Alphatec Holdings, Inc. (ATEC): Business Model Canvas [Apr-2026 Updated]

You're digging into Alphatec Holdings, Inc.'s strategy right now because, frankly, the late 2025 results suggest they've finally passed that tricky inflection point toward sustainable, profitable growth. Honestly, when you see full-year revenue guidance pegged at $760 million and a Non-GAAP Gross Margin hitting 70% in Q3 2025, you know the underlying business model is clicking into place. We need to see the nuts and bolts of how they are executing this-from their specialized direct sales force driving 26% surgeon adoption growth to the high-touch, consultative relationships they maintain with specialists-to confirm this isn't just a temporary spike. Dive into the Canvas below to see the nine blocks that are building this new reality for the spine market.

Alphatec Holdings, Inc. (ATEC) - Canvas Business Model: Key Partnerships

The Key Partnerships for Alphatec Holdings, Inc. (ATEC) center on integrating clinical expertise, technology platforms, and a focused commercial structure to drive surgical adoption. The company's structure itself reveals core internal partnerships through its wholly owned subsidiaries.

Spine Surgeon Advisory Board and clinical consultants

The relationship with surgeons is foundational, driving the adoption of ATEC's procedural solutions. This clinical collaboration is evidenced by strong growth metrics in the latter half of 2025. The company reported achieving a 26% growth in net new surgeon users in the third quarter of 2025. This focus on surgeon buy-in is supported by an outcomes-based educational program for visiting surgeons, known as the 'ATEC Experience,' which facilitates a peer-to-peer learning environment. The goal is to compel surgeon adoption by creating clinical distinction.

Strategic distribution networks (e.g., Cardinal Health)

While specific external distribution agreements like one with Cardinal Health are not detailed with financial figures in the latest reports, the success of the commercial engine is clear from market positioning and revenue segmentation. Alphatec Holdings, Inc. stated it is the third in market share in the U.S. spine market. The distribution of products is managed via a network of independent sales agents and direct sales representatives. The success of this network is reflected in the surgical revenue growth, which reached $177 million in the third quarter of 2025, a 31% increase year-over-year. Furthermore, same-store sales growth, indicating utilization within existing accounts, reached 29% in the second quarter of 2025.

Healthcare technology research institutions and Collaborations for advanced manufacturing and instrumentation

Internal collaborations between ATEC's various technology arms are critical partnerships that form the integrated procedural ecosystem. These include the subsidiaries EOS imaging S.A.S. and SafeOp Surgical, Inc., which integrate with the core Alphatec Spine, Inc. offerings. The EOS imaging segment, which provides informatics, contributed $20 million to third quarter 2025 revenue, growing 29% year-over-year as adoption of EOS Insight® increased. The integration of SafeOp for neuromonitoring and EOS for pre-operative decision-making is central to the company's strategy to better inform surgery.

Here's a quick look at the financial results that underscore the effectiveness of this integrated partnership model through the first three quarters of 2025:

Metric	Q2 2025 Value	Q3 2025 Value	Full Year 2025 Guidance (Updated)
Total Revenue	$186 million	$197 million	$760 million
Surgical Revenue Growth (YoY)	29%	31%	$684 million (Expected)
Adjusted EBITDA Margin	13%	13%	Approximately 12% (Implied from $91M/$760M)
Free Cash Flow (Quarterly)	$5 million	$5 million	Positive for Full Year

The company's focus on developing new approaches that integrate seamlessly with its expanding InformatiX™ platform is a direct result of these internal and external clinical partnerships.

Key operational metrics demonstrating partnership success include:

• Achieved 21% growth in new surgeon adoption in Q2 2025.
• Reported 26% growth in net new surgeon users in Q3 2025.
• Non-GAAP gross margin held steady at 70% for Q3 2025.
• The company generated $4 million in non-GAAP net income in Q3 2025.

The company is defintely leveraging these relationships to drive profitable growth.

Finance: draft 13-week cash view by Friday.

Alphatec Holdings, Inc. (ATEC) - Canvas Business Model: Key Activities

You're looking at the engine room of Alphatec Holdings, Inc., the core functions that translate innovation into dollars, as of late 2025. These activities are what drive the company's stated goal of being the Standard Bearer in Spine.

Research and development (R&D) of procedural solutions

The commitment to innovation is quantified in the operating expenses. For the third quarter ended September 30, 2025, Non-GAAP R&D expense was $15 million. This figure represented approximately 8% of the quarter's sales. This investment level is being managed for leverage; in Q3 2025, top-line growth drove 90 basis points of leverage year-over-year in the R&D expense ratio. This spend supports the development of new approaches that integrate with the InformatiX™ platform.

Manufacturing and quality control of surgical devices

The output of the manufacturing and quality control processes directly fuels the surgical revenue stream. Surgical revenue for Q3 2025 hit $177 million, marking a 31% increase from the prior year. This growth was supported by a 28% year-over-year increase in procedural volume. The company is executing on its full-year expectation for surgical revenue to reach $684 million for fiscal year 2025. The EOS revenue stream, which relies on the manufacturing and deployment of the EOS Insight® technology, was $20 million in the quarter, up 29% year-over-year.

Expanding and enabling the specialized sales force

The commercial engine is a major focus, reflected in the Selling, General, and Administrative (SG&A) spend. Non-GAAP SG&A for the third quarter of 2025 was $112 million, which represented about 57% of sales. The company is focused on compelling surgeon adoption through this force. The growth in SG&A was 11% year-over-year, which is significantly less than the 30% revenue growth seen in the same period, showing operating leverage is starting to take hold.

Driving net new surgeon adoption (26% growth in Q3 2025)

This is a critical leading indicator for Alphatec Holdings, Inc. The company achieved a 26% growth in net new surgeon users during Q3 2025. This adoption metric is directly tied to the 28% procedural volume growth seen in the quarter. The goal is to convert this adoption into durable revenue, as evidenced by the raised full-year 2025 revenue guidance to $760 million.

Clinical education and training on PTP™ and LTP™ procedures

The momentum in surgical revenue is explicitly linked to the adoption of the PTP™ and LTP™ product lines. While specific education spending isn't broken out, the operational results suggest successful training and adoption. The average revenue per procedure grew by 2% in Q3 2025, suggesting that surgeons are not only using the systems but potentially utilizing more comprehensive procedural kits or higher-value components within those procedures.

Here's a quick look at the Q3 2025 operational and financial results that underpin these Key Activities:

Metric	Q3 2025 Amount	Year-over-Year Change
Total Revenue	$197 million	30% growth
Surgical Revenue	$177 million	31% growth
EOS Revenue	$20 million	29% growth
Procedural Volume Growth	N/A	28% growth
Net New Surgeon Users Growth	N/A	26% growth
Non-GAAP Gross Margin	70%	Up 80 basis points
Adjusted EBITDA	$26 million	13% of revenue
Free Cash Flow (Quarter)	$5 million	Positive

The company generated $5 million in free cash flow in the quarter and is free cash flow positive for the trailing twelve months.

Alphatec Holdings, Inc. (ATEC) - Canvas Business Model: Key Resources

You're looking at the core assets that make Alphatec Holdings, Inc. (ATEC) tick as we head into the end of 2025. These aren't just buzzwords; they are the tangible and intangible things that let ATEC deliver its value proposition.

InformatiX™ platform (data-driven ecosystem)

The InformatiX™ platform, which ATEC calls AIX™, is central to their strategy, designed to objectively inform surgery. This ecosystem integrates several key components, including the EOS imaging system, the SafeOp Neural InformatiX System, and the navigation-enabled robotics platform, Valence™. The goal is to better inform surgery and achieve surgical goals more safely and reproducibly. The growth of this digital backbone is reflected in the revenue from its imaging component.

Key Resource Component	Q3 2025 Revenue	Year-over-Year Growth (Q3 2025)	Full-Year 2025 Projection
EOS Revenue (Part of InformatiX)	$20 million	29%	$76 million

Specialized, spine-focused direct sales organization

ATEC's entire focus is on spine surgery, which means their sales force is highly specialized. They are compelling surgeon adoption through their procedural focus and education programs. This resource is measured by how many new surgeons they bring into the fold and how much more those existing surgeons use their products.

• Surgeon adoption grew by 26% during the third quarter of 2025.
• New surgeon user growth reached 21% in the second quarter of 2025.
• The company is focused on leveraging sales force efficiency to drive growth.

It's all about getting more surgeons to say yes to the ATEC approach.

Proprietary procedural technologies (e.g., PTP™, LTP™)

The procedural families, like Prone Transpsoas (PTP™) and Lateral Transpsoas (LTP™), are the primary drivers of the surgical revenue stream. These are the actual surgical techniques and associated implants that the sales organization pushes. The financial results show this is where the bulk of the revenue is generated.

Metric	Q3 2025 Amount	Q2 2025 Amount	Full-Year 2025 Projection
Surgical Revenue	$177 million	$168 million	$684 million
Surgical Revenue YoY Growth	31%	29%	N/A

The overall company guidance for 2025 total revenue sits at $760 million, with surgical revenue making up the vast majority.

EOS imaging and SafeOp Surgical assets

These assets are critical enablers. EOS imaging provides the pre-operative planning and intra-operative monitoring that feeds into the InformatiX ecosystem. SafeOp Surgical, Inc., is a wholly owned subsidiary that provides neural monitoring, which is integral to the safety aspect of the procedures. The revenue generated by the EOS component is tracked separately, as noted above, with a 2025 projection of $76 million.

Intellectual property and regulatory clearances

The value here is protected by patents and the ability to navigate the FDA. The company reports amortization expense related to intangible assets, which includes intellectual property acquired through business combinations. This amortization reflects the historical investment in these protected assets. The company's vision is to be the Standard Bearer in Spine, which requires maintaining compliance with all applicable laws and regulations.

• Non-GAAP Gross Margin was maintained at 70% in Q3 2025.
• The company is focused on continuing to invest in differentiated innovation.

Finance: draft 13-week cash view by Friday.

Alphatec Holdings, Inc. (ATEC) - Canvas Business Model: Value Propositions

You're looking at the core reasons surgeons choose Alphatec Holdings, Inc. (ATEC) over the competition right now, late in 2025. It boils down to offering a complete, integrated system that promises better results, which the numbers from the third quarter definitely back up.

The value proposition centers on moving beyond just selling implants; it's about selling a predictable surgical experience. This focus is compelling surgeon adoption, as evidenced by the growth figures we're seeing.

Integrated procedural solutions for predictable spine surgery

The success of the integrated procedural approach is clear in the revenue breakdown. Surgical revenue, which represents the implants, instruments, and procedural kits, hit $177 million in the third quarter of 2025, growing 31% year-over-year. This growth is outpacing the overall company revenue growth of 30% for the same period.

The adoption of new users is a direct measure of this value proposition taking hold. Alphatec Holdings achieved a 26% growth in net new surgeon users in Q3 2025. Furthermore, the overall procedural volume grew by 28% in that quarter.

Enhanced clinical outcomes via data-driven planning (EOS Insight®)

The EOS imaging and informatics platform is a key differentiator, providing the data backbone for better planning. Revenue from the EOS segment reached $20 million in Q3 2025, marking a 29% increase year-over-year, directly linked to increased adoption of EOS Insight®. For the full year 2025, the company projects total EOS revenue to be $76 million.

Minimally invasive surgical techniques (PTP™, LTP™)

The momentum from specific, less invasive approaches continues to fuel the surgical segment. The continued momentum of the PTP™ and LTP™ product lines was specifically cited as a driver for the 31% surgical revenue growth in Q3 2025. Looking back at the first quarter of 2025, surgical revenue of $152 million was driven by 17% procedural volume growth on the continued momentum of these very same techniques.

Comprehensive portfolio of implants, instruments, and biologics

This is the physical manifestation of the procedural solutions. The entire portfolio contributes to the surgical revenue stream. The company raised its full-year 2025 surgical revenue guidance to $684 million, underpinning the breadth of their offering across various pathologies.

Revolutionizing spine surgery through clinical distinction

The market is responding to the focus on clinical distinction, which is translating into premium pricing power. The average revenue per case grew by 2% in Q3 2025. The company's focus is compelling surgeons, as shown by the fact that their surgical revenue growth of 31% in Q3 2025 is leading the way. The overall financial health supports this strategy, with Q3 2025 Adjusted EBITDA at $26 million, or 13% of revenue, and a raised full-year 2025 Adjusted EBITDA guidance of $91 million.

Here's a quick look at the financial segmentation supporting these value propositions as of the third quarter of 2025:

Metric	Q3 2025 Amount	Year-over-Year Growth
Total Revenue	$197 million	30%
Surgical Revenue	$177 million	31%
EOS Revenue	$20 million	29%
Adjusted EBITDA	$26 million	840 basis points margin improvement
Net New Surgeon Users	N/A (Metric)	26% growth

The company is executing on its plan to self-fund its strategy, reporting positive free cash flow of $5 million for the quarter.

• Full-Year 2025 Total Revenue Target: $760 million.
• Full-Year 2025 Adjusted EBITDA Target: $91 million.
• Q3 2025 Gross Margin: 70%.
• Full-Year 2025 Projected Adjusted EBITDA Margin: 12%.

Alphatec Holdings, Inc. (ATEC) - Canvas Business Model: Customer Relationships

You're looking at how Alphatec Holdings, Inc. (ATEC) locks in its key customers-the surgeons. The entire relationship model is built around proving clinical superiority, which then drives adoption and, ultimately, revenue. It's a very direct, high-stakes interaction in the operating room.

The core of the relationship is high-touch, consultative engagement with surgeons. This isn't just about selling hardware; it's about selling a better procedure. Alphatec Holdings, Inc. is focused on creating clinical distinction to compel surgeon adoption, which is a stated strategic initiative. You see the results of this focus in the growth figures.

For instance, in the second quarter of fiscal year 2025, the growth in new surgeon adoption was reported at 21%. By the third quarter of 2025, surgeon adoption grew by an even stronger 26%. This momentum in adoption is what fuels the surgical revenue, which hit $168 million in Q2 2025, growing by 29% year-over-year. Furthermore, the established customer base is deepening its commitment, evidenced by U.S. same-store sales growing by 29% year-over-year in Q2 2025. That's wallet share dominance, not just new customer acquisition.

ATEC provides dedicated clinical support for procedural adoption. This is operationalized through what they call the "ATEC Experience," which is an outcomes-based educational program for visiting surgeons, hosted at their headquarters in Carlsbad, California. This hands-on approach helps surgeons integrate new approaches like PTP™ and LTP™ seamlessly.

The feedback mechanism is formalized through a continuous feedback loop via Surgeon Advisory Board, which is essential for their Organic Innovation Machine™. This loop ensures that product development, which includes platforms like the AlphaInformatiX™ System, remains aligned with real-world surgical needs and helps them pioneer approaches that improve outcomes.

While direct contract numbers aren't public, the implied structure involves long-term contracts with hospitals and surgical centers, secured by the consistent, high-growth utilization from adopting surgeons. The company's full-year 2025 total revenue guidance was raised to $760 million, showing confidence that these relationships translate into durable financial performance.

Here's a quick look at how surgeon engagement metrics are tracking against financial results for the recent quarters:

Metric	Period/Year	Value/Rate
Surgical Revenue	Q2 2025	$168 million
Surgical Revenue Growth (YoY)	Q2 2025	29%
New Surgeon Adoption Growth	Q2 2025	21%
Surgeon Adoption Growth	Q3 2025	26%
Same-Store Sales Growth (YoY)	Q2 2025	29%
Full Year 2025 Revenue Guidance	Updated	$760 million

The entire strategy hinges on this focused engagement to compel surgeon adoption by making their technology indispensable. For example, in the full year 2024, surgical volume grew 19% and average revenue per surgery expanded 8.0% compared to 2023, showing that once a surgeon adopts an approach, they use it more and generate more revenue per case. That's the payoff for the high-touch support.

• The company's vision is to be The Standard Bearer in Spine.
• The focus is on integrating informatics like the SafeOp Neural InformatiX System into procedures.
• The goal is to power objective decision-making for surgeons.
• They are perpetually innovating to meet requirements across multiple pathologies.

Finance: draft 13-week cash view by Friday.

Alphatec Holdings, Inc. (ATEC) - Canvas Business Model: Channels

You're looking at how Alphatec Holdings, Inc. (ATEC) gets its innovative spine solutions into the hands of surgeons as of late 2025. The channels are a mix of direct engagement and strategic partnerships, heavily weighted toward the U.S. market execution.

The primary route for surgical products is through a direct sales force in the U.S. market, which is supported by a focus on surgeon adoption and procedural volume growth. This direct channel is clearly driving the bulk of the business, as evidenced by the surgical revenue figures.

Here's a look at the performance metrics tied to the direct sales/surgeon adoption channel:

• Surgeon user growth was 21% in the second quarter of 2025.
• Net new surgeon users grew by 26% in the third quarter of 2025.
• U.S. same-store sales grew by 29% in the second quarter of 2025.
• Procedural volume growth was 17% in the first quarter of 2025.
• Alphatec Holdings achieved the third largest U.S. spine player market share as of the second quarter of 2025.

The EOS imaging systems, which are a key part of the ecosystem, are also placed directly, with revenue growth reflecting adoption. The company expects its EOS revenue for the full fiscal year ending December 31, 2025, to be approximately $76 million.

The channel structure can be partially quantified by looking at the revenue segmentation for the full year 2025 guidance:

Revenue Channel Component	Full Year 2025 Expected Revenue
Surgical Revenue (Implants/Procedures)	Approximately $666 million
EOS Revenue (Imaging Systems/Service)	Approximately $76 million

For international markets, Alphatec Holdings uses third-party distributors, though specific financial breakdowns are not detailed. The focus for international expansion as of early 2025 included markets like Australia, New Zealand, and Japan. The company performed its first surgeries in Japan in late 2024.

Participation in major medical conferences, such as NASS, is a key method for engaging surgeons and showcasing the procedural approach. While specific attendance numbers aren't public, the company's strategy relies on clinical distinction to compel surgeon adoption.

Information dissemination relies on the corporate website and investor relations. For example, the third-quarter 2025 financial results were presented via a live webcast accessible through the Investor Relations section of the ATEC corporate website.

• Q3 2025 Total Revenue: $197 million.
• Q3 2025 Surgical Revenue: $177 million.
• Q3 2025 EOS Revenue: $20 million.

Finance: draft 13-week cash view by Friday.

Alphatec Holdings, Inc. (ATEC) - Canvas Business Model: Customer Segments

U.S. spine treatment specialists and orthopedic surgeons represent the core customer base driving procedural volume and revenue for Alphatec Holdings, Inc. The company's focus on an end-to-end procedural ecosystem is designed to appeal directly to these practitioners.

Hospitals and ambulatory surgical centers (ASCs) serve as the facilities where procedures using Alphatec Holdings, Inc. technology are performed. While the majority of the business is within the United States, the mix of facility types shows a specific, though small, segment focus. The ASC mix is reported as sub-10% of the business mix as of Q2 2025.

New surgeon users adopting the procedural ecosystem are a critical leading indicator of future growth. In the third quarter of 2025, net new surgeon users increased by 26%. This follows an 18% growth in new surgeon adoption reported in the first quarter of 2025.

International healthcare markets (e.g., Europe, Asia-Pacific) contribute to the overall revenue, though specific geographic segmentation data is not detailed in the latest reports. The full-year 2025 total revenue guidance is set at US$760 million.

Surgeons focused on minimally invasive spine surgery are targeted through the momentum of specific procedural families. The procedural volume growth in the third quarter of 2025 reached 28%, supported by the momentum of the PTP™ and LTP™ approaches.

Here's a quick look at the key performance indicators tied to these customer segments through the third quarter of 2025:

Metric	Value (Q3 2025)	Context/YoY Change
Total Revenue	$197 million	Up 30% YoY
Surgical Revenue	$177 million	Up 31% YoY
EOS Revenue	$20 million	Up 29% YoY
Net New Surgeon Users Growth	26%	Growth Rate
Procedural Volume Growth	28%	Growth Rate
Same-Store Sales Growth	30%	Growth Rate

The company's full-year 2025 financial outlook is built upon these customer adoption trends:

• Full-Year 2025 Total Revenue Guidance: US$760 million
• Full-Year 2025 Surgical Revenue Forecast: $684 million
• Full-Year 2025 EOS Revenue Forecast: $76 million
• Full-Year 2025 Adjusted EBITDA Guidance: $91 million

Finance: draft 13-week cash view by Friday.

Alphatec Holdings, Inc. (ATEC) - Canvas Business Model: Cost Structure

You're looking at the cost side of Alphatec Holdings, Inc. (ATEC)'s business as of late 2025. For a company selling complex surgical devices, the costs are heavily weighted toward the product itself and getting it into the hands of surgeons. Honestly, the high gross margin suggests they price their technology well, but the operating expenses show where the real investment is happening to drive that revenue growth.

The high cost of goods sold (COGS) for surgical devices is a fundamental reality in this space. Since Alphatec Holdings, Inc. reports a GAAP and Non-GAAP Gross Margin of 70% for Q3 2025, this implies that the cost to produce the sold goods-the COGS-is 30% of the revenue generated in that period. This percentage covers raw materials, direct labor, and manufacturing overhead associated with their spinal implants and the EOS imaging system.

Significant investment in R&D and clinical trials is non-negotiable for a spine technology company aiming for clinical distinction. While specific Q3 2025 R&D figures aren't explicitly broken out separately from the total operating expenses in the latest release, we can look at the structure. For instance, in the second quarter of 2025, Non-GAAP R&D was $14 million, representing approximately 8% of sales for that period, showing a continuing commitment to long-term growth initiatives.

Sales and marketing expenses for the specialized sales force represent a major operating cost. This expense fuels the adoption of their systems, like the EOS imaging platform, and the procedural kits. The search results provide a proxy via the Selling, General, and Administrative (SG&A) line item from Q2 2025, which was $108 million, making up approximately 58% of sales then. This category includes the compensation, training, and support for the specialized teams needed in operating rooms.

Manufacturing and production costs are embedded within the implied COGS calculation. These costs include the procurement of specialized raw materials, precision machining, sterilization processes, and the labor required to assemble and manage inventory for their portfolio of Posterior Cervical Fusion, Anterior Cervical Discectomy and Fusion, and other systems. Direct cost control here is key to maintaining that 70% gross margin.

The overall operating expense structure for Q3 2025 shows the scale of overhead required to support the revenue growth. You see the GAAP figure was $153 million, but the Non-GAAP figure, which strips out certain non-recurring or non-cash items, was $127 million. This is the number you mentioned, and it's what management focuses on for operational efficiency.

Here's a quick look at the key cost and margin metrics from the third quarter of 2025, along with related data points:

Cost/Financial Metric	Amount / Percentage	Period / Context
Total Revenue	$197 million	Q3 2025
Implied COGS	$59.1 million	Implied from Q3 2025 Revenue and Gross Margin
GAAP Gross Margin	70%	Q3 2025
Non-GAAP Gross Margin	70%	Q3 2025
GAAP Operating Expenses	$153 million	Q3 2025
Non-GAAP Operating Expenses	$127 million	Q3 2025
Non-GAAP R&D Expense	$14 million	Q2 2025 (Proxy for component detail)
Non-GAAP SG&A Expense	$108 million	Q2 2025 (Proxy for S&M component)

The structure of these operating costs is what drives the profitability story. The goal is clearly to scale revenue faster than these operating expenses, which is why they achieved an Adjusted EBITDA of $26 million in Q3 2025, representing 13% of revenue.

• High COGS driven by specialized, high-value surgical implants.
• Operating expenses dominated by Sales & Marketing to drive surgeon adoption.
• R&D investment continues to support long-term product pipeline.
• Manufacturing costs are directly tied to the 70% gross margin target.
• Non-GAAP Operating Expenses for Q3 2025 were $127 million.

Finance: draft 13-week cash view by Friday.

Alphatec Holdings, Inc. (ATEC) - Canvas Business Model: Revenue Streams

You're looking at how Alphatec Holdings, Inc. (ATEC) brings in the money, which is pretty straightforward for a medical device company focused on the spine. The main engine here is the Sale of surgical devices (implants, instruments, biologics). This is the bread and butter, representing the vast majority of their top line, driven by the adoption of their procedural solutions in the operating room.

To give you the near-term picture based on their latest outlook, here's how the full-year 2025 revenue is projected to break down. It's important to see the relative size of the two main segments:

Revenue Stream Component	Full-Year 2025 Guidance Amount
Total Revenue Guidance	$760 million
Surgical Revenue Guidance	$684 million
EOS Imaging System Sales and Service Revenue Guidance	$76 million

The surgical revenue stream, which covers those implants, instruments, and biologics you mentioned, is expected to hit $684 million for the full year 2025. Honestly, this segment is where the growth story is really playing out, as evidenced by their Q3 2025 performance where surgical revenue alone was $177 million, marking a 31% year-over-year jump. That momentum suggests strong procedural adoption, which is what you want to see from a device company.

The second key stream is the revenue from their EOS imaging systems and the associated service contracts. For the full year 2025, the guidance here is set at $76 million. In Q3 2025, this segment contributed $20 million, showing a 29% year-over-year growth as more surgeons adopted the EOS Insight system. It's a smaller piece of the pie, but it's growing fast and provides a recurring service component, which is always nice for revenue stability.

When we look at the quality of that revenue, the Non-GAAP Gross Margin in Q3 2025 was 70%. That's a solid margin for this industry, and it was flat sequentially while actually improving 80 basis points year-over-year. This tells you that as they scale, they are managing their cost of goods sold effectively, which is crucial for translating that top-line growth into profitability. Here are some of the underlying drivers feeding into that revenue:

• Sale of spinal implants and instrumentation.
• Revenue from biologics products used in fusion procedures.
• Service and maintenance contracts for EOS imaging systems.
• Adoption of new procedural technology platforms.

Finance: draft 13-week cash view by Friday.