Alphatec (ATEC) Piper Sandler 36th Annual Healthcare Conference summary

Business outlook and growth strategy

• Continues to outpace market growth, leveraging a spine-only focus and advanced technology to capture share.

• Market dynamics favor larger, tech-enabled players as requirements for participation rise.

• Hurricane and saline supply issues had minimal impact; Q4 performance driven by insurance dynamics.

• Dense market share in key U.S. regions, with 6% domestic share and significant room for expansion.

• Long-term strategy emphasizes aggressive capital deployment and a long-term view over quarter-to-quarter results.

Financial performance and guidance

• Achieved significant cash flow improvement in Q3, with positive free cash flow of $1–$11 million expected in Q4.

• Maintains full-year cash burn forecast of $125–$135 million, with break-even targeted for 2025.

• Pre-invested in sets and inventory in 2024 to support 2025 revenue growth, reducing future capital needs.

• 2025 guidance assumes 10% Adjusted EBITDA margin and $75 million EBITDA on $730 million revenue.

• International and EOS segments expected to contribute more meaningfully to revenue growth by 2026–2027.

Product innovation and technology

• EOS Insight software launch generated strong interest, supporting both short- and long-term growth theses.

• Next-gen EOS system maintains ASP of $750,000–$1 million, with value in surgical impact rather than price.

• Robotics and navigation system offers a simple, low-cost solution for ambulatory surgery centers, with positive early feedback.

• Integration of experienced development team aims to avoid past market mistakes and drive innovation.

• Focus on proceduralization and workflow optimization to enhance clinical experience and sales force attraction.