Treace Lifts 2026 Sales Floor After Narrower Revenue Drop
Second-quarter sales were $45.4 million, a 4% year-over-year decline that improved from the first quarter’s 10% drop.
Treace Medical Concepts (TMCI), a medical technology company focused on surgical treatment of bunions and related deformities, reported second-quarter 2026 revenue of $45.4 million, down 4% from $47.4 million a year earlier.
That year-over-year decline narrowed from a 10% drop in the first quarter, when revenue was $47.2 million. The company said the sequential improvement in the growth rate was driven by accelerating year-over-year case volumes and market-share gains as surgeons adopted its expanded bunion portfolio and newer technologies.
Gross profit was $35.6 million. Gross margin was 78.5%, compared with 79.7% in the second quarter of 2025.
Total operating expenses fell 8% to $50.6 million from $54.7 million a year earlier, a $4.2 million decrease attributed primarily to targeted expense-reduction initiatives. Sales and marketing was $30.9 million, research and development $4.4 million, and general and administrative $15.2 million.
Net loss was $15.9 million, or $0.24 a share, compared with $17.4 million, or $0.28 a share, in the second quarter of 2025. Adjusted EBITDA was a $3.5 million loss, versus a $3.6 million loss a year earlier. The quarter included $0.8 million of restructuring costs, primarily severance and other post-employment benefits, and $2.1 million of litigation costs related to intellectual-property lawsuits.
Adoption of the expanded bunion portfolio rose to approximately 40% of Lapiplasty surgeon users incorporating one or more of three new bunion systems launched in the third quarter of 2025, from 35% in the first quarter of 2026. The company initiated a limited market release of the SuperBite Compression Screw System and completed the first surgical case with the HyperPlate XM Dynamic Compression Locking Implant System.
Chief Executive John T. Treace said the company is investing in growth initiatives to leverage the expanded portfolio while driving profitability, and that it is positioned for stronger growth in the second half of the year.
Treace raised full-year 2026 revenue guidance to $204 million to $212 million, a 4% to 0% decline versus full-year 2025, from prior guidance of $202 million to $212 million. It updated its full-year 2026 Adjusted EBITDA outlook to a loss of $3.0 million to $5.0 million, from a prior $4.0 million to $6.0 million loss range.
Full-year 2026 guidance assumes continued case-volume growth and improving year-over-year growth rates in the second half of the year as headwinds are annualized. The company reiterated an expectation of an approximately 50% reduction in cash usage for full-year 2026 versus full-year 2025.
Year-to-date cash usage through June 30, 2026 was reduced 57%, or $3.6 million, versus the same period in 2025. Cash, cash equivalents, and marketable securities totaled $45.6 million as of June 30, 2026, down from $51.9 million as of March 31, 2026. The company’s existing credit facility provides an additional $115 million of liquidity subject to certain conditions.