Treace Medical Concepts (NasdaqGS:TMCI) FY Conference Transcript

Treace Medical Concepts FY Conference Summary Company Overview - Company: Treace Medical Concepts (NasdaqGS:TMCI) - Industry: Medical Device, specifically focused on bunion correction - Mission: Improve surgical outcomes for bunion patients through innovative technologies - IPO: 2021, with significant market share gains and Adjusted EBITDA progress since then [1][2] Core Points and Arguments Market Position and Strategy - Treace Medical is the largest dollar share player in the U.S. bunion market, having transformed from a Lapiplasty company to a comprehensive bunion solutions provider [2][6] - The bunion market is considered under-penetrated, with approximately 4.5 million Americans seeking treatment annually, and an estimated $5 billion-plus U.S. Total Addressable Market (TAM) [3][17] - Less than half of symptomatic surgical candidates opt for surgery due to past surgical downsides, indicating a significant opportunity for Treace's innovative solutions [3][10] Product Innovations - Introduction of the Lapiplasty 3D Bunion Correction Procedure has revolutionized bunion surgery by addressing all three planes of bunion deformity, leading to better surgical outcomes [4][5] - New technologies such as Nanoplasty and Percuplasty target high-volume osteotomy segments, representing 70% of annual bunion cases in the U.S. [8][9] - The Speed MTP system addresses arthritic great toe or MTP joints, expanding Treace's offerings in the bunion market [9][10] Financial Performance - In Q4, revenues were projected between $62.1 million and $62.5 million, slightly above market expectations, driven by robust uptake of new technologies [19][20] - Adjusted EBITDA improved by 55% year-over-year in 2024, with expectations for continued profitability in Q4 2025 and significant cash usage reduction [18][45] - Surgeon customer base grew from nearly 1,300 in 2020 to over 3,300 in 2025, achieving a 21% CAGR [17] Market Trends and Challenges - Variability in patient scheduling and softer demand were noted in 2025, impacting overall market trends [21][22] - Surgeons expressed excitement about new MIS technologies, which are expected to reduce learning curves and improve adoption rates [23][24] - The company aims to penetrate the remaining 75% of cases within existing surgeon accounts by leveraging its expanded product portfolio [9][32] Future Outlook - Plans for 2026 include the commercialization of the next-generation Lapiplasty Lightning, which aims to enhance surgical efficiency and accuracy [12][41] - The company is focused on expanding its sales force and enhancing its direct sales strategy, which currently accounts for about 75% of revenue [40] - Continued emphasis on medical education and training for surgeons to ensure successful adoption of new technologies [46][47] Additional Important Insights - Treace Medical's commitment to innovation and comprehensive solutions positions it well in a growing market, with a focus on minimally invasive procedures that appeal to both surgeons and patients [10][11] - The company is strategically adding complementary technologies to enhance its offerings and increase customer wallet share over time [14][15] - The introduction of new products is expected to drive volume growth, with aspirations to significantly increase market penetration in the bunion surgery segment [35][39]