Treace Medical Concepts, Inc. (NASDAQ: TMCI) reported its fourth‑quarter and full‑year 2025 financial results, posting a net loss of $59.0 million, or $0.93 per share, on revenue of $212.7 million, up 2% from $209.4 million in 2024.
Fourth‑quarter revenue fell 9% to $62.5 million, driven by a shift toward lower‑priced bunion kits. Gross profit for the quarter was $49.8 million, giving a gross margin of 80.6%, a slight compression from 80.7% in the prior year. Operating expenses were $56.0 million, essentially flat, and the company recorded an adjusted EBITDA loss of $0.9 million.
Full‑year gross profit reached $169.8 million, with a gross margin of 79.8% versus 80.4% in 2024. Operating expenses totaled $223.9 million, unchanged from the previous year, and the company posted an adjusted EBITDA loss of $3.9 million. Cash on hand was $48.4 million, and a new $115 million credit facility was secured to support ongoing operations.
Management highlighted the impact of the product‑mix shift and the company’s focus on expanding its bunion portfolio. “In 2026, we expect our expanded bunion portfolio and forthcoming product launches to deliver continued market share gains and restore topline growth in the back half of the year,” said CEO John T. Treace. CFO Mark Hare added, “We reduced our Adjusted EBITDA loss to $3.9 million in 2025, a 64% improvement over the prior year. We took several actions in 2025 to reduce our operating expenses and cash usage. Many of these changes will continue to benefit us throughout 2026.”
The company guided for full‑year 2026 revenue of $200 million to $212 million, a decline of up to 6% from 2025, reflecting headwinds from the product‑mix shift and softer demand. Despite these challenges, Treace remains optimistic about surgeon adoption of its 3D bunion technologies and the potential for market‑share gains. “Despite top‑line headwinds, we are encouraged by our fourth‑quarter progress. Surgeon adoption of our expanded suite of 3D bunion technologies again drove mid‑single‑digit case volume growth in the quarter. Supported by our dedicated, bunion‑focused sales force, these technologies position us to further penetrate the bunion market and expand our surgeon customer base,” said Treace.
The results underscore the company’s ongoing transition toward a broader bunion‑solutions portfolio, with margin compression largely attributable to the shift toward lower‑priced kits. While operating expenses remained flat, the company’s cost‑control initiatives have reduced the adjusted EBITDA loss, and the new credit facility provides additional liquidity. The guidance signals cautious optimism, with management anticipating that the upcoming product launches and continued surgeon adoption will eventually reverse the short‑term revenue decline and support long‑term growth.
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