Summary of Treace Medical Concepts (TMCI) 2025 Investor Day Company Overview - Treace Medical Concepts was founded in 2014 with a mission to improve outcomes for bunion patients, achieving over $200 million in revenue primarily through a patented bunion procedure [2][3] - The company is entering a new growth phase with a comprehensive bunion solutions portfolio, aiming to address the significant problem of bunions, which can lead to painful and lifestyle-limiting deformities [3][4] Market Opportunity - Currently, Treace Medical has penetrated about 3% of the symptomatic surgical candidate base, with a goal to reach 7% to 8% to double the business in the coming years [3][4] - There are over 1 million symptomatic surgical candidates for bunion surgery, with high recurrence rates (60% to 70%) associated with traditional two-plane surgeries [4][5] - The company believes that its innovative Lapiplasty technology, which allows for comprehensive three-plane bunion correction, fills a significant gap in the market [4][5] Product Innovations - The Lapiplasty system has been adopted by nearly one-third of bunion surgeons by 2025, with ongoing iterations to improve reproducibility and minimize invasiveness [5][6] - New systems being launched include: - Nanoplasty and Percutoplasty 3D MIS osteotomy systems - SpeedMTP Rapid Compression Implant system - These innovations aim to address significant volume segments and expand access to the untapped 70% of surgeons' cases [6][8] Surgical Techniques and Philosophy - Treace Medical emphasizes a philosophy of teaching surgeons how to perform bunion surgeries effectively, which is seen as a key differentiator from competitors [34][35] - The company has developed a classification system for bunion treatment, recognizing four distinct categories of patients [11][12] - The focus is on achieving reproducible, consistent triplanar results with minimal incisions, reducing patient morbidity and improving recovery times [17][18] Competitive Landscape - Treace Medical's approach contrasts with competitors who may not provide adequate training or support for their surgical techniques [34][39] - The SpeedMTP system is highlighted as intuitive and easy to use, making it appealing to both surgeons and patients [40][41] Patient-Centric Approach - The company aims to change the perception of bunion surgery, traditionally viewed as painful and lengthy, by promoting minimally invasive techniques that offer faster recovery and less pain [50][60] - There is a growing demand for these techniques, particularly among patients who have previously avoided surgery due to fear of pain and recovery time [50][51] Conclusion - Treace Medical Concepts is positioned to lead the bunion surgery market with innovative technologies and a strong focus on surgeon education and patient outcomes, aiming to significantly increase market penetration and improve surgical results in the coming years [3][4][5]

Core Insights - Treace Medical Concepts, Inc. reported a revenue of $52.6 million for Q1 2025, a 3% increase from $51.1 million in Q1 2024, with an adjusted growth of 4.5% when accounting for one less selling day [4][9] - The company is focused on expanding its bunion treatment portfolio and has received positive customer feedback on new specialized bunion systems [3][4] - Treace aims for a full-year 2025 revenue guidance of $224 million to $230 million, indicating a growth of 7% to 10% compared to 2024 [8] Financial Performance - Gross profit for Q1 2025 was $41.9 million, with a gross margin of 79.7%, slightly down from 80.2% in Q1 2024 [4] - Total operating expenses decreased to $57.5 million in Q1 2025 from $59.9 million in Q1 2024 [5] - The net loss for Q1 2025 was $(15.9) million, an improvement from $(18.7) million in Q1 2024, with adjusted EBITDA improving by 53% to $(3.8) million [6][9] Product Development and Market Position - Treace has expanded its bunion technology portfolio with new systems, including the Nanoplasty™ and Percuplasty™ 3D MIS Osteotomy Systems, and the SpeedMTP™ MTP Fusion System [9] - The company announced positive interim clinical data for its procedures at the 2025 ACFAS Annual Scientific Conference [9] - Treace's global patent portfolio has surpassed 100 granted patents, with 172 pending applications, indicating strong innovation and market positioning [9] Liquidity and Financial Outlook - As of March 31, 2025, Treace had total liquidity of $98.6 million, consisting of $76.1 million in cash and marketable securities, and $22.5 million available under a revolving loan facility [7] - The company continues to expect breakeven adjusted EBITDA for the full year 2025, reflecting a focus on improving operational efficiency [8]