Treace Medical Concepts Reports Fourth Quarter and Full-Year 2025 Financial Results

Core Insights - Treace Medical Concepts, Inc. reported financial results for Q4 and full-year 2025, highlighting a shift in product sales and expectations for future growth [1][3][4]. Financial Performance - Q4 2025 revenue was $62.5 million, a 9% decrease from $68.7 million in Q4 2024, primarily due to a shift towards lower-priced bunion kits [4]. - Gross profit for Q4 2025 was $50.4 million, with a gross margin of 80.6%, slightly down from 80.7% in Q4 2024 [4]. - Total operating expenses in Q4 2025 were $56.3 million, up 1% from $55.7 million in Q4 2024 [5]. - The net loss for Q4 2025 was $(9.4) million, or $(0.15) per share, compared to a net loss of $(0.5) million, or $(0.01) per share, in Q4 2024 [5]. - Adjusted EBITDA for Q4 2025 was $6.2 million, down from $11.1 million in Q4 2024 [5]. Full-Year Results - Full-year 2025 revenue was $212.7 million, a 2% increase from $209.4 million in 2024 [6]. - Gross profit for the full year was $169.8 million, with a gross margin of 79.8%, down from 80.4% in 2024 [6]. - Total operating expenses for 2025 were $223.9 million, slightly down from $224.0 million in 2024 [6]. - The full-year net loss was $(59.0) million, or $(0.93) per share, compared to $(55.7) million, or $(0.90) per share, in 2024 [7]. - Adjusted EBITDA loss for 2025 was $(3.9) million, significantly improved from $(11.0) million in 2024 [7]. Operational Highlights - The company increased its active surgeon base by 202, ending 2025 with 3,337 active surgeons, a 6% increase year-over-year [8]. - The company broadened its global patent portfolio to 135 granted patents and 199 pending applications [8]. Cash Flow and Liquidity - Cash, cash equivalents, and marketable securities totaled $48.4 million as of December 31, 2025 [9]. - The company reduced cash usage by 46% to $27.3 million in 2025 compared to $50.5 million in 2024 [8][9]. 2026 Financial Outlook - The company projects full-year 2026 revenue guidance of $200 million to $212 million, indicating a decline of 6% to 0% compared to 2025 [10]. - Expected Adjusted EBITDA loss for 2026 is projected to be between $(4.0) million and $(6.0) million [10]. - Anticipated reduction in cash usage for 2026 is approximately 50% compared to 2025 [10].