10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2025

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 000-52024

ALPHATEC HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

Delaware	20-2463898
( State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
1950 Camino Vida Roble, Carlsbad, CA	92008
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (760) 431-9286

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, par value $0.0001 per share	ATEC	The NASDAQ Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) Yes ☐ No ☒

As of April 24, 2025, there were 146,172,703 shares of the registrant’s common stock outstanding.

ALPHATEC HOLDINGS, INC.

QUARTERLY REPORT ON FORM 10-Q

March 31, 2025

Table of Contents

		Page
	PART I – FINANCIAL INFORMATION
Item 1.	Financial Statements	3
	Condensed Consolidated Balance Sheets	3
	Condensed Consolidated Statements of Operations	4
	Condensed Consolidated Statements of Comprehensive Loss	5
	Condensed Consolidated Statements of Stockholders’ Deficit	6
	Condensed Consolidated Statements of Cash Flows	8
	Notes to Condensed Consolidated Financial Statements	9
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	24
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	30
Item 4.	Controls and Procedures	30
	PART II – OTHER INFORMATION
Item 1.	Legal Proceedings	31
Item 1A.	Risk Factors	31
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	31
Item 5.	Other Information	31
Item 6.	Exhibits	33
SIGNATURES		34

2

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

ALPHATEC HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except for par value data)

	March 31, 2025			December 31, 2024
Assets	(Unaudited)
Current assets:
Cash and cash equivalents	$	153,244		$	138,840
Accounts receivable, net of allowances of $8,791 and $4,763, respectively		89,481			82,987
Inventories		170,873			175,264
Prepaid expenses and other current assets		21,294			20,308
Total current assets		434,892			417,399
Property and equipment, net		146,641			156,394
Right-of-use assets		33,996			34,701
Goodwill		72,334			70,976
Intangible assets, net		95,040			93,518
Other assets		2,570			2,722
Total assets	$	785,473		$	775,710
Liabilities and Stockholders’ Deficit
Current liabilities:
Accounts payable	$	38,751		$	52,984
Accrued expenses and other current liabilities		98,943			81,466
Contract liabilities		11,300			10,467
Short-term debt		2,569			1,656
Current portion of operating lease liabilities		6,310			6,453
Total current liabilities		157,873			153,026
Long-term debt		545,834			574,522
Derivative liability		106,662			—
Operating lease liabilities, less current portion		26,562			27,305
Other long-term liabilities		10,878			11,423
Commitments and contingencies (Note 8)
Redeemable preferred stock, $0.0001 par value; 20,000 shares authorized at    March 31, 2025 and December 31, 2024; 3,319 shares issued and outstanding    at March 31, 2025 and December 31, 2024		23,603			23,603
Stockholders' deficit:
Common stock, $0.0001 par value; 200,000 authorized; 146,906 shares issued and outstanding at March 31, 2025; and 144,129 shares issued and outstanding at December 31, 2024		15			14
Treasury stock, 1,808 shares, at cost		(25,097	)		(25,097	)
Additional paid-in capital		1,282,598			1,305,677
Accumulated other comprehensive loss		(10,463	)		(13,678	)
Accumulated deficit		(1,332,992	)		(1,281,085	)
Total stockholders’ deficit		(85,939	)		(14,169	)
Total liabilities and stockholders’ deficit	$	785,473		$	775,710

See accompanying notes to unaudited condensed consolidated financial statements.

3

ALPHATEC HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

(In thousands, except per share amounts)

	Three Months Ended
	March 31,
	2025			2024
Revenue from products and services	$	169,180		$	138,477
Cost of sales		53,184			41,126
Gross profit		115,996			97,351
Operating expenses:
Research and development		16,582			18,012
Sales, general and administrative		127,017			113,610
Litigation-related expenses		12,214			4,428
Amortization expense		4,103			3,854
Restructuring expenses		371			788
Total operating expenses		160,287			140,692
Operating loss		(44,291	)		(43,341	)
Other expense, net:
Interest expense, net		(7,841	)		(5,341	)
Loss on debt extinguishment		(17,576	)		—
Gain on derivative liability		17,400			—
Other income, net		337			118
Total other expense, net		(7,680	)		(5,223	)
Net loss before taxes		(51,971	)		(48,564	)
Income tax benefit		(64	)		(69	)
Net loss	$	(51,907	)	$	(48,495	)
Net loss per share, basic and diluted	$	(0.35	)	$	(0.34	)
Weighted average shares outstanding, basic and diluted		146,732			140,980

See accompanying notes to unaudited condensed consolidated financial statements.

4

ALPHATEC HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(UNAUDITED)

(In thousands)

	Three Months Ended
	March 31,
	2025			2024
Net loss	$	(51,907	)	$	(48,495	)
Foreign currency translation adjustments		3,215			(2,464	)
Comprehensive loss	$	(48,692	)	$	(50,959	)

See accompanying notes to unaudited condensed consolidated financial statements.

5

ALPHATEC HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT

(UNAUDITED)

(In thousands)

	Common stock				Additional paid-in			Treasury			Accumulated other comprehensive			Accumulated			Total stockholders’
	Shares		Par Value		capital			stock			loss			deficit			deficit
Balance at December 31, 2024		144,129	$	14	$	1,305,677		$	(25,097	)	$	(13,678	)	$	(1,281,085	)	$	(14,169	)
Stock-based compensation		—		—		22,318			—			—			—			22,318
Common stock issued for stock option exercises		150		—		505			—			—			—			505
Common stock issued for vesting of    performance and restricted stock    awards, net of shares retained    for tax liability		2,627		1		(3,417	)		—			—			—			(3,416	)
Purchase of capped calls		—		—		(42,485	)		—			—			—			(42,485	)
Foreign currency translation adjustments		—		—		—			—			3,215			—			3,215
Net loss		—		—		—			—			—			(51,907	)		(51,907	)
Balance at March 31, 2025		146,906	$	15	$	1,282,598		$	(25,097	)	$	(10,463	)	$	(1,332,992	)	$	(85,939	)

6

ALPHATEC HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT

(UNAUDITED)

(In thousands)

	Common stock				Additional paid-in			Treasury			Accumulated other comprehensive			Accumulated			Total stockholders’
	Shares		Par Value		capital			stock			loss			deficit			equity
Balance at December 31, 2023		139,245	$	14	$	1,230,484		$	(25,097	)	$	(8,323	)	$	(1,118,962	)	$	78,116
Stock-based compensation		—		—		17,322			—			—			—			17,322
Common stock issued for warrant exercises		30		—		150			—			—			—			150
Common stock issued for stock option exercises		56		—		156			—			—			—			156
Common stock issued for vesting of restricted stock    units, net of shares withheld for tax liability		3,079		—		(7,560	)		—			—			—			(7,560	)
Reclassification of equity-based liability		—		—		327			—			—			—			327
Foreign currency translation adjustments		—		—		—			—			(2,464	)		—			(2,464	)
Net loss		—		—		—			—			—			(48,495	)		(48,495	)
Balance at March 31, 2024		142,410	$	14	$	1,240,879		$	(25,097	)	$	(10,787	)	$	(1,167,457	)	$	37,552

See accompanying notes to unaudited condensed consolidated financial statements.

7

ALPHATEC HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

(In thousands)

	Three Months Ended March 31,
	2025			2024
Operating activities:
Net loss	$	(51,907	)	$	(48,495	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		19,907			17,885
Stock-based compensation		22,318			17,322
Amortization of debt discount and debt issuance costs		2,418			1,058
Amortization of right-of-use assets		1,271			1,031
Write-down for excess and obsolete inventories		3,571			2,979
Loss on disposal of assets		1,563			832
Loss on debt extinguishment		17,576			—
Gain on derivative liability		(17,400	)		—
Other		4,252			1,655
Changes in operating assets and liabilities:
Accounts receivable		(10,282	)		(17,058	)
Inventories		1,243			(19,514	)
Prepaid expenses and other current assets		(807	)		812
Other assets		107			(141	)
Accounts payable		(11,918	)		6,780
Accrued expenses		13,938			(2,551	)
Lease liabilities		(1,349	)		(1,047	)
Contract liabilities		761			(184	)
Other long-term liabilities		(301	)		198
Net cash used in operating activities		(5,039	)		(38,438	)
Investing activities:
Purchase of property and equipment		(9,934	)		(31,312	)
Purchase of intangible assets		(1,678	)		(2,306	)
Net cash used in investing activities		(11,612	)		(33,618	)
Financing activities:
Proceeds from issuance of convertible notes, net		392,850			—
Repurchase of convertible notes		(268,231	)		—
Repayment of revolving credit facility		(52,800	)		(42,000	)
Purchase of capped calls		(42,485	)		—
Proceeds from revolving credit facility		4,092			42,000
Net cash paid for common stock exercises		(3,003	)		(4,697	)
Other		336			327
Net cash provided by (used in) financing activities		30,759			(4,370	)
Effect of exchange rate changes on cash		296			(459	)
Net change in cash and cash equivalents		14,404			(76,885	)
Cash and cash equivalents at beginning of period		138,840			220,970
Cash and cash equivalents at end of period	$	153,244		$	144,085
Supplemental disclosure of cash flow information:
Cash paid for interest	$	6,530		$	5,463
Supplemental disclosure of noncash activities:
Financed insurance	$	1,347		$	1,156
Purchases of property and equipment in accounts payable and accrued expenses	$	277		$	5,795
Purchase of intangible assets in accrued expenses	$	2,631		$	—
Recognition of derivative liability	$	124,062		$	—

See accompanying notes to unaudited condensed consolidated financial statements.

8

ALPHATEC HOLDINGS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

1. Organization and Significant Accounting Policies

The Company

Alphatec Holdings, Inc. (the “Company”), through its wholly owned subsidiaries, Alphatec Spine, Inc. (“Alphatec Spine”), SafeOp Surgical, Inc. (“SafeOp”), and EOS imaging S.A.S. (“EOS”), is a medical technology company focused on the design, development, and advancement of technology for the better surgical treatment of spinal disorders. The Company, headquartered in Carlsbad, California, markets its products in the United States and internationally via a network of independent sales agents and direct sales representatives.

Basis of Presentation and Principles of Consolidation

The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. The Company translates the financial statements of its foreign subsidiaries using end-of-period exchange rates for assets and liabilities and average exchange rates during each reporting period for results of operations. All intercompany balances and transactions have been eliminated in consolidation.

The accompanying condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Pursuant to these rules and regulations, the Company has condensed or omitted certain information and footnotes it normally includes in its annual consolidated financial statements prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). The unaudited interim condensed consolidated financial statements reflect all adjustments, including normal recurring adjustments which, in the opinion of management, are necessary for a fair presentation of the financial position and results of operations for the periods presented. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2024, which are included in the Company’s Annual Report on Form 10-K that was filed with the SEC. Operating results for the three months ended March 31, 2025 are not necessarily indicative of the results that may be expected for the full year or any other future periods.

Reclassification

Certain financial statement line items in the condensed consolidated financial statements for the period ended March 31, 2024 have been aggregated to conform to the current year’s presentation.

Use of Estimates

The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Fair Value Measurements

The carrying amount of financial instruments consisting of cash and cash equivalents, accounts receivable, prepaid expenses and other current assets, accounts payable, accrued expenses, and short-term debt included in the Company’s condensed consolidated financial statements are reasonable estimates of fair value due to their short maturities.

Authoritative guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

Level 1: Quoted prices in active markets for identical assets or liabilities.

Level 2: Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active; or other inputs that can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

9

Excess and Obsolete Inventory

Most of the Company’s inventory is comprised of finished goods, which is primarily produced by third-party suppliers. Specialized implants, fixation products, and biologics are valued by utilizing a standard cost method that includes capitalized variances which together approximates the weighted average cost. Imaging equipment and related parts are valued at weighted average cost. Inventories are stated at the lower of cost or net realizable value. The Company reviews the components of its inventory on a periodic basis for excess and obsolescence and adjusts inventory to its net realizable value as necessary.

The Company records a lower of cost or net realizable value (“LCNRV”) inventory reserve for estimated excess and obsolete inventory. In order to market its products effectively and meet the demands of interoperative product placement, the Company maintains and provides surgeons and hospitals with a variety of inventory products and sizes. For each surgery, fewer than all components will be consumed. The need to maintain and provide a wide variety of inventory causes inventory to be held that is not likely to be used.

The Company’s estimates and assumptions for excess and obsolete inventory are reviewed and updated on a quarterly basis. The estimates and assumptions are determined primarily based on current usage of inventory and the age of inventory quantities on hand. Additionally, the Company considers recent sales experience to develop assumptions about future demand for its products, while considering product life cycles and new product launches. Increases in the LCNRV reserve for excess and obsolete inventory result in a corresponding charge to cost of sales.

Revenue Recognition

The Company recognizes revenue from product sales in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Revenue from Contracts with Customers (“Topic 606”). This standard applies to all contracts with customers, except for contracts that are within the scope of other standards, such as leases. Under Topic 606, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration that the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of Topic 606, the entity performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer.

Sales are derived primarily from the sale of spinal implant products, imaging equipment, and related services to hospitals and medical centers. Revenue is recognized when obligations under the terms of a contract with customers are satisfied, which occurs with the transfer of control of products to customers, either upon shipment of the product or delivery of the product to the customer depending on the shipping terms, or when the products are used in a surgical procedure (implanted in a patient). Revenue from the sale of imaging equipment is recognized as each distinct performance obligation is fulfilled and control transfers to the customer, beginning with shipment or delivery, depending on the contract terms. Revenue from other distinct performance obligations, such as maintenance on imaging equipment and other imaging-related services, is recognized in the period the service is performed, and makes up less than 10% of the Company’s total revenue. In certain cases, the Company does offer the ability for customers to lease its imaging equipment, but such arrangements are immaterial to total revenue in the periods presented. The Company generally does not allow returns of products that have been delivered. Costs incurred by the Company associated directly with sales contracts with customers are deferred over the performance obligation period and recognized in the same period as the related revenue, except for contracts that complete within one year or less, in which case the associated costs are expensed as incurred. Payment terms for sales to customers may vary but are commensurate with the general business practices in the country of sale.

To the extent that the transaction price includes variable consideration, such as discounts, rebates, and customer payment penalties, the Company estimates the amount of variable consideration that should be included in the transaction price utilizing either the expected value method or the most likely amount method depending on the nature of the variable consideration. Variable consideration is included in the transaction price if, in the Company's judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. Estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of the Company’s anticipated performance and all information that is reasonably available, including historical, current, and forecasted information.

The Company records a contract asset when one or more performance obligations have been completed by the Company and revenue has been recognized, but the customer's payment is contingent on the satisfaction of additional performance obligations. Contract assets are generally short-term in nature. The Company records a contract liability, or deferred revenue, when it has an obligation to provide a product or service to the customer and payment is received in advance of its performance. These amounts primarily relate to undelivered equipment and related services, or maintenance agreements. When the Company sells a product or service

10

with a future performance obligation, revenue is deferred on the unfulfilled performance obligation and recognized over the related performance period. Generally, the Company estimates the selling price of promised services included in the equipment sales price using an expected cost plus a margin approach and/or the separately observable price of such service, if available. The transaction price for a contract’s various performance obligations is allocated using the relative standalone selling price method. The use of alternative estimates could result in a different amount of revenue deferral.

Recently Issued Accounting Pronouncements

In December 2023, the FASB issued Accounting Standard Update ("ASU") No. 2023-09, Income Taxes (Topic 740): Improvement to Income Tax Disclosures to enhance the transparency of income tax disclosures. The guidance in ASU No. 2023-09 allows for a prospective method of transition, with the option to apply the standard retrospectively. The standard is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is in the process of assessing the impact of this standard on its consolidated financial statements and related disclosures.

In November 2024, the FASB issued ASU No. 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Topic 220-40). Additionally, in January 2025, the FASB issued ASU 2025-01 to clarify the effective date of ASU 2024-03. The standard provides guidance to expand disclosures related to the disaggregation of income statement expenses. The standard requires, in the notes to the financial statements, disclosure of specified information about certain costs and expenses, which includes purchases of inventory, employee compensation, depreciation and intangible asset amortization included in each relevant expense caption. This guidance is effective for fiscal years beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027, on a retrospective or prospective basis, with early adoption permitted. The Company is in the process of assessing the impact of this standard on its consolidated financial statements and related disclosures.

2. Fair Value Measurements

Assets and liabilities measured at fair value on a recurring basis include the following as of March 31, 2025, and December 31, 2024 (in thousands):

	March 31, 2025
Assets:	Level 1		Level 2		Level 3		Total
Cash equivalents:
Money market funds	$	9,345		—		—	$	9,345
Liabilities:
Derivative liability	$	—		—		106,662	$	106,662
	December 31, 2024
Assets:	Level 1		Level 2		Level 3		Total
Cash equivalents:
Money market funds	$	57,006		—		—	$	57,006

The Company did not have any transfers of assets and liabilities between the levels of the fair value measurement hierarchy during the periods presented.

Fair Value of Derivative Liability

The fair value of the conversion option derivative liability is estimated using a Monte Carlo simulation. The use of this approach requires the use of Level 3 unobservable inputs. The main inputs when determining the fair value of the conversion option derivative liability are the risk-free rate, expected volatility, expected term, and the Company's stock price. The estimated fair value presented is not necessarily indicative of an amount that could be realized in a current market exchange. The use of alternative inputs and estimation methodologies could have a material effect on these estimates of fair value.

11

The following table presents the assumptions used to value the conversion option derivative liability as of March 31, 2025:

	March 31,
	2025
Company's stock price	$	10.14
Risk-free interest rate		3.88	%
Expected term (years)		4.96
Volatility		63.25	%

Fair Value of Long-term Debt

The fair value, based on a quoted market price (Level 1), of the Company’s outstanding Senior Convertible Notes due 2026 (the "2026 Notes") was approximately $62.6 million at March 31, 2025, and approximately $299.6 million at December 31, 2024.

The fair value, based on a quoted market price (Level 1), of the Company’s outstanding Senior Convertible Notes due 2030 (the "2030 Notes") was approximately $386.1 million at March 31, 2025.

3. Inventories

Inventories reported at the lower of cost or net realizable value consist of the following (in thousands):

	March 31, 2025		December 31, 2024
Raw materials	$	19,464	$	19,378
Finished goods		151,409		155,886
Inventories	$	170,873	$	175,264

4. Property and Equipment, net

Property and equipment, net consist of the following (in thousands, except as indicated):

	Useful lives (in years)	March 31, 2025			December 31, 2024
Surgical instruments	4	$	286,904		$	283,597
Machinery and equipment	7		12,796			12,710
Computer equipment	8		32,131			32,082
Office furniture and equipment	5		6,477			6,759
Leasehold improvements	various		4,337			4,321
Construction in progress	n/a		546			541
			343,191			340,010
Less: accumulated depreciation    and amortization			(196,550	)		(183,616	)
Property and equipment, net		$	146,641		$	156,394

Total depreciation and amortization expense was $15.8 million and $13.7 million for the three months ended March 31, 2025 and 2024, respectively. Construction in progress is not depreciated until placed in service. Property and equipment includes assets under financing leases and the related amortization of assets under financing leases is included in depreciation expense.

5. Goodwill and Intangible Assets

Goodwill

The change in the carrying amount of goodwill during the period ended March 31, 2025, includes the following (in thousands):

December 31, 2024	$	70,976
Foreign currency fluctuation		1,358
March 31, 2025	$	72,334

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Intangible assets, net

Intangible assets, net consist of the following (in thousands, except as indicated):

	Remaining Avg. Useful lives	Gross		Accumulated			Intangible
March 31, 2025:	(in years)	Amount		Amortization			Assets, net
Developed product technology	5	$	105,050	$	(42,166	)	$	62,884
Internally developed software	6		14,373		(3,087	)		11,286
Trademarks and trade names	6		5,482		(2,144	)		3,338
Customer relationships	3		14,336		(10,583	)		3,753
Distribution network	–		2,413		(2,413	)		—
Total amortized intangible assets			141,654		(60,393	)		81,261
Software in development	n/a		5,494		—			5,494
In-process research and development	n/a		8,285		—			8,285
Total intangible assets		$	155,433	$	(60,393	)	$	95,040
		.
	Remaining Avg. Useful lives	Gross		Accumulated			Intangible
December 31, 2024:	(in years)	Amount		Amortization			Assets, net
Developed product technology	5	$	102,412	$	(38,055	)	$	64,357
Internally developed software	3		4,283		(1,515	)		2,768.0
Trademarks and trade names	7		5,267		(1,991	)		3,276
Customer relationships	2		13,996		(10,094	)		3,902
Distribution network	–		2,413		(2,410	)		3
Total amortized intangible assets			128,371		(54,065	)		74,306
Software in development	n/a		12,927		—			12,927
In-process research and development	n/a		6,285		—			6,285
Total intangible assets		$	147,583	$	(54,065	)	$	93,518

Total amortization expense attributed to intangible assets was $4.2 million for each of the three months ended March 31, 2025 and 2024. Software in development is amortized when the projects are completed and the assets are ready for their intended use. In-process research and development assets begin amortizing when the relevant products reach full commercial launch.

Future amortization expense related to intangible assets is as follows (in thousands):

Remainder of 2025	$	12,574
2026		16,766
2027		16,315
2028		11,501
2029		11,116
Thereafter		12,989
	$	81,261

6. Contract Assets and Contract Liabilities

Contract assets included within prepaid expenses and other current assets in the condensed consolidated balance sheets are as follows (in thousands):

	March 31, 2025		December 31, 2024
Contract assets	$	3,326	$	5,678

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The non-current contract liabilities balance is included in other long-term liabilities on the condensed consolidated balance sheets. The Company’s contract liabilities are as follows (in thousands):

	March 31, 2025		December 31, 2024
Contract liabilities	$	14,411	$	13,598
Less: Non-current portion of contract liabilities		3,111		3,131
Current portion of contract liabilities	$	11,300	$	10,467

The Company recognized $0.9 million of revenue from the opening contract liabilities balance for the three months ended March 31, 2025.

7. Debt

0.75% Convertible Senior Notes due 2030

In March 2025, the Company issued $405.0 million aggregate principal amount of senior unsecured 2030 Notes with a stated interest rate of 0.75% and a maturity date of March 15, 2030. The 2030 Notes began accruing interest immediately and is payable semi-annually in arrears on March 15 and September 15 of each year, beginning on September 15, 2025. The net proceeds from the sale of the 2030 Notes were approximately $392.9 million after deducting the initial purchasers’ offering expenses and before cash use for the 2030 Capped Call Transactions, as described below, and the repayment of 80% of the 2026 Notes, as described below. The 2030 Notes do not contain any financial covenants.

The 2030 Notes are convertible into shares of the Company’s common stock based upon an initial conversion rate of 64.3407 shares of the Company’s common stock per $1,000 principal amount of 2030 Notes (equivalent to an initial conversion price of approximately $15.54 per share). The conversion rate will be subject to adjustment upon the occurrence of certain specified events, including certain distributions and dividends to all or substantially all of the holders of the Company’s common stock. Based on the terms of the 2030 Notes, when a conversion notice is received, the Company has the option to pay or deliver cash, shares of the Company’s common stock, or a combination thereof.

Holders of the 2030 Notes have the right to convert their notes in certain circumstances and during specified periods. Prior to the close of business on the business day immediately preceding September 17, 2029, holders may convert all or a portion of their 2030 Notes only under the following circumstances: (1) during any calendar quarter (and only during such calendar quarter) if the last reported sale price of the Company’s common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the 5 consecutive business days immediately after any 10 consecutive trading day period (the “measurement period”) in which the trading price per $1,000 principal amount of 2030 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company’s common stock and the conversion rate on each such trading day; or (3) upon the occurrence of specified corporate events. From and after September 17, 2029, holders of the 2030 Notes may convert their notes at any time at their election until the close of business on the second scheduled trading day immediately before the maturity date. As of March 31, 2025, none of the conditions permitting the holders of the 2030 Notes to convert have been met.

The Company determined that the 2030 Notes have an embedded conversion option that meets the criteria to be bifurcated and is accounted for separately from the 2030 Notes (see Note 8). The Company recorded the fair value of the embedded conversion option as a derivative liability and the principal amount of the 2030 Notes as a long-term liability, net of debt discount and deferred issuance costs. The annual effective interest rate for the 2030 Notes is 9.1%. The Company recognized interest expense on the 2030 Notes of $1.6 million during the three months ended March 31, 2025, which includes $1.4 million for the amortization of debt discount costs.

The 2030 Notes are redeemable, in whole or in part, at the Company’s option at any time, and from time to time, on or after March 20, 2028 and on or before the 60th scheduled trading day immediately before the maturity date, at a cash redemption price equal to the principal amount of the 2030 Notes to be redeemed, plus accrued and unpaid interest, if any, but only if the last reported sale price per share of the Company’s common stock exceeds 130% of the conversion price for a specified period of time. In addition, calling any of the 2030 Notes for redemption will constitute a “make-whole fundamental change” with respect to the redeemable note, in which case the conversion rate applicable to the conversion of the redeemed note will be increased in certain circumstances if such note is converted after it is called for redemption.

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If a fundamental change occurs prior to the maturity date, holders may require the Company to repurchase all or a portion of their 2030 Notes for cash at a price equal to 100% of the principal amount of the 2030 Notes plus accrued and unpaid interest. No principal payments are otherwise due on the 2030 Notes prior to maturity.

The outstanding principal amount and carrying value of the 2030 Notes consists of the following (in thousands):

	March 31, 2025
Principal	$	405,000
Unamortized debt discount and debt issuance costs		(135,427	)
Net carrying value	$	269,573

2030 Capped Call Transactions

In connection with the offering of the 2030 Notes, the Company entered into privately negotiated capped call transactions (the “2030 Capped Call Transactions”) with certain financial institutions. The 2030 Capped Call Transactions are expected generally to reduce the potential dilution and/or offset the cash payments the Company is required to make in excess of the principal amount of the 2030 Notes upon conversion of the 2030 Notes in the event that the market price per share of the Company’s common stock is greater than the strike price of the 2030 Capped Call Transactions with such reduction and/or offset subject to a cap. The 2030 Capped Call Transactions have an initial cap price of $23.46 per share of the Company’s common stock, which represents a premium of 100% over the last reported sale price of the Company’s common stock on March 4, 2025, and is subject to certain adjustments under the terms of the 2030 Capped Call Transactions. Collectively, the 2030 Capped Call Transactions cover, initially, the number of shares of the Company’s common stock underlying the 2030 Notes, subject to anti-dilution adjustments substantially similar to those applicable to the 2030 Notes. The cost of the 2030 Capped Call Transactions was approximately $42.5 million.

The 2030 Capped Call Transactions are separate transactions and are not part of the terms of the 2030 Notes and will not affect any holder’s rights under the 2030 Notes. Holders of the 2030 Notes will not have any rights with respect to the 2030 Capped Call Transactions.

The 2030 Capped Call Transactions meet all of the applicable criteria for equity classification and, as a result, the related $42.5 million cost was recorded as reduction to additional paid-in capital on the Company’s condensed consolidated statements of shareholders’ deficit.

Term Loan

On January 6, 2023, the Company entered into a $150.0 million term loan credit facility with Braidwell Transaction Holdings, LLC (the “Braidwell Term Loan”). The Braidwell Term Loan provides for an initial term loan of $100.0 million which was funded on the closing date. On September 28, 2023, the Company drew an additional $50.0 million (the “delayed draw term loan(s)” or the “DDTL”). On October 29, 2024, the Company entered into an amendment of the Braidwell Term Loan, which provides for an additional term loan of $50.0 million, subject to the terms of the original term loan credit facility. The Braidwell Term Loan matures on January 6, 2028. As of March 31, 2025, the outstanding balance under the Braidwell Term Loan was $200.0 million.

In conjunction with the issuance of the Braidwell Term Loan, the Company incurred $3.6 million in debt issuance costs and $3.5 million in commitment fees. Commitment fees paid to the lender were accounted for as a debt discount. The debt issuance costs and debt discount were recorded as a direct reduction of the carrying amount of the loan on the condensed consolidated balance sheets and are being amortized over the life of the loan. As of March 31, 2025, debt issuance costs and debt discount, net of accumulated amortization, associated with the Braidwell Term Loan were $2.3 million and $1.6 million, respectively.

Borrowings under the Braidwell Term Loan bear interest at a rate per annum equal to the Term Secured Overnight Financing Rate for such SOFR business day ("SOFR") subject to a 3% floor, plus 5.75%. The applicable interest rate as of March 31, 2025 was 10.19%. The loan agreement includes an undrawn commitment fee, which is calculated as 1% per annum of the average daily undrawn portion of the DDTL. Interest and undrawn commitment fees incurred are due quarterly. The Company is also required to pay fees on any prepayment of the Braidwell Term Loan, ranging from 3.0% to 1.0% depending on the date of prepayment, and a final payment fee equal to 3.25% of the principal amount of the loans drawn. The effective interest rate as of March 31, 2025 was 11.7%. During the three months ended March 31, 2025, the Company recognized interest expense on the Braidwell Term Loan of $5.3 million, which includes an immaterial amount for the amortization of debt issuance costs and $0.2 million for the debt discount. During the three months ended March 31, 2024, the Company recognized interest expense on the Braidwell Term Loan of $4.4 million, which includes $0.1 million for the amortization of debt issuance costs and $0.1 million for the debt discount. Upon the Braidwell Term Loan’s maturity, any outstanding principal balance, unpaid accrued interest, and all other obligations under the Braidwell Term Loan will be due and payable.

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The Braidwell Term Loan is secured by substantially all of the Company’s assets with the priority interest of the lenders in the Braidwell Term Loan and the Revolving Credit Facility, as defined below, subject to terms of a customary intercreditor agreement, which provides that the lenders under the Revolving Credit Facility have a priority with respect to the Company's accounts receivable, inventory, medical instruments, and items related to the foregoing, and the lenders under the Braidwell Term Loan have priority with respect to the remainder of the Company's assets. The loan agreement contains customary representations and warranties and affirmative and negative covenants. Under the loan agreement, the Company is required to maintain a minimum level of liquidity. The loan agreement also includes certain events of default, and upon the occurrence of such events of default, all outstanding loans under the Braidwell Term Loan may be accelerated and/or the lenders’ commitments terminated. The Company is in compliance with all required financial covenants as of March 31, 2025.

Revolving Credit Facility

In September 2022, the Company entered into a revolving credit facility (the “Revolving Credit Facility”) with entities affiliated with MidCap Financial Trust (“MidCap”). The Revolving Credit Facility originally provided up to $50.0 million in borrowing capacity to the Company with an accordion feature up to $75.0 million in borrowing capacity, based on a defined borrowing base. The borrowing base is calculated based on certain accounts receivable and inventory assets. The Company subsequently exercised the accordion feature and increased the borrowing capacity by $25.0 million up to the full $75.0 million borrowing capacity. The Revolving Credit Facility matures on the earlier of September 29, 2027, or 90 days prior to the final maturity date of the Company’s 2026 Notes. As of March 31, 2025, the outstanding balance under the Revolving Credit Facility was $15.0 million.

In conjunction with obtaining the Revolving Credit Facility, the Company incurred $1.4 million in debt issuance costs. These costs were capitalized to other assets on the condensed consolidated balance sheets and are being amortized over the life of the Revolving Credit Facility. As of March 31, 2025, debt issuance costs, net of accumulated amortization, associated with the Revolving Credit Facility were $ 0.7 million.

The outstanding loans under the Revolving Credit Facility bear interest at the sum of Term SOFR plus 3.5% per annum. The applicable interest rate as of March 31, 2025 was 7.94%. The loan agreements include an unused line fee, which is calculated as 0.5% per annum of either the unused Revolving Credit Facility or a minimum balance. Interest and unused line fees incurred are due and capitalized to the outstanding principal balance monthly. The Company recognized interest expense on the Revolving Credit Facility of $0.5 million, which includes approximately $0.1 million for the amortization of debt issuance costs, during each of the three months ended March 31, 2025 and 2024. Upon the Revolving Credit Facility’s maturity, any outstanding principal balance, unpaid accrued interest, and all other obligations under the Revolving Credit Facility will be due and payable.

The Revolving Credit Facility contains a lockbox arrangement clause requiring the Company to maintain a lockbox bank account. If the revolving loan availability is less than 30% of the revolving loan limit for five consecutive business days, or the Company is in default, MidCap will apply funds collected from the Company's lockbox account to reduce the outstanding balance of the Revolving Credit Facility. As of March 31, 2025, the Company's loan availability level has not activated lockbox deductions, nor is it expected to for the next 12 months; therefore, the Company has determined that the outstanding balance under the Revolving Credit Facility is long-term debt on the condensed consolidated balance sheets.

The Revolving Credit Facility is secured by substantially all of the Company’s assets with the priority interest of the lenders subject to terms of a customary intercreditor agreement in connection with the Braidwell Term Loan, as described above. The loan agreements and other ancillary documents contain customary representations and warranties and affirmative and negative covenants. Under the loan agreements, the Company is required to maintain a minimum level of liquidity. The loan agreements also include certain events of default, and upon the occurrence of such events of default, all outstanding loans under the Revolving Credit Facility may be accelerated and/or the lenders’ commitments terminated. The Company is in compliance with all required financial covenants as of March 31, 2025.

0.75% Convertible Senior Notes due 2026

In August 2021, the Company issued $316.3 million aggregate principal amount of unsecured 2026 Notes with a stated interest rate of 0.75% and a maturity date of August 1, 2026. Interest on the 2026 Notes is payable semi-annually in arrears on February 1 and August 1 of each year, beginning on February 1, 2022. The net proceeds from the sale of the 2026 Notes were approximately $306.2 million after deducting the initial purchasers’ offering expenses. The 2026 Notes do not contain any financial covenants.

The 2026 Notes are convertible into shares of the Company’s common stock based upon an initial conversion rate of 54.5316 shares of the Company’s common stock per $1,000 principal amount of 2026 Notes (equivalent to an initial conversion price of approximately $18.34 per share). The conversion rate will be subject to adjustment upon the occurrence of certain specified events, including certain distributions and dividends to all or substantially all of the holders of the Company’s common stock. Based on the

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terms of the 2026 Notes, when a conversion notice is received, the Company has the option to pay or deliver cash, shares of the Company’s common stock, or a combination thereof.

Holders of the 2026 Notes have the right to convert their notes in certain circumstances and during specified periods. Prior to the close of business on the business day immediately preceding February 2, 2026, holders may convert all or a portion of their 2026 Notes only under the following circumstances: (1) during any calendar quarter (and only during such calendar quarter) if the last reported sale price of the Company’s common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the 5 consecutive business days immediately after any 10 consecutive trading day period (the “measurement period”) in which the trading price per $1,000 principal amount of 2026 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company’s common stock and the conversion rate on each such trading day; or (3) upon the occurrence of specified corporate events. From and after February 2, 2026, holders of the 2026 Notes may convert their notes at any time at their election until the close of business on the second scheduled trading day immediately before the maturity date. As of March 31, 2025, none of the conditions permitting the holders of the 2026 Notes to convert have been met. The 2026 Notes are classified as long-term debt on the condensed consolidated balances sheet as of March 31, 2025.

The 2026 Notes are redeemable, in whole or in part, at the Company’s option at any time, and from time to time, on or after August 6, 2024 and on or before the 40th scheduled trading day immediately before the maturity date, at a cash redemption price equal to the principal amount of the 2026 Notes to be redeemed, plus accrued and unpaid interest, if any, but only if the last reported sale price per share of the Company’s common stock exceeds 130% of the conversion price for a specified period of time. In addition, calling any of the 2026 Notes for redemption will constitute a “make-whole fundamental change” with respect to the redeemable note, in which case the conversion rate applicable to the conversion of the redeemed note will be increased in certain circumstances if such note is converted after it is called for redemption. In March 2025 the Company repurchased 80% of the 2026 Notes for $268.4 million. The Company determined that the redemption of the 2026 Notes should be accounted for as a partial extinguishment of the 2026 Notes. As a result of the partial extinguishment, the Company wrote off $2.3 million of the unamortized debt issuance costs and debt discount. The Company recorded a loss on debt extinguishment of $17.6 million during the three months ended March 31, 2025.

If a fundamental change occurs prior to the maturity date, holders may require the Company to repurchase all or a portion of their 2026 Notes for cash at a price equal to 100% of the principal amount of the 2026 Notes plus accrued and unpaid interest. No principal payments are otherwise due on the 2026 Notes prior to maturity.

The Company recorded the full principal amount of the 2026 Notes as a long-term liability net of deferred issuance costs. The annual effective interest rate for the 2026 Notes is 1.4%. The Company recognized interest expense on the 2026 Notes of $0.8 million, which includes $0.4 million for the amortization of debt discount costs, during each of the three months ended March 31, 2025 and 2024. The Company uses the if-converted method for assumed conversion of the 2026 Notes to compute the weighted-average shares of common stock outstanding for diluted earnings per share, if applicable.

The outstanding principal amount and carrying value of the 2026 Notes consists of the following (in thousands):

	March 31, 2025			December 31, 2024
Principal	$	63,250		$	316,250
Unamortized debt issuance costs		(552	)		(3,262	)
Net carrying value	$	62,698		$	312,988

2026 Capped Call Transactions

In connection with the offering of the 2026 Notes, the Company entered into privately negotiated capped call transactions (the “Capped Call Transactions”) with certain financial institutions. The Capped Call Transactions are expected generally to reduce the potential dilution and/or offset the cash payments the Company is required to make in excess of the principal amount of the 2026 Notes upon conversion of the 2026 Notes in the event that the market price per share of the Company’s common stock is greater than the strike price of the Capped Call Transactions with such reduction and/or offset subject to a cap. The Capped Call Transactions have an initial cap price of $27.68 per share of the Company’s common stock, which represents a premium of 100% over the last reported sale price of the Company’s common stock on August 5, 2021, and is subject to certain adjustments under the terms of the Capped Call Transactions. Collectively, the Capped Call Transactions cover, initially, the number of shares of the Company’s common stock underlying the 2026 Notes, subject to anti-dilution adjustments substantially similar to those applicable to the 2026 Notes. The cost of the Capped Call Transactions was approximately $39.9 million.

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The Capped Call Transactions are separate transactions and are not part of the terms of the 2026 Notes and will not affect any holder’s rights under the 2026 Notes. Holders of the 2026 Notes will not have any rights with respect to the Capped Call Transactions.

Other Debt Agreements

The Company has two loan agreements under French government sponsored COVID-19 relief initiatives (“PGE” loans) which mature in 2027. Monthly and quarterly installments of principal and interest under each PGE loan agreement is due until the original principal amounts and applicable interest is fully repaid in 2027. The outstanding obligation under each PGE loan as of March 31, 2025 was $2.0 million and $0.9 million at weighted average interest rates of 0.98% and 1.25%, respectively, and weighted average costs of the state guaranty of 0.69% and 1.0%, respectively.

Total Indebtedness

Principal payments remaining on the Company's debt are as follows as of March 31, 2025 (in thousands):

Remainder of 2025	$	2,321
2026		64,623
2027		15,458
2028		206,500
2029		—
Thereafter		405,000
Total		693,902
Less: unamortized debt discount and debt issuance costs		(145,499	)
Total		548,403
Less: current portion of long-term debt		(2,569	)
Long-term debt	$	545,834

8. Derivative Liability

Convertible Notes

The 2030 Notes, discussed in Note 7, have an embedded conversion option that meets the criteria to be bifurcated and accounted for separately from the 2030 Notes. The conversion option derivative liability was recorded at fair value upon the issuance of the 2030 Notes and was subsequently remeasured to fair value at March 31, 2025.

The change in the conversion option derivative liability during the period ended March 31, 2025, includes the following (in thousands):

December 31, 2024	$	—
Addition of derivative liability		124,062
Change in fair value		(17,400	)
March 31, 2025	$	106,662

9. Commitments and Contingencies

Leases

The Company determines if an arrangement is a lease at inception by assessing whether there is an identified asset and whether the contract conveys the right to control the use of the identified asset in exchange for consideration over a period of time. If both criteria are met, the Company records the associated lease liability and corresponding right-of-use asset (“ROU asset”) upon commencement of the lease using a discount rate based on the incremental borrowing rate of interest that the Company would borrow on a collateralized basis for an amount equal to the lease payments in a similar economic environment. Any short-term leases defined as twelve months or less or month-to-month leases are excluded and are expensed each month. Total costs associated with these short-term leases are immaterial to all periods presented.

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The Company leases office and storage facilities and equipment under various operating and financing lease agreements. The initial terms of these leases range from 1 to 10 years and generally provide for periodic rent increases. The Company’s lease agreements do not contain any material variable lease payments, residual value guarantees or material restrictive covenants. The Company aggregates all lease and non-lease components for each class of underlying assets into a single lease component and variable charges for common area maintenance and other variable costs are recognized as expense as incurred. Total variable costs associated with leases for the three months ended March 31, 2025 were immaterial. The Company had an immaterial amount of financing leases as of March 31, 2025, which is included in property and equipment, net, accrued expenses and other current liabilities, and other long-term liabilities, on the condensed consolidated balance sheets.

Future minimum annual lease payments for all operating leases of the Company are as follows as of March 31, 2025 (in thousands):

Remainder of 2025	$	5,337
2026		6,640
2027		6,565
2028		6,046
2029		5,961
Thereafter		10,214
Total undiscounted lease payments		40,763
Less: imputed interest		(7,891	)
Operating lease liabilities		32,872
Less: current portion of operating lease liabilities		(6,310	)
Operating lease liabilities, less current portion	$	26,562

The Company’s weighted average remaining lease term and weighted average discount rate as of March 31, 2025 and December 31, 2024 are as follows:

	March 31, 2025			December 31, 2024
Weighted-average remaining lease term (years)		6.1			6.4
Weighted-average discount rate		6.9	%		6.9	%

Information related to the Company’s operating leases is as follows (in thousands):

	Three Months Ended March 31,
	2025		2024
Rent expense	$	1,825	$	1,466
Cash paid for amounts included in measurement of lease liabilities	$	1,781	$	1,419

Purchase Commitments

The Company is obligated to meet certain minimum purchase commitment requirements with a third-party supplier through December 2026. As of March 31, 2025, the remaining minimum purchase commitment required by the Company under the agreement is $8.0 million.

Litigation

The Company is and may become involved in various legal proceedings arising from its business activities. While management is not aware of any litigation matter that in and of itself would have a material adverse impact on the Company’s condensed consolidated results of operations, cash flows or financial position, litigation is inherently unpredictable, and depending on the nature and timing of a proceeding, an unfavorable resolution could materially affect the Company’s future consolidated results of operations, cash flows or financial position in a particular period. The Company assesses contingencies to determine the degree of probability and range of possible loss for potential accrual or disclosure in the Company’s condensed consolidated financial statements. An estimated loss contingency is accrued in the Company’s condensed consolidated financial statements if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Because litigation is inherently unpredictable and unfavorable resolutions could occur, assessing contingencies is highly subjective and requires judgments about future events. When evaluating contingencies, the Company may be unable to provide a meaningful estimate due to a number of factors, including the procedural status of the matter in question, the presence of complex or novel legal theories, and/or the ongoing discovery and development of information important to

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the matters. In addition, damage amounts claimed in litigation against the Company may be unsupported, exaggerated or unrelated to reasonably possible outcomes, and as such are not meaningful indicators of the Company’s potential liability.

In April 2025, the Company entered into a settlement in principle with a shareholder to resolve a legal dispute. The Company recorded the amount of the settlement, which is included in litigation-related expenses in the condensed consolidated statements of operations and accrued expenses and other current liabilities on the condensed consolidated balance sheets for the period ended March 31, 2025.

Indemnifications

In the normal course of business, the Company enters into agreements under which it occasionally indemnifies third-parties for intellectual property infringement claims or claims arising from breaches of representations or warranties. In addition, from time to time, the Company provides indemnity protection to third-parties for claims relating to past performance arising from undisclosed liabilities, product liabilities, environmental obligations, representations and warranties, and other claims. In these agreements, the scope and amount of remedy, or the period in which claims can be made, may be limited. It is not possible to determine the maximum potential amount of future payments, if any, due under these indemnities due to the conditional nature of the obligations and the unique facts and circumstances involved in each agreement.

In October 2017, NuVasive, Inc. filed a lawsuit in Delaware Chancery Court against Mr. Miles, the Company’s Chairman and CEO, who was a former officer and board member of NuVasive. The Company itself was not initially a named defendant in this lawsuit; however, in June 2018, NuVasive amended its complaint to add the Company as a defendant. In October 2018, the Delaware Court ordered that NuVasive advance legal fees for Mr. Miles’ defense in the lawsuit, as well as Mr. Miles’ legal fees incurred in pursuing advancement of his fees, pursuant to an indemnification agreement between NuVasive and Mr. Miles. As of March 31, 2025, the Company has not recorded any liability on the condensed consolidated balance sheets related to this matter.

Royalties

The Company has entered into various intellectual property agreements requiring the payment of royalties based on the sale of products that utilize such intellectual property. These royalties primarily relate to products sold by Alphatec Spine and are based on fixed fees or calculated either as a percentage of net sales or on a per-unit sold basis. Royalties are included on the accompanying condensed consolidated statements of operations as a component of cost of sales.

10. Stock-Benefit Plans and Equity Transactions

Stock-Based Compensation

The Company has stock-based compensation plans under which it grants stock options, restricted stock units ("RSUs"), and performance restricted stock units ("PRSUs") to officers, directors and third parties. Total stock-based compensation for the periods presented is as follows (in thousands):

	Three Months Ended
	March 31,
	2025		2024
Cost of sales	$	3,043	$	483
Research and development		3,644		4,315
Sales, general and administrative		15,631		12,524
Total	$	22,318	$	17,322

As of March 31, 2025, there was $77.3 million of unrecognized compensation expense for RSUs and PRSUs to be recognized over a weighted average period of 2.01 years.

The Company has entered into Development Service Agreements for the development of a wide variety of potential products and intellectual property. Under these agreements, future royalty payments for product and/or intellectual property rights may be paid in either cash or restricted shares of the Company’s common stock at the election of the developer, depending on the terms of the agreement. Certain of these agreements were amended to remove the cash royalty option and require settlement in restricted shares of the Company’s common stock. During the three months ended March 31, 2025 and 2024, the vesting conditions of certain of these awards were deemed probable. Stock-based compensation associated with these awards is included in cost of sales and research and development expense on the condensed consolidated statements of operations.

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Restricted Stock Units and Performance Based Restricted Stock Units Awards

The Company issued approximately 3,521,532 and 3,154,000 shares of common stock, before net share settlement, upon vesting of RSUs and PRSUs during the three months ended March 31, 2025 and 2024, respectively.

Employee Stock Purchase Plan

Employees are eligible to participate in the Employee Stock Purchase Plan ("ESPP") approved by its shareholders. During the three months ended March 31, 2025 and 2024, there were no shares issued under the ESPP.

The Company estimates the fair value of shares issued to employees under the ESPP using the Black-Scholes option-pricing model. The assumptions used to estimate the fair value of stock options granted and stock purchase rights under the ESPP are as follows:

	Three Months Ended
	March 31,
	2025			2024
Risk-free interest rate		4.44	%		5.41	%
Expected dividend yield		—			—
Expected term (years)		0.50			0.50
Volatility		91.91	%		58.41	%

Warrants Outstanding

Squadron Medical Warrants

In connection with debt financing entered into with Squadron Medical Finance Solutions, LLC ("Squadron Medical") in 2018, and amended in 2019 and 2020, the Company issued common stock warrants to Squadron Medical and a participant lender (the “Squadron Medical Warrants”). The Squadron Medical Warrants expire in May 2027 and are exercisable by cash exercise. No Squadron Medical Warrants have been exercised as of March 31, 2025.

Executive Warrants

The Company issued warrants to its Chairman and Chief Executive Officer (the “Executive Warrants”). The Executive Warrants had a five-year term and are exercisable by cash or cashless exercise. In October 2022, the term was extended to seven years and in May 2024, the term was extended to nine years. No Executive Warrants have been exercised as of March 31, 2025.

L-5 Healthcare Partners Warrants

Pursuant to an order entered by the Delaware Chancery Court on September 27, 2024, the Company issued 1,133,160 common stock warrants, to L-5 Healthcare Partners, LLC, a stockholder of the Company (the "L-5 Healthcare Warrants"), at a purchase price of $1.98 per each share represented by the warrant, for a total purchase price of approximately $2.2 million. The L-5 Healthcare Warrants expire in August 2026 and are exercisable by cashless exercise. No L-5 Healthcare Warrants have been exercised as of March 31, 2025.

A summary of all outstanding warrants for common stock as of March 31, 2025, is as follows (in thousands, except for strike price data):

	Number of Warrants		Strike Price		Expiration
2018 Squadron Medical Warrants		845	$	3.15	May 2027
2019 Squadron Medical Warrants		4,839	$	2.17	May 2027
2020 Squadron Medical Warrants		1,076	$	4.88	May 2027
Executive Warrants		1,327	$	5.00	December 2026
L-5 Healthcare Warrants		1,133	$	2.17	August 2026
Other1		96	$	11.79	Various through June 2026
Total		9,316

(1)Weighted-average strike price.

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All outstanding warrants were deemed to qualify for equity classification under authoritative accounting guidance.

Salary-to-Equity Conversion Program

On March 31, 2025, the Compensation Committee of the Board of Directors of the Company adopted a salary conversion plan (the “Plan”) under which the cash payment of base salaries for certain Company executive officers was reduced by 10% to 50% and, in exchange, the Company's executive officers were granted RSUs. The RSUs granted under the Plan will vest in two equal installments on August 5, 2025 and December 5, 2025, subject to the respective executive officer's continued employment with the Company on each vesting date.

11. Business Segment and Geographic Information

The Company operates in one segment based upon the Company’s organizational structure, the way in which the operations and investments are managed and evaluated by the chief operating decision maker (“CODM”) as well as the lack of available discrete financial information at a level lower than the consolidated level. The CODM is the Chief Executive Officer. The Company shares common, centralized support functions which report directly to the CODM and decision-making regarding the Company’s overall operating performance and allocation of Company resources is assessed on a consolidated basis. Significant segment expenses regularly provided to the CODM are consolidated research and development expenses and consolidated sales, general and administrative expenses. Refer to the consolidated statements of operations for consolidated research and development expenses and consolidated sales, general and administrative expenses. The Company determined that consolidated net loss is the Company’s measure of segment profit or loss.

Net revenue and property and equipment, net, by geographic region are as follows (in thousands):

	Revenue				Property and equipment, net
	Three Months Ended March 31,				March 31,		December 31,
(in thousands)	2025		2024		2025		2024
United States	$	159,112	$	129,845	$	145,068	$	154,772
International		10,068		8,632		1,573		1,622
Total	$	169,180	$	138,477	$	146,641	$	156,394

12. Net Loss Per Share

Basic net loss per share is calculated by dividing the net loss available to common stockholders by the weighted-average number of common shares outstanding for the period. If applicable, diluted net loss per share attributable to common stockholders is calculated by dividing net loss available to common stockholders by the diluted weighted-average number of common shares outstanding for the period, determined using the treasury-stock method and the if-converted method for convertible debt. For purposes of this calculation, common stock subject to repurchase by the Company, common stock issuable upon conversion or exercise of convertible notes, preferred shares, options, and warrants are considered to be common stock equivalents and are only included in the calculation of diluted earnings per share when their effect is dilutive. Due to the Company’s net loss position, the effect of including common stock equivalents in the earnings per share calculation is anti-dilutive, and therefore not included.

The following table presents the computation of basic and diluted net loss per share (in thousands, except per share amounts):

	Three Months Ended March 31,
	2025			2024
Numerator:
Net loss	$	(51,907	)	$	(48,495	)
Denominator:
Weighted average common shares outstanding		146,732			140,980
Net loss per share, basic and diluted:	$	(0.35	)	$	(0.34	)

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The following potentially dilutive shares of common stock were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive for the periods presented (in thousands):

	As of March 31,
	2025		2024
Options to purchase common stock and employee stock purchase plan		2,196		2,611
Unvested restricted stock unit awards		7,894		8,783
Warrants to purchase common stock		9,316		8,216
2026 Notes		3,449		17,246
2030 Notes		34,527		—
Total		57,382		36,856

13. Income Taxes

To calculate its interim tax provision, at the end of each interim period the Company estimates the annual effective tax rate, adjusted for discrete items arising in that quarter. The computation of the annual estimated effective tax rate at each interim period requires certain estimates and significant judgment including, but not limited to, the estimated annual taxable income or loss for the year and projections of the proportion of income earned and taxed in foreign jurisdictions. The accounting estimates used to compute the provision for income taxes may change as new events occur, additional information is obtained, or the tax environment changes.

The Company’s effective tax rate from operations was 0.12% and 0.14% for the three months ended March 31, 2025 and 2024 respectively. The Company’s effective tax rate differs from the federal statutory rate of 21% in each period primarily due to the Company’s net loss position and valuation allowance.

14. Related Party Transactions

The Company purchases inventory from an affiliate of Squadron Capital, LLC (the “Squadron Supplier Affiliate”). David Pelizzon, President and Director of Squadron Capital, LLC, currently serves on the Company’s Board of Directors. For the three months ended March 31, 2025 and 2024, the Company purchased inventory in the amounts of $2.8 million and $4.7 million, respectively, from the Squadron Supplier Affiliate. As of March 31, 2025, and December 31, 2024, the Company had $2.7 million and $1.8 million, respectively, due to the Squadron Supplier Affiliate, for inventory purchases.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

You should read the following management's discussion and analysis of our financial condition and results of operations in conjunction with our unaudited condensed consolidated financial statements and the related notes thereto that appear elsewhere in this Quarterly Report on Form 10-Q and the audited consolidated financial statements and notes thereto and under the heading "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”). In addition to historical information, the following management’s discussion and analysis of our financial condition and results of operations includes forward-looking information that involves risks, uncertainties, and assumptions. Our actual results and the timing of events could differ materially from those anticipated by these forward-looking statements as a result of many factors, such as those set forth under “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024, and any updates to those risk factors filed from time to time in our subsequent periodic and current reports filed with the SEC.

Overview

We are a medical technology company, headquartered in Carlsbad, California, focused on the design, development, and advancement of technology for better surgical treatment of spine disorders. By applying our unique, 100% spine focus and deep, collective industry know-how, we aim to revolutionize the approach to spine surgery through clinical distinction. The sophisticated approaches that we create from the ground up are designed to integrate with our expanding InformatiX™ product platform to objectively inform surgery and achieve the goals of spine surgery more predictably and more reproducibly. We have a comprehensive product portfolio designed to address the spine’s various pathologies, and are perpetually innovating to accomplish our ultimate vision, which is to be the standard bearer in spine.

The application of our team’s deep spine know-how, coupled with a willingness to invest holistically in the technologies integrated into our procedural approaches continues to increasingly compel surgeons and sales talent to partner with us. That adoption-driven validation has been the source of industry-leading market share expansion, which has delivered an approximately 40% revenue compound annual growth rate since our transformation commenced in 2018.

We market and sell our products through a network of independent sales agents and direct sales representatives. To deliver consistent, predictable growth, we have added, and intend to continue to add, clinically astute and exclusive sales team members to reach untapped surgeons, hospitals, and national accounts and better penetrate existing accounts and territories.

Recent Developments

0.75% Senior Convertible Notes due 2030

In March 2025, we issued $405.0 million principal amount of unsecured senior convertible notes with a stated interest rate of 0.75% (the "2030 Notes"). The 2030 Notes began accruing interest immediately and interest is payable semi-annually in arrears on March 15 and September 15 of each year, beginning on September 15, 2025. The 2030 Notes are convertible into shares of our common stock based upon an initial conversion rate of 64.3407 shares of our common stock per $1,000 principal amount of 2030 Notes (equivalent to an initial conversion price of approximately $15.54 per share). The net proceeds from the sale of the 2030 Notes were approximately $392.9 million after deducting the offering expenses. The 2030 Notes will mature on March 15, 2030, unless earlier converted, redeemed, or repurchased. We used $42.5 million of the net proceeds from the 2030 Notes offering to enter into separate capped call instruments with certain financial institutions. The capped call transactions effectively limit the premium for conversion of the 2030 Notes to 100% and are generally expected to reduce potential dilution to our common stock upon any conversion of the 2030 Notes and/or offset any payments we make upon conversion. In addition, we repurchased 80% of our 2026 convertible notes (the "2026 Notes") for approximately $268.4 million. We intend to use the remainder of the net proceeds from the 2030 Notes for general corporate purposes.

Revenue and Expense Components

The following is a description of the primary components of our revenue and expenses:

Revenue. We derive our revenue primarily from the sale of spinal surgery implants used in the treatment of spine disorders as well as the sale of medical imaging equipment which is used for surgical planning and post-operative assessment. Spinal implant products include pedicle screws and complementary implants, interbody devices, plates, and tissue-based materials. Medical imaging equipment includes our EOS full-body and weight-bearing x-ray imaging devices, and related services. Our revenue is generated by our direct sales force and independent sales agents. Our products are shipped and invoiced to hospitals and surgical centers. Currently, most of our business is conducted with customers within markets in which we have experience and with payment terms that are customary to our business. We may defer revenue until the time of collection if circumstances related to payment terms, regional market risk or customer history indicate that collectability is not certain.

Cost of sales. Cost of sales consists primarily of direct product costs, royalties, service labor hours, and parts. Our product costs consist primarily of raw materials, component parts, direct labor, and overhead. The product costs of certain of our biologics products

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include the cost of procuring and processing human tissue. We incur royalties related to the technologies that we license from others and the products that are developed in part by surgeons with whom we collaborate in the product development process.

Research and development expenses. Research and development expenses consist of costs associated with the design, development, testing, and enhancement of our products. Research and development expenses also include salaries and related employee benefits, research-related overhead expenses, and fees paid to external service providers and development consultants in the form of both cash and equity.

Sales, general and administrative expenses. Sales, general and administrative expenses consist primarily of salaries and related employee benefits, sales commissions and other variable costs, depreciation of our surgical instruments, regulatory affairs, quality assurance costs, professional service fees, travel, medical education, trade show and marketing costs, and insurance expenses.

Litigation-related expenses. Litigation-related expenses consist of costs incurred for our ongoing and settled litigation.

Amortization of acquired intangible assets. Amortization of acquired intangible assets consists of intangible assets acquired in business combinations and asset acquisitions.

Restructuring expenses. Restructuring expenses are primarily associated with the realignment of our operations and geographical footprint to achieve synergies, in which we incur one-time costs related to exiting and/or relocating our facilities, and personnel related expenses including severance and other costs.

Total interest expense and other expense, net. Total interest expense and other expense, net includes interest income, interest expense, gains and losses from foreign currency exchanges, loss on debt extinguishment, gain on derivative liability, and other non-operating gains and losses.

Income tax provision. Income tax provision primarily consists of an estimate of federal, state, and foreign income taxes based on enacted state and foreign tax rates, as adjusted for allowable credits, deductions, uncertain tax positions, changes in the valuation of our deferred tax assets and liabilities, and changes in tax laws.

Critical Accounting Policies and Estimates

Our discussion and analysis of our financial condition and results of operations is based upon our unaudited condensed consolidated financial statements, which have been prepared in accordance with generally accepted accounting principles in the United States of America. The preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses, and related disclosures. On an on-going basis, we evaluate our estimates and assumptions, including those related to revenue recognition, allowances for accounts receivable, inventories, intangible assets, stock-based compensation, and income taxes. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumption conditions.

Critical accounting policies are those that, in management’s view, are most important in the portrayal of our financial condition and results of operations. Management believes there have been no material changes during the three months ended March 31, 2025, to the critical accounting policies discussed in the Management’s Discussion and Analysis of Financial Condition and Results of Operations section of our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC.

Results of Operations

Total revenue

	Three Months Ended March 31,				Change
(in thousands, except %)	2025		2024		$		%
Revenue from products and services	$	169,180	$	138,477	$	30,703		22	%

Revenue from products and services increased $30.7 million, or 22%, during the three months ended March 31, 2025, compared to the same period in 2024. The increase was primarily due to an increase in product volume that was due to the increase in our surgeon user base, continued expansion of our new product portfolio, and increasing adoption of our technology.

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Cost of sales

	Three Months Ended March 31,				Change
(in thousands, except %)	2025		2024		$		%
Cost of sales	$	53,184	$	41,126	$	12,058		29	%

Cost of sales increased $12.1 million, or 29%, for the three months ended March 31, 2025, compared to the same period in 2024. The increase was primarily due to an increase in product volume and an increase in stock-based compensation. We have entered into Development Service Agreements for the development of a wide variety of potential products and intellectual property. Under these agreements, future royalty payments for product and/or intellectual property rights may be paid in either cash or restricted shares of our common stock at the election of the developer, depending on the terms of the agreement. Certain of these agreements were amended to remove the cash royalty option and require settlement in restricted shares of our common stock. Stock-based compensation associated with these awards was higher during the three months ended March 31, 2025 as the vesting conditions of certain of these amended awards were deemed probable during the current period.

Operating expenses

	Three Months Ended March 31,				Change
(in thousands, except %)	2025		2024		$			%
Operating expenses:
Research and development	$	16,582	$	18,012	$	(1,430	)		(8	)%
Sales, general and administrative		127,017		113,610		13,407			12	%
Litigation-related expenses		12,214		4,428		7,786			176	%
Amortization expense		4,103		3,854		249			6	%
Restructuring expenses		371		788		(417	)		(53	)%
Total operating expenses	$	160,287	$	140,692	$	19,595			14	%

Research and development expenses. Research and development expenses decreased $1.4 million, or 8%, for the three months ended March 31, 2025, compared to the same period in 2024. The decrease during the three months ended March 31, 2025 was primarily due to a decrease in stock-based compensation related to our Development Service Agreements and a decrease in personnel.

Sales, general and administrative expenses. Sales, general and administrative expenses increased $13.4 million, or 12%, during the three months ended March 31, 2025, compared to the same period in 2024. The increase was primarily due to higher compensation-related costs and variable selling expenses associated with the increase in revenue, and our continued investment in building our strategic distribution channel.

Litigation-related expenses. Litigation expenses increased $7.8 million, or 176%, for the three months ended March 31, 2025, compared to the same period in 2024. The increase was primarily related to a litigation settlement during the current period.

Amortization expense. Amortization expense increased $0.2 million, or 6%, during the three months ended March 31, 2025, compared to the same period in 2024. The increase in amortization expense is primarily due to the amortization of internally-developed software that has been placed in service.

Restructuring expenses. Restructuring expenses decreased $0.4 million, or 53%, during the three months ended March 31, 2025, compared to the same period in 2024. The decrease in restructuring expenses is primarily due to costs associated with the relocation of office facilities in Paris, France in the prior period that did not recur.

Total interest expense and other expense, net

	Three Months Ended March 31,						Change
(in thousands, except %)	2025			2024			$			%
Other expense, net:
Interest expense, net	$	(7,841	)	$	(5,341	)	$	(2,500	)		47	%
Loss on debt extinguishment		(17,576	)	—				(17,576	)		100	%
Gain on derivative liability		17,400		—				17,400			100	%
Other income, net		337			118			219			186	%
Total other expense, net	$	(7,680	)	$	(5,223	)	$	(2,457	)		47	%

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Interest expense, net, increased $2.5 million, or 47%, during the three months ended March 31, 2025, compared to the same period in 2024. The increase in interest expense, net, was primarily due to drawing an additional $50.0 million on the Braidwell Term Loan in October 2024, and the amortization of debt discount associated with the 2030 Notes. Net cash and non-cash interest was $5.3 million and $2.5 million, respectively, for the three months ended March 31, 2025.

Loss on debt extinguishment increased $17.6 million, or 100%, during the three months ended March 31, 2025, compared to the same period in 2024. The increase in loss on debt extinguishment relates to the redemption of 80% of the 2026 Notes.

Gain on derivative liability increased $17.4 million, or 100%, during the three months ended March 31, 2025, compared to the same period in 2024. The increase in gain on derivative liability relates to the change in the valuation of the derivative liability associated with 2030 Notes from inception to March 31, 2025.

Other income, net, increased $0.2 million, or 186%, during the three months ended March 31, 2025, compared to the same period in 2024. The increase in other income, net, during the three months ended March 31, 2025, was primarily due to fluctuations in foreign currency rates.

Income tax provision

	Three Months Ended March 31,						Change
(in thousands, except %)	2025			2024			$		%
Income tax benefit	$	(64	)	$	(69	)	$	5		(7	)%

The change in the income tax benefit for the three months ended March 31, 2025, compared to the same period in 2024, was primarily related to the recognition of income tax benefits in several jurisdictions.

Liquidity and Capital Resources

Our principal sources of liquidity are our existing cash and cash equivalents, our Revolving Credit Facility and cash from operations. Our liquidity and capital structure are evaluated regularly within the context of our annual operating and strategic planning process. We consider the liquidity necessary to fund our operations, which includes working capital needs, investments in research and development, investments in inventory and instrument sets to support our customers, as well as other operating costs. Our future capital requirements will depend on many factors including our rate of revenue growth, the timing and extent of spending to support development efforts, the expansion of sales, marketing and administrative activities, the timing of introductions of new products and enhancements to existing products, and the international expansions of our business.

As current borrowing sources become due, we may be required to access the capital markets for additional funding. If we are required to access the debt markets, we expect to be able to secure reasonable borrowing rates. As part of our liquidity strategy, we will continue to monitor our current level of spending and cash use as well as our ability to secure additional credit facilities, term loans, or other similar arrangements in light of our spending levels and general financial market conditions.

A substantial portion of our operations are in the United States ("U.S."), and most of our net sales have been made in the U.S. Accordingly, we do not have material exposures to foreign currency rate fluctuations from operations. However, as our business in markets outside of the U.S. continues to increase, we will be exposed to foreign currency exchange risk related to our foreign operations.

We do not have any material financial exposure to one customer or one country, outside of the United States, that would significantly hinder our liquidity. We are and may become involved in various legal proceedings arising from our business activities. While we have no material, undisclosed accruals for pending litigation or claims, litigation is inherently unpredictable, and depending on the nature and timing of a proceeding, an unfavorable resolution could materially affect our future consolidated results of operations, cash flows or financial position in a particular period. We assess contingencies to determine the degree of probability and range of possible loss for potential accrual or disclosure in our condensed consolidated financial statements. An estimated loss contingency is accrued in our condensed consolidated financial statements if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Assessing contingencies is highly subjective and requires judgments about future events because litigation is inherently unpredictable, and unfavorable resolutions could occur. When evaluating contingencies, we may be unable to provide a meaningful estimate due to a number of factors, including the procedural status of the matter in question, the presence of complex or novel legal theories, and/or the ongoing discovery and development of information important to the matters. In addition, damage amounts claimed in litigation against us may be unsupported, exaggerated, or unrelated to reasonably possible outcomes, and as such are not meaningful indicators of our potential liability. We have disclosed all material accruals for pending litigation or investigations in Note 9, Commitments and Contingencies, in the Notes to Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q.

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Cash and cash equivalents were $153.2 million and $138.8 million at March 31, 2025, and December 31, 2024, respectively. We believe that our existing funds, cash generated from our operations and our existing sources of and access to financing are adequate to satisfy our needs for working capital, capital expenditure and debt service requirements, and other business initiatives we plan to strategically pursue.

Summary of Cash Flows

	Three Months Ended March 31,
(in thousands)	2025			2024
Cash (used in) provided by:
Operating activities	$	(5,039	)	$	(38,438	)
Investing activities		(11,612	)		(33,618	)
Financing activities		30,759			(4,370	)
Effect of exchange rate changes on cash		296			(459	)
Net increase (decrease) in cash and cash equivalents	$	14,404		$	(76,885	)

Operating Activities

We used cash of $5.0 million from operating activities for the three months ended March 31, 2025, which is primarily related to inventory purchases to support the growth of our business and commercial launch of new products, offset by the timing of cash payments and receipts.

Investing Activities

We used cash of $11.6 million in investing activities for the three months ended March 31, 2025, which is primarily related to the purchase of surgical instruments to support the growth of our business and commercial launch of new products.

Financing Activities

Financing activities provided cash of $30.8 million for the three months ended March 31, 2025, which is primarily related to proceeds from our 2030 Notes, offset by the repurchase of 80% of our 2026 Notes, the purchase of capped calls of the 2030 Notes, and payments on our revolving line of credit.

Debt and Commitments

As of March 31, 2025, we had $200.0 million outstanding under the Braidwell Term Loan. The outstanding loans under the Braidwell Term Loan bear interest at the sum of Term SOFR plus 5.75% per annum. The Braidwell Term Loan matures on January 6, 2028.

As of March 31, 2025, we had $15.0 million outstanding under the Revolving Credit Facility. The outstanding loans under the Revolving Credit Facility bear interest at the sum of Term SOFR plus 3.5% per annum. The Revolving Credit Facility matures on the earlier of September 29, 2027, or 90 days prior to the final maturity date of any of our 2026 Notes.

As of March 31, 2025, we had $63.3 million outstanding under the 2026 Notes. The 2026 Notes accrue interest at a rate of 0.75%, payable semi-annually in arrears on February 1 and August 1 of each year. Prior to maturity in August 2026, the holders of the 2026 Notes may, under certain circumstances, choose to convert their notes into shares of our common stock. Based on the terms we have the option to pay or deliver cash, shares of our common stock, or a combination thereof, when a conversion notice is received.

As of March 31, 2025, we had $405.0 million outstanding under the 2030 Notes. The 2030 Notes accrue interest at a rate of 0.75%, payable semi-annually in arrears on March 15 and September 15 of each year. Prior to maturity in March 2030, the holders of the 2030 Notes may, under certain circumstances, choose to convert their notes into shares of our common stock. Based on the terms we have the option to pay or deliver cash, shares of our common stock, or a combination thereof, when a conversion notice is received.

As of March 31, 2025, we had $2.9 million in other debts that are due in monthly and quarterly installments through maturity in 2027.

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We have an inventory purchase commitment agreement with a third-party supplier, where we are obligated to meet certain minimum purchase commitment requirements through December 2026. As of March 31, 2025, the remaining minimum purchase commitment under the agreement was $8.0 million.

Contractual obligations and commercial commitments

As of March 31, 2025, there have been no material changes, outside the normal course of business, in our outstanding contractual obligations from those disclosed within the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements.

Recent Accounting Pronouncements

Aside from the changes disclosed in Note 1 to the Notes to Condensed Consolidated Financial Statements (Unaudited) under the heading “Recently Issued Accounting Pronouncements,” if any, there have been no new accounting pronouncements or changes to accounting pronouncements during the three months ended March 31, 2025, as compared to the recent accounting pronouncements described in our Annual Report on Form 10-K for the year ended December 31, 2024, that was filed with the SEC.

Forward Looking Statements

This Quarterly Report on Form 10-Q incorporates a number of forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), including statements regarding:

•our estimates regarding anticipated operating losses, future revenue, expenses, capital requirements, uses and sources of cash and liquidity, including our anticipated revenue growth and cost savings;

•our ability to achieve profitability, and the potential need to raise additional funding;

•our ability to ensure that we have effective disclosure controls and procedures;

•our ability to meet, and potential liability from not meeting, any outstanding commitments and contractual obligations;

•our ability to maintain compliance with the quality requirements of the U.S. Food and Drug Administration and similar foreign regulatory requirements;

•our ability to market, improve, grow, commercialize and achieve market acceptance of any of our products or any product candidates that we are developing or may develop in the future;

•our ability to continue to enhance our product offerings, and to commercialize and achieve market acceptance of any of our products or product candidates;

•the effect of any existing or future federal, state or international regulations on our ability to effectively conduct our business;

•our business strategy and our underlying assumptions about market data, demographic trends, reimbursement trends and pricing trends;

•our ability to maintain an adequate global sales network for our products, including to attract and retain independent sales agents and direct sales representatives;

•our ability to increase the use and promotion of our products by training and educating spine surgeons and our global sales network;

•our ability to attract and retain a qualified management team, as well as other qualified personnel and advisors;

•our ability to enter into licensing and business combination agreements with third parties and to successfully integrate the acquired technology and/or businesses;

•the impact of global economic and political conditions and public health crises on our business and industry; and

•other factors discussed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 or any document incorporated by reference herein or therein.

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Any or all of our forward-looking statements in this Quarterly Report on Form 10-Q may turn out to be wrong. They can be affected by inaccurate assumptions and/or by known or unknown risks and uncertainties. Many factors mentioned in our discussion in this Quarterly Report on Form 10-Q will be important in determining future results. Consequently, no forward-looking statement can be guaranteed. Actual future results may vary materially from expected results.

We also provide a cautionary discussion of risks and uncertainties under “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024, and any updates to those risk factors filed from time to time in our subsequent periodic and current reports filed with the SEC. These are factors that we think could cause our actual results to differ materially from expected results. Other factors besides those listed there could also adversely affect us.

Without limiting the foregoing, the words “believe,” “anticipate,” “plan,” “expect,” “estimate,” “may,” “will,” “should,” “could,” “would,” “seek,” “intend,” “continue,” “project,” and similar expressions are intended to identify forward-looking statements. There are a number of factors and uncertainties that could cause actual events or results to differ materially from those indicated by such forward-looking statements, many of which are beyond our control, including the factors set forth under “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024 and any updates to those risk factors filed from time to time in our subsequent periodic and current reports filed with the SEC. In addition, the forward-looking statements contained herein represent our estimate only as of the date of this filing and should not be relied upon as representing our estimate as of any subsequent date. While we may elect to update these forward-looking statements at some point in the future, we specifically disclaim any obligation to do so to reflect actual results, changes in assumptions or changes in other factors affecting such forward-looking statements.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

We have evaluated the information required under this item that was disclosed under Item 7A in our Annual Report on Form 10-K for the year ended December 31, 2024, and there have been no significant changes to this information.

Item 4. Controls and Procedures

Disclosure Controls and Procedures

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports under the Securities Exchange Act of 1934, as amended, or the Exchange Act, is recorded, processed, summarized and reported within the time lines specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can only provide reasonable assurance of achieving the desired control objectives, and in reaching a reasonable level of assurance, management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Under the supervision and with the participation of our management, including our Chief Executive Officer and our Chief Financial Officer, we carried out an evaluation of the effectiveness of our disclosure controls and procedures (as defined in SEC Rules 13a - 15(e) and 15d - 15(e)) as of March 31, 2025. Based on such evaluation, our management has concluded that as of March 31, 2025, our disclosure controls and procedures are effective.

Changes in Internal Control over Financial Reporting

During the three months ended March 31, 2025, there have been no changes that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. Our process for evaluating controls and procedures is continuous and encompasses constant improvement of the design and effectiveness of established controls and procedures.

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PART II. OTHER INFORMATION

Item 1. Legal Proceedings

For a description of our material legal proceedings, refer to Note 9 of our Notes to Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q, which is incorporated herein by reference.

Item 1A. Risk Factors

There have been no material changes to the risk factors described under Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the SEC on February 26, 2025, except as follows:

Tariffs and other trade measures could adversely affect our business, results of operations, financial position and cash flows

Our business and results of operations may be adversely affected by uncertainty and changes in U.S. trade policies, including tariffs, trade agreements or other trade restrictions imposed by the U.S. or other governments. While most of our suppliers are based in the U.S., some of the materials we use to manufacture our products are directly affected by tariffs imposed on products imported into the U.S. Additionally, we are increasing our international sales, which may be subject to retaliatory measures by other countries. The imposition of tariffs and other trade restrictions, as well as the escalation of trade disputes and any downturns in the global economy resulting therefrom, could adversely affect our business, financial condition and results of operations.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

During the three months ended March 31, 2025, we issued unregistered shares of common stock as consideration for the purchase of assets from a third party as described in the following table:

Date Issued	Number of Shares	Grant Date Fair Value per Share (5)
January 2, 2025	1,040,362(1)	$	9.06
January 2, 2025	20,000(2)	$	9.06
January 3, 2025	6,250(3)	$	9.37
January 15, 2025	45,352(4)	$	11.35

(1) Pursuant to Development Services Agreements for the development of products and intellectual property.

(2) Pursuant to consulting services rendered to the Company.

(3) Pursuant to independent sales agent services rendered to the Company.

(4) Pursuant to purchase of assets from a third party.

(5) Based on the market price of common stock on the issuance date.

The issuances of the foregoing securities were made in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended, as there was no general solicitation and the transactions did not involve a public offering.

Item 5. Other Information

Adoption, Modification or Termination of Trading Arrangements

A portion of the compensation of our directors and officers is in the form of equity awards, and, from time to time, directors and officers engage in open-market transactions with respect to the securities they acquire pursuant to such equity awards we have issued.

Transactions in our securities by directors and officers are required to be made in accordance with our insider trading policy, which requires that the transactions comply with applicable U.S. federal securities laws that prohibit trading while in possession of material nonpublic information. Rule 10b5-1 under the Exchange Act provides an affirmative defense that enables directors and officers to prearrange transactions in our securities in a manner that avoids concerns about initiating transactions while in possession of material nonpublic information.

The following table describes the contracts, instructions or written plans for the purchase or sale of securities adopted by our directors or officers (as defined in Rule 16a-1(f) under the Exchange Act) during the three months ended March 31, 2025, that are intended to satisfy the affirmative defense conditions of Rule 10b5-1(c). No other Rule 10b5-1 trading arrangements or “non-Rule 10b5-1 trading

31

arrangements” (as defined by S-K Item 408(c)) were entered into or terminated by our directors or officers during such period:

Name	Title of Director or Officer	Action	Date	Total Shares to be Sold		Expiration Date
J. Todd Koning	Executive Vice President and Chief Financial Officer	Modify	1/27/2025		89,321	12/31/2025
Craig E. Hunsaker	Executive Vice President, People & Culture	Adopt	3/3/2025		350,000	6/3/2026
Craig E. Hunsaker	Executive Vice President, People & Culture	Terminate	3/3/2025	N/A		N/A
Tyson Marshall	General Counsel & Corporate Secretary	Adopt	3/14/2025		75,595	8/12/2026
Scott Lish	Executive Vice President and Chief Operating Officer	Adopt	3/14/2025		112,938	6/1/2026

32

Item 6. Exhibits

Exhibit	Number Exhibit Description
4.1	Indenture, dated as of March 7, 2025, between Alphatec Holdings, Inc. and U.S. Bank Trust Company, National Association, as trustee. (1)
4.2	Form of certificate representing the 0.75% Convertible Senior Notes due 2030 (included as Exhibit A to Exhibit 4.1). (2)
10.1	Form of Confirmation of Capped Call Transaction. (3)
31.1	Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32	Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101	The following materials from the Alphatec Holdings, Inc. Quarterly Report on Form 10-Q for the three months ended March 31, 2025, formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets (Unaudited) as of March 31, 2025 and December 31, 2024, (ii) Condensed Consolidated Statements of Operations (Unaudited) for the Three months ended March 31, 2025 and 2024, (iii) Condensed Consolidated Statements of Comprehensive Loss (Unaudited) for the Three months ended March 31, 2025 and 2024, (iv) Condensed Consolidated Statements of Stockholders’ Deficit (Unaudited) for the Three months ended March 31, 2025 and 2024, (v) Condensed Consolidated Statements of Cash Flows (Unaudited) for the Three Months Ended March 31, 2025 and 2024, and (vi) Notes to Condensed Consolidated Financial Statements (Unaudited).
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101.INS)

(1) Incorporated by reference to Exhibit 4.1 to our Current Report on Form 8-K filed with the SEC on March 14, 2025.

(2) Incorporated by reference to Exhibit 4.2 to our Current Report on Form 8-K filed with the SEC on March 14, 2025.

(3) Incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed with the SEC on March 14, 2025.

33

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

ALPHATEC HOLDINGS, INC.
By:	/s/ Patrick S. Miles
	Patrick S. Miles
	Chairman and Chief Executive Officer
	(principal executive officer)
By:	/s/ J. Todd Koning
	J. Todd Koning
	Executive Vice President and Chief Financial Officer
	(principal financial officer and principal accounting officer)

Date: May 1, 2025

34

EX-31.1

Exhibit 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Patrick S. Miles, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Alphatec Holdings, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

By:	/s/ Patrick S. Miles
	Patrick S. Miles
	Chairman and Chief Executive Officer
	(principal executive officer)
	May 1, 2025

EX-31.2

Exhibit 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, J. Todd Koning, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Alphatec Holdings, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

By:	/s/ J. Todd Koning
	J. Todd Koning
	Executive Vice President and Chief Financial Officer
	(principal financial and accounting officer)
	May 1, 2025

EX-32

Exhibit 32

CERTIFICATION UNDER

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Alphatec Holdings, Inc. (the “Company”) on Form 10-Q for the quarterly period ended March 31, 2025, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Patrick S. Miles, Chairman and Chief Executive Officer, certify, to my knowledge, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated:	May 1, 2025	/s/ Patrick S. Miles
		Patrick S. Miles
		Chairman and Chief Executive Officer
		(principal executive officer of the Company)

In connection with the Quarterly Report of Alphatec Holdings, Inc. (the “Company”) on Form 10-Q for the quarterly period ended March 31, 2025, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, J. Todd Koning, Chief Financial Officer, certify, to my knowledge, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated:	May 1, 2025	/s/ J. Todd Koning
		J. Todd Koning
		Executive Vice President and Chief Financial Officer
		(principal financial and accounting officer of the Company)

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2025	Apr. 24, 2025
Cover [Abstract]
Entity Registrant Name	ALPHATEC HOLDINGS, INC.
Entity Central Index Key	0001350653
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Trading Symbol	ATEC
Document Period End Date	Mar. 31, 2025
Document Fiscal Year Focus	2025
Document Fiscal Period Focus (Q1,Q2,Q3,FY)	Q1
Entity Current Reporting Status	Yes
Amendment Flag	false
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		146,172,703
Entity Shell Company	false
Entity File Number	000-52024
Entity Tax Identification Number	20-2463898
Entity Address, Address Line One	1950 Camino Vida Roble
Entity Address, City or Town	Carlsbad
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92008
City Area Code	760
Local Phone Number	431-9286
Document Quarterly Report	true
Document Transition Report	false
Entity Incorporation, State or Country Code	DE
Entity Interactive Data Current	Yes
Title of 12(b) Security	Common stock, par value $0.0001 per share
Security Exchange Name	NASDAQ

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Current assets:
Cash and cash equivalents	$ 153,244	$ 138,840
Accounts receivable, net of allowances of $8,791and $4,763, respectively	89,481	82,987
Inventories	170,873	175,264
Prepaid expenses and other current assets	21,294	20,308
Total current assets	434,892	417,399
Property and equipment, net	146,641	156,394
Right-of-use assets	33,996	34,701
Goodwill	72,334	70,976
Intangible assets, net	95,040	93,518
Other assets	2,570	2,722
Total assets	785,473	775,710
Current liabilities:
Accounts payable	38,751	52,984
Accrued expenses and other current liabilities	98,943	81,466
Contract liabilities	11,300	10,467
Short-term debt	2,569	1,656
Current portion of operating lease liabilities	6,310	6,453
Total current liabilities	157,873	153,026
Long-term debt	545,834	574,522
Derivative liability	106,662	0
Operating lease liabilities, less current portion	26,562	27,305
Other long-term liabilities	10,878	11,423
Commitments and contingencies (Note 8)
Redeemable preferred stock, $0.0001 par value; 20,000 shares authorized at March 31, 2025 and December 31, 2024; 3,319 shares issued and outstanding at March 31, 2025 and December 31, 2024	23,603	23,603
Stockholders' (deficit) equity:
Common stock, $0.0001 par value; 200,000 authorized; 146,906 shares issued and outstanding at March 31, 2025; and 144,129 shares issued and outstanding at December 31, 2024	15	14
Treasury stock, 1,808 shares, at cost	(25,097)	(25,097)
Additional paid-in capital	1,282,598	1,305,677
Accumulated other comprehensive loss	(10,463)	(13,678)
Accumulated deficit	(1,332,992)	(1,281,085)
Total stockholders' (deficit) equity	(85,939)	(14,169)
Total liabilities and stockholders' deficit	$ 785,473	$ 775,710

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Statement of Financial Position [Abstract]
Accounts receivable, net of allowances	$ 8,791	$ 4,763
Redeemable preferred stock, shares authorized	20,000	20,000
Redeemable preferred stock, par value (dollars per share)	$ 0.0001	$ 0.0001
Redeemable preferred stock, shares issued	3,319,000	3,319,000
Redeemable preferred stock, shares outstanding	3,319,000	3,319,000
Common stock, par value (dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	146,906,000	144,129,000
Common stock, shares outstanding	146,906,000	144,129,000
Treasury stock, shares	1,808,000	1,808,000

XML

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Revenue:
Revenue	$ 169,180	$ 138,477
Cost of sales	53,184	41,126
Gross profit	115,996	97,351
Operating expenses:
Research and development	16,582	18,012
Sales, general and administrative	127,017	113,610
Litigation-related expenses	12,214	4,428
Amortization expense	4,103	3,854
Restructuring expenses	371	788
Total operating expenses	160,287	140,692
Operating loss	(44,291)	(43,341)
Other expense, net:
Interest expense, net	(7,841)	(5,341)
Loss on debt extinguishment	(17,576)	0
Gain on derivative liability	17,400	0
Other income, net	337	118
Total other expense, net	(7,680)	(5,223)
Net loss before taxes	(51,971)	(48,564)
Income tax benefit	(64)	(69)
Net loss	$ (51,907)	$ (48,495)
Net loss per share, basic	$ (0.35)	$ (0.34)
Net loss per share, diluted	$ (0.35)	$ (0.34)
Weighted average shares outstanding, basic	146,732	140,980
Weighted average shares outstanding, diluted	146,732	140,980
Products and Services
Revenue:
Revenue	$ 169,180	$ 138,477

XML

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Statement of Comprehensive Income [Abstract]
Net loss	$ (51,907)	$ (48,495)
Foreign currency translation adjustments	3,215	(2,464)
Comprehensive loss	$ (48,692)	$ (50,959)

XML

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional paid-in capital	Treasury stock	Accumulated other comprehensive loss	Accumulated deficit
Balance at Dec. 31, 2023	$ 78,116	$ 14	$ 1,230,484	$ (25,097)	$ (8,323)	$ (1,118,962)
Balance, shares at Dec. 31, 2023		139,245
Stock-based compensation	17,322		17,322
Common stock issued for warrant exercises	150		150
Common stock issued for warrant exercises, shares		30
Common stock issued for stock option exercises	156		156
Common stock issued for stock option exercises, shares		56
Common stock issued for vesting of restricted stock units, net of shares withheld for tax liablity	(7,560)		(7,560)
Common stock issued for vesting of restricted stock units, net of shares withheld for tax liablity, shares		3,079
Purchase of capped calls	0
Reclassification of equity-based liability	327		327
Foreign currency translation adjustments	(2,464)				(2,464)
Net loss	(48,495)					(48,495)
Balance at Mar. 31, 2024	37,552	$ 14	1,240,879	(25,097)	(10,787)	(1,167,457)
Balance, shares at Mar. 31, 2024		142,410
Balance at Dec. 31, 2024	(14,169)	$ 14	1,305,677	(25,097)	(13,678)	(1,281,085)
Balance, shares at Dec. 31, 2024		144,129
Stock-based compensation	22,318		22,318
Common stock issued for stock option exercises	505		505
Common stock issued for stock option exercises, shares		150
Common stock issued for vesting of restricted stock units, net of shares withheld for tax liablity	(3,416)	$ 1	(3,417)
Common stock issued for vesting of restricted stock units, net of shares withheld for tax liablity, shares		2,627
Purchase of capped calls	(42,485)		(42,485)
Foreign currency translation adjustments	3,215				3,215
Net loss	(51,907)					(51,907)
Balance at Mar. 31, 2025	$ (85,939)	$ 15	$ 1,282,598	$ (25,097)	$ (10,463)	$ (1,332,992)
Balance, shares at Mar. 31, 2025		146,906

XML

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Operating activities:
Net loss	$ (51,907)	$ (48,495)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	19,907	17,885
Stock-based compensation	22,318	17,322
Amortization of debt discount and debt issuance costs	2,418	1,058
Amortization of right-of-use assets	1,271	1,031
Write-down for excess and obsolete inventories	3,571	2,979
Loss on disposal of assets	1,563	832
Loss on debt extinguishment	17,576	0
Gain on derivative liability	(17,400)	0
Other	4,252	1,655
Changes in operating assets and liabilities:
Accounts receivable	(10,282)	(17,058)
Inventories	1,243	(19,514)
Prepaid expenses and other current assets	(807)	812
Other assets	107	(141)
Accounts payable	(11,918)	6,780
Accrued expenses	13,938	(2,551)
Lease liabilities	(1,349)	(1,047)
Contract liabilities	761	(184)
Other long-term liabilities	(301)	198
Net cash used in operating activities	(5,039)	(38,438)
Investing activities:
Purchase of property and equipment	(9,934)	(31,312)
Purchase of intangible assets	(1,678)	(2,306)
Net cash used in investing activities	(11,612)	(33,618)
Financing activities:
Proceeds from issuance of convertible notes, net	392,850	0
Repurchase of convertible notes	(268,231)	0
Repayment of revolving credit facility	(52,800)	(42,000)
Purchase of capped calls	(42,485)	0
Proceeds from revolving credit facility	4,092	42,000
Net cash paid for common stock exercises	(3,003)	(4,697)
Other	336	327
Net cash provided by (used in) financing activities	30,759	(4,370)
Effect of exchange rate changes on cash	296	(459)
Net change in cash and cash equivalents	14,404	(76,885)
Cash and cash equivalents at beginning of period	138,840	220,970
Cash and cash equivalents at end of period	153,244	144,085
Supplemental disclosure of cash flow information:
Cash paid for interest	6,530	5,463
Supplemental disclosure of noncash activities:
Financed insurance	1,347	1,156
Purchases of property and equipment in accounts payable and accrued expenses	277	5,795
Purchase of intangible assets in accrued expenses	2,631	0
Recognition of derivative liability	$ 124,062	$ 0

XML

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Pay vs Performance Disclosure
Net Income (Loss)	$ (51,907)	$ (48,495)

XML

Insider Trading Arrangements
shares in Thousands

3 Months Ended

Mar. 31, 2025

shares

Trading Arrangements, by Individual

Material Terms of Trading Arrangement

Adoption, Modification or Termination of Trading Arrangements

A portion of the compensation of our directors and officers is in the form of equity awards, and, from time to time, directors and officers engage in open-market transactions with respect to the securities they acquire pursuant to such equity awards we have issued.

Transactions in our securities by directors and officers are required to be made in accordance with our insider trading policy, which requires that the transactions comply with applicable U.S. federal securities laws that prohibit trading while in possession of material nonpublic information. Rule 10b5-1 under the Exchange Act provides an affirmative defense that enables directors and officers to prearrange transactions in our securities in a manner that avoids concerns about initiating transactions while in possession of material nonpublic information.

The following table describes the contracts, instructions or written plans for the purchase or sale of securities adopted by our directors or officers (as defined in Rule 16a-1(f) under the Exchange Act) during the three months ended March 31, 2025, that are intended to satisfy the affirmative defense conditions of Rule 10b5-1(c). No other Rule 10b5-1 trading arrangements or “non-Rule 10b5-1 trading

arrangements” (as defined by S-K Item 408(c)) were entered into or terminated by our directors or officers during such period:

Name	Title of Director or Officer	Action	Date	Total Shares to be Sold		Expiration Date
J. Todd Koning	Executive Vice President and Chief Financial Officer	Modify	1/27/2025		89,321	12/31/2025
Craig E. Hunsaker	Executive Vice President, People & Culture	Adopt	3/3/2025		350,000	6/3/2026
Craig E. Hunsaker	Executive Vice President, People & Culture	Terminate	3/3/2025	N/A		N/A
Tyson Marshall	General Counsel & Corporate Secretary	Adopt	3/14/2025		75,595	8/12/2026
Scott Lish	Executive Vice President and Chief Operating Officer	Adopt	3/14/2025		112,938	6/1/2026

Rule 10b5-1 Arrangement Adopted

false

Non-Rule 10b5-1 Arrangement Adopted

false

Rule 10b5-1 Arrangement Terminated

false

Non-Rule 10b5-1 Arrangement Terminated

false

J. Todd Koning

Trading Arrangements, by Individual

Name

J. Todd Koning

Title

Executive Vice President and Chief Financial Officer

Expiration Date

12/31/2025

Aggregate Available

89,321

Modify Date

1/27/2025

Rule 10b5-1 Arrangement Modify

true

Craig E. Hunsaker

Trading Arrangements, by Individual

Name

Craig E. Hunsaker

Title

Executive Vice President, People & Culture

Rule 10b5-1 Arrangement Adopted

true

Adoption Date

3/3/2025

Rule 10b5-1 Arrangement Terminated

true

Termination Date

3/3/2025

Expiration Date

6/3/2026

Aggregate Available

350,000

Tyson Marshall

Trading Arrangements, by Individual

Name

Tyson Marshall

Title

General Counsel & Corporate Secretary

Rule 10b5-1 Arrangement Adopted

true

Adoption Date

3/14/2025

Expiration Date

8/12/2026

Aggregate Available

75,595

Scott Lish

Trading Arrangements, by Individual

Name

Scott Lish

Title

Executive Vice President and Chief Operating Officer

Rule 10b5-1 Arrangement Adopted

true

Adoption Date

3/14/2025

Expiration Date

6/1/2026

Aggregate Available

112,938

XML

Organization and Significant Accounting Policies

3 Months Ended

Mar. 31, 2025

Accounting Policies [Abstract]

Organization and Significant Accounting Policies

1. Organization and Significant Accounting Policies

The Company

Alphatec Holdings, Inc. (the “Company”), through its wholly owned subsidiaries, Alphatec Spine, Inc. (“Alphatec Spine”), SafeOp Surgical, Inc. (“SafeOp”), and EOS imaging S.A.S. (“EOS”), is a medical technology company focused on the design, development, and advancement of technology for the better surgical treatment of spinal disorders. The Company, headquartered in Carlsbad, California, markets its products in the United States and internationally via a network of independent sales agents and direct sales representatives.

Basis of Presentation and Principles of Consolidation

The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. The Company translates the financial statements of its foreign subsidiaries using end-of-period exchange rates for assets and liabilities and average exchange rates during each reporting period for results of operations. All intercompany balances and transactions have been eliminated in consolidation.

The accompanying condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Pursuant to these rules and regulations, the Company has condensed or omitted certain information and footnotes it normally includes in its annual consolidated financial statements prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). The unaudited interim condensed consolidated financial statements reflect all adjustments, including normal recurring adjustments which, in the opinion of management, are necessary for a fair presentation of the financial position and results of operations for the periods presented. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2024, which are included in the Company’s Annual Report on Form 10-K that was filed with the SEC. Operating results for the three months ended March 31, 2025 are not necessarily indicative of the results that may be expected for the full year or any other future periods.

Reclassification

Certain financial statement line items in the condensed consolidated financial statements for the period ended March 31, 2024 have been aggregated to conform to the current year’s presentation.

Use of Estimates

The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Fair Value Measurements

The carrying amount of financial instruments consisting of cash and cash equivalents, accounts receivable, prepaid expenses and other current assets, accounts payable, accrued expenses, and short-term debt included in the Company’s condensed consolidated financial statements are reasonable estimates of fair value due to their short maturities.

Authoritative guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

Level 1: Quoted prices in active markets for identical assets or liabilities.

Level 2: Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active; or other inputs that can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Excess and Obsolete Inventory

Most of the Company’s inventory is comprised of finished goods, which is primarily produced by third-party suppliers. Specialized implants, fixation products, and biologics are valued by utilizing a standard cost method that includes capitalized variances which together approximates the weighted average cost. Imaging equipment and related parts are valued at weighted average cost. Inventories are stated at the lower of cost or net realizable value. The Company reviews the components of its inventory on a periodic basis for excess and obsolescence and adjusts inventory to its net realizable value as necessary.

The Company records a lower of cost or net realizable value (“LCNRV”) inventory reserve for estimated excess and obsolete inventory. In order to market its products effectively and meet the demands of interoperative product placement, the Company maintains and provides surgeons and hospitals with a variety of inventory products and sizes. For each surgery, fewer than all components will be consumed. The need to maintain and provide a wide variety of inventory causes inventory to be held that is not likely to be used.

The Company’s estimates and assumptions for excess and obsolete inventory are reviewed and updated on a quarterly basis. The estimates and assumptions are determined primarily based on current usage of inventory and the age of inventory quantities on hand. Additionally, the Company considers recent sales experience to develop assumptions about future demand for its products, while considering product life cycles and new product launches. Increases in the LCNRV reserve for excess and obsolete inventory result in a corresponding charge to cost of sales.

Revenue Recognition

The Company recognizes revenue from product sales in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Revenue from Contracts with Customers (“Topic 606”). This standard applies to all contracts with customers, except for contracts that are within the scope of other standards, such as leases. Under Topic 606, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration that the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of Topic 606, the entity performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer.

Sales are derived primarily from the sale of spinal implant products, imaging equipment, and related services to hospitals and medical centers. Revenue is recognized when obligations under the terms of a contract with customers are satisfied, which occurs with the transfer of control of products to customers, either upon shipment of the product or delivery of the product to the customer depending on the shipping terms, or when the products are used in a surgical procedure (implanted in a patient). Revenue from the sale of imaging equipment is recognized as each distinct performance obligation is fulfilled and control transfers to the customer, beginning with shipment or delivery, depending on the contract terms. Revenue from other distinct performance obligations, such as maintenance on imaging equipment and other imaging-related services, is recognized in the period the service is performed, and makes up less than 10% of the Company’s total revenue. In certain cases, the Company does offer the ability for customers to lease its imaging equipment, but such arrangements are immaterial to total revenue in the periods presented. The Company generally does not allow returns of products that have been delivered. Costs incurred by the Company associated directly with sales contracts with customers are deferred over the performance obligation period and recognized in the same period as the related revenue, except for contracts that complete within one year or less, in which case the associated costs are expensed as incurred. Payment terms for sales to customers may vary but are commensurate with the general business practices in the country of sale.

To the extent that the transaction price includes variable consideration, such as discounts, rebates, and customer payment penalties, the Company estimates the amount of variable consideration that should be included in the transaction price utilizing either the expected value method or the most likely amount method depending on the nature of the variable consideration. Variable consideration is included in the transaction price if, in the Company's judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. Estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of the Company’s anticipated performance and all information that is reasonably available, including historical, current, and forecasted information.

The Company records a contract asset when one or more performance obligations have been completed by the Company and revenue has been recognized, but the customer's payment is contingent on the satisfaction of additional performance obligations. Contract assets are generally short-term in nature. The Company records a contract liability, or deferred revenue, when it has an obligation to provide a product or service to the customer and payment is received in advance of its performance. These amounts primarily relate to undelivered equipment and related services, or maintenance agreements. When the Company sells a product or service

with a future performance obligation, revenue is deferred on the unfulfilled performance obligation and recognized over the related performance period. Generally, the Company estimates the selling price of promised services included in the equipment sales price using an expected cost plus a margin approach and/or the separately observable price of such service, if available. The transaction price for a contract’s various performance obligations is allocated using the relative standalone selling price method. The use of alternative estimates could result in a different amount of revenue deferral.

Recently Issued Accounting Pronouncements

In December 2023, the FASB issued Accounting Standard Update ("ASU") No. 2023-09, Income Taxes (Topic 740): Improvement to Income Tax Disclosures to enhance the transparency of income tax disclosures. The guidance in ASU No. 2023-09 allows for a prospective method of transition, with the option to apply the standard retrospectively. The standard is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is in the process of assessing the impact of this standard on its consolidated financial statements and related disclosures.

In November 2024, the FASB issued ASU No. 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Topic 220-40). Additionally, in January 2025, the FASB issued ASU 2025-01 to clarify the effective date of ASU 2024-03. The standard provides guidance to expand disclosures related to the disaggregation of income statement expenses. The standard requires, in the notes to the financial statements, disclosure of specified information about certain costs and expenses, which includes purchases of inventory, employee compensation, depreciation and intangible asset amortization included in each relevant expense caption. This guidance is effective for fiscal years beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027, on a retrospective or prospective basis, with early adoption permitted. The Company is in the process of assessing the impact of this standard on its consolidated financial statements and related disclosures.

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Fair Value Measurements

3 Months Ended

Mar. 31, 2025

Fair Value Disclosures [Abstract]

Fair Value Measurements

2. Fair Value Measurements

Assets and liabilities measured at fair value on a recurring basis include the following as of March 31, 2025, and December 31, 2024 (in thousands):

	March 31, 2025
Assets:	Level 1		Level 2		Level 3		Total
Cash equivalents:
Money market funds	$	9,345		—		—	$	9,345
Liabilities:
Derivative liability	$	—		—		106,662	$	106,662
	December 31, 2024
Assets:	Level 1		Level 2		Level 3		Total
Cash equivalents:
Money market funds	$	57,006		—		—	$	57,006

The Company did not have any transfers of assets and liabilities between the levels of the fair value measurement hierarchy during the periods presented.

Fair Value of Derivative Liability

The fair value of the conversion option derivative liability is estimated using a Monte Carlo simulation. The use of this approach requires the use of Level 3 unobservable inputs. The main inputs when determining the fair value of the conversion option derivative liability are the risk-free rate, expected volatility, expected term, and the Company's stock price. The estimated fair value presented is not necessarily indicative of an amount that could be realized in a current market exchange. The use of alternative inputs and estimation methodologies could have a material effect on these estimates of fair value.

The following table presents the assumptions used to value the conversion option derivative liability as of March 31, 2025:

	March 31,
	2025
Company's stock price	$	10.14
Risk-free interest rate		3.88	%
Expected term (years)		4.96
Volatility		63.25	%

Fair Value of Long-term Debt

The fair value, based on a quoted market price (Level 1), of the Company’s outstanding Senior Convertible Notes due 2026 (the "2026 Notes") was approximately $62.6 million at March 31, 2025, and approximately $299.6 million at December 31, 2024.

The fair value, based on a quoted market price (Level 1), of the Company’s outstanding Senior Convertible Notes due 2030 (the "2030 Notes") was approximately $386.1 million at March 31, 2025.

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Inventories

3 Months Ended

Mar. 31, 2025

Inventory Disclosure [Abstract]

Inventories

. Inventories

Inventories reported at the lower of cost or net realizable value consist of the following (in thousands):

	March 31, 2025		December 31, 2024
Raw materials	$	19,464	$	19,378
Finished goods		151,409		155,886
Inventories	$	170,873	$	175,264

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Property and Equipment, net

3 Months Ended

Mar. 31, 2025

Property, Plant and Equipment [Abstract]

Property and Equipment, net

. Property and Equipment, net

Property and equipment, net consist of the following (in thousands, except as indicated):

	Useful lives (in years)	March 31, 2025			December 31, 2024
Surgical instruments	4	$	286,904		$	283,597
Machinery and equipment	7		12,796			12,710
Computer equipment	8		32,131			32,082
Office furniture and equipment	5		6,477			6,759
Leasehold improvements	various		4,337			4,321
Construction in progress	n/a		546			541
			343,191			340,010
Less: accumulated depreciation    and amortization			(196,550	)		(183,616	)
Property and equipment, net		$	146,641		$	156,394

Total depreciation and amortization expense was $15.8 million and $13.7 million for the three months ended March 31, 2025 and 2024, respectively. Construction in progress is not depreciated until placed in service. Property and equipment includes assets under financing leases and the related amortization of assets under financing leases is included in depreciation expense.

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Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2025

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

. Goodwill and Intangible Assets

Goodwill

The change in the carrying amount of goodwill during the period ended March 31, 2025, includes the following (in thousands):

December 31, 2024	$	70,976
Foreign currency fluctuation		1,358
March 31, 2025	$	72,334

Intangible assets, net

Intangible assets, net consist of the following (in thousands, except as indicated):

	Remaining Avg. Useful lives	Gross		Accumulated			Intangible
March 31, 2025:	(in years)	Amount		Amortization			Assets, net
Developed product technology	5	$	105,050	$	(42,166	)	$	62,884
Internally developed software	6		14,373		(3,087	)		11,286
Trademarks and trade names	6		5,482		(2,144	)		3,338
Customer relationships	3		14,336		(10,583	)		3,753
Distribution network	–		2,413		(2,413	)		—
Total amortized intangible assets			141,654		(60,393	)		81,261
Software in development	n/a		5,494		—			5,494
In-process research and development	n/a		8,285		—			8,285
Total intangible assets		$	155,433	$	(60,393	)	$	95,040
		.
	Remaining Avg. Useful lives	Gross		Accumulated			Intangible
December 31, 2024:	(in years)	Amount		Amortization			Assets, net
Developed product technology	5	$	102,412	$	(38,055	)	$	64,357
Internally developed software	3		4,283		(1,515	)		2,768.0
Trademarks and trade names	7		5,267		(1,991	)		3,276
Customer relationships	2		13,996		(10,094	)		3,902
Distribution network	–		2,413		(2,410	)		3
Total amortized intangible assets			128,371		(54,065	)		74,306
Software in development	n/a		12,927		—			12,927
In-process research and development	n/a		6,285		—			6,285
Total intangible assets		$	147,583	$	(54,065	)	$	93,518

Total amortization expense attributed to intangible assets was $4.2 million for each of the three months ended March 31, 2025 and 2024. Software in development is amortized when the projects are completed and the assets are ready for their intended use. In-process research and development assets begin amortizing when the relevant products reach full commercial launch.

Future amortization expense related to intangible assets is as follows (in thousands):

Remainder of 2025	$	12,574
2026		16,766
2027		16,315
2028		11,501
2029		11,116
Thereafter		12,989
	$	81,261

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Contract Assets and Contract Liabilities

3 Months Ended

Mar. 31, 2025

Contract with Customer, Contract Asset, Contract Liability, and Receivable [Abstract]

Contract Assets and Contract Liabilities

6. Contract Assets and Contract Liabilities

Contract assets included within prepaid expenses and other current assets in the condensed consolidated balance sheets are as follows (in thousands):

	March 31, 2025		December 31, 2024
Contract assets	$	3,326	$	5,678

The non-current contract liabilities balance is included in other long-term liabilities on the condensed consolidated balance sheets. The Company’s contract liabilities are as follows (in thousands):

	March 31, 2025		December 31, 2024
Contract liabilities	$	14,411	$	13,598
Less: Non-current portion of contract liabilities		3,111		3,131
Current portion of contract liabilities	$	11,300	$	10,467

The Company recognized $0.9 million of revenue from the opening contract liabilities balance for the three months ended March 31, 2025.

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Debt

3 Months Ended

Mar. 31, 2025

Debt Disclosure [Abstract]

Debt

7. Debt

0.75% Convertible Senior Notes due 2030

In March 2025, the Company issued $405.0 million aggregate principal amount of senior unsecured 2030 Notes with a stated interest rate of 0.75% and a maturity date of March 15, 2030. The 2030 Notes began accruing interest immediately and is payable semi-annually in arrears on March 15 and September 15 of each year, beginning on September 15, 2025. The net proceeds from the sale of the 2030 Notes were approximately $392.9 million after deducting the initial purchasers’ offering expenses and before cash use for the 2030 Capped Call Transactions, as described below, and the repayment of 80% of the 2026 Notes, as described below. The 2030 Notes do not contain any financial covenants.

The 2030 Notes are convertible into shares of the Company’s common stock based upon an initial conversion rate of 64.3407 shares of the Company’s common stock per $1,000 principal amount of 2030 Notes (equivalent to an initial conversion price of approximately $15.54 per share). The conversion rate will be subject to adjustment upon the occurrence of certain specified events, including certain distributions and dividends to all or substantially all of the holders of the Company’s common stock. Based on the terms of the 2030 Notes, when a conversion notice is received, the Company has the option to pay or deliver cash, shares of the Company’s common stock, or a combination thereof.

Holders of the 2030 Notes have the right to convert their notes in certain circumstances and during specified periods. Prior to the close of business on the business day immediately preceding September 17, 2029, holders may convert all or a portion of their 2030 Notes only under the following circumstances: (1) during any calendar quarter (and only during such calendar quarter) if the last reported sale price of the Company’s common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the 5 consecutive business days immediately after any 10 consecutive trading day period (the “measurement period”) in which the trading price per $1,000 principal amount of 2030 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company’s common stock and the conversion rate on each such trading day; or (3) upon the occurrence of specified corporate events. From and after September 17, 2029, holders of the 2030 Notes may convert their notes at any time at their election until the close of business on the second scheduled trading day immediately before the maturity date. As of March 31, 2025, none of the conditions permitting the holders of the 2030 Notes to convert have been met.

The Company determined that the 2030 Notes have an embedded conversion option that meets the criteria to be bifurcated and is accounted for separately from the 2030 Notes (see Note 8). The Company recorded the fair value of the embedded conversion option as a derivative liability and the principal amount of the 2030 Notes as a long-term liability, net of debt discount and deferred issuance costs. The annual effective interest rate for the 2030 Notes is 9.1%. The Company recognized interest expense on the 2030 Notes of $1.6 million during the three months ended March 31, 2025, which includes $1.4 million for the amortization of debt discount costs.

The 2030 Notes are redeemable, in whole or in part, at the Company’s option at any time, and from time to time, on or after March 20, 2028 and on or before the 60th scheduled trading day immediately before the maturity date, at a cash redemption price equal to the principal amount of the 2030 Notes to be redeemed, plus accrued and unpaid interest, if any, but only if the last reported sale price per share of the Company’s common stock exceeds 130% of the conversion price for a specified period of time. In addition, calling any of the 2030 Notes for redemption will constitute a “make-whole fundamental change” with respect to the redeemable note, in which case the conversion rate applicable to the conversion of the redeemed note will be increased in certain circumstances if such note is converted after it is called for redemption.

If a fundamental change occurs prior to the maturity date, holders may require the Company to repurchase all or a portion of their 2030 Notes for cash at a price equal to 100% of the principal amount of the 2030 Notes plus accrued and unpaid interest. No principal payments are otherwise due on the 2030 Notes prior to maturity.

The outstanding principal amount and carrying value of the 2030 Notes consists of the following (in thousands):

	March 31, 2025
Principal	$	405,000
Unamortized debt discount and debt issuance costs		(135,427	)
Net carrying value	$	269,573

2030 Capped Call Transactions

In connection with the offering of the 2030 Notes, the Company entered into privately negotiated capped call transactions (the “2030 Capped Call Transactions”) with certain financial institutions. The 2030 Capped Call Transactions are expected generally to reduce the potential dilution and/or offset the cash payments the Company is required to make in excess of the principal amount of the 2030 Notes upon conversion of the 2030 Notes in the event that the market price per share of the Company’s common stock is greater than the strike price of the 2030 Capped Call Transactions with such reduction and/or offset subject to a cap. The 2030 Capped Call Transactions have an initial cap price of $23.46 per share of the Company’s common stock, which represents a premium of 100% over the last reported sale price of the Company’s common stock on March 4, 2025, and is subject to certain adjustments under the terms of the 2030 Capped Call Transactions. Collectively, the 2030 Capped Call Transactions cover, initially, the number of shares of the Company’s common stock underlying the 2030 Notes, subject to anti-dilution adjustments substantially similar to those applicable to the 2030 Notes. The cost of the 2030 Capped Call Transactions was approximately $42.5 million.

The 2030 Capped Call Transactions are separate transactions and are not part of the terms of the 2030 Notes and will not affect any holder’s rights under the 2030 Notes. Holders of the 2030 Notes will not have any rights with respect to the 2030 Capped Call Transactions.

The 2030 Capped Call Transactions meet all of the applicable criteria for equity classification and, as a result, the related $42.5 million cost was recorded as reduction to additional paid-in capital on the Company’s condensed consolidated statements of shareholders’ deficit.

Term Loan

On January 6, 2023, the Company entered into a $150.0 million term loan credit facility with Braidwell Transaction Holdings, LLC (the “Braidwell Term Loan”). The Braidwell Term Loan provides for an initial term loan of $100.0 million which was funded on the closing date. On September 28, 2023, the Company drew an additional $50.0 million (the “delayed draw term loan(s)” or the “DDTL”). On October 29, 2024, the Company entered into an amendment of the Braidwell Term Loan, which provides for an additional term loan of $50.0 million, subject to the terms of the original term loan credit facility. The Braidwell Term Loan matures on January 6, 2028. As of March 31, 2025, the outstanding balance under the Braidwell Term Loan was $200.0 million.

In conjunction with the issuance of the Braidwell Term Loan, the Company incurred $3.6 million in debt issuance costs and $3.5 million in commitment fees. Commitment fees paid to the lender were accounted for as a debt discount. The debt issuance costs and debt discount were recorded as a direct reduction of the carrying amount of the loan on the condensed consolidated balance sheets and are being amortized over the life of the loan. As of March 31, 2025, debt issuance costs and debt discount, net of accumulated amortization, associated with the Braidwell Term Loan were $2.3 million and $1.6 million, respectively.

Borrowings under the Braidwell Term Loan bear interest at a rate per annum equal to the Term Secured Overnight Financing Rate for such SOFR business day ("SOFR") subject to a 3% floor, plus 5.75%. The applicable interest rate as of March 31, 2025 was 10.19%. The loan agreement includes an undrawn commitment fee, which is calculated as 1% per annum of the average daily undrawn portion of the DDTL. Interest and undrawn commitment fees incurred are due quarterly. The Company is also required to pay fees on any prepayment of the Braidwell Term Loan, ranging from 3.0% to 1.0% depending on the date of prepayment, and a final payment fee equal to 3.25% of the principal amount of the loans drawn. The effective interest rate as of March 31, 2025 was 11.7%. During the three months ended March 31, 2025, the Company recognized interest expense on the Braidwell Term Loan of $5.3 million, which includes an immaterial amount for the amortization of debt issuance costs and $0.2 million for the debt discount. During the three months ended March 31, 2024, the Company recognized interest expense on the Braidwell Term Loan of $4.4 million, which includes $0.1 million for the amortization of debt issuance costs and $0.1 million for the debt discount. Upon the Braidwell Term Loan’s maturity, any outstanding principal balance, unpaid accrued interest, and all other obligations under the Braidwell Term Loan will be due and payable.

The Braidwell Term Loan is secured by substantially all of the Company’s assets with the priority interest of the lenders in the Braidwell Term Loan and the Revolving Credit Facility, as defined below, subject to terms of a customary intercreditor agreement, which provides that the lenders under the Revolving Credit Facility have a priority with respect to the Company's accounts receivable, inventory, medical instruments, and items related to the foregoing, and the lenders under the Braidwell Term Loan have priority with respect to the remainder of the Company's assets. The loan agreement contains customary representations and warranties and affirmative and negative covenants. Under the loan agreement, the Company is required to maintain a minimum level of liquidity. The loan agreement also includes certain events of default, and upon the occurrence of such events of default, all outstanding loans under the Braidwell Term Loan may be accelerated and/or the lenders’ commitments terminated. The Company is in compliance with all required financial covenants as of March 31, 2025.

Revolving Credit Facility

In September 2022, the Company entered into a revolving credit facility (the “Revolving Credit Facility”) with entities affiliated with MidCap Financial Trust (“MidCap”). The Revolving Credit Facility originally provided up to $50.0 million in borrowing capacity to the Company with an accordion feature up to $75.0 million in borrowing capacity, based on a defined borrowing base. The borrowing base is calculated based on certain accounts receivable and inventory assets. The Company subsequently exercised the accordion feature and increased the borrowing capacity by $25.0 million up to the full $75.0 million borrowing capacity. The Revolving Credit Facility matures on the earlier of September 29, 2027, or 90 days prior to the final maturity date of the Company’s 2026 Notes. As of March 31, 2025, the outstanding balance under the Revolving Credit Facility was $15.0 million.

In conjunction with obtaining the Revolving Credit Facility, the Company incurred $1.4 million in debt issuance costs. These costs were capitalized to other assets on the condensed consolidated balance sheets and are being amortized over the life of the Revolving Credit Facility. As of March 31, 2025, debt issuance costs, net of accumulated amortization, associated with the Revolving Credit Facility were $ 0.7 million.

The outstanding loans under the Revolving Credit Facility bear interest at the sum of Term SOFR plus 3.5% per annum. The applicable interest rate as of March 31, 2025 was 7.94%. The loan agreements include an unused line fee, which is calculated as 0.5% per annum of either the unused Revolving Credit Facility or a minimum balance. Interest and unused line fees incurred are due and capitalized to the outstanding principal balance monthly. The Company recognized interest expense on the Revolving Credit Facility of $0.5 million, which includes approximately $0.1 million for the amortization of debt issuance costs, during each of the three months ended March 31, 2025 and 2024. Upon the Revolving Credit Facility’s maturity, any outstanding principal balance, unpaid accrued interest, and all other obligations under the Revolving Credit Facility will be due and payable.

The Revolving Credit Facility contains a lockbox arrangement clause requiring the Company to maintain a lockbox bank account. If the revolving loan availability is less than 30% of the revolving loan limit for five consecutive business days, or the Company is in default, MidCap will apply funds collected from the Company's lockbox account to reduce the outstanding balance of the Revolving Credit Facility. As of March 31, 2025, the Company's loan availability level has not activated lockbox deductions, nor is it expected to for the next 12 months; therefore, the Company has determined that the outstanding balance under the Revolving Credit Facility is long-term debt on the condensed consolidated balance sheets.

The Revolving Credit Facility is secured by substantially all of the Company’s assets with the priority interest of the lenders subject to terms of a customary intercreditor agreement in connection with the Braidwell Term Loan, as described above. The loan agreements and other ancillary documents contain customary representations and warranties and affirmative and negative covenants. Under the loan agreements, the Company is required to maintain a minimum level of liquidity. The loan agreements also include certain events of default, and upon the occurrence of such events of default, all outstanding loans under the Revolving Credit Facility may be accelerated and/or the lenders’ commitments terminated. The Company is in compliance with all required financial covenants as of March 31, 2025.

0.75% Convertible Senior Notes due 2026

In August 2021, the Company issued $316.3 million aggregate principal amount of unsecured 2026 Notes with a stated interest rate of 0.75% and a maturity date of August 1, 2026. Interest on the 2026 Notes is payable semi-annually in arrears on February 1 and August 1 of each year, beginning on February 1, 2022. The net proceeds from the sale of the 2026 Notes were approximately $306.2 million after deducting the initial purchasers’ offering expenses. The 2026 Notes do not contain any financial covenants.

The 2026 Notes are convertible into shares of the Company’s common stock based upon an initial conversion rate of 54.5316 shares of the Company’s common stock per $1,000 principal amount of 2026 Notes (equivalent to an initial conversion price of approximately $18.34 per share). The conversion rate will be subject to adjustment upon the occurrence of certain specified events, including certain distributions and dividends to all or substantially all of the holders of the Company’s common stock. Based on the

terms of the 2026 Notes, when a conversion notice is received, the Company has the option to pay or deliver cash, shares of the Company’s common stock, or a combination thereof.

Holders of the 2026 Notes have the right to convert their notes in certain circumstances and during specified periods. Prior to the close of business on the business day immediately preceding February 2, 2026, holders may convert all or a portion of their 2026 Notes only under the following circumstances: (1) during any calendar quarter (and only during such calendar quarter) if the last reported sale price of the Company’s common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the 5 consecutive business days immediately after any 10 consecutive trading day period (the “measurement period”) in which the trading price per $1,000 principal amount of 2026 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company’s common stock and the conversion rate on each such trading day; or (3) upon the occurrence of specified corporate events. From and after February 2, 2026, holders of the 2026 Notes may convert their notes at any time at their election until the close of business on the second scheduled trading day immediately before the maturity date. As of March 31, 2025, none of the conditions permitting the holders of the 2026 Notes to convert have been met. The 2026 Notes are classified as long-term debt on the condensed consolidated balances sheet as of March 31, 2025.

The 2026 Notes are redeemable, in whole or in part, at the Company’s option at any time, and from time to time, on or after August 6, 2024 and on or before the 40th scheduled trading day immediately before the maturity date, at a cash redemption price equal to the principal amount of the 2026 Notes to be redeemed, plus accrued and unpaid interest, if any, but only if the last reported sale price per share of the Company’s common stock exceeds 130% of the conversion price for a specified period of time. In addition, calling any of the 2026 Notes for redemption will constitute a “make-whole fundamental change” with respect to the redeemable note, in which case the conversion rate applicable to the conversion of the redeemed note will be increased in certain circumstances if such note is converted after it is called for redemption. In March 2025 the Company repurchased 80% of the 2026 Notes for $268.4 million. The Company determined that the redemption of the 2026 Notes should be accounted for as a partial extinguishment of the 2026 Notes. As a result of the partial extinguishment, the Company wrote off $2.3 million of the unamortized debt issuance costs and debt discount. The Company recorded a loss on debt extinguishment of $17.6 million during the three months ended March 31, 2025.

If a fundamental change occurs prior to the maturity date, holders may require the Company to repurchase all or a portion of their 2026 Notes for cash at a price equal to 100% of the principal amount of the 2026 Notes plus accrued and unpaid interest. No principal payments are otherwise due on the 2026 Notes prior to maturity.

The Company recorded the full principal amount of the 2026 Notes as a long-term liability net of deferred issuance costs. The annual effective interest rate for the 2026 Notes is 1.4%. The Company recognized interest expense on the 2026 Notes of $0.8 million, which includes $0.4 million for the amortization of debt discount costs, during each of the three months ended March 31, 2025 and 2024. The Company uses the if-converted method for assumed conversion of the 2026 Notes to compute the weighted-average shares of common stock outstanding for diluted earnings per share, if applicable.

The outstanding principal amount and carrying value of the 2026 Notes consists of the following (in thousands):

	March 31, 2025			December 31, 2024
Principal	$	63,250		$	316,250
Unamortized debt issuance costs		(552	)		(3,262	)
Net carrying value	$	62,698		$	312,988

2026 Capped Call Transactions

In connection with the offering of the 2026 Notes, the Company entered into privately negotiated capped call transactions (the “Capped Call Transactions”) with certain financial institutions. The Capped Call Transactions are expected generally to reduce the potential dilution and/or offset the cash payments the Company is required to make in excess of the principal amount of the 2026 Notes upon conversion of the 2026 Notes in the event that the market price per share of the Company’s common stock is greater than the strike price of the Capped Call Transactions with such reduction and/or offset subject to a cap. The Capped Call Transactions have an initial cap price of $27.68 per share of the Company’s common stock, which represents a premium of 100% over the last reported sale price of the Company’s common stock on August 5, 2021, and is subject to certain adjustments under the terms of the Capped Call Transactions. Collectively, the Capped Call Transactions cover, initially, the number of shares of the Company’s common stock underlying the 2026 Notes, subject to anti-dilution adjustments substantially similar to those applicable to the 2026 Notes. The cost of the Capped Call Transactions was approximately $39.9 million.

The Capped Call Transactions are separate transactions and are not part of the terms of the 2026 Notes and will not affect any holder’s rights under the 2026 Notes. Holders of the 2026 Notes will not have any rights with respect to the Capped Call Transactions.

Other Debt Agreements

The Company has two loan agreements under French government sponsored COVID-19 relief initiatives (“PGE” loans) which mature in 2027. Monthly and quarterly installments of principal and interest under each PGE loan agreement is due until the original principal amounts and applicable interest is fully repaid in 2027. The outstanding obligation under each PGE loan as of March 31, 2025 was $2.0 million and $0.9 million at weighted average interest rates of 0.98% and 1.25%, respectively, and weighted average costs of the state guaranty of 0.69% and 1.0%, respectively.

Total Indebtedness

Principal payments remaining on the Company's debt are as follows as of March 31, 2025 (in thousands):

Remainder of 2025	$	2,321
2026		64,623
2027		15,458
2028		206,500
2029		—
Thereafter		405,000
Total		693,902
Less: unamortized debt discount and debt issuance costs		(145,499	)
Total		548,403
Less: current portion of long-term debt		(2,569	)
Long-term debt	$	545,834

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Derivative Liability

3 Months Ended

Mar. 31, 2025

Derivative Liability [Abstract]

Derivative Liability

8. Derivative Liability

Convertible Notes

The 2030 Notes, discussed in Note 7, have an embedded conversion option that meets the criteria to be bifurcated and accounted for separately from the 2030 Notes. The conversion option derivative liability was recorded at fair value upon the issuance of the 2030 Notes and was subsequently remeasured to fair value at March 31, 2025.

The change in the conversion option derivative liability during the period ended March 31, 2025, includes the following (in thousands):

December 31, 2024	$	—
Addition of derivative liability		124,062
Change in fair value		(17,400	)
March 31, 2025	$	106,662

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2025

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

9. Commitments and Contingencies

Leases

The Company determines if an arrangement is a lease at inception by assessing whether there is an identified asset and whether the contract conveys the right to control the use of the identified asset in exchange for consideration over a period of time. If both criteria are met, the Company records the associated lease liability and corresponding right-of-use asset (“ROU asset”) upon commencement of the lease using a discount rate based on the incremental borrowing rate of interest that the Company would borrow on a collateralized basis for an amount equal to the lease payments in a similar economic environment. Any short-term leases defined as twelve months or less or month-to-month leases are excluded and are expensed each month. Total costs associated with these short-term leases are immaterial to all periods presented.

The Company leases office and storage facilities and equipment under various operating and financing lease agreements. The initial terms of these leases range from 1 to 10 years and generally provide for periodic rent increases. The Company’s lease agreements do not contain any material variable lease payments, residual value guarantees or material restrictive covenants. The Company aggregates all lease and non-lease components for each class of underlying assets into a single lease component and variable charges for common area maintenance and other variable costs are recognized as expense as incurred. Total variable costs associated with leases for the three months ended March 31, 2025 were immaterial. The Company had an immaterial amount of financing leases as of March 31, 2025, which is included in property and equipment, net, accrued expenses and other current liabilities, and other long-term liabilities, on the condensed consolidated balance sheets.

Future minimum annual lease payments for all operating leases of the Company are as follows as of March 31, 2025 (in thousands):

Remainder of 2025	$	5,337
2026		6,640
2027		6,565
2028		6,046
2029		5,961
Thereafter		10,214
Total undiscounted lease payments		40,763
Less: imputed interest		(7,891	)
Operating lease liabilities		32,872
Less: current portion of operating lease liabilities		(6,310	)
Operating lease liabilities, less current portion	$	26,562

The Company’s weighted average remaining lease term and weighted average discount rate as of March 31, 2025 and December 31, 2024 are as follows:

	March 31, 2025			December 31, 2024
Weighted-average remaining lease term (years)		6.1			6.4
Weighted-average discount rate		6.9	%		6.9	%

Information related to the Company’s operating leases is as follows (in thousands):

	Three Months Ended March 31,
	2025		2024
Rent expense	$	1,825	$	1,466
Cash paid for amounts included in measurement of lease liabilities	$	1,781	$	1,419

Purchase Commitments

The Company is obligated to meet certain minimum purchase commitment requirements with a third-party supplier through December 2026. As of March 31, 2025, the remaining minimum purchase commitment required by the Company under the agreement is $8.0 million.

Litigation

The Company is and may become involved in various legal proceedings arising from its business activities. While management is not aware of any litigation matter that in and of itself would have a material adverse impact on the Company’s condensed consolidated results of operations, cash flows or financial position, litigation is inherently unpredictable, and depending on the nature and timing of a proceeding, an unfavorable resolution could materially affect the Company’s future consolidated results of operations, cash flows or financial position in a particular period. The Company assesses contingencies to determine the degree of probability and range of possible loss for potential accrual or disclosure in the Company’s condensed consolidated financial statements. An estimated loss contingency is accrued in the Company’s condensed consolidated financial statements if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Because litigation is inherently unpredictable and unfavorable resolutions could occur, assessing contingencies is highly subjective and requires judgments about future events. When evaluating contingencies, the Company may be unable to provide a meaningful estimate due to a number of factors, including the procedural status of the matter in question, the presence of complex or novel legal theories, and/or the ongoing discovery and development of information important to

the matters. In addition, damage amounts claimed in litigation against the Company may be unsupported, exaggerated or unrelated to reasonably possible outcomes, and as such are not meaningful indicators of the Company’s potential liability.

In April 2025, the Company entered into a settlement in principle with a shareholder to resolve a legal dispute. The Company recorded the amount of the settlement, which is included in litigation-related expenses in the condensed consolidated statements of operations and accrued expenses and other current liabilities on the condensed consolidated balance sheets for the period ended March 31, 2025.

Indemnifications

In the normal course of business, the Company enters into agreements under which it occasionally indemnifies third-parties for intellectual property infringement claims or claims arising from breaches of representations or warranties. In addition, from time to time, the Company provides indemnity protection to third-parties for claims relating to past performance arising from undisclosed liabilities, product liabilities, environmental obligations, representations and warranties, and other claims. In these agreements, the scope and amount of remedy, or the period in which claims can be made, may be limited. It is not possible to determine the maximum potential amount of future payments, if any, due under these indemnities due to the conditional nature of the obligations and the unique facts and circumstances involved in each agreement.

In October 2017, NuVasive, Inc. filed a lawsuit in Delaware Chancery Court against Mr. Miles, the Company’s Chairman and CEO, who was a former officer and board member of NuVasive. The Company itself was not initially a named defendant in this lawsuit; however, in June 2018, NuVasive amended its complaint to add the Company as a defendant. In October 2018, the Delaware Court ordered that NuVasive advance legal fees for Mr. Miles’ defense in the lawsuit, as well as Mr. Miles’ legal fees incurred in pursuing advancement of his fees, pursuant to an indemnification agreement between NuVasive and Mr. Miles. As of March 31, 2025, the Company has not recorded any liability on the condensed consolidated balance sheets related to this matter.

Royalties

The Company has entered into various intellectual property agreements requiring the payment of royalties based on the sale of products that utilize such intellectual property. These royalties primarily relate to products sold by Alphatec Spine and are based on fixed fees or calculated either as a percentage of net sales or on a per-unit sold basis. Royalties are included on the accompanying condensed consolidated statements of operations as a component of cost of sales.

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Stock-Benefit Plans and Equity Transactions

3 Months Ended

Mar. 31, 2025

Share-Based Payment Arrangement [Abstract]

Stock-Benefit Plans and Equity Transactions

10. Stock-Benefit Plans and Equity Transactions

Stock-Based Compensation

The Company has stock-based compensation plans under which it grants stock options, restricted stock units ("RSUs"), and performance restricted stock units ("PRSUs") to officers, directors and third parties. Total stock-based compensation for the periods presented is as follows (in thousands):

	Three Months Ended
	March 31,
	2025		2024
Cost of sales	$	3,043	$	483
Research and development		3,644		4,315
Sales, general and administrative		15,631		12,524
Total	$	22,318	$	17,322

As of March 31, 2025, there was $77.3 million of unrecognized compensation expense for RSUs and PRSUs to be recognized over a weighted average period of 2.01 years.

The Company has entered into Development Service Agreements for the development of a wide variety of potential products and intellectual property. Under these agreements, future royalty payments for product and/or intellectual property rights may be paid in either cash or restricted shares of the Company’s common stock at the election of the developer, depending on the terms of the agreement. Certain of these agreements were amended to remove the cash royalty option and require settlement in restricted shares of the Company’s common stock. During the three months ended March 31, 2025 and 2024, the vesting conditions of certain of these awards were deemed probable. Stock-based compensation associated with these awards is included in cost of sales and research and development expense on the condensed consolidated statements of operations.

Restricted Stock Units and Performance Based Restricted Stock Units Awards

The Company issued approximately 3,521,532 and 3,154,000 shares of common stock, before net share settlement, upon vesting of RSUs and PRSUs during the three months ended March 31, 2025 and 2024, respectively.

Employee Stock Purchase Plan

Employees are eligible to participate in the Employee Stock Purchase Plan ("ESPP") approved by its shareholders. During the three months ended March 31, 2025 and 2024, there were no shares issued under the ESPP.

The Company estimates the fair value of shares issued to employees under the ESPP using the Black-Scholes option-pricing model. The assumptions used to estimate the fair value of stock options granted and stock purchase rights under the ESPP are as follows:

	Three Months Ended
	March 31,
	2025			2024
Risk-free interest rate		4.44	%		5.41	%
Expected dividend yield		—			—
Expected term (years)		0.50			0.50
Volatility		91.91	%		58.41	%

Warrants Outstanding

Squadron Medical Warrants

In connection with debt financing entered into with Squadron Medical Finance Solutions, LLC ("Squadron Medical") in 2018, and amended in 2019 and 2020, the Company issued common stock warrants to Squadron Medical and a participant lender (the “Squadron Medical Warrants”). The Squadron Medical Warrants expire in May 2027 and are exercisable by cash exercise. No Squadron Medical Warrants have been exercised as of March 31, 2025.

Executive Warrants

The Company issued warrants to its Chairman and Chief Executive Officer (the “Executive Warrants”). The Executive Warrants had a five-year term and are exercisable by cash or cashless exercise. In October 2022, the term was extended to seven years and in May 2024, the term was extended to nine years. No Executive Warrants have been exercised as of March 31, 2025.

L-5 Healthcare Partners Warrants

Pursuant to an order entered by the Delaware Chancery Court on September 27, 2024, the Company issued 1,133,160 common stock warrants, to L-5 Healthcare Partners, LLC, a stockholder of the Company (the "L-5 Healthcare Warrants"), at a purchase price of $1.98 per each share represented by the warrant, for a total purchase price of approximately $2.2 million. The L-5 Healthcare Warrants expire in August 2026 and are exercisable by cashless exercise. No L-5 Healthcare Warrants have been exercised as of March 31, 2025.

A summary of all outstanding warrants for common stock as of March 31, 2025, is as follows (in thousands, except for strike price data):

	Number of Warrants		Strike Price		Expiration
2018 Squadron Medical Warrants		845	$	3.15	May 2027
2019 Squadron Medical Warrants		4,839	$	2.17	May 2027
2020 Squadron Medical Warrants		1,076	$	4.88	May 2027
Executive Warrants		1,327	$	5.00	December 2026
L-5 Healthcare Warrants		1,133	$	2.17	August 2026
Other1		96	$	11.79	Various through June 2026
Total		9,316

(1)Weighted-average strike price.

All outstanding warrants were deemed to qualify for equity classification under authoritative accounting guidance.

Salary-to-Equity Conversion Program

On March 31, 2025, the Compensation Committee of the Board of Directors of the Company adopted a salary conversion plan (the “Plan”) under which the cash payment of base salaries for certain Company executive officers was reduced by 10% to 50% and, in exchange, the Company's executive officers were granted RSUs. The RSUs granted under the Plan will vest in two equal installments on August 5, 2025 and December 5, 2025, subject to the respective executive officer's continued employment with the Company on each vesting date.

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Business Segment and Geographic Information

3 Months Ended

Mar. 31, 2025

Segment Reporting [Abstract]

Business Segment and Geographic Information

11. Business Segment and Geographic Information

The Company operates in one segment based upon the Company’s organizational structure, the way in which the operations and investments are managed and evaluated by the chief operating decision maker (“CODM”) as well as the lack of available discrete financial information at a level lower than the consolidated level. The CODM is the Chief Executive Officer. The Company shares common, centralized support functions which report directly to the CODM and decision-making regarding the Company’s overall operating performance and allocation of Company resources is assessed on a consolidated basis. Significant segment expenses regularly provided to the CODM are consolidated research and development expenses and consolidated sales, general and administrative expenses. Refer to the consolidated statements of operations for consolidated research and development expenses and consolidated sales, general and administrative expenses. The Company determined that consolidated net loss is the Company’s measure of segment profit or loss.

Net revenue and property and equipment, net, by geographic region are as follows (in thousands):

	Revenue				Property and equipment, net
	Three Months Ended March 31,				March 31,		December 31,
(in thousands)	2025		2024		2025		2024
United States	$	159,112	$	129,845	$	145,068	$	154,772
International		10,068		8,632		1,573		1,622
Total	$	169,180	$	138,477	$	146,641	$	156,394

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Net Loss Per Share

3 Months Ended

Mar. 31, 2025

Earnings Per Share [Abstract]

Net Loss Per Share

12. Net Loss Per Share

Basic net loss per share is calculated by dividing the net loss available to common stockholders by the weighted-average number of common shares outstanding for the period. If applicable, diluted net loss per share attributable to common stockholders is calculated by dividing net loss available to common stockholders by the diluted weighted-average number of common shares outstanding for the period, determined using the treasury-stock method and the if-converted method for convertible debt. For purposes of this calculation, common stock subject to repurchase by the Company, common stock issuable upon conversion or exercise of convertible notes, preferred shares, options, and warrants are considered to be common stock equivalents and are only included in the calculation of diluted earnings per share when their effect is dilutive. Due to the Company’s net loss position, the effect of including common stock equivalents in the earnings per share calculation is anti-dilutive, and therefore not included.

The following table presents the computation of basic and diluted net loss per share (in thousands, except per share amounts):

	Three Months Ended March 31,
	2025			2024
Numerator:
Net loss	$	(51,907	)	$	(48,495	)
Denominator:
Weighted average common shares outstanding		146,732			140,980
Net loss per share, basic and diluted:	$	(0.35	)	$	(0.34	)

The following potentially dilutive shares of common stock were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive for the periods presented (in thousands):

	As of March 31,
	2025		2024
Options to purchase common stock and employee stock purchase plan		2,196		2,611
Unvested restricted stock unit awards		7,894		8,783
Warrants to purchase common stock		9,316		8,216
2026 Notes		3,449		17,246
2030 Notes		34,527		—
Total		57,382		36,856

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Income Taxes

3 Months Ended

Mar. 31, 2025

Income Tax Disclosure [Abstract]

Income Taxes

13. Income Taxes

To calculate its interim tax provision, at the end of each interim period the Company estimates the annual effective tax rate, adjusted for discrete items arising in that quarter. The computation of the annual estimated effective tax rate at each interim period requires certain estimates and significant judgment including, but not limited to, the estimated annual taxable income or loss for the year and projections of the proportion of income earned and taxed in foreign jurisdictions. The accounting estimates used to compute the provision for income taxes may change as new events occur, additional information is obtained, or the tax environment changes.

The Company’s effective tax rate from operations was 0.12% and 0.14% for the three months ended March 31, 2025 and 2024 respectively. The Company’s effective tax rate differs from the federal statutory rate of 21% in each period primarily due to the Company’s net loss position and valuation allowance.

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Related Party Transactions

3 Months Ended

Mar. 31, 2025

Related Party Transactions [Abstract]

Related Party Transactions

. Related Party Transactions

The Company purchases inventory from an affiliate of Squadron Capital, LLC (the “Squadron Supplier Affiliate”). David Pelizzon, President and Director of Squadron Capital, LLC, currently serves on the Company’s Board of Directors. For the three months ended March 31, 2025 and 2024, the Company purchased inventory in the amounts of $2.8 million and $4.7 million, respectively, from the Squadron Supplier Affiliate. As of March 31, 2025, and December 31, 2024, the Company had $2.7 million and $1.8 million, respectively, due to the Squadron Supplier Affiliate, for inventory purchases.

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Organization and Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2025

Accounting Policies [Abstract]

The Company

The Company

Alphatec Holdings, Inc. (the “Company”), through its wholly owned subsidiaries, Alphatec Spine, Inc. (“Alphatec Spine”), SafeOp Surgical, Inc. (“SafeOp”), and EOS imaging S.A.S. (“EOS”), is a medical technology company focused on the design, development, and advancement of technology for the better surgical treatment of spinal disorders. The Company, headquartered in Carlsbad, California, markets its products in the United States and internationally via a network of independent sales agents and direct sales representatives.

Basis of Presentation and Principles of Consolidation

Basis of Presentation and Principles of Consolidation

The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. The Company translates the financial statements of its foreign subsidiaries using end-of-period exchange rates for assets and liabilities and average exchange rates during each reporting period for results of operations. All intercompany balances and transactions have been eliminated in consolidation.

The accompanying condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Pursuant to these rules and regulations, the Company has condensed or omitted certain information and footnotes it normally includes in its annual consolidated financial statements prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). The unaudited interim condensed consolidated financial statements reflect all adjustments, including normal recurring adjustments which, in the opinion of management, are necessary for a fair presentation of the financial position and results of operations for the periods presented. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2024, which are included in the Company’s Annual Report on Form 10-K that was filed with the SEC. Operating results for the three months ended March 31, 2025 are not necessarily indicative of the results that may be expected for the full year or any other future periods.

Reclassification

Reclassification

Certain financial statement line items in the condensed consolidated financial statements for the period ended March 31, 2024 have been aggregated to conform to the current year’s presentation.

Use of Estimates

Use of Estimates

The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Fair Value Measurements

Fair Value Measurements

The carrying amount of financial instruments consisting of cash and cash equivalents, accounts receivable, prepaid expenses and other current assets, accounts payable, accrued expenses, and short-term debt included in the Company’s condensed consolidated financial statements are reasonable estimates of fair value due to their short maturities.

Authoritative guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

Level 1: Quoted prices in active markets for identical assets or liabilities.

Level 2: Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active; or other inputs that can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Excess and Obsolete Inventory

Excess and Obsolete Inventory

Most of the Company’s inventory is comprised of finished goods, which is primarily produced by third-party suppliers. Specialized implants, fixation products, and biologics are valued by utilizing a standard cost method that includes capitalized variances which together approximates the weighted average cost. Imaging equipment and related parts are valued at weighted average cost. Inventories are stated at the lower of cost or net realizable value. The Company reviews the components of its inventory on a periodic basis for excess and obsolescence and adjusts inventory to its net realizable value as necessary.

The Company records a lower of cost or net realizable value (“LCNRV”) inventory reserve for estimated excess and obsolete inventory. In order to market its products effectively and meet the demands of interoperative product placement, the Company maintains and provides surgeons and hospitals with a variety of inventory products and sizes. For each surgery, fewer than all components will be consumed. The need to maintain and provide a wide variety of inventory causes inventory to be held that is not likely to be used.

The Company’s estimates and assumptions for excess and obsolete inventory are reviewed and updated on a quarterly basis. The estimates and assumptions are determined primarily based on current usage of inventory and the age of inventory quantities on hand. Additionally, the Company considers recent sales experience to develop assumptions about future demand for its products, while considering product life cycles and new product launches. Increases in the LCNRV reserve for excess and obsolete inventory result in a corresponding charge to cost of sales.

Revenue Recognition

Revenue Recognition

The Company recognizes revenue from product sales in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Revenue from Contracts with Customers (“Topic 606”). This standard applies to all contracts with customers, except for contracts that are within the scope of other standards, such as leases. Under Topic 606, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration that the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of Topic 606, the entity performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer.

Sales are derived primarily from the sale of spinal implant products, imaging equipment, and related services to hospitals and medical centers. Revenue is recognized when obligations under the terms of a contract with customers are satisfied, which occurs with the transfer of control of products to customers, either upon shipment of the product or delivery of the product to the customer depending on the shipping terms, or when the products are used in a surgical procedure (implanted in a patient). Revenue from the sale of imaging equipment is recognized as each distinct performance obligation is fulfilled and control transfers to the customer, beginning with shipment or delivery, depending on the contract terms. Revenue from other distinct performance obligations, such as maintenance on imaging equipment and other imaging-related services, is recognized in the period the service is performed, and makes up less than 10% of the Company’s total revenue. In certain cases, the Company does offer the ability for customers to lease its imaging equipment, but such arrangements are immaterial to total revenue in the periods presented. The Company generally does not allow returns of products that have been delivered. Costs incurred by the Company associated directly with sales contracts with customers are deferred over the performance obligation period and recognized in the same period as the related revenue, except for contracts that complete within one year or less, in which case the associated costs are expensed as incurred. Payment terms for sales to customers may vary but are commensurate with the general business practices in the country of sale.

To the extent that the transaction price includes variable consideration, such as discounts, rebates, and customer payment penalties, the Company estimates the amount of variable consideration that should be included in the transaction price utilizing either the expected value method or the most likely amount method depending on the nature of the variable consideration. Variable consideration is included in the transaction price if, in the Company's judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. Estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of the Company’s anticipated performance and all information that is reasonably available, including historical, current, and forecasted information.

The Company records a contract asset when one or more performance obligations have been completed by the Company and revenue has been recognized, but the customer's payment is contingent on the satisfaction of additional performance obligations. Contract assets are generally short-term in nature. The Company records a contract liability, or deferred revenue, when it has an obligation to provide a product or service to the customer and payment is received in advance of its performance. These amounts primarily relate to undelivered equipment and related services, or maintenance agreements. When the Company sells a product or service

with a future performance obligation, revenue is deferred on the unfulfilled performance obligation and recognized over the related performance period. Generally, the Company estimates the selling price of promised services included in the equipment sales price using an expected cost plus a margin approach and/or the separately observable price of such service, if available. The transaction price for a contract’s various performance obligations is allocated using the relative standalone selling price method. The use of alternative estimates could result in a different amount of revenue deferral.

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

In December 2023, the FASB issued Accounting Standard Update ("ASU") No. 2023-09, Income Taxes (Topic 740): Improvement to Income Tax Disclosures to enhance the transparency of income tax disclosures. The guidance in ASU No. 2023-09 allows for a prospective method of transition, with the option to apply the standard retrospectively. The standard is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is in the process of assessing the impact of this standard on its consolidated financial statements and related disclosures.

In November 2024, the FASB issued ASU No. 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Topic 220-40). Additionally, in January 2025, the FASB issued ASU 2025-01 to clarify the effective date of ASU 2024-03. The standard provides guidance to expand disclosures related to the disaggregation of income statement expenses. The standard requires, in the notes to the financial statements, disclosure of specified information about certain costs and expenses, which includes purchases of inventory, employee compensation, depreciation and intangible asset amortization included in each relevant expense caption. This guidance is effective for fiscal years beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027, on a retrospective or prospective basis, with early adoption permitted. The Company is in the process of assessing the impact of this standard on its consolidated financial statements and related disclosures.

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Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2025

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value on Recurring Basis

Assets and liabilities measured at fair value on a recurring basis include the following as of March 31, 2025, and December 31, 2024 (in thousands):

	March 31, 2025
Assets:	Level 1		Level 2		Level 3		Total
Cash equivalents:
Money market funds	$	9,345		—		—	$	9,345
Liabilities:
Derivative liability	$	—		—		106,662	$	106,662
	December 31, 2024
Assets:	Level 1		Level 2		Level 3		Total
Cash equivalents:
Money market funds	$	57,006		—		—	$	57,006

Schedule Of Assumptions Used To Value The Conversion Option Derivative Liability

The following table presents the assumptions used to value the conversion option derivative liability as of March 31, 2025:

	March 31,
	2025
Company's stock price	$	10.14
Risk-free interest rate		3.88	%
Expected term (years)		4.96
Volatility		63.25	%

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Inventories (Tables)

3 Months Ended

Mar. 31, 2025

Inventory Disclosure [Abstract]

Schedule of Inventories

Inventories reported at the lower of cost or net realizable value consist of the following (in thousands):

	March 31, 2025		December 31, 2024
Raw materials	$	19,464	$	19,378
Finished goods		151,409		155,886
Inventories	$	170,873	$	175,264

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Property and Equipment, net (Tables)

3 Months Ended

Mar. 31, 2025

Property, Plant and Equipment [Abstract]

Property and equipment, net

Property and equipment, net consist of the following (in thousands, except as indicated):

	Useful lives (in years)	March 31, 2025			December 31, 2024
Surgical instruments	4	$	286,904		$	283,597
Machinery and equipment	7		12,796			12,710
Computer equipment	8		32,131			32,082
Office furniture and equipment	5		6,477			6,759
Leasehold improvements	various		4,337			4,321
Construction in progress	n/a		546			541
			343,191			340,010
Less: accumulated depreciation    and amortization			(196,550	)		(183,616	)
Property and equipment, net		$	146,641		$	156,394

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Goodwill and Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2025

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

The change in the carrying amount of goodwill during the period ended March 31, 2025, includes the following (in thousands):

December 31, 2024	$	70,976
Foreign currency fluctuation		1,358
March 31, 2025	$	72,334

Intangible Assets, Net

Intangible assets, net consist of the following (in thousands, except as indicated):

	Remaining Avg. Useful lives	Gross		Accumulated			Intangible
March 31, 2025:	(in years)	Amount		Amortization			Assets, net
Developed product technology	5	$	105,050	$	(42,166	)	$	62,884
Internally developed software	6		14,373		(3,087	)		11,286
Trademarks and trade names	6		5,482		(2,144	)		3,338
Customer relationships	3		14,336		(10,583	)		3,753
Distribution network	–		2,413		(2,413	)		—
Total amortized intangible assets			141,654		(60,393	)		81,261
Software in development	n/a		5,494		—			5,494
In-process research and development	n/a		8,285		—			8,285
Total intangible assets		$	155,433	$	(60,393	)	$	95,040
		.
	Remaining Avg. Useful lives	Gross		Accumulated			Intangible
December 31, 2024:	(in years)	Amount		Amortization			Assets, net
Developed product technology	5	$	102,412	$	(38,055	)	$	64,357
Internally developed software	3		4,283		(1,515	)		2,768.0
Trademarks and trade names	7		5,267		(1,991	)		3,276
Customer relationships	2		13,996		(10,094	)		3,902
Distribution network	–		2,413		(2,410	)		3
Total amortized intangible assets			128,371		(54,065	)		74,306
Software in development	n/a		12,927		—			12,927
In-process research and development	n/a		6,285		—			6,285
Total intangible assets		$	147,583	$	(54,065	)	$	93,518

Schedule of Intangible Assets, Future Expected Amortization Expense

Future amortization expense related to intangible assets is as follows (in thousands):

Remainder of 2025	$	12,574
2026		16,766
2027		16,315
2028		11,501
2029		11,116
Thereafter		12,989
	$	81,261

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Contract Assets and Contract Liabilities (Tables)

3 Months Ended

Mar. 31, 2025

Contract with Customer, Contract Asset, Contract Liability, and Receivable [Abstract]

Summary of Contract Assets and Liabilities

Contract assets included within prepaid expenses and other current assets in the condensed consolidated balance sheets are as follows (in thousands):

	March 31, 2025		December 31, 2024
Contract assets	$	3,326	$	5,678

The non-current contract liabilities balance is included in other long-term liabilities on the condensed consolidated balance sheets. The Company’s contract liabilities are as follows (in thousands):

	March 31, 2025		December 31, 2024
Contract liabilities	$	14,411	$	13,598
Less: Non-current portion of contract liabilities		3,111		3,131
Current portion of contract liabilities	$	11,300	$	10,467

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Debt (Tables)

3 Months Ended

Mar. 31, 2025

Short-Term Debt [Line Items]

Principal Payments Remaining on Debt

Principal payments remaining on the Company's debt are as follows as of March 31, 2025 (in thousands):

Remainder of 2025	$	2,321
2026		64,623
2027		15,458
2028		206,500
2029		—
Thereafter		405,000
Total		693,902
Less: unamortized debt discount and debt issuance costs		(145,499	)
Total		548,403
Less: current portion of long-term debt		(2,569	)
Long-term debt	$	545,834

0.75% Convertible Senior Notes due 2030

Short-Term Debt [Line Items]

Outstanding Principal Amount and Carrying Value of Notes

The outstanding principal amount and carrying value of the 2030 Notes consists of the following (in thousands):

	March 31, 2025
Principal	$	405,000
Unamortized debt discount and debt issuance costs		(135,427	)
Net carrying value	$	269,573

0.75% Senior Convertible Notes due 2026

Short-Term Debt [Line Items]

Outstanding Principal Amount and Carrying Value of Notes

The outstanding principal amount and carrying value of the 2026 Notes consists of the following (in thousands):

	March 31, 2025			December 31, 2024
Principal	$	63,250		$	316,250
Unamortized debt issuance costs		(552	)		(3,262	)
Net carrying value	$	62,698		$	312,988

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Derivative Liability (Tables)

3 Months Ended

Mar. 31, 2025

Derivative Liability [Abstract]

Change in Conversion Option Derivative Liability

The change in the conversion option derivative liability during the period ended March 31, 2025, includes the following (in thousands):

December 31, 2024	$	—
Addition of derivative liability		124,062
Change in fair value		(17,400	)
March 31, 2025	$	106,662

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Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2025

Commitments and Contingencies Disclosure [Abstract]

Future minimum annual lease payments

Future minimum annual lease payments for all operating leases of the Company are as follows as of March 31, 2025 (in thousands):

Remainder of 2025	$	5,337
2026		6,640
2027		6,565
2028		6,046
2029		5,961
Thereafter		10,214
Total undiscounted lease payments		40,763
Less: imputed interest		(7,891	)
Operating lease liabilities		32,872
Less: current portion of operating lease liabilities		(6,310	)
Operating lease liabilities, less current portion	$	26,562

Summary of Weighted-Average Remaining Lease Term and Discount Rate

The Company’s weighted average remaining lease term and weighted average discount rate as of March 31, 2025 and December 31, 2024 are as follows:

	March 31, 2025			December 31, 2024
Weighted-average remaining lease term (years)		6.1			6.4
Weighted-average discount rate		6.9	%		6.9	%

Summary of Operating Leases

Information related to the Company’s operating leases is as follows (in thousands):

	Three Months Ended March 31,
	2025		2024
Rent expense	$	1,825	$	1,466
Cash paid for amounts included in measurement of lease liabilities	$	1,781	$	1,419

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Stock-Benefit Plans and Equity Transactions (Tables)

3 Months Ended

Mar. 31, 2025

Share-Based Payment Arrangement [Abstract]

Summary of Total Stock Based Compensation

The Company has stock-based compensation plans under which it grants stock options, restricted stock units ("RSUs"), and performance restricted stock units ("PRSUs") to officers, directors and third parties. Total stock-based compensation for the periods presented is as follows (in thousands):

	Three Months Ended
	March 31,
	2025		2024
Cost of sales	$	3,043	$	483
Research and development		3,644		4,315
Sales, general and administrative		15,631		12,524
Total	$	22,318	$	17,322

Schedule of Assumptions used to Estimate Fair Value of Stock Options Granted and Stock Purchase Rights under ESPP

The Company estimates the fair value of shares issued to employees under the ESPP using the Black-Scholes option-pricing model. The assumptions used to estimate the fair value of stock options granted and stock purchase rights under the ESPP are as follows:

	Three Months Ended
	March 31,
	2025			2024
Risk-free interest rate		4.44	%		5.41	%
Expected dividend yield		—			—
Expected term (years)		0.50			0.50
Volatility		91.91	%		58.41	%

Summary of All Outstanding Warrants for Common Stock

A summary of all outstanding warrants for common stock as of March 31, 2025, is as follows (in thousands, except for strike price data):

	Number of Warrants		Strike Price		Expiration
2018 Squadron Medical Warrants		845	$	3.15	May 2027
2019 Squadron Medical Warrants		4,839	$	2.17	May 2027
2020 Squadron Medical Warrants		1,076	$	4.88	May 2027
Executive Warrants		1,327	$	5.00	December 2026
L-5 Healthcare Warrants		1,133	$	2.17	August 2026
Other1		96	$	11.79	Various through June 2026
Total		9,316

(1)Weighted-average strike price.

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Business Segment and Geographic Information (Tables)

3 Months Ended

Mar. 31, 2025

Segment Reporting [Abstract]

Schedule of Net Revenue and Property, and Equipment, Net, by Geographic Region

Net revenue and property and equipment, net, by geographic region are as follows (in thousands):

	Revenue				Property and equipment, net
	Three Months Ended March 31,				March 31,		December 31,
(in thousands)	2025		2024		2025		2024
United States	$	159,112	$	129,845	$	145,068	$	154,772
International		10,068		8,632		1,573		1,622
Total	$	169,180	$	138,477	$	146,641	$	156,394

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Net Loss Per Share (Tables)

3 Months Ended

Mar. 31, 2025

Earnings Per Share [Abstract]

Computation of Basic and Diluted Net Loss Per Share

The following table presents the computation of basic and diluted net loss per share (in thousands, except per share amounts):

	Three Months Ended March 31,
	2025			2024
Numerator:
Net loss	$	(51,907	)	$	(48,495	)
Denominator:
Weighted average common shares outstanding		146,732			140,980
Net loss per share, basic and diluted:	$	(0.35	)	$	(0.34	)

Anti-Dilutive Securities of Common Stock Excluded from Calculation of Diluted Net Loss Per Share

The following potentially dilutive shares of common stock were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive for the periods presented (in thousands):

	As of March 31,
	2025		2024
Options to purchase common stock and employee stock purchase plan		2,196		2,611
Unvested restricted stock unit awards		7,894		8,783
Warrants to purchase common stock		9,316		8,216
2026 Notes		3,449		17,246
2030 Notes		34,527		—
Total		57,382		36,856

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Organization and Significant Accounting Policies - Additional Information (Details)	3 Months Ended
	Mar. 31, 2025
Maximum
Significant Accounting Policies [Line Items]
Percentage of revenue from other distinct performance obligations of total revenue	10.00%

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Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Liabilities measured at fair value on a recurring basis	$ 106,662	$ 0
Recurring
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Liabilities measured at fair value on a recurring basis	106,662
Recurring | Money Market Funds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets measured at fair value on a recurring basis	9,345	57,006
Recurring | Fair Value, Inputs, Level 1 | Money Market Funds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets measured at fair value on a recurring basis	9,345	$ 57,006
Recurring | Fair value, inputs, level 3
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Liabilities measured at fair value on a recurring basis	$ 106,662

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Fair Value Measurements - Schedule Of Assumptions Used To Value The Conversion Option Derivative Liability (Details) - Derivative	3 Months Ended
	Mar. 31, 2025 $ / shares
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Company's stock price	$ 10.14
Risk-free interest rate	3.88%
Expected term (years)	4 years 11 months 15 days
Volatility	63.25%

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Fair Value Measurements - Additional Information (Details) - Fair Value, Inputs, Level 1 - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2025	Dec. 31, 2024
2026 Notes
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair value of long-term debt	$ 62.6	$ 299.6
Debt maturity year	2026
2030 Notes
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair value of long-term debt	$ 386.1
Debt maturity year	2030

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Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Inventory Disclosure [Abstract]
Raw materials	$ 19,464	$ 19,378
Finished goods	151,409	155,886
Inventories	$ 170,873	$ 175,264

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Property and Equipment, net - Property and Equipment, Net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Dec. 31, 2024
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 343,191	$ 340,010
Less: accumulated depreciation and amortization	(196,550)	(183,616)
Property and equipment, net	$ 146,641	156,394
Surgical instruments
Property, Plant and Equipment [Line Items]
Useful life (in years)	4 years
Property and equipment, gross	$ 286,904	283,597
Machinery and equipment
Property, Plant and Equipment [Line Items]
Useful life (in years)	7 years
Property and equipment, gross	$ 12,796	12,710
Computer equipment
Property, Plant and Equipment [Line Items]
Useful life (in years)	8 years
Property and equipment, gross	$ 32,131	32,082
Office furniture and equipment
Property, Plant and Equipment [Line Items]
Useful life (in years)	5 years
Property and equipment, gross	$ 6,477	6,759
Leasehold improvements
Property, Plant and Equipment [Line Items]
Useful lives	various
Property and equipment, gross	$ 4,337	4,321
Construction in progress
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 546	$ 541

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Property and Equipment, net - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Property, Plant and Equipment [Abstract]
Depreciation and amortization expense	$ 15.8	$ 13.7

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Goodwill and Intangible Assets - Schedule of Goodwill (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2025 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
December 31, 2024	$ 70,976
Foreign currency fluctuation	1,358
March 31, 2025	$ 72,334

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Goodwill and Intangible Assets - Intangible Assets, Net (Details) - USD ($)	Mar. 31, 2025	Dec. 31, 2024
Intangible Assets [Line Items]
Total amortized intangible assets, Gross Amount	$ 141,654,000	$ 128,371,000
Total amortized intangible assets, Accumulated Amortization	(60,393,000)	(54,065,000)
Total amortized intangible assets, net	81,261,000	74,306,000
Total Intangible assets, Gross Amount	155,433,000	147,583,000
Total intangible assets, net	$ 95,040,000	$ 93,518,000
Developed product technology
Intangible Assets [Line Items]
Intangible assets acquired amortized on a straight-line basis over useful lives	5 years	5 years
Total amortized intangible assets, Gross Amount	$ 105,050,000	$ 102,412,000
Total amortized intangible assets, Accumulated Amortization	(42,166,000)	(38,055,000)
Total amortized intangible assets, net	$ 62,884,000	$ 64,357,000
Internally-developed software
Intangible Assets [Line Items]
Intangible assets acquired amortized on a straight-line basis over useful lives	6 years	3 years
Total amortized intangible assets, Gross Amount	$ 14,373,000	$ 4,283,000
Total amortized intangible assets, Accumulated Amortization	(3,087,000)	(1,515,000)
Total amortized intangible assets, net	$ 11,286,000	$ 2,768,000
Trademarks and trade names
Intangible Assets [Line Items]
Intangible assets acquired amortized on a straight-line basis over useful lives	6 years	7 years
Total amortized intangible assets, Gross Amount	$ 5,482,000	$ 5,267,000
Total amortized intangible assets, Accumulated Amortization	(2,144,000)	(1,991,000)
Total amortized intangible assets, net	$ 3,338,000	$ 3,276,000
Customer Relationships
Intangible Assets [Line Items]
Intangible assets acquired amortized on a straight-line basis over useful lives	3 years	2 years
Total amortized intangible assets, Gross Amount	$ 14,336,000	$ 13,996,000
Total amortized intangible assets, Accumulated Amortization	(10,583,000)	(10,094,000)
Total amortized intangible assets, net	3,753,000	3,902,000
Distribution network
Intangible Assets [Line Items]
Total amortized intangible assets, Gross Amount	2,413,000	2,413,000
Total amortized intangible assets, Accumulated Amortization	(2,413,000)	(2,410,000)
Total amortized intangible assets, net		3,000
Software in development
Intangible Assets [Line Items]
Indefinite-Lived Intangible Assets, Gross Amount	5,494,000	12,927,000
Indefinite-Lived Intangible Assets, net	5,494,000	12,927,000
In process research and development
Intangible Assets [Line Items]
Indefinite-Lived Intangible Assets, Gross Amount	8,285,000	6,285,000
Indefinite-Lived Intangible Assets, net	$ 8,285,000	$ 6,285,000

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Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of intangible assets	$ 4.2	$ 4.2

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Goodwill and Intangible Assets - Schedule of Intangible Assets, Future Expected Amortization Expense (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Remainder of 2025	$ 12,574
2026	16,766
2027	16,315
2028	11,501
2029	11,116
Thereafter	12,989
Total amortized intangible assets, net	$ 81,261	$ 74,306

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Contract Assets and Contract Liabilities - Summary of Contract Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Abstract]
Contract assets	$ 3,326	$ 5,678

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Contract Assets and Contract Liabilities - Summary of Contract Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Abstract]
Contract liabilities	$ 14,411	$ 13,598
Less: Non-current portion of contract liabilities	3,111	3,131
Current portion of contract liabilities	$ 11,300	$ 10,467

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Contract Assets and Contract Liabilities - Additional Information (Details) $ in Millions	3 Months Ended
	Mar. 31, 2025 USD ($)
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Abstract]
Revenue recognized from contract liabilities	$ 0.9

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Debt - 0.75% Convertible Senior Notes due 2030 (Details) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended
	Mar. 31, 2025 USD ($) $ / shares	Mar. 31, 2025 USD ($) Days $ / shares shares
Debt Instrument [Line Items]
Payment terms		interest immediately and is payable semi-annually in arrears on March 15 and September 15 of each year, beginning on September 15, 2025.
0.75% Convertible Senior Notes due 2030
Debt Instrument [Line Items]
Aggregate principal amount of debt	$ 405,000	$ 405,000
Interest rate	0.75%	0.75%
Debt instrument, maturity date		Mar. 15, 2030
Net proceeds		$ 392,900
Repayment Percentage Of Debt	80.00%	80.00%
Initial conversion rate | shares		64,340.7000
Debt instrument converted principal amount		$ 1,000
Conversion price per share | $ / shares	$ 15.54	$ 15.54
Consecutive trading days | Days		30
Threshold percentage of par value trigger	130.00%	98.00%
Number of conversion price, consecutive business days | Days		5
Number of conversion price, consecutive trading days | Days		10
Debt instrument converted principal amount		$ 1,000
Debt conversion start date		Sep. 17, 2029
Effective interest rate	9.10%	9.10%
Interest expense		$ 1,600
Amortization of debt issuance costs		$ 1,400
Convertible notes, redemption price percentage		100.00%
0.75% Convertible Senior Notes due 2030 | Maximum
Debt Instrument [Line Items]
Threshold percentage of par value trigger		130.00%
0.75% Convertible Senior Notes due 2030 | Minimum
Debt Instrument [Line Items]
Threshold trading days | Days		20

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Debt - Term Loan (Details) - USD ($) $ in Thousands			3 Months Ended
	Oct. 29, 2024	Jan. 06, 2023	Mar. 31, 2025	Mar. 31, 2024	Sep. 28, 2023
Debt Instrument [Line Items]
Initial term loan facility			$ 548,403
Braidwell Term Loan | Braidwell Transaction Holdings, LLC
Debt Instrument [Line Items]
Long term debt		$ 150,000
Initial term loan facility		$ 100,000
Debt instrument drew					$ 50,000
Credit facility outstanding balance			$ 200,000
Effective interest rate			11.70%
Debt instrument, maturity date		Jan. 06, 2028
Interest rate			10.19%
Interest expenses			$ 5,300	$ 4,400
Amortization of debt issuance costs			200	100
Amortization of debt discount				$ 100
Debt discount			1,600
Debt issuance costs incurred		$ 3,600	$ 2,300
Commitment fees incurred		$ 500
Interest rate per annum		5.75%
Undrawn commitment fee		1.00%
Final payment fee percentage		3.25%
Interest rate terms		Borrowings under the Braidwell Term Loan bear interest at a rate per annum equal to the Term Secured Overnight Financing Rate for such SOFR business day ("SOFR") subject to a 3% floor, plus 5.75%.
Additional term loan	$ 50,000
Braidwell Term Loan | Braidwell Transaction Holdings, LLC | Minimum
Debt Instrument [Line Items]
Interest rate per annum		3.00%
Fee amount percentage		0.00%
Braidwell Term Loan | Braidwell Transaction Holdings, LLC | Maximum
Debt Instrument [Line Items]
Fee amount percentage		1.00%

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Debt - Revolving Credit Facility (Details) - Revolving Credit Facility - USD ($) $ in Millions	1 Months Ended	3 Months Ended
	Sep. 30, 2022	Mar. 31, 2025	Mar. 31, 2024
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 50.0	$ 75.0
Increase in borrowing capacity		25.0
Credit facility matures date	Sep. 29, 2027
Credit facility, matures period prior to final maturity date of 2026 notes	90 days
Interest expenses		0.5	$ 0.5
Amortization of debt issuance costs		0.1	$ 0.1
Credit facility outstanding balance		15.0
Debt issuance costs incurred		1.4
Debt issuance costs, net of accumulated amortization		$ 0.7
Interest rate		0.94%
Interest rate per annum		3.50%
Debt Instrument, Variable Interest Rate, Type [Extensible Enumeration]		us-gaap:SecuredOvernightFinancingRateSofrMember
Unused line fee percentage per annum		0.50%
Lockbox arrangement, percentage of revolving loan limit maximum availability		30.00%
Lockbox arrangement, revolving loan limit number of consecutive business day		5 days

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Debt - 0.75% Senior Convertible Notes due 2026 (Details)	1 Months Ended		3 Months Ended
	Mar. 31, 2025 USD ($)	Aug. 31, 2021 USD ($) $ / shares shares	Mar. 31, 2025 USD ($) Days	Mar. 31, 2024 USD ($)
Line Of Credit Facility [Line Items]
Payment terms			interest immediately and is payable semi-annually in arrears on March 15 and September 15 of each year, beginning on September 15, 2025.
Loss on debt extinguishment			$ (17,576,000)	$ 0
0.75% Senior Convertible Notes due 2026
Line Of Credit Facility [Line Items]
Aggregate principal amount of debt		$ 316,300,000
Interest rate		0.75%
Debt instrument, maturity date		Aug. 01, 2026
Debt instrument, frequency of periodic payment		semi-annually
Debt instrument, Date of first payment		Feb. 01, 2022
Net proceeds		$ 306,200,000
Payment terms			Interest on the 2026 Notes is payable semi-annually in arrears on February 1 and August 1 of each year, beginning on February 1, 2022.
Debt instrument covenant description			The 2026 Notes do not contain any financial covenants.
Initial conversion rate | shares		54.5316
Debt instrument converted principal amount		$ 1,000
Conversion price per share | $ / shares		$ 18.34
Consecutive trading days | Days			30
Threshold percentage of par value trigger		130.00%	98.00%
Number of conversion price, consecutive business days | Days			5
Number of conversion price, consecutive trading days | Days			10
Debt instrument converted principal amount			$ 1,000,000
Debt conversion start date			Feb. 02, 2026
Convertible notes redemption start date		Aug. 06, 2024
Convertible notes, redemption price percentage	80.00%	100.00%
Debt instrument repurchased amount	$ 268,400,000		$ 268,400,000
Loss on debt extinguishment	$ 17,600,000
Principal payments due		$ 0
Effective interest rate	1.40%		1.40%
Interest expenses			$ 800,000	800,000
Amortization of debt issuance costs			400,000	$ 400,000
Writeoff unamortized debt issuance costs and debt discount	$ 2,300,000		$ 2,300,000
0.75% Senior Convertible Notes due 2026 | Minimum
Line Of Credit Facility [Line Items]
Threshold trading days | Days			20
0.75% Senior Convertible Notes due 2026 | Maximum
Line Of Credit Facility [Line Items]
Threshold percentage of par value trigger			130.00%

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Debt - Outstanding Principal Amount and Carrying Value of Notes (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Debt Instrument [Line Items]
Principal	$ 693,902
Unamortized debt discount and debt issuance costs	(145,499)
Net carrying value	548,403
2030 Notes
Debt Instrument [Line Items]
Principal	405,000
Unamortized debt discount and debt issuance costs	(135,427)
Net carrying value	269,573
2026 Notes
Debt Instrument [Line Items]
Principal	63,250	$ 316,250
Unamortized debt issuance costs	(552)	(3,262)
Net carrying value	$ 62,698	$ 312,988

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Debt - Capped Call Transactions (Details) $ in Millions	Mar. 04, 2025 USD ($) $ / shares	Aug. 05, 2021 USD ($) $ / shares
0.75% Senior Convertible Notes due 2026
Debt Instrument [Line Items]
Initial cap price | $ / shares		27.68
Percentage of premium over last reported sale price of common stock		100.00%
Cost of capped call transactions | $		$ 39.9
0.75% Convertible Senior Notes due 2030
Debt Instrument [Line Items]
Initial cap price | $ / shares	23.46
Percentage of premium over last reported sale price of common stock	100.00%
Cost of capped call transactions | $	$ 42.5

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Debt - Other Debt Agreements (Details) - EOS Imaging S.A. $ in Millions	3 Months Ended
	Mar. 31, 2025 USD ($) Agreement
Line Of Credit Facility [Line Items]
Number of loan agreements | Agreement	2
Loan One
Line Of Credit Facility [Line Items]
Outstanding loan obligation	$ 2.0
Weighted average interest rate on loan	0.98%
Percentage of weighted average cost of state guaranty	0.69%
Loan Two
Line Of Credit Facility [Line Items]
Outstanding loan obligation	$ 0.9
Weighted average interest rate on loan	1.25%
Percentage of weighted average cost of state guaranty	0.00%

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Debt - Principal Payments Remaining on Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Debt Disclosure [Abstract]
Remainder of 2025	$ 2,321
2026	64,623
2027	15,458
2028	206,500
Thereafter	405,000
Total	693,902
Less: unamortized debt discount and debt issuance costs	(145,499)
Net carrying value	548,403
Less: current portion of long-term debt	(2,569)
Long-term debt	$ 545,834	$ 574,522

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Derivative Liability - Change in Conversion Option Derivative Liability (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Derivative Liability [Abstract]
Beginning Balance	$ 0
Addition of derivative liability	124,062
Change in fair value	(17,400)	$ 0
Ending Balance	$ 106,662

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Commitments and Contingencies - Additional Information (Details) $ in Millions	3 Months Ended
	Mar. 31, 2025 USD ($)
Loss Contingencies [Line Items]
Lessee operating lease, description	Any short-term leases defined as twelve months or less or month-to-month leases are excluded and are expensed each month. Total costs associated with these short-term leases are immaterial to all periods presented.
Remaining minimum purchase commitment required	$ 8.0
Minimum
Loss Contingencies [Line Items]
Operating lease term	1 year
Maximum
Loss Contingencies [Line Items]
Operating lease term	10 years

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Commitments and Contingencies - Future Minimum Annual Lease Payments (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
Remainder of 2025	$ 5,337
2026	6,640
2027	6,565
2028	6,046
2029	5,961
Thereafter	10,214
Total undiscounted lease payments	40,763
Less: imputed interest	(7,891)
Operating lease liabilities	32,872
Less: current portion of operating lease liabilities	(6,310)	$ (6,453)
Operating lease liabilities, less current portion	$ 26,562	$ 27,305

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Commitments and Contingencies - Summary of Weighted-Average Remaining Lease Term and Discount Rate (Details)	Mar. 31, 2025	Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
Weighted-average remaining lease term (years)	6 years 1 month 6 days	6 years 4 months 24 days
Weighted-average discount rate	6.90%	6.90%

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Commitments and Contingencies - Summary of Operating Leases (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
Rent expense	$ 1,825	$ 1,466
Cash paid for amounts included in measurement of lease liabilities	$ 1,781	$ 1,419

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Stock-Benefit Plans and Equity Transactions - Summary of Total Stock Based Compensation (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	$ 22,318	$ 17,322
Cost of Sales
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	3,043	483
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	3,644	4,315
Sales, general and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	$ 15,631	$ 12,524

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Stock-Benefit Plans and Equity Transactions - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions		1 Months Ended			3 Months Ended
	Sep. 27, 2024	Mar. 31, 2025	May 31, 2024	Oct. 31, 2022	Mar. 31, 2025	Mar. 31, 2024
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Precentage of Cash Payment Base Salaries Reduced		50.00%
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Precentage of Cash Payment Base Salaries Reduced		10.00%
Mr. Miles
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrant expiration period					5 years
Warrant extended term			9 years	7 years
Number of warrants exercised					0
Squadron Medical | Participant Lender
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of warrants exercised					0
L5 Healthcare Partners Warrants | Healthcare Partners, LLC
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants Expiration Month Year	2026-08
Common stock shares issued	1,133,160
Warrant purchase price per share	$ 1.98
Warrant purchase price	$ 2.2
RSU's and PRSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unamortized compensation expense		$ 77.3			$ 77.3
Unamortized compensation expense to be recognized over weighted average period					2 years 3 days
Shares of common stock issued before net settlement					3,521,532	3,154,000
ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued under ESPP					0	0

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Stock-Benefit Plans and Equity Transactions - Schedule of Assumptions used to Estimate Fair Value of Stock Options Granted and Stock Purchase Rights under ESPP (Details) - ESPP	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate, minimum	4.44%	5.41%
Expected term (years)	6 months	6 months
Volatility, minimum	91.91%	58.41%

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Stock-Benefit Plans and Equity Transactions - Summary of All Outstanding Warrants for Common Stock (Details) shares in Thousands	3 Months Ended
	Mar. 31, 2025 $ / shares shares
Class Of Warrant Or Right [Line Items]
Number of Warrants	9,316
2018 Squadron Medical Warrants
Class Of Warrant Or Right [Line Items]
Number of Warrants	845
Strike Price | $ / shares	$ 3.15
Expiration	May 2027
2019 Squadron Medical Warrants
Class Of Warrant Or Right [Line Items]
Number of Warrants	4,839
Strike Price | $ / shares	$ 2.17
Expiration	May 2027
2020 Squadron Medical Warrants
Class Of Warrant Or Right [Line Items]
Number of Warrants	1,076
Strike Price | $ / shares	$ 4.88
Expiration	May 2027
Executive Warrants
Class Of Warrant Or Right [Line Items]
Number of Warrants	1,327
Strike Price | $ / shares	$ 5
Expiration	December 2026
L-5 Healthcare Warrants
Class Of Warrant Or Right [Line Items]
Number of Warrants	1,133
Strike Price | $ / shares	$ 2.17
Expiration	August 2026
Other Warrants
Class Of Warrant Or Right [Line Items]
Number of Warrants	96	[1]
Strike Price | $ / shares	$ 11.79	[1]
Expiration	Various through June 2026	[1]

[1] Weighted-average strike price.

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Business Segment and Geographic Information - Additional Information (Details)	3 Months Ended
	Mar. 31, 2025 Segment
Segment Reporting [Abstract]
Number of operating segments	1
Segment Reporting, CODM, Individual Title and Position or Group Name [Extensible Enumeration]	srt:ChiefExecutiveOfficerMember
Segment Reporting, CODM, Profit (Loss) Measure, How Used, Description	The Company determined that consolidated net loss is the Company’s measure of segment profit or loss.

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Business Segment and Geographic Information - Schedule of Net Revenue and Property, and Equipment, Net, by Geographic Region (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024	Dec. 31, 2024
Revenues From External Customers And Long Lived Assets [Line Items]
Revenue	$ 169,180	$ 138,477
Property and equipment, net	146,641		$ 156,394
United States
Revenues From External Customers And Long Lived Assets [Line Items]
Revenue	159,112	129,845
Property and equipment, net	145,068		154,772
International
Revenues From External Customers And Long Lived Assets [Line Items]
Revenue	10,068	$ 8,632
Property and equipment, net	$ 1,573		$ 1,622

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Net Loss Per Share - Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Numerator:
Net loss	$ (51,907)	$ (48,495)
Denominator:
Weighted average shares outstanding, basic	146,732	140,980
Weighted average shares outstanding, diluted	146,732	140,980
Net loss per share, basic:	$ (0.35)	$ (0.34)
Net loss per share, diluted:	$ (0.35)	$ (0.34)

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Net Loss Per Share - Anti-Dilutive Securities of Common Stock Excluded from Calculation of Diluted Net Loss Per Share (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities not included in diluted net loss per share (in shares)	57,382	36,856
Options to purchase common stock and employee stock purchase plan
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities not included in diluted net loss per share (in shares)	2,196	2,611
Unvested restricted stock unit awards
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities not included in diluted net loss per share (in shares)	7,894	8,783
Warrants to purchase common stock
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities not included in diluted net loss per share (in shares)	9,316	8,216
2026 Notes
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities not included in diluted net loss per share (in shares)	3,449	17,246
2030 Notes
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities not included in diluted net loss per share (in shares)	34,527

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Income Taxes - Additional Information (Details)	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Income Tax Disclosure [Abstract]
Effective income tax rate from operations	0.12%	0.14%
Federal statutory income tax rate	21.00%	21.00%

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Related Party Transactions - Additional Information (Details) - Squadron Supplier Affiliate - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024	Dec. 31, 2024
Related Party Transaction [Line Items]
Purchased inventory from related party	$ 2.8	$ 4.7
Due to Affiliate	$ 2.7		$ 1.8