Treace Medical Concepts (NASDAQ:TMCI) shares are under scrutiny after the bunion-correction specialist reported preliminary fourth-quarter revenue that reflected a nearly double-digit decline.
The company expects Q4 revenue between $62.1 million and $62.5 million, a roughly 9% drop compared to the same period in 2024.
Despite the quarterly dip, full-year 2025 revenue is projected to reach $212.3 million to $212.7 million, representing a modest 2% increase and landing within the company's tightened guidance range.
The decelerating growth is primarily attributed to a shift in surgeon preference toward minimally invasive procedures and a lower average selling price (ASP) for its newer product lines compared to its flagship Lapiplasty® system.
Operationally, Treace continues to expand its footprint in the U.S. market.
The company added approximately 202 active surgeons in 2025, bringing its total base to 3,337.
This represents roughly 33% of the estimated 10,000 U.S. surgeons who perform bunion procedures.
While case volumes saw mid-single-digit growth, the revenue impact was dampened by macroeconomic pressures, causing some patients to defer elective surgeries.
Management has opted to withhold full-year 2026 guidance for the time being, citing the need to further evaluate market dynamics and the ramp-up of its recent product launches, including the Lapiplasty® Lightning™ system.
Treace plans to provide a comprehensive financial outlook during its formal earnings call on Feb. 26, 2026.