Treace Medical Concepts Reports Third Quarter 2025 Financial Results

Core Insights - Treace Medical Concepts reported a revenue of $50.2 million for Q3 2025, an 11% increase from $45.1 million in Q3 2024, but is revising its full-year 2025 revenue guidance down to $211 million to $213 million due to market challenges [4][7][10] Financial Performance - Revenue for Q3 2025 was $50.2 million, up 11% from $45.1 million in Q3 2024 [4] - Gross profit for Q3 2025 was $39.7 million, with a gross margin of 79.1%, compared to $36.1 million and 80.1% in Q3 2024 [4] - Total operating expenses increased to $55.4 million in Q3 2025, up 8% from $51.3 million in Q3 2024 [5] - The 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 [5][8] - Adjusted EBITDA loss improved by 49% to $(2.6) million in Q3 2025 from $(5.1) million in Q3 2024 [5][8] Market Dynamics - The company is experiencing headwinds due to a shift in surgeon and patient preferences towards minimally invasive solutions, leading to a decline in Lapiplasty volumes [3][10] - Broader macroeconomic conditions and softer consumer sentiment have resulted in increased deferrals of elective bunion procedures [3][10] Product and Innovation - Treace expanded its bunion technology portfolio with the market release of the Nanoplasty and Percuplasty™ 3D MIS Osteotomy Systems and the SpeedMTP MTP Fusion System [8] - The company presented positive clinical data at the American Orthopaedic Foot & Ankle Society Annual Meeting, highlighting results from its clinical studies [8] Liquidity and Cash Flow - As of September 30, 2025, Treace had total liquidity of $80.6 million, consisting of $57.4 million in cash and cash equivalents and $23.2 million available under a revolving loan facility [6] - Cash usage decreased by 17% in Q3 2025 compared to the prior year [6] Revised Financial Outlook - The company has revised its full-year 2025 revenue guidance to $211 million to $213 million, reflecting a growth of only 1% to 2% compared to 2024, down from previous guidance of $224 million to $230 million [7][10] - Adjusted EBITDA loss is now expected to be in the range of $(6.5) million to $(7.5) million for the full year 2025, compared to previous guidance of breakeven [7]