Treace Medical Concepts, Inc. (TMCI)

Treace Medical Concepts topped expectations on both the top and bottom line in the second fiscal quarter of 2026 (period ended June 30, 2026; reported August 7, 2026), even as revenue fell 4% year over year to roughly $45 million from about $47 million a year ago, reflecting results in its bunion and related deformity correction portfolio led by the Lapiplasty System. EPS came in at -$0.24, which topped the -$0.30 estimate by $0.06 and improved from -$0.28 a year ago (~14% better). On sales, revenue of $45.4 million topped the $44.0 million estimate, +3%. Profitability held at a high gross margin of around 79%, but operating income remained negative at roughly -$15 million, with operating margin at -33%, and net income was about -$15.9 million, up ~9% from a net loss of about -$17 million a year ago. Cash generation was also negative, with negative operating cash flow of roughly -$4.7 million. For the next period, consensus calls for EPS of -$0.26 on revenue of $47.7 million.