 9

 
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 Excess and Obsolete Inventory
Most of the Company’s inventory is comprised of finished goods, which is primarily produced by third-party suppliers. Specialized implants, fixation products, biologics, and imaging equipment are determined by utilizing a standard cost method that includes capitalized variances which approximates the weighted average cost. Component parts related to the imaging equipment are valued at weighted average cost. Inventories are stated at the lower of cost or net realizable value. The Company reviews the components of its inventory on a periodic basis for excess and obsolescence and adjusts inventory to its net realizable value as necessary.
The Company records a lower of cost or net realizable value (“LCNRV”) inventory reserve for estimated excess and obsolete inventory based upon its expected use of inventory on hand. The Company’s inventory, which consists primarily of specialized implants, fixation products, and biologics is at risk of obsolescence due to the need to maintain substantial levels of inventory. In order to market its products effectively and meet the demands of interoperative product placement, the Company maintains and provides surgeons and hospitals with a variety of inventory products and sizes. For each surgery, fewer than all components will be consumed. The need to maintain and provide a wide variety of inventory causes inventory to be held that is not likely to be used.
The Company’s estimates and assumptions for excess and obsolete inventory are reviewed and updated on a quarterly basis. The estimates and assumptions are determined primarily based on current usage of inventory and the age of inventory quantities on hand. Additionally, the Company considers recent sales experience to develop assumptions about future demand for its products, while considering product life cycles and new product launches. Increases in the LCNRV reserve for excess and obsolete inventory result in a corresponding charge to cost of sales.

Revenue Recognition
The Company recognizes revenue from product sales in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification ("ASC") Revenue from Contracts with Customers (“Topic 606”). This standard applies to all contracts with customers, except for contracts that are within the scope of other standards, such as leases. Under Topic 606, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration that the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of Topic 606, the entity performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer.
Sales are derived primarily from the sale of spinal implant products, imaging equipment, and related services to hospitals and medical centers. Revenue is recognized when obligations under the terms of a contract with customers are satisfied, which occurs with the transfer of control of products to customers, either upon shipment of the product or delivery of the product to the customer depending on the shipping terms, or when the products are used in a surgical procedure (implanted in a patient). Revenue from the sale of imaging equipment is recognized as each distinct performance obligation is fulfilled and control transfers to the customer, beginning with shipment or delivery, depending on the contract terms. Revenue from other distinct performance obligations, such as maintenance on imaging equipment and other imaging-related services, is recognized in the period the service is performed, and makes up less than 10% of the Company’s total revenue. In certain cases, the Company does offer the ability for customers to lease its imaging equipment, but such arrangements are immaterial to total revenue in the periods presented. The Company generally does not allow returns of products that have been delivered. Costs incurred by the Company associated directly with sales contracts with customers are deferred over the performance obligation period and recognized in the same period as the related revenue, except for contracts that complete within one year or less, in which case the associated costs are expensed as incurred. Payment terms for sales to customers may vary but are commensurate with the general business practices in the country of sale.
To the extent that the transaction price includes variable consideration, such as discounts, rebates, and customer payment penalties, the Company estimates the amount of variable consideration that should be included in the transaction price utilizing either the expected value method or the most likely amount method depending on the nature of the variable consideration. Variable consideration is included in the transaction price if, in the Company's judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. Estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of the Company’s anticipated performance and all information that is reasonably available, including historical, current, and forecasted information. 

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 The Company records a contract asset when one or more performance obligations have been completed and revenue has been recognized, but the customer's payment is contingent on the satisfaction of additional performance obligations. The Company records a contract liability, or deferred revenue, when it has an obligation to provide a product or service