Treace Medical Concepts, Inc. (TMCI) Q3 2025 Earnings Call Transcript
Revenue $50.2 million in Q3 2025, an increase of $5.1 million or 11% year-over-year. Growth was mainly driven by an increase in bunion procedure kits sold compared to the prior year.
Gross Margin 79.1% in Q3 2025 compared to 80.1% in Q3 2024, a slight decrease due to changes in product mix and other factors.
Operating Expenses $55.4 million in Q3 2025, an increase of 8% compared to $51.3 million in Q3 2024. The increase reflects higher medical education, surgeon training events, restructuring charges, and litigation expenses.
Net Loss $16.3 million or $0.26 per share in Q3 2025, an increase of 6% compared to $15.4 million or $0.25 per share in Q3 2024. The increase was due to higher operating expenses.
Adjusted EBITDA Loss $2.6 million in Q3 2025, a reduction of 49% compared to $5.1 million in Q3 2024. This improvement reflects progress towards profitability goals.
Year-to-Date Net Loss $49.6 million in 2025, a decrease of 10% compared to $55.2 million in 2024. The improvement was driven by better cost management and operational efficiencies.
Year-to-Date Adjusted EBITDA Loss $10.1 million in 2025, a decrease of 54% compared to $22.1 million in 2024. This reflects significant progress in improving profitability.
Total Liquidity $80.6 million as of September 30, 2025, compared to $90.7 million at the end of Q2 2025. The decrease was due to operational cash usage, though cash usage decreased year-over-year by 17% in Q3 and 58% year-to-date.
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Treace Medical Concepts Reports Q4 2025 Revenue of $62.1M to $62.5M, Beating Consensus
- Revenue Performance: Treace Medical Concepts reported preliminary Q4 2025 revenue of $62.1M to $62.5M, reflecting a 9% decrease year-over-year, although it surpassed the consensus estimate of $61.76M, indicating ongoing business challenges.
- Annual Revenue Growth: For the full year 2025, preliminary revenue was $212.3M to $212.7M, representing a 2% increase compared to the previous year, aligning with the previously provided guidance of $211M to $213M, showcasing consistent growth amidst market conditions.
- Surgeon Increase: The company added approximately 202 new active surgeons in 2025, ending the year with around 3,337 active surgeons, a 6% increase from the prior year, indicating a 33% penetration rate among the estimated 10,000 U.S. surgeons performing bunion surgeries.
- Market Reaction: Treace Medical's stock rose 3.21% in pre-market trading to $2.89, reflecting investor optimism regarding the revenue beat, although the overall declining revenue trend remains a point of concern.
Treace Completes First Surgery Using Lapiplasty®Lightning™ Technology
- Technological Innovation: Treace Medical successfully completed the first surgery using its Lapiplasty®Lightning™ technology, which reduces surgical steps and enhances precision, thereby improving surgical efficiency and patient recovery times.
- Market Outlook: The company anticipates initiating a limited market release of the Lapiplasty®Lightning™ System in mid-2026, further driving Treace's market share in foot surgery to meet the growing surgical demand.
- Clinical Feedback: Surgeon William DeCarbo noted that the Lightning technology made the surgical process more intuitive, allowing for three-plane correction without the need for provisional fixation, thus streamlining the surgical workflow and enhancing patient safety.
- Industry Leadership: As a pioneer in 3D bunion correction, Treace solidifies its market leadership through continuous innovation, which is expected to attract more surgeons to adopt its advanced surgical systems.
