TMCI Q3 2025 Earnings Call Summary

1Key Financial Results and Metrics

Revenue: $50.2 million, an 11% increase year-over-year.

Adjusted EBITDA: Loss of $2.6 million, a 49% improvement from a loss of $5.1 million in Q3 2024.

Net Loss: $16.3 million ($0.26 per share), compared to a net loss of $15.4 million ($0.25 per share) in Q3 2024.

Gross Margin: 79.1%, down from 80.1% in Q3 2024.

Operating Expenses: $55.4 million, an 8% increase from $51.3 million in Q3 2024.

Liquidity: $80.6 million as of September 30, 2025, down from $90.7 million at the end of Q2 2025.

2Strategic Updates and Business Highlights

Transitioning from a single technology focus (Lapiplasty) to a comprehensive bunion solutions provider, now offering five instrumented systems for bunion correction.

Launched three new bunion correction systems, aiming to capture a broader surgeon audience.

Appointed a new Chief Commercial Officer and expanded the sales team to enhance market presence.

Experienced mid-single-digit case volume growth, primarily driven by new bunion systems with lower average selling prices (ASPs).

3Forward Guidance and Outlook

Revised Revenue Guidance: Expected full-year 2025 revenue between $211 million and $213 million, representing 1% to 2% growth compared to 2024.

Adjusted EBITDA Loss: Projected to be between $6.5 million and $7.5 million for 2025, indicating a 32% to 41% improvement year-over-year.

Cash Usage: Anticipated reduction of 43% to 47% for 2025 compared to 2024.

4Bad News, Challenges, or Points of Concern

Declining Lapiplasty Volumes: Noted pressure on Lapiplasty sales due to a shift in surgeon and patient preferences towards minimally invasive osteotomies.

Deferred Elective Procedures: Broader economic conditions and consumer sentiment have led to increased deferrals of elective bunion surgeries, impacting case volumes.

Stocking Distributor Sales: A significant portion of Q3 revenue was driven by stocking distributor sales, which are not expected to recur at the same level in Q4.

Market Dynamics: Survey results indicated a 7% decrease in bunion surgical volumes year-to-date among surveyed surgeons, reflecting broader market challenges.

5Notable Q&A Insights

Surgeon Preferences: The shift towards minimally invasive procedures is impacting Lapiplasty sales, but management believes they can capture market share in this area with new technologies.

Future Growth: Management is optimistic about increasing case volumes and adoption of new products, which could help offset declines in Lapiplasty.

Cost Management: The company is actively seeking efficiencies and restructuring to manage costs amid lower-than-expected revenue growth.

2026 Outlook: While not providing specific guidance, management expressed confidence in their ability to recapture deferred procedures and improve market share with their expanded product offerings. Overall, TMCI is navigating a challenging market environment but is focused on leveraging its expanded product portfolio and sales capabilities to drive future growth.