Treace Medical Concepts (NASDAQ:TMCI – Get Free Report) released its quarterly earnings data on Friday. The company reported ($0.19) EPS for the quarter, topping analysts’ consensus estimates of ($0.25) by $0.06, FiscalAI reports. The business had revenue of $48.25 million during the quarter, compared to the consensus estimate of $47.80 million. Treace Medical Concepts had a negative return on equity of 71.37% and a negative net margin of 28.99%.
Here are the key takeaways from Treace Medical Concepts’ conference call:
- Q3 revenue fell 4% year over year to $48.3 million, primarily due to lower-priced product mix and fewer bunion kits sold. Excluding stocking-distributor sales, revenue grew mid-single digits, while procedure volumes increased at a double-digit rate.
- Treace narrowed its 2026 revenue outlook to $206 million–$210 million, still implying a 1%–3% annual decline, and expects to return to revenue growth in Q4. Management attributed the expected improvement to higher procedure volumes, easier comparisons on product mix, and contributions from new launches.
- Profitability and cash trends improved: Q3 adjusted EBITDA was positive $0.3 million versus a $2.6 million loss a year earlier, operating expenses fell 10%, and year-to-date cash usage declined 53%. Full-year adjusted EBITDA is still expected to be a loss of $1 million–$2 million.
- The company is expanding beyond its core bunion products with 2026 launches it estimates add about $700 million of U.S. addressable market; nearly 45% of Lapiplasty surgeons had adopted at least one of its newer bunion systems by Q3. Management sees broader product adoption as a growth opportunity, though it cautioned that newer products may keep average revenue per case below historical levels.
Treace Medical Concepts Stock Down 3.6%
TMCI stock traded down $0.15 during midday trading on Friday, hitting $4.03. 596,717 shares of the company’s stock were exchanged, compared to its average volume of 616,914. The firm has a 50 day moving average price of $4.40 and a 200-day moving average price of $3.28. Treace Medical Concepts has a 12-month low of $1.17 and a 12-month high of $5.25. The stock has a market capitalization of $262.09 million, a price-to-earnings ratio of -4.33 and a beta of 1.59. The company has a current ratio of 2.90, a quick ratio of 1.95 and a debt-to-equity ratio of 0.83.
Analyst Ratings Changes
Several equities research analysts have commented on TMCI shares. Weiss Ratings upgraded Treace Medical Concepts from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Monday, August 31st. Truist Financial lifted their price objective on Treace Medical Concepts from $4.00 to $5.00 and gave the company a “hold” rating in a research note on Monday, August 10th. One investment analyst has rated the stock with a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Reduce” and an average price target of $5.17.
View Our Latest Stock Analysis on Treace Medical Concepts
Insider Activity at Treace Medical Concepts
In related news, CEO John Treace purchased 39,944 shares of the firm’s stock in a transaction dated Thursday, August 20th. The stock was acquired at an average price of $4.44 per share, with a total value of $177,351.36. Following the completion of the transaction, the chief executive officer owned 7,388,383 shares of the company’s stock, valued at $32,804,420.52. This represents a 0.54% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. In the last three months, insiders purchased 55,944 shares of company stock worth $246,841. Corporate insiders own 23.42% of the company’s stock.
Treace Medical Concepts Company Profile
Treace Medical Concepts, Inc is a medical device company focused on developing and commercializing products for the surgical treatment of bunion deformities and other conditions affecting the foot and ankle. The company’s technologies are designed to address the underlying structural causes of bunions and support more stable correction than traditional surgical approaches.
Treace’s primary product is the Lapiplasty 3D Bunion Correction System, which is used by foot and ankle surgeons to correct bunions in three dimensions.
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