Alphatec Holdings, Inc. Q1 FY2026 earnings call

• Business is scaling. Surgical revenue up 17%, cases up 21%, surgeons up 23%. EOS Insight evolving into a platform with growth and adoption creating momentum. • Invested in what's working, leaning into the durable growth model. • Strategy focuses on clinical distinction, surgeon adoption, and a strong sales engine. EOS has enabled access to prestigious institutions and is driving case volume and data generation. Valence is fitting into surgical workflow with positive feedback.

Total revenue was $192 million, up 14% year-over-year. Surgical revenue was $178 million, growing 17%. Cases up 21%, surgeons up 23%. EOS revenue was $14 million for the quarter. Generated $21 million of EBITDA. Total revenue contribution: Surgical was 92.7% ($178M / $192M), EOS was 7.3% ($14M / $192M).

• Expect total revenue for full year 2026 of approximately $882 million, 15% growth year over year. Surgical revenue approximately $805 million, unchanged from prior guidance, 17% growth. • Expect EOS revenue of approximately $77 million. • Expect adjusted EBITDA of approximately $134 million, 15% margin. • Expect at least $20 million in free cash flow for the full year, second quarter free cash flow expected to approximate zero.

• EOS revenue fell short of quarterly goal due to execution issues in sales, downstream marketing, and support. • Seasonality and weather impacts can affect revenue. • Deceleration in revenue in Q1 with recovery in April but still some unpredictability in recent quarters related to execution flaws in EOS installations.

Q: Regarding 2027 LRP revenue number and consensus, A: Adjustment to EOS guidance reflects near-term execution issues addressed by adding sales and marketing resources, believing on track to long-range plan.

Q: On pricing per case headwind, A: Revenue per case decline due to mix of cervical procedures, international business, and biologics attachment rate, expecting flat revenue per procedure for balance of year.

Q: On surgical Q1 performance and sequential, A: Momentum in distinguishing procedures robust, surge in surgeon additions, April rebounded, confidence in full year plan.

Q: On EOS franchise cadence, A: Expect EOS to contribute more meaningfully in second half, overall growth in second quarter similar to first quarter.

Q: On EOS execution weakness and impact, A: EOS execution flaw, not bleeding into other parts of business.

Q: On surgical outlook confidence, A: Confidence from demand profile of distinguishing procedures and surgeon adoption.

Q: On Valence placements and pull-through, A: Valence doing as expected, utilized in PTP, trending toward more than target.

Q: On surgeon penetration and volume growth, A: Strong surge in adoption, utilization rates growing, confidence in full year surgical guide from surgeon demand and procedural adoption.

Q: On EOS thesis, A: EOS thesis intact, structured data set unique, committed to the strategy