Financial Data and Key Metrics Changes - Revenue in Q4 2025 was $62.5 million, a decrease of 9% compared to the prior year period, primarily due to a shift in revenue mix towards lower-priced products [21] - Gross margin was 80.6% in Q4 2025, slightly down from 80.7% in Q4 2024 [21] - 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 [22] - Full year 2025 adjusted EBITDA loss was $3.9 million, a 64% improvement over the prior year [22] - Cash usage for the full year 2025 was $27.3 million, a 46% reduction compared to $50.5 million in 2024 [23] Business Line Data and Key Metrics Changes - The company has expanded its bunion procedure offerings, now addressing virtually 100% of surgeons' technique preferences with five best-in-class instrumented systems [5] - The new bunion systems launched in 2025 have already been adopted by over 25% of the surgeon base, contributing to increased procedure volume growth [13] - The company expects to continue to reduce cash burn by approximately 50% in 2026 compared to 2025 [9] Market Data and Key Metrics Changes - The overall foot and ankle market was reported to be unusually soft in 2025, with elective procedures experiencing declines [27] - The company anticipates that case volume growth will improve in 2026, particularly in the fourth quarter, driven by new product launches and an increase in case volumes [8][19] Company Strategy and Development Direction - The company is focused on leveraging its existing customer base to drive adoption of new bunion products and expanding its product offerings to grow wallet share [10] - The introduction of new technologies, such as the Lapiplasty Lightning and SpeedTMT, is expected to attract new surgeons and enhance the company's competitive position [15][19] - The company plans to continue its emphasis on medical education and training for surgeons to ensure successful integration of new products [18] Management's Comments on Operating Environment and Future Outlook - Management noted that while there are ongoing headwinds related to economic conditions and consumer sentiment, they remain confident in their strategies to restore revenue growth [7] - The outlook for full year 2026 revenue is projected to be in the range of $200 million to $212 million, reflecting a decline of 6% to 0% compared to 2025 [8][23] - Management expressed optimism about the potential for market share gains and improved profitability through disciplined investments and strategic initiatives [19] Other Important Information - The company has expanded its active surgeon base from nearly 1,300 users in 2020 to over 3,300 users in 2025, indicating strong growth in customer engagement [18] - The company has entered the biologics market with new offerings, which are expected to enhance revenue without negatively impacting margins [16] Q&A Session Summary Question: Insights on the softness in the foot and ankle market - Management acknowledged that 2025 was a softer year for elective procedures, but noted an increase in Q4 case volumes, indicating market share gains despite the overall market conditions [27] Question: Impact of the biologics portfolio on operating margins - Management expressed confidence that the expansion into biologics would provide additional revenue without negatively impacting margins [30] Question: Development timeline and surgeon feedback on new products - Management confirmed that new products like SuperBite screws and SpeedXM have been in development for about 18 months and received positive feedback from surgeons during testing [35] Question: Guidance assumptions for 2026 - Management indicated that guidance includes assumptions for the uptake of new products and the performance of existing offerings, with a focus on achieving reasonable and achievable targets [82] Question: Strategy for penetrating the market - Management emphasized the strategy of deepening engagement with the existing surgeon base while also attracting new surgeons through innovative product offerings [88]