Alphatec (ATEC) investor relations material

Market opportunity and growth strategy

• Spine surgery market estimated at $10 billion, with current penetration under 10% and significant untapped potential, especially in lateral and deformity segments.

• Lateral surgery market sized at $1 billion and identified as a fast-growing segment, with share in well-covered territories exceeding 30%.

• Focus on clinical distinction, procedural adoption, and building a scalable sales force to drive surgeon engagement and market share.

• Consistent quarterly surgeon adoption growth, with rates ranging from 19% to 26% through early 2026.

• Platform approach and procedural solutions encourage expansion into broader pathologies and portfolio adoption.

Innovation and technology integration

• Investment in patient positioners, neuromonitoring, and integration of biologics, navigation, and patient-specific rods enhance safety, reproducibility, and procedural portfolio.

• EOS imaging system and AI-driven EOS Insight software enable automated alignment, longitudinal patient tracking, and data-driven, patient-specific planning.

• Sites using EOS Insight saw 30% volume or revenue growth within six months of implementation among established users.

• Launch of Valence navigation and surgical robot platform integrated into PTP for predictable lateral surgery, with positive early clinical feedback in Japan.

• Robotic and navigation tools broaden accessibility for surgeons with varying lateral experience.

International expansion and financial performance

• Strategy focuses on deep penetration in select countries, with recent entries into Australia, New Zealand, and Japan.

• First PTP procedure performed in Japan in March, supporting direct sales and higher profitability.

• Profitability improved from negative to positive adjusted EBITDA in 2024, with positive cash flow projected through 2026.

• Refinanced $200 million in term debt, saving $6 million annually and $35 million over the loan's life, extending maturity to 2031 and consolidating legacy debt.

• 2026 guidance targets $882 million in revenue (15% growth), $134 million adjusted EBITDA (15% margin), and $20 million free cash flow.