Treace Medical Concepts Reports $47.4M Revenue in Q2 2025, Net Loss Improves

Treace Medical Concepts, Inc. reported a revenue of $47.4 million for the second quarter of 2025, marking a 6.6% increase from $44.5 million in the same period of 2024. For the first half of 2025, the company generated $100.0 million in revenue, up 4.6% from $95.6 million year-over-year. Despite this growth, Treace recorded a net loss of $17.4 million for the quarter, an improvement from a loss of $21.2 million in the prior year, and a total net loss of $33.3 million for the first half, down from $39.9 million in 2024. The gross profit for the second quarter was $37.8 million, with a gross margin of 79.7%, slightly lower than the 80.2% margin reported in the previous year.

The company’s operating expenses decreased by 4.1% to $54.7 million for the second quarter, driven by a significant reduction in sales and marketing expenses, which fell by 12.2% to $33.1 million. This reduction was attributed to a strategic optimization of the sales force and decreased advertising costs. Research and development expenses increased by 6.6% to $5.5 million, reflecting ongoing investments in product innovation. General and administrative expenses rose by 13.5% to $16.1 million, primarily due to higher payroll costs and legal fees.

In terms of operational metrics, Treace Medical Concepts has expanded its product offerings, including the recent introduction of the Nanoplasty and Percuplasty systems, which are designed for minimally invasive bunion correction. The company continues to focus on increasing its market share in the bunion correction space, leveraging its proprietary Lapiplasty® 3D Bunion Correction System. As of June 30, 2025, Treace had cash and cash equivalents of $8.1 million and marketable securities of $61.2 million, alongside an accumulated deficit of $223.3 million.

Looking ahead, Treace anticipates continued revenue growth driven by the expansion of its product portfolio and increased adoption of its surgical systems. However, the company acknowledges potential challenges from macroeconomic factors, including inflation and competition from new market entrants. Treace plans to maintain its focus on innovation and market penetration while managing operational costs to improve profitability. The company expects to continue operating at a loss in the near term but believes its existing cash reserves and marketable securities will be sufficient to fund operations for at least the next twelve months.