Treace Medical 2025 Q1 Earnings Modest Loss Reduction

Treace Medical(TMCI) reported its fiscal 2025 Q1 earnings on May 08th, 2025. Treace Medical Concepts, Inc. reported Q1 2025 revenue of $52.57 million, showing a year-over-year increase of 2.9%. The company narrowed its net loss by 14.7% to $15.92 million compared to Q1 2024's loss of $18.68 million. Treace reaffirmed its full-year 2025 revenue guidance, projecting between $224 million and $230 million, indicating 7% to 10% growth over 2024. Adjusted EBITDA is expected to breakeven for 2025, signaling a steady financial outlook.

Revenue

The total revenue of Treace Medical increased by 2.9% to $52.57 million in 2025 Q1, up from $51.11 million in 2024 Q1.

Earnings/Net Income

Treace Medical narrowed losses to $0.25 per share in 2025 Q1 from a loss of $0.30 per share in 2024 Q1 (16.7% improvement). Meanwhile, the company successfully narrowed its net loss to $-15.92 million in 2025 Q1, reducing losses by 14.7% compared to the $-18.68 million net loss reported in 2024 Q1. The EPS improvement reflects a positive trend for the company.

Price Action

The stock price of Treace Medical has climbed 4.72% during the latest trading day, has edged up 2.72% during the most recent full trading week, and has edged down 0.92% month-to-date.

Post-Earnings Price Action Review

The strategy of buying Treace Medical (TMCI) shares after a revenue drop quarter-over-quarter and holding for 30 days has seen a modest increase of 0.34% over the past five years, slightly underperforming the market's average return of 7.2%. While the 30-day holding period allowed for some recovery, the overall performance remained modest, suggesting that short-term price movements contributed more to this strategy's gains rather than any significant long-term growth. This approach highlights the importance of evaluating market trends and considering both short-term and long-term investment strategies to optimize returns.

CEO Commentary

"We are pleased with the positive customer responses to our three new specialized bunion systems targeting all four classes of bunion deformities while we continue to expand our differentiated body of clinical evidence and drive adoption of our flagship Lapiplasty and Adductoplasty procedures," said John T. Treace, CEO, Founder and Board Member of Treace. He noted that the first quarter results reflect solid growth against a challenging comparison and significant improvements in adjusted EBITDA. Treace emphasized that the expanding best-in-class bunion portfolio, robust innovation pipeline, and significant surgeon training momentum position the company for accelerating growth throughout the year.

Guidance

The Company is reaffirming full-year 2025 revenue guidance of $224 million to $230 million, representing growth of 7% to 10% compared to full-year 2024. Treace continues to expect breakeven Adjusted EBITDA for the full year 2025.

Additional News

Treace Medical Concepts, Inc. has been involved in ongoing litigation, with multiple class action lawsuits filed against the company by firms like Bronstein, Gewirtz & Grossman, LLC, and Glancy Prongay & Murray LLP. These lawsuits allege securities fraud during the class period from May 8, 2023, to May 7, 2024, claiming that Treace made misleading statements about its business and operations. The company is also pursuing legal action against Stryker Corporate and its subsidiary Wright Medical Technology, Inc., alleging patent infringement and unfair competition. Investors have until June 10, 2025, to file as lead plaintiffs in these cases, with law firms offering contingency fee representation.