Revenue contracted -4.2% year-over-year in 2026Q2 to $45.4M while SG&A of $46.2M exceeded the $35.6M of gross profit, producing a -33.0% operating margin despite a stable 78.5% gross margin.
Treace Medical Concepts, Inc. (TMCI) annual income statement — 7-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 |
|---|
| Sales/Revenue | 203.35M | 212.69M | 209.36M | 187.12M | 141.84M | 94.42M | 57.37M | 39.42M |
| Revenue Growth % | -7.1% | 1.59% | 11.88% | 31.92% | 50.22% | 64.59% | 45.54% | - |
| Cost of Goods Sold | 41.58M | 42.94M | 41.09M | 35.18M | 27.52M | 16.89M | 12.47M | 7.63M |
| COGS % of Revenue | - | 20.19% | 19.63% | 18.8% | 19.4% | 17.89% | 21.74% | 19.36% |
| Gross Profit | 161.76M | 169.75M | 168.26M | 151.94M | 114.31M | 77.53M | 44.9M | 31.79M |
| Gross Margin % | 79.55% | 79.81% | 80.37% | 81.2% | 80.6% | 82.11% | 78.26% | 80.64% |
| Gross Profit Growth % | - | 0.88% | 10.75% | 32.91% | 47.44% | 72.69% | 41.25% | - |
| Operating Expenses | 211.34M | 223.91M | 223.95M | 203.37M | 149.16M | 94.04M | 44.04M | 35.32M |
| OpEx % of Revenue | - | 105.27% | 106.97% | 108.68% | 105.16% | 99.6% | 76.77% | 89.61% |
| Selling, General & Admin | 193.31M | 203.62M | 203.36M | 187.93M | 137.57M | 83.84M | 38.19M | 30.25M |
| SG&A % of Revenue | - | 95.74% | 97.14% | 100.43% | 96.99% | 88.79% | 66.58% | 76.75% |
| Research & Development | 18.03M | 20.28M | 20.59M | 15.44M | 13.58M | 10.2M | 5.85M | 5.07M |
| R&D % of Revenue | - | 9.54% | 9.83% | 8.25% | 9.58% | 10.81% | 10.19% | 12.86% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | -1.99M | 0 | 0 | 0 |
| Operating Income | -49.58M | -54.15M | -55.69M | -51.43M | -34.84M | -16.51M | 855K | -3.54M |
| Operating Margin % | -24.38% | -25.46% | -26.6% | -27.48% | -24.57% | -17.49% | 1.49% | -8.97% |
| Operating Income Growth % | - | 2.75% | -8.28% | -47.59% | -111.05% | -2030.99% | 124.19% | - |
| EBITDA | -43.91M | -43.65M | -47.27M | -46.08M | -32.71M | -15.82M | 2.06M | -2.74M |
| EBITDA Margin % | -21.59% | -20.52% | -22.58% | -24.62% | -23.06% | -16.76% | 3.6% | -6.96% |
| EBITDA Growth % | -14.4% | 7.65% | -2.59% | -40.86% | -106.7% | -866.34% | 175.31% | - |
| D&A (Non-Cash Add-back) | 5.67M | 10.5M | 8.42M | 5.35M | 2.13M | 685K | 1.21M | 793K |
| EBIT | -38.75M | -53.68M | -50.49M | -44.36M | -38.42M | -16.49M | 855K | -3.42M |
| Net Interest Income | -3.01M | -2.54M | -379K | 1.56M | -3.08M | -4.04M | -4.52M | -730K |
| Interest Income | 1.86M | 2.78M | 4.88M | 6.73M | 1.31M | 18K | 0 | 111K |
| Interest Expense | 2.9M | 5.32M | 5.26M | 5.17M | 4.4M | 4.06M | 4.52M | 841K |
| Other Income/Expense | -6.21M | -4.85M | -55K | 1.9M | -7.97M | -4.04M | -4.52M | -730K |
| Pretax Income | -55.79M | -59M | -55.74M | -49.53M | -42.81M | -20.55M | -3.67M | -4.26M |
| Pretax Margin % | -27.44% | -27.74% | -26.63% | -26.47% | -30.19% | -21.77% | -6.39% | -10.82% |
| Income Tax | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| Net Income | -55.79M | -59M | -55.74M | -49.53M | -42.81M | -20.55M | -3.67M | -4.26M |
| Net Margin % | -27.44% | -27.74% | -26.63% | -26.47% | -30.19% | -21.77% | -6.39% | -10.82% |
| Net Income Growth % | -11.35% | -5.85% | -12.55% | -15.68% | -108.33% | -460.31% | 14% | - |
| Net Income (Continuing) | -55.79M | -59M | -55.74M | -49.53M | -42.81M | -20.55M | -3.67M | -4.26M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.85 | -0.93 | -0.90 | -0.81 | -0.77 | -0.38 | -0.08 | -0.10 |
| EPS Growth % | -7.77% | -3.33% | -11.11% | -5.19% | -102.63% | -351.31% | 15.63% | - |
| EPS (Basic) | - | -0.93 | -0.90 | -0.81 | -0.77 | -0.38 | -0.08 | -0.10 |
| Diluted Shares Outstanding | 65.46M | 63.27M | 62.11M | 60.85M | 55.28M | 54.18M | 51.17M | 51.17M |
| Basic Shares Outstanding | 65.46M | 63.27M | 62.11M | 60.85M | 55.28M | 54.18M | 51.17M | 51.17M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying TMCI stock.
For fiscal year 2025, Treace Medical Concepts, Inc. (TMCI) reported total revenue of $212.7M. This represents a 439.6% increase compared to $39.4M in 2019.
Treace Medical Concepts, Inc. (TMCI) reported a net loss of $59.0M for the fiscal year ending 2025.
Treace Medical Concepts, Inc. (TMCI) reported an operating income of $-54.2M, resulting in an operating profit margin of -25.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Treace Medical Concepts, Inc. (TMCI) generated $169.8M in gross profit for the year, representing a gross profit margin of 79.8%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Fixed SG&A against contracting revenue
Metrics are mathematically derived from official filings.
Revenue Growth Inverts to Contraction
Treace's year-over-year revenue growth swung from 21.1% in 2024Q1 to -10.2% in 2026Q1 and -4.2% in 2026Q2, the first outright contractions in the ten-quarter series, as reported in the company's income statements, raising questions about demand durability in its core franchise.
The trajectory is one of steady deceleration rather than a single shock: growth printed 10-11% through late 2024, softened to 2.9-11.4% in early-to-mid 2025, then turned negative in the two most recent quarters, with sequential revenue falling from $52.6M in 2025Q1 to $45.4M in 2026Q2. Because gross margin never wavered, the decline appears volumetric rather than price-driven, which implies the growth story rested on expanding surgeon adoption that has now stalled and warrants scrutiny of the underlying account and procedure counts.
Gross Strength Nullified by SG&A
Gross margin held within a tight 78.5%-80.7% band across all ten quarters, yet 2026Q2 operating margin was still -33.0% because SG&A of $46.2M exceeded the entire $35.6M of gross profit, based on Treace's reported income statement figures.
At roughly 80%, TMCI's gross margin is the highest in the peer set, ahead of Novocure's 74.5% and Alphatec's 69.6%, which suggests the product pricing itself is not the vulnerability. The structural problem sits one line down: SG&A has never dropped below $46.3M even as revenue contracted, so superior unit economics are being absorbed by a commercial apparatus sized for growth that no longer materializes.
Overhead Fails to Scale Down
Over the last four quarters SG&A averaged $49.4M against average revenue of $51.3M, and operating losses persisted even when quarterly revenue hit $62.5M, as disclosed in Treace's filings, indicating the cost base appears largely fixed rather than volume-linked.
R&D has been held deliberately steady at $4.4M-$5.6M per quarter, roughly 9-11% of sales, so SG&A is the sole meaningful swing line and it has declined only about 11% from its $54.7M peak while revenue fell 34% off its high. The clearest read on operating leverage comes from 2024Q4: at $68.7M of revenue and $55.5M of gross profit, the company still posted a -0.3% operating margin, implying breakeven requires something above $70M of quarterly revenue at today's structure.
Stock Compensation Deepens Losses
Stock-based compensation of $6.5M in 2026Q2 equaled about 14% of revenue and 43% of the $15.0M operating loss, per Treace's quarterly disclosures, meaning a meaningful slice of the reported deficit reflects non-cash dilution rather than cash operating expenditure.
Cumulatively, SBC across the ten quarters sums to roughly $71M, a substantial and persistent transfer of value to employees that will pressure per-share economics even if operations reach breakeven. Net losses also exceed operating losses in most periods, such as 2025Q4's -$9.4M net versus -$5.9M operating, which suggests non-operating items and tax effects are adding to the reported deficit; separately, the $0 SBC figure shown for 2026Q1 alongside $7.6M and $6.5M in adjacent quarters appears anomalous and should be verified against the filing before being treated as real.
Seasonal Spikes Mask Core Weakness
Only 2024Q4 and 2025Q4 produced near-breakeven results at -0.3% and -9.5% operating margins, a pattern that, combined with falling year-over-year growth, suggests calendar-driven ordering rather than structural improvement underlies the reported figures.
A skeptical reading focuses on two developments at once: gross margin has quietly eroded 220 basis points from 80.7% in 2024Q4 to 78.5% in 2026Q2 while revenue contracted, and the sole periods of operating relief came from fourth-quarter revenue spikes that have shrunk year over year ($68.7M to $62.5M). Read together with peer PROCEPT growing 37% at a comparable -33.7% operating margin, TMCI's -4.2% growth at -33.0% operating margin looks less like an investment phase and more like a business whose incremental spend is no longer buying growth, a narrative investors should monitor into the next seasonal peak.