Treace Medical Reports $52.6 Million Revenue in Q1 2025, Up 2.9% Year-Over-Year

Treace Medical Concepts, Inc. reported a revenue of $52.6 million for the first quarter of 2025, reflecting a 2.9% increase from $51.1 million in the same period of 2024. The company's gross profit also rose to $41.9 million, up from $41.0 million year-over-year, although the gross margin slightly decreased from 80.2% to 79.7%. The increase in revenue was primarily attributed to a higher volume of bunion procedure kits sold, while the cost of goods sold increased by 5.4% to $10.7 million, largely due to higher inventory provisions.

In terms of operational efficiency, Treace Medical reported a loss from operations of $15.6 million, an improvement from the $19.0 million loss recorded in the prior year. The company’s total operating expenses decreased by 4.1% to $57.5 million, driven by a significant reduction in sales and marketing expenses, which fell by 10.4% to $36.1 million. This reduction was attributed to lower advertising expenditures and optimized sales force structure. Research and development expenses increased slightly by 5.8% to $5.6 million, while general and administrative expenses rose by 9.9% to $15.8 million.

As of March 31, 2025, Treace Medical had cash and cash equivalents of $13.4 million and marketable securities totaling $62.7 million. The company reported an accumulated deficit of $205.9 million and $54.0 million in principal outstanding under its term loan and revolving loan agreements. The total number of shares outstanding increased to 62.9 million, up from 62.4 million at the end of 2024. The company continues to focus on expanding its product offerings, including the recent launch of new products aimed at enhancing its market position in the bunion correction segment.

Looking ahead, Treace Medical anticipates ongoing challenges due to macroeconomic factors such as inflation and competition in the medical technology sector. The company plans to continue investing in its sales and marketing infrastructure, as well as in research and development to drive future growth. Management expressed confidence that existing cash reserves, marketable securities, and anticipated revenues will be sufficient to meet operational needs for at least the next twelve months, although they may seek additional financing to support further growth initiatives.