Treace Medical Concepts (TMCI) Q4 2024 earnings summary

Executive summary

• Ended 2024 with strong momentum, expanding a comprehensive bunion solutions portfolio and deepening surgeon engagement.

• Q4 2024 revenue grew 10% year-over-year to $68.7M; full-year revenue up 12% to $209.4M.

• Over 3,100 surgeon customers and more than 120,000 patients treated with Lapiplasty since 2015; active surgeons grew 10% to 3,135.

• Introduced multiple new products targeting all four bunion classes, aiming to capture a larger share of the 450,000 annual U.S. bunion cases.

• Early positive feedback on new technologies, with plans to ramp availability and revenue impact in the second half of 2025.

Financial highlights

• Q4 2024 revenue was $68.7 million, up 10.4% year-over-year and at the top end of guidance.

• Full year 2024 revenue reached $209.4 million, a 12% increase over 2023.

• Q4 gross profit was $55.5M (gross margin 80.7%), up from $50.7M (81.6%) YoY; full-year gross profit reached $168.3M (gross margin 80.4%).

• Q4 net loss was $0.5 million ($0.01/share), a significant improvement from $6.3 million loss ($0.10/share) in Q4 2023; full-year net loss widened to $55.7 million ($0.90/share).

• Adjusted EBITDA for Q4 was $11.1 million, up 322% year-over-year; full year Adjusted EBITDA loss improved 55% to $11 million.

• Cash, equivalents, and marketable securities totaled $75.7 million at year-end, with access to an additional $26 million via revolver.

Outlook and guidance

• 2025 revenue guidance set at $224–$230 million, representing 7–10% growth over 2024.

• Expects break-even Adjusted EBITDA and a 50% reduction in cash burn for 2025.

• Q1 2025 expected to show low single-digit growth due to tough comps, with higher growth anticipated in subsequent quarters.

• Revenue impact from new products expected to accelerate in the back half of 2025.