Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here.

The sequential improvement in revenue growth rate was driven by high single-digit case volume acceleration and increased surgeon adoption of the comprehensive bunion portfolio.

Management attributed the year-over-year revenue decline to lower procedure kit sales to stocking distributors and a continued mix shift toward lower-priced minimally invasive products.

The company is successfully expanding its addressable market by capturing the 75% of bunion procedures previously unaddressed by its core Lapiplasty system.

Approximately 40% of the existing surgeon base has utilized at least one of the three new bunion systems launched in late 2025, up from 35% in the prior quarter.

A 'pull-through' effect is emerging, where 30% of new surgeons who first adopted the newer bunion systems have subsequently utilized Lapiplasty technology.

Strategic expansion into mid-foot and hind-foot procedures via the SuperBite system is enabling the sales force to capture a greater share of surgeon wallet across the entire foot.

Profitability improved through organizational efficiencies and restructuring, resulting in reduced cash usage and better adjusted EBITDA leverage despite a lower revenue base.

Full-year 2026 revenue guidance was raised to $204 million to $212 million, assuming a return to positive growth in the seasonally strongest fourth quarter.

The fourth quarter recovery is predicated on accelerating case volumes and the annualization of the ASP mix shift dynamics from 2025 product launches.

Management expects a limited commercial launch of the next-generation Lapiplasty Lightning platform in the fourth quarter to simplify surgical workflows and enhance accuracy.

The company anticipates a 50% reduction in cash usage for the full year 2026, supported by continued operational discipline and restructuring benefits.

Strategic focus remains on the full commercialization of the SuperBite system and the introduction of the CartiBlaster joint preparation rasps to strengthen the mid- and hind-foot portfolio.

Restructuring charges were taken during the quarter as the company continues to seek organizational efficiencies and improved bottom-line leverage.

The company identified a $300 million incremental U.S. addressable market opportunity through its new mid-foot and hind-foot product combinations.

Management noted that while the summer season is typically softer for bunion procedures, they have not seen a material impact from macro factors like ACA subsidy expirations.

Direct sales channels now account for approximately 80% of total revenue, providing a focused platform for new technology launches.

Case volume growth accelerated to high single digits, driven by deeper penetration of the three new bunion systems and early uptake of the SuperBite screw system.

Management confirmed that 40% of their 3,300-surgeon base has now adopted at least one of the new systems launched in Q3 2025.

One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.

The combination of SuperBite, HyperPlate XM, and CartiBlaster expands the company's total addressable market by approximately $300 million in the U.S.

These products allow the company to participate in procedures ranging from the forefoot to the hind-foot, which often utilize additional Treace products.

Management has not observed a notable shift in the competitive landscape and believes their high-performing products and best-in-class medical education provide a defensive moat.

The innovation strategy focuses on a high pace of iteration to maintain leadership in the 3D bunion correction segment.

Management expects a sequential revenue step-up in Q3 followed by a very strong Q4, which historically generates positive adjusted EBITDA.

While too early for formal 2027 guidance, the company expressed confidence in continued profitability improvements and a stronger growth trajectory exiting 2026.

Treace has not seen a material impact from reported elective procedure slowdowns, noting a high percentage of their patient demographic is commercially insured.

Current underlying trends are tracking in line with the assumptions built into the original 2026 guidance.