Alphatec Holdings earnings event and reaffirmed outlook

Alphatec Holdings (ATEC) reported second quarter 2026 results with a narrower net loss, alongside reaffirmed full year revenue guidance and a new employee stock offering, giving investors several fresh data points to assess the stock.

Alphatec Holdings’ recent earnings update and reaffirmed 2026 revenue guidance have come alongside a 21.01% 90 day share price return, yet the stock still shows a year to date share price decline of 52.84% and a 1 year total shareholder return fall of 37.64%. This suggests that recent momentum is building off a weaker longer term base.

If this kind of turnaround story has your attention, it can be useful to compare Alphatec with other health focused growth ideas and see which ones stand out in a screener such as 42 healthcare AI stocks.

Alphatec Holdings is working to build a strong spine surgery platform, yet the share price is still recovering from a steep year to date fall. After the recent rebound, investors may be asking whether the stock is actually cheap or already at fair value.

Preferred Price-to-Sales multiple of 1.9x: Is it justified?

On Simply Wall St's numbers Alphatec Holdings trades on a P/S of 1.9x, which sits slightly above its direct peer average of 1.8x. At a last close of $9.79, that points to a stock that the market is pricing a touch richer than close peers on sales, despite the recent share price weakness.

The P/S ratio compares the company’s market value to its annual revenue. For a business like Alphatec Holdings, which is still loss making with reported net income of a $109.994m loss, revenue based measures often carry more weight than earnings based measures. Investors are effectively focusing on the current sales base and the potential for that revenue to scale rather than near term profitability.

What stands out is how that 1.9x multiple compares with the wider US Medical Equipment industry and with an estimated fair ratio. Alphatec Holdings trades on a P/S that is meaningfully lower than the US Medical Equipment industry average of 2.9x, yet Simply Wall St’s fair P/S estimate sits higher again at 3.4x. That is a sizeable gap and suggests the current multiple is well below the level the market could move towards if revenue forecasts and profitability expectations play out as modeled.

Result: Price-to-Sales of 1.9x (UNDERVALUED)

However, Alphatec Holdings still carries risks, including ongoing net losses of $109.994m and reliance on continued revenue growth from a concentrated US market base.

Another view on Alphatec Holdings’ value

The earlier P/S discussion suggests Alphatec Holdings might be cheap on sales, yet the SWS DCF model paints an even stronger picture. With the stock at $9.79 and the DCF value at $26.96, the model points to a wide undervaluation gap. The real question is how comfortable you are with the cash flow assumptions behind that gap.

For a closer look at how those cash flow assumptions are built and tested, take a moment to review the Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Alphatec Holdings for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 52 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

With the mixed sentiment around Alphatec Holdings in this update, it makes sense to move quickly and review the data on your own terms. To see what is driving optimism, take a closer look at the 2 key rewards.

Looking for more Alphatec Holdings style investment ideas?

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• Target underpriced quality by reviewing companies that screen as potential value opportunities through the 52 high quality undervalued stocks.
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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.