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what it is
Treace sells surgical tools and implants for bunions and midfoot deformities, mostly through its Lapiplasty procedure platform.
how it gets paid
Last year Treace Medical made $213M in revenue. Lapiplasty systems was the main engine at $117M, or 55% of sales.
why it's growing
Revenue grew 1.6% last year. Full-year revenue reached $212.7M, up about 2% vs. prior year, while gross margin stayed near 79.8%.
what just happened
Quarterly revenue was $62.5M, but Treace still posted a loss and the market focused on slowing momentum.
At a glance
B balance sheet — gets the job done, barely
-$0.90 fy2024 eps est
forward revenue ests vary widely— verify vs ~$213M actuals
operating margin negative (~-25%) — still losing at the operating line
1.4 beta
xvary composite: 47/100 — below average
What they do
Treace sells surgical tools and implants for bunions and midfoot deformities, mostly through its Lapiplasty procedure platform.
Treace wins by owning a narrow problem. Its flagship Lapiplasty system fixes bunions in three planes, and the company built the tools, implants, and surgeon workflow around that idea. You also get reimbursement support from existing codes, which is billing-code coverage → insurers already have a way to pay → so adoption friction is lower. That helped support $213M in annual revenue with 477 employees.
How they make money
$213M
annual revenue · their business grew +1.6% last year
Lapiplasty systems
$117M
+2.0%
Lapiplasty implants
$43M
+1.0%
Lapiplasty disposables and consumables
$27M
+1.0%
Adductoplasty midfoot products
$17M
flat
Other products and services
$9M
1.0%
The products that matter
flagship bunion correction platform
Lapiplasty® 3D Bunion Correction System
~$170M · roughly 80% of revenue
Rolls up systems, implants, and consumables tied to Lapiplasty— roughly ~$170M of ~$212.7M on the segment bridge (~80%). If procedure growth stalls here, the whole model feels it.
core franchise
adjacent midfoot deformity system
Adductoplasty® system
~$17M · ~8% of revenue (bridge)
Adductoplasty midfoot revenue in the table is ~$17M— not the ~$43M implant line, which is still mostly Lapiplasty-adjacent. The company needs real adjacency dollars if growth is going to read better than low single digits.
adjacency bet
Key numbers
~-25%
operating margin
Operating margin → profit after running the business → so what: Treace loses roughly a quarter per sales dollar before interest and taxes— the headline percentage is negative, not +25.5%.
$66M
long-term debt
Debt is 41% of capital. Plain English: borrowed money funds a big chunk of this business, so weak growth hurts the equity faster.
$213M
annual revenue
That is real scale for a niche device company. The problem is scale has not turned into profit yet.
79.5%
gross margin
Gross margin → money left after making the product → so what: the products are lucrative, but overhead is eating the business alive.
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 3 — safer than 50% of stocks
- price stability 5 / 100
- long-term debt $66M (41% of capital)
B — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for TMCI right now.
source: institutional data · return history unavailable
What just happened
missed estimates
Quarterly revenue was $62.5M, but Treace still posted a loss and the market focused on slowing momentum.
Full-year revenue reached $212.7M, up about 2% vs. prior year, while gross margin stayed near 79.8%. The KPI EPS is GAAP and negative for the quarter shown; any positive “adjusted” EPS in the release is a different line— do not mix bases.
$62.5M
quarter revenue
-$0.26
quarter EPS (loss)
79.8%
gross margin
the number that mattered
The number that mattered was 79.8% gross margin, because it tells you the product economics are strong even while the income statement stays ugly.
source: company earnings report, 2026
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What could go wrong
the #1 risk is the Stryker intellectual-property fight landing on a company with flat 2026 sales guidance.
med
Stryker legal dispute
Management already expects legal costs tied to the dispute in 2025 and 2026. For a company guiding $200M–$212M of revenue, that is a real operating expense problem, not background noise.
If legal spend rises while sales stay flat, the path to profitability gets pushed further out.
med
shareholder litigation
A shareholder class-action investigation alleges investors were misled about competitive threats. Even before any outcome, this adds cost, management distraction, and another reason for institutions to stay cautious.
You own a small company. Small companies feel distraction faster than megacaps do.
med
flat revenue guidance
2026 guidance of $200M–$212M follows $212.7M in 2025. That means management is not promising growth from here, even with a high-margin procedure franchise.
A growth stock can survive losses. It has a much harder time surviving losses plus no growth.
With revenue guided at $200M–$212M versus $212.7M last year, TMCI has very little room to absorb extra legal expense or another slowdown in procedure demand.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
next quarterly print
The next report needs to show something better than flat full-year guidance. You want to see whether the 2% growth rate was a trough or the new normal.
legal
Stryker case costs
Management has already flagged legal costs through 2026. Watch for any sign those costs are expanding faster than the company expected.
margin
gross margin staying near 80%
79.8% gross margin is the thing still working. If that starts slipping while revenue is flat, the story gets worse fast.
growth
whether adjacencies move the needle
Adductoplasty® and other products are roughly 20% of revenue today. TMCI needs that mix to matter more if Lapiplasty® growth stays muted.
Analyst rankings
street verdict
reduce
in human-speak, analysts are not treating this like a turnaround they trust yet.
risk rank
3
Middle of the pack on fundamental risk. Not distressed, not exactly comfortable.
beta
1.4
When the market moves, TMCI historically moves more. Slightly amplified is the polite phrase.
price stability
5 / 100
This stock does not trade like a stable compounder. It trades like a small cap trying to earn belief back.
source: institutional data
Institutional activity
institutional ownership data for TMCI is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$2
current price
n/a
target midpoint · n/a from current
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