The company's inability to scale is evidenced by a -36.4% operating margin in 2026Q1, as high SG&A costs continue to outpace the 79.3% gross margin.
| Sales/Revenue | 207.32M | 212.69M | 209.36M | 187.12M | 141.84M | 94.42M | 57.37M | 39.42M |
| Revenue Growth % | -1.66% | 1.59% | 11.88% | 31.92% | 50.22% | 64.59% | 45.54% | - |
| Cost of Goods Sold | 42.05M | 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 | 165.27M | 169.75M | 168.26M | 151.94M | 114.31M | 77.53M | 44.9M | 31.79M |
| Gross Margin % | 79.72% | 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 | 221M | 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 | 200.66M | 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 | 19.34M | 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 | 1000K | 0 | 0 | 0 | -1.99M | 0 | 0 | 0 |
| Operating Income | -55.74M | -54.15M | -55.69M | -51.43M | -34.84M | -16.51M | 855K | -3.54M |
| Operating Margin % | -26.89% | -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 | -46.6M | -43.65M | -47.27M | -46.08M | -32.71M | -15.82M | 2.06M | -2.74M |
| EBITDA Margin % | -22.48% | -20.52% | -22.58% | -24.62% | -23.06% | -16.76% | 3.6% | -6.96% |
| EBITDA Growth % | -7.56% | 7.65% | -2.59% | -40.86% | -106.7% | -866.34% | 175.31% | - |
| D&A (Non-Cash Add-back) | 9.13M | 10.5M | 8.42M | 5.35M | 2.13M | 685K | 1.21M | 793K |
| EBIT | -56.24M | -53.68M | -50.49M | -44.36M | -38.42M | -16.49M | 855K | -3.42M |
| Net Interest Income | -3.14M | -2.54M | -379K | 1.56M | -3.08M | -4.04M | -4.52M | -730K |
| Interest Income | 2.44M | 2.78M | 4.88M | 6.73M | 1.31M | 18K | 0 | 111K |
| Interest Expense | 5.58M | 5.32M | 5.26M | 5.17M | 4.4M | 4.06M | 4.52M | 841K |
| Other Income/Expense | -5.3M | -4.85M | -55K | 1.9M | -7.97M | -4.04M | -4.52M | -730K |
| Pretax Income | -61.04M | -59M | -55.74M | -49.53M | -42.81M | -20.55M | -3.67M | -4.26M |
| Pretax Margin % | -29.44% | -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 | -61.04M | -59M | -55.74M | -49.53M | -42.81M | -20.55M | -3.67M | -4.26M |
| Net Margin % | -29.44% | -27.74% | -26.63% | -26.47% | -30.19% | -21.77% | -6.39% | -10.82% |
| Net Income Growth % | -15.2% | -5.85% | -12.55% | -15.68% | -108.33% | -460.31% | 14% | - |
| Net Income (Continuing) | -61.04M | -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) | -0.95 | -0.93 | -0.90 | -0.81 | -0.77 | -0.38 | -0.08 | -0.10 |
| EPS Growth % | -14.39% | -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 | 64.59M | 63.27M | 62.11M | 60.85M | 55.28M | 54.18M | 51.17M | 51.17M |
| Basic Shares Outstanding | 64.59M | 63.27M | 62.11M | 60.85M | 55.28M | 54.18M | 51.17M | 51.17M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Liquidity and growth stagnation
According to recent quarterly financial filings, TMCI's revenue growth has decelerated sharply, culminating in a 10.2% year-over-year decline in 2026Q1, which suggests that the company's core Lapiplasty procedure adoption may be hitting a saturation point or facing increased competitive pressure in the US market.
The transition from double-digit growth in 2024 to negative territory in early 2026 indicates that the company's primary growth engine is stalling. Investors should monitor whether this trend reflects a broader market slowdown in elective foot and ankle surgeries or a specific loss of market share to diversified orthopedic competitors.
As reported in financial statements, TMCI maintains a robust gross margin profile consistently near 80%, yet this structural strength is currently overshadowed by persistent operating losses, as evidenced by the -36.4% operating margin recorded in the most recent quarter of 2026.
While the high gross margin confirms the premium nature of the proprietary 3D correction kits, the inability to convert this into positive operating income suggests that the cost of clinical education and sales support is disproportionately high. This disparity implies that the current business model requires significantly higher volume to achieve break-even status.
Based on TMCI's reported figures, the company has failed to demonstrate meaningful operating leverage, as SG&A expenses remain stubbornly high relative to revenue, preventing the scaling of operating income despite the company's established position in the specialized bunion correction market.
The persistent gap between gross profit and operating income suggests that the company's fixed-cost structure, particularly its direct sales force, is not scaling efficiently with revenue. This lack of operating leverage warrants further investigation into whether management can optimize its clinical support model without sacrificing market penetration.
Financial data indicates that TMCI's cost structure is dominated by heavy SG&A spending, which has consistently exceeded $49 million per quarter, effectively consuming the entirety of the company's gross profit and contributing to the ongoing net losses observed throughout the last ten quarters.
The company's reliance on a high-touch, direct sales model appears to be the primary driver of its negative profitability. Unless management can demonstrate a path to reducing these customer acquisition costs, the current expense discipline may continue to pressure the company's limited cash reserves.
Analysis of the income statement suggests that short-sellers may focus on the company's deteriorating cash position and the lack of a clear path to profitability, as the $10.7 million in cash reserves appears insufficient to sustain the current burn rate without potential future dilution.
The combination of slowing revenue growth and negative net margins creates a precarious environment for shareholders. Investors should be wary of the possibility that the company's reliance on high-cost clinical support may be an unsustainable strategy in a market that is increasingly viewing 3D bunion correction as a commoditized procedure.
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.