ATEC

ATEC is a 100%-spine medtech taking share fast: revenue has climbed $243M→$351M→$482M→$612M→$764M (FY2021–25), a 25% FY25 print and a self-described ~35% CAGR since 2018. The MD&A frames this as adoption-driven — exclusive, clinically-astute sales hires winning untapped surgeons and accounts — and the 69.6% gross margin confirms this is high-value implant/imaging (EOS, IX platform) revenue, not low-quality volume. Crucially, the model is inflecting toward self-funding: operating cash flow swung to +$45.2M (up 201%) and capex was cut nearly in half to $42.5M, putting free cash flow roughly at breakeven for the first time. Operating loss narrowed ~40% to -$82.1M and net loss improved to -$143M. That is the textbook 'approaching profitability at scale' pattern.

The balance sheet is the watch-item, but management has de-risked the near term. In March 2025 they issued $405M of 0.75% convertible notes due 2030 (conversion ~$15.54) and used proceeds to repurchase 80% of the 2026 notes — pushing out maturities at a trivial coupon. Long-term debt fell 12.7% to $501M; the offsetting jump in current debt (+3,796% to $64.5M) is the residual stub of the old 2026 notes. So the company bought itself runway to reach profitability before any wall. With the stock at $9.50 — well below the $15.54 conversion price — near-term convert dilution is not imminent, though the 5% annual share growth is a real drag.