Treace Medical Concepts, Inc.

Good day, and thank you for standing by. Welcome to the Treece Medical Concepts first quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising that your hand has been raised. To withdraw your question, please just press star 11 again. Please be advised that today's conference call is being recorded. I would now like to hand the conference over to your first speaker today, Tripp Taylor, Investor Relations. Please, go ahead.

Thank you, operator. Good afternoon, everyone, and welcome to our first quarter 2025 earnings conference call. Participating from the company today will be John Treese, Chief Executive Officer, and Mark Hare, Chief Financial Officer. During the call, John will offer commentary on our commercial activities, followed by Mark for a review of our first quarter financial results released after market closed today. We will then host a question and answer session following our prepared remarks. Our press release can be found in the investor relations section of our website at investors.treese.com. This call is being recorded and will be archived in the investor section of our website. Before we begin, we would like to remind you that it is our intent that all forward-looking statements made during today's call will be protected under the Private Securities Litigation Reform Act of 1995. Any statements that relate to expectations or predictions of future events and market trends as well as our estimated results or performance are forward-looking statements. All forward-looking statements are based upon our current estimates and various assumptions. These statements involve material risks and uncertainties that could cause actual results or events to materially differ from those anticipated or implied by these forward-looking statements. All forward-looking statements are based upon currently available information, and Treece Medical assumes no obligation to update these statements. Accordingly, you should not place undue reliance on these statements. Please refer to our SEC filings, including our Form 10-Q for the first quarter of 2025, filed after market closed today, May 8th, and can be found in the investor relations section of our website at investors.treece.com. for a detailed presentation of risks. With that, I will now turn the call over to John.

Good afternoon, everyone, and thank you for joining us on our first quarter 2025 earnings conference call. We started 2025 with solid financial results and made significant progress on our strategy to comprehensively address the evolving needs of surgeons and patients with an expanding portfolio of best-in-class bunion solutions. Revenue in the first quarter was $52.6 million, representing 3% growth over the first quarter of 2024, and adjusted for one less selling day, growth was 4.5%. As expected, this was a difficult comp, and we're pleased with the overall performance, including early positive validation of our three new bunion systems. We expect 2025 to be a transformational year for Treece, and we're incredibly excited about what we will be delivering in the back half of this year and beyond. From the early days of the company, it's been our strategy to evolve our business from a single technology lapoplasty company to a comprehensive bunion solutions company. Since our first cases in 2015, we're proud to have established a strong customer base of over 3,100 surgeon users, treated over 130,000 patients, propelled our company to over $200 million in revenue, and established Treece Medical as the dollar share leader in the U.S. bunion market. To date, our flagship lapoplasty and adductoplasty systems have enabled us to capture, on average, 25% of our surging customers' bunion cases. With the upcoming commercialization of three new best-in-class bunion correction systems, namely our nanoplasty and percuplasty 3D MIS osteotomy systems and our speed MTP-MTP fusion system, we gain more immediate and more targeted access to the remaining 75% of our surgeons' cases. So beginning in Q3, we have the opportunity to target virtually 100% of surgeon and patient preferences for bunion correction with five best-in-class instrumented systems addressing all four classes of bunion deformities. In addition, this expanded portfolio allows us to appeal to incremental new surgeons who favor osteotomy approaches over lapoplasty. The positive feedback from surgeons participating in our limited market releases of these three new systems as well as strong turnouts we've seen at our initial Bunyan Master Surgeon Training Labs, where all five of our systems are now featured, have exceeded our expectations. Additionally, we have high confidence in our inventory timing and volumes to support the customer demand for these three new systems, as well as our ability to meet demand going forward. For all of these reasons, we have even greater conviction in the impact these new systems will have on our business starting in the back half of the year. These three new systems will be complemented by expanding commercial availability of several other new technologies, including Intelliguide PSI, the industry's first and only patient-specific pre-op planning and cut guide solution for lapoplasty, bunion, and adductoplasty midfoot corrections. We've been getting rave reviews from surgeon users on the accuracy and the time savings they are experiencing in their cases with this advanced technology. Our SpeedPlate MicroQuad implant, delivers robust dynamic fixation for small incision fusion approaches, and provides the enabling implant technology to support driving our microlapoplasty and mini-adductoplasty procedures. Our Speed Aiken implant, an ultra-low profile fixation solution for Aiken osteotomies, which are performed in high frequency with bunion cases, and particularly with MIS osteotomies. We will also be launching several new sterile instruments in the back half of the year. These are complementary, procedure-specific tools utilized in our bunion and midfoot cases. And with this expansion of our portfolio, we've been receiving unprecedented interest from experienced foot and ankle sales professionals wanting to join Treece and participate in this next exciting wave of growth for the company. So it's not just the great products we have coming, but the ever-increasing strength of the commercial team we're assembling as we will be pushing this expanded portfolio into the marketplace in the back half of the year. Finally, we're excited to announce plans to initiate a limited market release late in the year of our next generation lapoplasty platform. Our forthcoming lapoplasty lightning system is another example of our commitment to continuously innovate our flagship systems, making them faster, easier, and to deliver an ever greater experience for our surgeons and their patients. Lightning is more than an incremental improvement. We believe it represents a revolutionary advancement for lapoplasty. We look forward to sharing more details with you on this next generation system later in the year. As you can see, our R&D engine is running open throttle and delivering a robust pipeline of new technologies that we believe will further extend our market leadership position. As we envisioned from the start, this year we will be establishing Treece as the one-stop shop with a suite of differentiated best-in-class bunion systems that will drive our top-line growth this year into 2026 and beyond. Turning to our outlook, we are reiterating our revenue guidance for 2025. We continue to expect revenue to be between $224 and $230 million, representing growth of 7% to 10% over prior year. We anticipate our most substantial growth and contribution to come in the fourth quarter. In addition to seasonal strength driven by the timing of patient deductibles, we will have our new products fully available to more quickly penetrate all bunion classes. As founder of the company, I want to emphasize the significance of this moment. This is the realization of a 10-year vision at Treece to become a focused, comprehensive bunion solutions company and another big step ahead in our mission to improve surgical outcomes for bunion patients. I couldn't be more proud of the efforts of the entire team here at Treece and the surgeons involved in these projects to bring us this important milestone. Let me now turn the call over to Mark to review our financial performance.