Recent Highlights
- Generated revenue of
$45.4 million in the second quarter 2026 compared to$47.4 million in the same period in 2025. - Reported second quarter 2026 net loss of
$(15.9) million and adjusted EBITDA of$(3.5) million in the second quarter 2026. - Reduced year-to-date cash usage by 57% or
$3.6 million when compared to the same period in 2025. Cash, cash equivalents, and marketable securities totaled$45.6 million as ofJune 30, 2026 . - Initiated limited market release of SuperBite™ Compression Screw System and completed the first surgical case with HyperPlate™ XM Dynamic Compression Locking Implant System.
- Increased adoption of expanded bunion portfolio with approximately 40% of Lapiplasty® surgeon users incorporating one or more of its three new bunion systems launched in the third quarter 2025 from 35% in the first quarter of 2026.
“We are pleased with our second quarter results which were driven by accelerating year-over-year case volumes and market share gains resulting from increasing surgeon adoption of our comprehensive bunion portfolio as well as our expanding line of new technologies – now providing us access to a broader range of procedures throughout the foot & ankle,” said
Second Quarter 2026 Financial Results
Revenue for the second quarter of 2026 was
Gross profit for the second quarter of 2026 was
Total operating expenses decreased 8% to
Second quarter 2026 net loss was
Year-to-date cash usage was reduced by 57% or
2026 Financial Outlook
The Company is raising its full-year 2026 revenue guidance to be in the range of
The Company is updating its expectation of a loss in Adjusted EBITDA in the range of
The Company reiterates its expectation for a reduction in cash usage of approximately 50% for full-year 2026 as compared to the full year 2025.
The Company’s full-year 2026 guidance assumes continued case volume growth and improving year-over-year growth rates for the second half of the year as headwinds are annualized.
Webcast and Conference Call Details
Treace will host a conference call today,
Use of Non-GAAP Financial Measures
To supplement the financial results presented in accordance with GAAP, this earnings release presents Adjusted EBITDA, which the Company defines as net loss before depreciation and amortization expense, interest income, interest expense, taxes, share-based compensation expense, acquisition-related costs, restructuring costs, customer credit loss, litigation costs, and debt extinguishment loss. Non-GAAP financial measures such as Adjusted EBITDA are presented in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. Management uses non-GAAP financial measures to evaluate the Company’s operating performance and trends, as well as for making planning decisions. The Company believes that Adjusted EBITDA helps to identify underlying trends in the Company’s business that may otherwise be masked by the effect of the income and expenses and other items that it excludes in its calculation of Adjusted EBITDA. Accordingly, the Company believes this non-GAAP financial measure provides useful information to investors and others in understanding and evaluating the Company’s operating results, enhancing the overall understanding of its past performance and future prospects, and allowing for greater transparency with respect to key financial metrics used by the Company’s management in their financial and operational decision-making. The Company also presents this non-GAAP financial measure because it believes investors, analysts and rating agencies consider it to be a useful metric in measuring the Company’s performance against other companies and its ability to meet its debt service obligations.
There are limitations related to the use of non-GAAP financial measures such as Adjusted EBITDA because they are not prepared in accordance with GAAP, may exclude significant income and expenses required by GAAP to be recognized in the Company’s financial statements, and may not be comparable to non-GAAP financial measures used by other companies. The Company encourages investors to carefully consider its results under GAAP, as well as its supplemental non-GAAP information and the reconciliation between these presentations, to more fully understand its business. A reconciliation between GAAP and non-GAAP results is presented below.
*A reconciliation of Adjusted EBITDA to GAAP net loss on a forward-looking basis is not available without unreasonable efforts due to the high variability, complexity and low visibility with respect to the items excluded from this non-GAAP measure.
Forward-Looking Statements
This press release and statements made during the Company’s earnings call contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are forward-looking statements, including, but not limited to, the Company’s: 2026 full-year guidance; anticipated liquidity; 2026 Adjusted EBITDA guidance; expected 2026 cash usage decrease; anticipated return to stronger growth in the second half of the year; anticipated continued case volume growth; expected increase in product adoptions, portfolio utilization and market share; continued execution of commercial and other strategic initiatives; ability to effectively respond to and mitigate the impact of challenges in the current market environment, including in response to increased competition, evolving surgeon and patient preferences for minimally invasive bunion solutions, changes in tariffs and trade policies, protracted government shutdowns, and lower patient demand for elective bunion surgery due to macroeconomic uncertainty and soft consumer sentiment; anticipated future product launches and the timing of such product launches; ability to increase procedure volumes, expand surgeon relationships and utilization rate, and increase procedure penetration and market share; ability to protect and enforce its intellectual property rights, including through its patent infringement and unfair competition suits; success in defending against securities class actions and infringement of its intellectual property by third parties, including its competitors; expected seasonality; ability to leverage investments in its commercial organization and control costs in its organizational structure; anticipated expansion of clinical evidence; the amount and timing of orders for our products from stocking distributors and other customers; and anticipated pace of growth in the foot and ankle market. Forward-looking statements are based on management’s current assumptions and expectations of future events and trends, which affect or may affect the Company’s business, strategy, operations or financial performance, and actual results and other events may differ materially from those expressed or implied in such statements due to numerous risks and uncertainties. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Factors that could cause actual results or other events to differ materially from those contemplated in this press release can be found in the Risk Factors section of Treace’s public filings with the Securities and Exchange Commission (SEC), including its Annual Report on Form 10-K for the year ended
Internet Posting of Information
Treace routinely posts information that may be important to investors in the “Investor Relations” section of its website at www.treace.com. The Company encourages investors and potential investors to consult the Treace website regularly for important information about Treace.
About Treace Medical Concepts
To learn more about Treace, connect with us on LinkedIn, X, Facebook and Instagram.
Contacts:
Chief Financial Officer
mhair@treace.net
(904) 373-5940
Investors:
IR@treace.net
Statements of Operations and Comprehensive Loss (in thousands, except share and per share amounts) (unaudited) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Revenue | $ | 45,376 | $ | 47,387 | $ | 92,574 | $ | 99,957 | ||||||||
| Cost of goods sold | 9,769 | 9,635 | 19,560 | 20,312 | ||||||||||||
| Gross profit | 35,607 | 37,752 | 73,014 | 79,645 | ||||||||||||
| Operating expenses | ||||||||||||||||
| Sales and marketing | 30,940 | 33,084 | 64,715 | 69,206 | ||||||||||||
| Research and development | 4,376 | 5,498 | 8,998 | 11,060 | ||||||||||||
| General and administrative | 15,249 | 16,144 | 31,426 | 31,935 | ||||||||||||
| Total operating expenses | 50,565 | 54,726 | 105,139 | 112,201 | ||||||||||||
| Loss from operations | (14,958 | ) | (16,974 | ) | (32,125 | ) | (32,556 | ) | ||||||||
| Interest income | 445 | 775 | 946 | 1,616 | ||||||||||||
| Interest expense | (1,562 | ) | (1,321 | ) | (3,132 | ) | (2,632 | ) | ||||||||
| Other income, net | 202 | 122 | 477 | 252 | ||||||||||||
| Other non-operating income (expense), net | (915 | ) | (424 | ) | (1,709 | ) | (764 | ) | ||||||||
| Net loss | $ | (15,873 | ) | $ | (17,398 | ) | $ | (33,834 | ) | $ | (33,320 | ) | ||||
| Other comprehensive income (loss) | ||||||||||||||||
| Unrealized gain (loss) on marketable securities | (26 | ) | (7 | ) | (124 | ) | (47 | ) | ||||||||
| Comprehensive loss | $ | (15,899 | ) | $ | (17,405 | ) | $ | (33,958 | ) | $ | (33,367 | ) | ||||
| Net loss per share, basic and diluted | $ | (0.24 | ) | $ | (0.28 | ) | $ | (0.52 | ) | $ | (0.53 | ) | ||||
| Weighted-average shares used in computing net loss per share, basic and diluted | 65,049,844 | 63,006,891 | 64,822,526 | 62,843,337 | ||||||||||||
Balance Sheets (in thousands, except share and per share amounts) (unaudited) | ||||||||
| 2026 | 2025 | |||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 12,610 | $ | 10,708 | ||||
| Marketable securities, short-term | 33,009 | 37,659 | ||||||
| Accounts receivable, net of allowance for credit losses of | 28,732 | 42,155 | ||||||
| Inventories | 39,542 | 36,031 | ||||||
| Prepaid expenses and other current assets | 6,561 | 5,501 | ||||||
| Total current assets | 120,454 | 132,054 | ||||||
| Property and equipment, net | 32,496 | 29,752 | ||||||
| Intangible assets, net of accumulated amortization of | 6,650 | 7,125 | ||||||
| 12,815 | 12,815 | |||||||
| Operating lease right-of-use assets | 7,139 | 7,614 | ||||||
| Other non-current assets, net of allowance for credit losses of | 1,501 | 1,221 | ||||||
| Total assets | $ | 181,055 | $ | 190,581 | ||||
| Liabilities and Stockholders’ Equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 16,061 | $ | 6,726 | ||||
| Accrued liabilities | 6,281 | 5,784 | ||||||
| Accrued commissions | 6,740 | 9,365 | ||||||
| Accrued compensation | 8,087 | 6,331 | ||||||
| Other liabilities | 4,327 | 2,429 | ||||||
| Total current liabilities | 41,496 | 30,635 | ||||||
| Long-term debt, net | 56,042 | 55,583 | ||||||
| Operating lease liabilities, net of current portion | 13,091 | 13,982 | ||||||
| Other long-term liabilities | 2,689 | 3,049 | ||||||
| Total liabilities | 113,318 | 103,249 | ||||||
| Stockholders’ equity | ||||||||
| Preferred stock, | — | — | ||||||
| Common stock, | 65 | 64 | ||||||
| Additional paid-in capital | 351,966 | 337,371 | ||||||
| Accumulated deficit | (282,826 | ) | (248,992 | ) | ||||
| Accumulated other comprehensive income (loss) | (52 | ) | 72 | |||||
| (1,416 | ) | (1,183 | ) | |||||
| Total stockholders’ equity | 67,737 | 87,332 | ||||||
| Total liabilities and stockholders’ equity | $ | 181,055 | $ | 190,581 | ||||
Statements of Cash Flows (in thousands) (unaudited) | ||||||||
| Six Months Ended | ||||||||
| 2026 | 2025 | |||||||
| Cash flows from operating activities | ||||||||
| Net loss | $ | (33,834 | ) | $ | (33,320 | ) | ||
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities | ||||||||
| Depreciation and amortization expense | 2,787 | 5,037 | ||||||
| Provision for allowance for credit losses | 243 | 581 | ||||||
| Share-based compensation expense | 14,497 | 18,270 | ||||||
| Non-cash lease expense | 1,103 | 1,133 | ||||||
| Amortization of debt issuance costs | 505 | 148 | ||||||
| Amortization (accretion) of premium (discount) on marketable securities, net | 11 | (114 | ) | |||||
| Other, net | 1,383 | 219 | ||||||
| Net changes in operating assets and liabilities, net of acquisitions | ||||||||
| Accounts receivable | 13,180 | 9,985 | ||||||
| Inventory | (3,511 | ) | (3,142 | ) | ||||
| Prepaid expenses and other assets | (1,060 | ) | 84 | |||||
| Other non-current assets | (320 | ) | (365 | ) | ||||
| Operating lease liabilities | (1,683 | ) | (1,553 | ) | ||||
| Accounts payable | 9,335 | 9,437 | ||||||
| Accrued liabilities | (372 | ) | (5,309 | ) | ||||
| Other, net | 278 | 57 | ||||||
| Net cash provided by (used in) operating activities | 2,542 | 1,148 | ||||||
| Cash flows from investing activities | ||||||||
| Purchases of available-for-sale marketable securities | (18,669 | ) | (30,249 | ) | ||||
| Sales and maturities of available-for-sale marketable securities | 23,184 | 33,408 | ||||||
| Purchases of property and equipment | (5,263 | ) | (8,310 | ) | ||||
| Net cash provided by (used in) investing activities | (748 | ) | (5,151 | ) | ||||
| Cash flows from financing activities | ||||||||
| Proceeds from insurance premium financing | 983 | 983 | ||||||
| Debt issuance costs | (6 | ) | — | |||||
| Payments on insurance premium financing | (735 | ) | (98 | ) | ||||
| Proceeds from exercise of employee stock options | 99 | 235 | ||||||
| Taxes from withheld shares | (233 | ) | (415 | ) | ||||
| Net cash provided by (used in) financing activities | 108 | 705 | ||||||
| Net increase (decrease) in cash and cash equivalents | 1,902 | (3,298 | ) | |||||
| Cash and cash equivalents at beginning of period | 10,708 | 11,350 | ||||||
| Cash and cash equivalents at end of period | $ | 12,610 | $ | 8,052 | ||||
| Supplemental disclosure of cash flow information | ||||||||
| Cash paid for interest | $ | 2,193 | $ | 2,495 | ||||
| Noncash investing activities | ||||||||
| Unrealized (gains) losses, net on marketable securities | $ | 124 | $ | 47 | ||||
| Noncash financing activities | ||||||||
| Legal cost financing | $ | 1,176 | $ | 228 | ||||
Reconciliation of GAAP Net Loss to EBITDA & Adjusted EBITDA (in thousands) (unaudited) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Net loss | $ | (15,873 | ) | $ | (17,398 | ) | $ | (33,834 | ) | $ | (33,320 | ) | ||||
| Adjustments: | ||||||||||||||||
| Interest income | (445 | ) | (775 | ) | (946 | ) | (1,616 | ) | ||||||||
| Interest expense | 1,562 | 1,321 | 3,132 | 2,632 | ||||||||||||
| Taxes | — | — | — | — | ||||||||||||
| Depreciation & Amortization | 1,888 | 2,576 | 2,787 | 5,037 | ||||||||||||
| EBITDA | $ | (12,868 | ) | $ | (14,276 | ) | $ | (28,861 | ) | $ | (27,267 | ) | ||||
| Share-based compensation expense | 6,463 | 9,577 | 14,497 | 18,270 | ||||||||||||
| Restructuring costs1 | 805 | — | 1,009 | — | ||||||||||||
| Litigation costs2 | 2,052 | 1,055 | 4,322 | 1,510 | ||||||||||||
| Adjusted EBITDA | $ | (3,548 | ) | $ | (3,644 | ) | $ | (9,033 | ) | $ | (7,487 | ) | ||||
1 Restructuring charges primarily related to severance payments and other post-employment benefits. 2 Litigation costs related to intellectual property lawsuits. | ||||||||||||||||
