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1. Company Snapshot

1.a. Company Description

Treace Medical Concepts, Inc., an orthopedic medical device company, engages in the design, manufacture, and marketing of medical devices for foot and ankle surgeons in the United States.It offers Lapiplasty procedure that allows podiatric surgeons to treat all three dimensions of the bunion, providing patients with a cosmetic and medical improvement.The company also provides Lapiplasty Mini-Incision precision system.


In addition, it offers products to address ancillary surgical procedures, including akin osteotomies, weil osteotomies, intercuneiform stabilization, lesser tarsometatarsal joint fusions, and autograft bone harvesting, as well as for MTP fusion.Treace Medical Concepts, Inc.was founded in 2013 and is headquartered in Ponte Vedra Beach, Florida.

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1.b. Last Insights on TMCI

The recent performance of Treace Medical Concepts, Inc. has been negatively impacted by a series of investigations and lawsuits related to potential securities law violations. The company's first quarter 2024 financial results, released after the market closed on May 7, 2024, led to a revision of its full year 2024 guidance, lowering it by approximately $20 million. This development has raised concerns among investors, with several law firms commencing investigations and class action lawsuits against the company.

1.c. Company Highlights

2. Treace Medical Concepts' Q3 2025 Earnings: Navigating the Shift in Bunion Correction Preferences

The company's third-quarter 2025 revenue stood at $50.2 million, marking an 11% increase over the prior year period, primarily driven by an increase in bunion procedure kits sold. Gross margin was 79.1% in the third quarter of 2025, slightly down from 80.1% in the third quarter of 2024. The actual EPS loss came in at $0.26, narrower than the estimated loss of $0.28. The company's financial performance reflects the challenges posed by shifting surgeon and patient preferences towards minimally invasive osteotomies and broader economic conditions affecting elective bunion procedures.

Publication Date: Nov -26

📋 Highlights
  • Q3 Revenue Growth: Revenue reached $50.2M, an 11% increase YoY, driven by higher bunion procedure kits sold.
  • Full-Year Revenue Guidance: 2025 revenue projected at $211M–$213M, reflecting 1%–2% growth compared to 2024.
  • Adjusted EBITDA Improvement: Full-year 2025 loss narrowed to $6.5M–$7.5M, a 32%–41% improvement YoY.
  • Cash Use Reduction: Anticipated 43%–47% decline in annual cash burn compared to 2024.

Revising Full-Year Guidance

In response to the current market dynamics, Treace Medical Concepts is revising its full-year 2025 revenue guidance to the range of $211 million to $213 million, representing growth of 1% to 2% compared to the full year 2024. The company also expects a loss in adjusted EBITDA in the range of $6.5 million to $7.5 million for the full year 2025, reflecting a significant improvement over the prior year. Additionally, the company anticipates a reduction in cash use of 43% to 47% for the full year 2025 compared to the full year 2024.

Driving Growth through Innovation

Despite the challenges, Treace Medical Concepts is seeing encouraging traction on its new bunion correction systems, including the Lapiplasty Lightning platform, Percuplasty compression screw system, and SpeedPlate implants. These new products are designed to address virtually 100% of surgeon preferences for bunion correction and are expected to drive growth in 2026. As John Treace mentioned, the company is "playing in that market with novel technologies like Percuplasty and Nanoplasty," which are driving greater penetration and engagement with surgeons.

Valuation and Future Prospects

With a P/S Ratio of 0.89 and an EV/EBITDA of -5.21, the market appears to have factored in the challenges faced by the company. Analysts estimate revenue growth of 1.1% for the next year, indicating a cautious outlook. However, with a robust pipeline of new innovations and a strong commercial organization, Treace Medical Concepts is well-positioned to drive growth and improve profitability in 2026. The company's focus on controlling costs and finding efficiencies will also help to offset the lower top line and improve profitability.

3. NewsRoom

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Johnson Fistel, PLLP Investigates Claims on Behalf of Long‑Term Shareholders of Quantum Computing Inc. (QUBT), Quanex Building Products Corporation (NX), Treace Medical Concepts, Inc. (TMCI), and BigBear.ai Holdings, Inc. (BBAI)

Dec -01

Source: globenewswire.com

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Treace Medical Concepts, Inc. (TMCI) Q3 2025 Earnings Call Transcript

Nov -07

Source: seekingalpha.com

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Treace Announces Participation in Two Upcoming Investor Conferences

Nov -07

Source: globenewswire.com

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Treace Medical Concepts (TMCI) Reports Q3 Loss, Beats Revenue Estimates

Nov -06

Source: zacks.com

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Y Intercept Hong Kong Ltd Raises Stake in Treace Medical Concepts, Inc. $TMCI

Nov -03

Source: defenseworld.net

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Treace Medical Concepts (TMCI) Projected to Post Quarterly Earnings on Thursday

Oct -30

Source: defenseworld.net

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Treace to Report Third Quarter 2025 Financial Results on November 6, 2025

Oct -23

Source: globenewswire.com

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Treace Highlights New Product Innovations and Updated Positive Clinical Study Data at the 2025 American Orthopaedic Foot & Ankle Society Annual Meeting

Sep -10

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (13.00%)

6. Segments

Medical Devices

Expected Growth: 13%

Treace Medical Concepts, Inc.'s 13% growth in Medical Devices is driven by increasing demand for minimally invasive surgical procedures, an aging population, and a growing need for orthopedic and spine treatments. Additionally, advancements in technology, such as robotic-assisted surgery, and strategic partnerships are contributing to the company's growth.

7. Detailed Products

Lapiplasty 3D Bunion Correction

A minimally invasive surgical system for the correction of bunions, utilizing 3D printed titanium implants and a proprietary instrumentation system.

Adductoplasty

A surgical procedure for the correction of hallux valgus interphalangeus, utilizing a proprietary implant and instrumentation system.

Treace Medical Instruments

A range of surgical instruments designed for foot and ankle procedures, including osteotomies, fusions, and soft tissue repairs.

8. Treace Medical Concepts, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Treace Medical Concepts, Inc. has a moderate threat of substitutes due to the presence of alternative medical devices and treatments.

Bargaining Power Of Customers

Treace Medical Concepts, Inc. has a low bargaining power of customers due to the specialized nature of its products and limited customer base.

Bargaining Power Of Suppliers

Treace Medical Concepts, Inc. has a moderate bargaining power of suppliers due to the availability of multiple suppliers for its raw materials and components.

Threat Of New Entrants

Treace Medical Concepts, Inc. has a high threat of new entrants due to the growing demand for medical devices and the relatively low barriers to entry in the industry.

Intensity Of Rivalry

Treace Medical Concepts, Inc. operates in a highly competitive industry with several established players, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 28.29%
Debt Cost 5.79%
Equity Weight 71.71%
Equity Cost 5.79%
WACC 5.79%
Leverage 39.45%

11. Quality Control: Treace Medical Concepts, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Hyperfine

A-Score: 4.7/10

Value: 6.8

Growth: 7.4

Quality: 4.0

Yield: 0.0

Momentum: 9.0

Volatility: 0.7

1-Year Total Return ->

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Treace Medical Concepts

A-Score: 4.4/10

Value: 7.4

Growth: 3.3

Quality: 4.6

Yield: 0.0

Momentum: 8.0

Volatility: 3.0

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AdaptHealth

A-Score: 4.3/10

Value: 8.0

Growth: 6.4

Quality: 3.7

Yield: 0.0

Momentum: 4.0

Volatility: 3.7

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Apyx Medical

A-Score: 3.9/10

Value: 6.8

Growth: 2.9

Quality: 3.6

Yield: 0.0

Momentum: 9.5

Volatility: 0.7

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Cytosorbents

A-Score: 3.4/10

Value: 7.6

Growth: 4.7

Quality: 3.9

Yield: 0.0

Momentum: 3.0

Volatility: 1.0

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Cutera

A-Score: 2.8/10

Value: 10.0

Growth: 1.6

Quality: 5.2

Yield: 0.0

Momentum: 0.0

Volatility: 0.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

2.74$

Current Price

2.74$

Potential

-0.00%

Expected Cash-Flows