Treace Medical Concepts (TMCI) investor relations material

Executive summary

• Revenue for Q1 2026 was $47.2 million, down 10.2% year-over-year, driven by a shift from higher-priced flagship kits to lower-priced minimally invasive kits and lower sales volume.

• Net loss for Q1 2026 was $18.0 million ($0.28 per share), compared to $15.9 million ($0.25 per share) in Q1 2025.

• Adjusted EBITDA loss was $5.5 million, compared to $3.8 million in Q1 2025.

• Cash, cash equivalents, and marketable securities totaled $51.9 million as of March 31, 2026, up $3.5 million from year-end 2025.

• The company is expanding its bunion solutions portfolio, launching new products, and investing in innovation to address shifting market preferences and competitive pressures.

Financial highlights

• Gross margin was 79.3% in Q1 2026, compared to 79.7% in Q1 2025.

• Operating expenses decreased to $54.6 million from $57.5 million year-over-year.

• Interest expense increased due to higher debt balances and amortization of issuance costs.

• Net loss margin for Q1 2026 was approximately (38%).

• Royalty expense was $1.2 million, with an aggregate royalty rate of 2.5%.

Outlook and guidance

• Full-year 2026 revenue guidance reaffirmed at $202–$212 million, representing a 0% to 5% decline from 2025.

• Adjusted EBITDA loss expected in the range of $4–$6 million for 2026, with cash usage projected to decrease by about 50% compared to 2025.

• Revenue declines expected to improve through the year, with growth anticipated in Q4 2026, driven by increased case volumes and new product launches.

• Management expects macroeconomic headwinds, including inflation and reduced consumer demand for elective surgeries, to persist.

• The company believes existing liquidity and available debt will fund operations for at least the next twelve months.