Loss-Making Alphatec Holdings, Inc. (NASDAQ:ATEC) Expected To Breakeven In The Medium-Term

Alphatec Holdings, Inc. (NASDAQ:ATEC) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Alphatec Holdings, Inc., a medical technology company, designs, develops, and advances technologies for the surgical treatment of spinal disorders in the United States and internationally. The company’s loss has recently broadened since it announced a US$162m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$166m, moving it further away from breakeven. As path to profitability is the topic on Alphatec Holdings' investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

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Consensus from 10 of the American Medical Equipment analysts is that Alphatec Holdings is on the verge of breakeven. They anticipate the company to incur a final loss in 2026, before generating positive profits of US$7.2m in 2027. So, the company is predicted to breakeven approximately 2 years from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 61%, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for Alphatec Holdings given that this is a high-level summary, however, bear in mind that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

See our latest analysis for Alphatec Holdings

One thing we would like to bring into light with Alphatec Holdings is it currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. Oftentimes, losses exist only on paper but other times, it can be a red flag.

Next Steps:

There are key fundamentals of Alphatec Holdings which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Alphatec Holdings, take a look at Alphatec Holdings' company page on Simply Wall St. We've also compiled a list of pertinent aspects you should further research:

1. Valuation: What is Alphatec Holdings worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Alphatec Holdings is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Alphatec Holdings’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.