Alphatec Holdings, Inc.
For the period ended Jun 30, 2025. Filed Jul 31, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Jul 31, 2025
ATEC$7.44-4.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-01.
0000950170-25-061974
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-07-31.
0000950170-25-100963
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 87 previous paragraphs and 88 current paragraphs.
67 unchanged; 18 reworded; 1 added; 2 removed; 0 previous and 2 current paragraphs rearranged.
Tables are not compared: 6 previous and 6 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (1)
Current report
Cost of sales increased $13.5 million, or 31%, and $25.5 million, or 30%, for the three and six months ended June 30, 2025, respectively, compared to the same period in 2024. The increase was primarily due to an increase in product volume.
Removed paragraphs (2)
Previous report
Cost of sales increased $12.1 million, or 29%, for the three months ended March 31, 2025, compared to the same period in 2024. The increase was primarily due to an increase in product volume and an increase in stock-based compensation. We have entered into Development Service Agreements for the development of a wide variety of potential products and intellectual property. Under these agreements, future royalty payments for product and/or intellectual property rights may be paid in either cash or restricted shares of our common stock at the election of the developer, depending on the terms of the agreement. Certain of these agreements were amended to remove the cash royalty option and require settlement in restricted shares of our common stock. Stock-based compensation associated with these awards was higher during the three months ended March 31, 2025 as the vesting conditions of certain of these amended awards were deemed probable during the current period.
Previous report
Amortization expense. Amortization expense increased $0.2 million, or 6%, during the three months ended March 31, 2025, compared to the same period in 2024. The increase in amortization expense is primarily due to the amortization of internally-developed software that has been placed in service.
Reworded paragraphs (18)
Previous wording
Revenue from products and services increased $30.7 million, or 22%, during the three months ended March 31, 2025, compared to the same period in 2024. The increase was primarily due to an increase in product volume that was due to the increase in our surgeon user base, continued expansion of our new product portfolio, and increasing adoption of our technology.
Current wording
Revenue from products and services increased $40.0 million, or 27%, and $70.7 million, or 25%, during the three and six months ended June 30, 2025, respectively, compared to the same period in 2024. The increase was primarily due to an increase in product volume that was due to the increase in our surgeon user base, continued expansion of our new product portfolio, and increasing adoption of our technology.
Previous wording
Research and development expenses. Research and development expenses decreased $1.4 million, or 8%, for the three months ended March 31, 2025, compared to the same period in 2024. The decrease during the three months ended March 31, 2025 was primarily due to a decrease in stock-based compensation related to our Development Service Agreements and a decrease in personnel.
Current wording
Research and development expenses. Research and development expenses decreased $0.8 million, or 4%, and $1.8 million, or 5%, for the three and six months ended June 30, 2025, respectively, compared to the same period in 2024. The decrease during the three months and six months ended June 30, 2025 was primarily due to a decrease in stock-based compensation.
Previous wording
Sales, general and administrative expenses. Sales, general and administrative expenses increased $13.4 million, or 12%, during the three months ended March 31, 2025, compared to the same period in 2024. The increase was primarily due to higher compensation-related costs and variable selling expenses associated with the increase in revenue, and our continued investment in building our strategic distribution channel.
Current wording
Sales, general and administrative expenses. Sales, general and administrative expenses increased $5.8 million, or 5%, and $19.2 million, or 8%, during the three and six months ended June 30, 2025, respectively, compared to the same period in 2024. The increase was primarily due to higher compensation-related costs and variable selling expenses associated with the increase in revenue, and our continued investment in building our strategic distribution channel.
Previous wording
Litigation-related expenses. Litigation expenses increased $7.8 million, or 176%, for the three months ended March 31, 2025, compared to the same period in 2024. The increase was primarily related to a litigation settlement during the current period.
Current wording
Litigation-related expenses. Litigation-related expenses decreased $0.5 million, or 24%, and increased $7.3 million, or 112%, for the three and six months ended June 30, 2025, respectively, compared to the same period in 2024. The increase for the six month period ended June 30, 2025 was primarily related to a litigation settlement during the three months ended March 31, 2025.
Previous wording
Restructuring expenses. Restructuring expenses decreased $0.4 million, or 53%, during the three months ended March 31, 2025, compared to the same period in 2024. The decrease in restructuring expenses is primarily due to costs associated with the relocation of office facilities in Paris, France in the prior period that did not recur.
Current wording
Restructuring expenses. Restructuring expenses decreased $0.1 million, or 95%, and $0.5 million, or 59%, during the three and six months ended June 30, 2025, respectively, compared to the same period in 2024. The decrease in restructuring expenses is primarily due to costs associated with the relocation of office facilities in Paris, France and personnel related expenses in the prior period that did not recur.
Previous wording
Interest expense, net, increased $2.5 million, or 47%, during the three months ended March 31, 2025, compared to the same period in 2024. The increase in interest expense, net, was primarily due to drawing an additional $50.0 million on the Braidwell Term Loan in October 2024, and the amortization of debt discount associated with the 2030 Notes. Net cash and non-cash interest was $5.3 million and $2.5 million, respectively, for the three months ended March 31, 2025.
Current wording
Interest expense, net, increased $6.5 million, or 112%, and $9.0 million, or 81%, during the three and six months ended June 30, 2025, respectively, compared to the same period in 2024. The increase in interest expense, net, was primarily due to drawing an additional $50.0 million on the Braidwell Term Loan in October 2024, and the amortization of debt discount associated with the 2030 Notes. Net cash interest was $5.3 million and $10.6 million for the three and six months ended June 30, 2025, respectively. Net non-cash interest was $7.0 million and $9.5 million for the three and six months ended June 30, 2025, respectively.
Previous wording
Loss on debt extinguishment increased $17.6 million, or 100%, during the three months ended March 31, 2025, compared to the same period in 2024. The increase in loss on debt extinguishment relates to the redemption of 80% of the 2026 Notes.
Current wording
Loss on debt extinguishment increased $17.6 million, or 100%, during the six months ended June 30, 2025, compared to the same period in 2024. The increase in loss on debt extinguishment relates to the redemption of 80% of the 2026 Notes.
Previous wording
Gain on derivative liability increased $17.4 million, or 100%, during the three months ended March 31, 2025, compared to the same period in 2024. The increase in gain on derivative liability relates to the change in the valuation of the derivative liability associated with 2030 Notes from inception to March 31, 2025.
Current wording
(Loss)/gain on derivative liability increased $16.8 million, or 100%, and $0.6 million, or 100%, during the three and six months ended June 30, 2025, respectively, compared to the same period in 2024. The increase in (loss)/gain on derivative liability relates to the change in the valuation of the derivative liability associated with 2030 Notes from inception to June 30, 2025.
Previous wording
Other income, net, increased $0.2 million, or 186%, during the three months ended March 31, 2025, compared to the same period in 2024. The increase in other income, net, during the three months ended March 31, 2025, was primarily due to fluctuations in foreign currency rates.
Current wording
Other income, net, increased $0.8 million, or 537%, and $1.1 million, or 385%, during the three and six months ended June 30, 2025, respectively, compared to the same period in 2024. The increase in other income, net, during the three and six months ended June 30, 2025, was primarily due to receiving the employee retention credit and fluctuations in foreign currency rates.
Previous wording
The change in the income tax benefit for the three months ended March 31, 2025, compared to the same period in 2024, was primarily related to the recognition of income tax benefits in several jurisdictions.
Current wording
The change in the income tax benefit for the three and six months ended June 30, 2025, compared to the same period in 2024, was primarily related to the recognition of income tax benefits in several jurisdictions.
Previous wording
We do not have any material financial exposure to one customer or one country, outside of the United States, that would significantly hinder our liquidity. We are and may become involved in various legal proceedings arising from our business activities. While we have no material, undisclosed accruals for pending litigation or claims, litigation is inherently unpredictable, and depending on the nature and timing of a proceeding, an unfavorable resolution could materially affect our future consolidated results of operations, cash flows or financial position in a particular period. We assess contingencies to determine the degree of probability and range of possible loss for potential accrual or disclosure in our condensed consolidated financial statements. An estimated loss contingency is accrued in our condensed consolidated financial statements if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Assessing contingencies is highly subjective and requires judgments about future events because litigation is inherently unpredictable, and unfavorable resolutions could occur. When evaluating contingencies, we may be unable to provide a meaningful estimate due to a number of factors, including the procedural status of the matter in question, the presence of complex or novel legal theories, and/or the ongoing discovery and development of information important to the matters. In addition, damage amounts claimed in litigation against us may be unsupported, exaggerated, or unrelated to reasonably possible outcomes, and as such are not meaningful indicators of our potential liability. We have disclosed all material accruals for pending litigation or investigations in Note 9, Commitments and Contingencies, in the Notes to Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q.
Current wording
While we have no material, undisclosed accruals for pending litigation or claims, litigation is inherently unpredictable, and depending on the nature and timing of a proceeding, an unfavorable resolution could materially affect our future consolidated results of operations, cash flows or financial position in a particular period. We assess contingencies to determine the degree of probability and range of possible loss for potential accrual or disclosure in our condensed consolidated financial statements. An estimated loss contingency is accrued in our condensed consolidated financial statements if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Assessing contingencies is highly subjective and requires judgments about future events because litigation is inherently unpredictable, and unfavorable resolutions could occur. When evaluating contingencies, we may be unable to provide a meaningful estimate due to a number of factors, including the procedural status of the matter in question, the presence of complex or novel legal theories, and/or the ongoing discovery and development of information important to the matters. In addition, damage amounts claimed in litigation against us may be unsupported, exaggerated, or unrelated to reasonably possible outcomes, and as such are not meaningful indicators of our potential liability. We have disclosed all material accruals for pending litigation or investigations in Note 9, Commitments and Contingencies, in the Notes to Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q.
Previous wording
Cash and cash equivalents were $153.2 million and $138.8 million at March 31, 2025, and December 31, 2024, respectively. We believe that our existing funds, cash generated from our operations and our existing sources of and access to financing are adequate to satisfy our needs for working capital, capital expenditure and debt service requirements, and other business initiatives we plan to strategically pursue.
Current wording
Cash and cash equivalents were $157.1 million and $138.8 million at June 30, 2025, and December 31, 2024, respectively. We believe that our existing funds, cash generated from our operations and our existing sources of and access to financing are adequate to satisfy our needs for working capital, capital expenditure and debt service requirements, and other business initiatives we plan to strategically pursue.
Previous wording
We used cash of $5.0 million from operating activities for the three months ended March 31, 2025, which is primarily related to inventory purchases to support the growth of our business and commercial launch of new products, offset by the timing of cash payments and receipts.
Current wording
Cash provided of $10.5 million from operating activities for the six months ended June 30, 2025, primarily driven by favorable working capital changes, partially offset by inventory purchases and the timing of cash payments and receipts.
Previous wording
We used cash of $11.6 million in investing activities for the three months ended March 31, 2025, which is primarily related to the purchase of surgical instruments to support the growth of our business and commercial launch of new products.
Current wording
We used cash of $23.8 million in investing activities for the six months ended June 30, 2025, which is primarily related to the purchase of surgical instruments to support the growth of our business and commercial launch of new products.
Previous wording
Financing activities provided cash of $30.8 million for the three months ended March 31, 2025, which is primarily related to proceeds from our 2030 Notes, offset by the repurchase of 80% of our 2026 Notes, the purchase of capped calls of the 2030 Notes, and payments on our revolving line of credit.
Current wording
Financing activities provided cash of $31.1 million for the six months ended June 30, 2025, which is primarily related to proceeds from our 2030 Notes, offset by the repurchase of 80% of our 2026 Notes, the purchase of capped calls of the 2030 Notes, and payments on our revolving line of credit.
Previous wording
As of March 31, 2025, we had $2.9 million in other debts that are due in monthly and quarterly installments through maturity in 2027.
Current wording
As of June 30, 2025, we had $2.8 million in other debts that are due in monthly and quarterly installments through maturity in 2027.
Previous wording
We have an inventory purchase commitment agreement with a third-party supplier, where we are obligated to meet certain minimum purchase commitment requirements through December 2026. As of March 31, 2025, the remaining minimum purchase commitment under the agreement was $8.0 million.
Current wording
We have an inventory purchase commitment agreement with a third-party supplier, where we are obligated to meet certain minimum purchase commitment requirements through December 2026. As of June 30, 2025, the remaining minimum purchase commitment under the agreement was $7.5 million.
Previous wording
Aside from the changes disclosed in Note 1 to the Notes to Condensed Consolidated Financial Statements (Unaudited) under the heading “Recently Issued Accounting Pronouncements,” if any, there have been no new accounting pronouncements or changes to accounting pronouncements during the three months ended March 31, 2025, as compared to the recent accounting pronouncements described in our Annual Report on Form 10-K for the year ended December 31, 2024, that was filed with the SEC.
Current wording
Aside from the changes disclosed in Note 1 to the Notes to Condensed Consolidated Financial Statements (Unaudited) under the heading “Recently Issued Accounting Pronouncements,” if any, there have been no new accounting pronouncements or changes to accounting pronouncements during the six months ended June 30, 2025, as compared to the recent accounting pronouncements described in our Annual Report on Form 10-K for the year ended December 31, 2024, that was filed with the SEC.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Amortization of acquired intangible assets. Amortization of acquired intangible assets remained consistent for the three and six months ended June 30, 2025, respectively, compared to the same period in 2024.
Current report — wording carried from elsewhere
We do not have any material financial exposure to one customer or one country, outside of the United States, that would significantly hinder our liquidity. We are and may become involved in various legal proceedings arising from our business activities.