Treace Medical Concepts Reports Second Quarter 2026 Financial Results (Form 8-K)

Treace Medical Concepts Reports Second Quarter 2026 Financial Results

PONTE VEDRA, Fla. - August 7, 2026 - Treace Medical Concepts, Inc. ("Treace" or the "Company") (NasdaqGS: TMCI), a medical technology company driving a fundamental shift in the surgical treatment of bunions and related deformities, today reported financial results for the second quarter ended June 30, 2026.

Recent Highlights

"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 John T. Treace, CEO and Chairman of Treace Medical.

"We continue to focus on investing in growth initiatives to leverage our expanded portfolio, while driving profitability, positioning us for stronger growth in the second half of the year."

Second Quarter 2026 Financial Results

Revenue for the second quarter of 2026 was $45.4 million, representing a decrease of 4% compared to $47.4 million in the second quarter of 2025, and a sequential improvement in year-over-year growth rate.

Gross profit for the second quarter of 2026 was $35.6 million compared to $37.8 million in the second quarter of 2025. Gross margin was 78.5% in the second quarter of 2026, compared to 79.7% in the second quarter of 2025.

Total operating expenses decreased 8% to $50.6 million in the second quarter of 2026 and decreased by $4.2 million compared to total operating expenses of $54.7 million in the second quarter of 2025, primarily driven by targeted expense reduction initiatives across the organization.

Second quarter 2026 net loss was $(15.9) million, or $(0.24) per share, compared to $(17.4) million, or $(0.28) per share, for the same period in 2025. Adjusted EBITDA was $(3.5) million in the second quarter of 2026 compared to $(3.6) million for the same period in 2025. The financial tables and description below provide additional information and a reconciliation of non-GAAP financial information.

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Year-to-date cash usage was reduced 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 of June 30, 2026. The Company's existing credit facility provides an additional $115 million of liquidity subject to certain conditions.

2026 Financial Outlook

The Company is raising its full-year 2026 revenue guidance to be in the range of $204 million to $212 million, representing a decline of 4% to 0% compared to full-year 2025. This compares to previous revenue guidance of $202 million to $212 million.

The Company is updating its expectation of a loss in Adjusted EBITDA in the range of $3.0 million to $5.0 million for full year 2026, as compared to previous guidance of a loss in the range of $4.0 million to $6.0 million. The Company reported a loss of $3.9 million in the full-year 2025.*

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, August 7, 2026, at 8:00 a.m. ET to discuss its second quarter 2026 financial results. Investors interested in listening to the conference call may do so by registering. The live webcast of the conference call will be available on the Investor Relations section of the Company's website at investors.treace.com. The webcast will be archived on the website following the completion of the call.

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.

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*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.