Treace(TMCI) - 2025 Q3 - Quarterly Results

Revenue and Profitability - Revenue for Q3 2025 was $50.2 million, an 11% increase from $45.1 million in Q3 2024[5] - Gross profit for Q3 2025 was $39.7 million, with a gross margin of 79.1%, compared to 80.1% in Q3 2024[5] - Net loss for Q3 2025 was $(16.3) million, or $(0.26) per share, compared to $(15.4) million, or $(0.25) per share in Q3 2024[6] - Adjusted EBITDA loss improved by 49% to $(2.6) million in Q3 2025, compared to $(5.1) million in Q3 2024[6] - Net loss for the nine months ended September 30, 2025, was $49,608 million, an improvement from a net loss of $55,242 million for the same period in 2024, reflecting a reduction of approximately 10.4%[25] - Adjusted EBITDA for the nine months ended September 30, 2025, was $(10,080) million, compared to $(22,064) million for the same period in 2024, indicating a significant improvement[27] Expenses and Liabilities - Total operating expenses increased by 8% to $55.4 million in Q3 2025, up from $51.3 million in Q3 2024[6] - Current liabilities increased from $34,925 million to $40,908 million, an increase of about 17.5%[23] - Share-based compensation expense increased from $22,048 million in the nine months ended September 30, 2024, to $26,268 million in the same period of 2025, an increase of about 19%[27] - The company reported a net cash used in operating activities of $(7,944) million for the nine months ended September 30, 2025, compared to $(32,960) million for the same period in 2024, showing a significant improvement in cash flow[25] Guidance and Projections - The company revised its full-year 2025 revenue guidance to $211 million to $213 million, reflecting a growth of 1% to 2% compared to 2024[9] - Expected Adjusted EBITDA loss for full-year 2025 is now projected to be between $(6.5) million and $(7.5) million, a 32% to 41% improvement over the prior year[9] Assets and Equity - Total assets decreased from $217,094 million as of December 31, 2024, to $196,591 million as of September 30, 2025, representing a decline of approximately 9.4%[23] - Total stockholders' equity decreased from $112,892 million as of December 31, 2024, to $89,187 million as of September 30, 2025, a decline of approximately 21.1%[23] Liquidity - Total liquidity as of September 30, 2025, was $80.6 million, consisting of $57.4 million in cash and $23.2 million available under the revolving loan facility[8] Technology and Patents - The company expanded its bunion technology portfolio with the market release of new systems, including Nanoplasty® and Percuplasty™[7] - The global patent portfolio now totals 122 granted patents and 194 pending applications[7] Litigation - The company incurred litigation costs of $2,548 million related to patent infringement lawsuits during the nine months ended September 30, 2025[28] Debt - The company’s long-term debt remained relatively stable, increasing slightly from $53,306 million to $53,529 million[23]