Treace Medical Concepts (TMCI) reported preliminary revenue for the fourth quarter of 2025 at $62.3 million, a 9% decline from the $68.7 million earned in the same period a year earlier. The figure also surpassed the consensus estimate of $61.76 million, giving the company a revenue beat of roughly $0.5 million or 0.8%.
Full‑year 2025 revenue was $212.5 million, a 2% increase over the $209.4 million recorded in 2024 and comfortably within the company’s revised guidance of $211 million to $213 million. The year‑over‑year growth, while modest, reflects steady demand for the company’s bunion correction systems.
Gross margin for the quarter was 79.1%, slightly lower than the 79.5% margin reported in Q3 2025. Management attributed the compression to a shift in product mix toward newer, lower‑average‑selling‑price systems, which, while expanding the addressable market, exerted downward pressure on overall profitability.
Surgeon adoption of the company’s expanded 3D bunion technology portfolio continued to drive mid‑single‑digit case‑volume growth, offsetting the revenue decline. The mix shift, combined with broader macroeconomic headwinds affecting elective surgeries, explains the YoY revenue drop despite the increase in active surgeons.
CEO John T. Treace emphasized that the company remains focused on expanding its market share and improving profitability. He noted that the mix shift is a strategic move to broaden the product line, and that the company will provide full‑year 2025 guidance during its earnings conference call on February 26 2026.
In pre‑market trading, the stock advanced 3.21%, reflecting investor confidence in the revenue beat and the company’s guidance. Analysts highlighted the beat as a positive sign of execution, while noting the need to monitor margin compression.
The company has not issued guidance for 2026, citing economic uncertainty and product‑mix adjustments. However, the maintenance of full‑year 2025 guidance signals management’s confidence in the company’s trajectory amid current headwinds.
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