TMCI

Treace's core problem is written in its own revenue line: growth has collapsed from +50% (FY22) and +32% (FY23) to +12% (FY24) and just +1.6% in FY2025, with revenue flat-lining at $213M. The MD&A/risk section explains why — 'extensive competition' in both the Lapidus and minimally invasive osteotomy markets, plus a shift of elective bunion surgery from hospitals to ambulatory surgery centers that pressures ASPs on the flagship Lapiplasty (management flags Lapiplasty carries 'higher average selling prices than our new osteotomy and great toe fusion systems'). So mix and setting-of-care are working against them at the same time volume growth stalls. This is a franchise losing its pricing and growth engine, not one pausing before re-acceleration.

Meanwhile the losses keep getting bigger, not smaller. Net loss has widened every single year — $20.6M → $42.8M → $49.5M → $55.7M → $59.0M — so the company is spending more to buy less growth. Operating margin is -25.5%, net margin -27.7%, ROE -67.6%, and stockholders' equity fell 22.6% to $87.3M against a $249M accumulated deficit. Gross margin of 79.8% is genuinely excellent and the only real asset in the story, but it has not been enough to carry the P&L toward breakeven after years of trying.