Treace Medical Concepts (TMCI) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue was $45.4 million, down 4–4.2% year-over-year, with sequential improvement in growth rate and high single-digit case volume growth driven by new product adoption and market share gains.

• Net loss for Q2 2026 was $15.9 million ($0.24/share), improved from $17.4 million ($0.28/share) in Q2 2025; adjusted EBITDA loss was $3.5 million, nearly flat year-over-year.

• Cash usage year-to-date reduced by 57% compared to 2025, with cash, equivalents, and marketable securities totaling $45.6 million as of June 30, 2026.

• Expanded product portfolio with three new bunion systems and technologies, increasing addressable market and surgeon utilization; 40% of Lapiplasty users adopted new systems.

• Revenue decline was mainly due to lower sales to distributors and a shift to lower-priced minimally invasive kits, partially offset by higher procedure kit volumes.

Financial highlights

• Gross margin for Q2 2026 was 78.5% (vs. 79.7% in Q2 2025); gross profit was $35.6 million.

• Operating expenses decreased 7.6–8% year-over-year to $50.6 million, reflecting cost controls.

• Sales and marketing expenses fell 6.5% year-over-year; R&D expenses decreased 20.4%; G&A expenses dropped 5.5%.

• Interest expense rose 18.2% due to higher debt balances and amortization of issuance costs.

• Accounts receivable declined to $28.7 million from $42.2 million at year-end 2025; stockholders’ equity was $67.7 million.

Outlook and guidance

• Full-year 2026 revenue guidance raised to $204–$212 million (previously $202–$212 million), representing a 4% decline to flat versus 2025.

• Adjusted EBITDA loss for 2026 expected in the range of $3.0–$5.0 million, improved from prior guidance; expects 50% reduction in cash usage for 2026.

• Anticipates sequential revenue growth in Q3 and a strong Q4, supported by new product launches and increased case volumes.

• Guidance assumes continued case volume growth and improving growth rates in the second half of 2026.

• Company expects to exit 2026 with stronger growth rates and positive momentum into 2027.