Financial Data and Key Metrics Changes - Revenue in Q2 2025 was $47.4 million, representing a 7% increase compared to the same period in 2024 [7][19] - Gross margin decreased to 79.7% in 2025 from 80.2% in 2024 [19] - Total operating expenses were reduced by 4% to $54.7 million in 2025 from $57.1 million in 2024 [19] - Net loss improved to $17.4 million or $0.28 per share, an 18% improvement from a net loss of $21.2 million or $0.34 per share in Q2 2024 [20] - Adjusted EBITDA loss was $3.6 million, significantly improved by 58% compared to $8.7 million in 2024 [20] - Cash usage decreased by 55.78% in Q2 2025 compared to the prior year, supporting a projected 50% reduction in cash used for the full year [21] Business Line Data and Key Metrics Changes - The company expanded its portfolio to include three new bunion correction systems, enhancing its offerings alongside the flagship lapoplasty and adductoplasty systems [7][10] - The new systems are expected to drive procedure penetration and expand market leadership [8][10] Market Data and Key Metrics Changes - The total addressable market (TAM) for the company is estimated at over $5 billion, with approximately 1.1 million annual symptomatic surgical candidates in the U.S. [10] - Current market penetration is approximately 2.8%, indicating significant untapped opportunities [10] Company Strategy and Development Direction - The company's strategy focuses on increasing procedure volumes and expanding its customer base, aiming to penetrate the remaining 70% of bunion-related cases among existing customers [11][12] - The company is also targeting new surgeons who prefer metatarsal osteotomy procedures, leveraging its expanded portfolio to attract this audience [12][13] - The company plans to launch additional products and technologies, including the next-generation Lapaplasty system, to further enhance its market position [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving revenue growth of 7% to 10% for the full year 2025, with expectations for sequential growth in the remaining quarters [15][21] - The company anticipates a strong performance in Q3 and Q4, traditionally the strongest quarters, driven by new product launches and increased surgeon engagement [35][41] Other Important Information - The company will host an Investor Day on September 3, 2025, to present its expanded technology portfolio [22] - A recent peer-reviewed publication highlighted successful patient outcomes from the ALIGN3D lapoplasty clinical study, further differentiating the company's offerings in the marketplace [16] Q&A Session Summary Question: Can you provide more quantitative commentary on surgeon profiles for the new systems? - Management expects increasing volumes and revenue contributions from the new systems as they penetrate the market and serve the osteotomy segment [25] Question: What feedback has been received regarding the Lapoplasty Lightning System? - The Lapoplasty Lightning System is anticipated to significantly advance the procedure, with expectations for it to drive growth in 2026 [30] Question: How is the company viewing the foot and ankle market and procedure trends? - Management noted that while some procedures have been pushed out, they do not believe any cases are lost, and they anticipate growth to be back half-weighted [34][35] Question: What is the confidence level in achieving a strong ramp in Q4? - Management expressed confidence in a substantial step-up in revenue and procedure volume in Q4, supported by a full suite of bunion products [41][58] Question: Is there interest in inorganic growth opportunities? - The company is opportunistically looking for inorganic growth opportunities to drive expansion and is also exploring international markets [53]