Treace Medical Q3 revenue falls but slightly beats expectations
TMCI•Treace Medical's third-quarter revenue fell 4% year over year to $48.25 million, slightly above the $47.8 million consensus. The company forecast 2026 revenue of $206 million to $210 million, compared with its prior range of $204 million to $212 million.
1. Revenue and earnings
Third-quarter revenue declined 4% year over year to $48.25 million, slightly beating analyst expectations of $47.8 million. Treace Medical reported a loss per share of $0.19 and gross margin of 79.5%; adjusted EBITDA turned positive, improving from a loss a year earlier.
2. Drivers and outlook
The revenue decline was mainly driven by greater sales of lower-priced minimally invasive products and lower bunion procedure kit volumes. About 45% of Lapiplasty surgeon users were using one or more new systems, up from 40% in the second quarter, while operating expenses fell 10% year over year. Treace Medical expects 2026 revenue of $206 million to $210 million and reiterated that it expects cash usage to fall about 50% from 2025.
