Treace Medical Concepts, Inc.

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

Good afternoon, everyone, and welcome to our second 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 second 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 on 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 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 Treats 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 second quarter of 2025, filed after the market closed today, August 7th, and can be found in the investor relations section of our website at investors.treese.com for a detailed presentation of risks. With that, I will now turn the call over to John.

Thank you, Tripp. Good afternoon, everyone, and thank you for joining us for our second quarter 2025 earnings conference call. The second quarter in this transformational year for Treece demonstrates our commitment to meeting the evolving needs of surgeons and patients as we continue to drive our expanded portfolio of best-in-class bunion solutions into the market. During the quarter, we delivered strong top-line and bottom-line financial results and made substantial progress on our strategic initiatives. We believe we've laid the groundwork commercially and operationally to position us for continued growth in the second half of the year and beyond. Revenue in the second quarter was $47.4 million, representing 7% growth over the second quarter of 2024. We are pleased with the results and the overall performance of our products during the quarter. In addition to top line strength, we delivered strength across the entirety of the P&L as we executed on our expense management initiatives lowered our cash usage, and improved our adjusted EBITDA substantially. As we've discussed in recent quarterly calls, we've been focused on our vision to become a comprehensive bunion solutions company, and we're excited to have achieved this important milestone on our journey with a portfolio and a strategy in place to drive our next phase of growth. In addition to our flagship lapoplasty and adductoplasty systems, our portfolio now includes three new best-in-class bunion correction systems, namely our nanoplasty and percoplasty 3D MIS osteotomy systems and our SpeedMTP great toe fusion system. This suite of technologies comprehensively addresses all four categories of bunions and we believe this will allow us to further drive procedure penetration and expand our leadership position in the marketplace. We're encouraged by the high level of surgeon enthusiasm and the patient outcomes we've seen during the limited releases of our three new systems throughout the first and second quarters. And now we're excited to deliver these new solutions to a broader base of certain customers. Our inventory timing and volume support customer demand in Q3 as well as Q4, our seasonally strongest quarter. Now I'd like to take some time to discuss our strategy to maximize market impact and drive overall growth by leveraging these new products as we enter our full market release. As a reminder, we participate in a market with a $5 billion plus US TAM, supported by a base of an estimated 1.1 million annual symptomatic surgical candidates in the US. And we estimate our penetration into this annual patient base is approximately 2.8% today. So there's a large untapped opportunity ahead of us. At its core, our go-forward strategy is centered around increasing procedure volumes while continuing to expand our customer base. As we scale, higher utilization, driven by increased adoption of trees technologies across a broader range of bunion types, is expected to increase our market penetration and share, supporting a sustainable growth model over the long term. The execution of our strategy is focused on three key elements. First, we entered 2025 with a foundation of over 3,100 active surgeon customers, representing nearly one-third of bunion surgeons in the U.S., And if you look at this large and growing base of customers, we believe that on average we penetrated about 30% of their total bunion volumes. And with our new three targeted systems, we are focused on more effectively penetrating the remaining 70% of their bunion-related cases. Keep in mind, these are customers who use lapoplasty technology already and have established relationships with their tree sales reps. So bringing these new bunion products to our existing customers and becoming their one-stop shop for all their bunion needs presents a large and immediate growth opportunity and is a high priority for the company. Second, we believe our new bunion technologies allow us to attract a new audience of surgeons, those who currently prefer metatarsal osteotomy procedures for the majority of their bunion cases versus our lapoplastic fusion solution. Given that we've not offered any osteotomy solutions in the past, there have been limited opportunities to engage with these surgeons. With our expanded portfolio now offering two differentiated 3D MIS osteotomy solutions, as well as our new great toe fusion system, SpeedMTP, we now have multiple opportunities to appeal to this surgeon audience. Third, not only do we expect to add new surgeons through these new products, but we also expect that many of these new surgeons will adopt our flagship lapoplasty and inductoplasty solutions. And I'm pleased to report our strategy is working. During the limited market release of these new systems over the past six months, we experienced successful traction on each of these three fronts. Due to the market enthusiasm around our expanded best-in-class portfolio, we've experienced very high attendance at our 2025 Bunyan Masters Surgeon Training Events. And following these events, we've seen a growing portion of existing tree surgeons utilizing our new Bunyan technologies, surgeons that are new to trees attracted by our new technologies adopting these new systems into their practices, and many of these new surgeons also embracing our core lapoplasty and adductoplasty technologies. The early traction we've seen bolsters our confidence in our strategy, which we believe will translate to accelerating growth in Q3 and through Q4, our seasonally strongest quarter of the year. In addition, these new systems are also being supported by expanded availability of several other complementary technologies, namely our Intelliguide PSI pre-op planning and patient-specific cut guides for complex bunion and midfoot deformity corrections, and our new SpeedPlate MicroQuad and Speed Aiken implants. We will also launch several new problem-solving sterile instruments in the back half of the year and cap off 2025 with a limited market release of our next generation lapoplasty system known as Lapoplasty Lightning. And with our rapidly expanding portfolio, we've become a top destination for some of the best foot and ankle sales reps in the industry. Access to cutting-edge technology and strong and supportive company culture, combined with the efficiency and scalability of our product model, has proven to be extremely attractive to highly experienced foot and ankle sales professionals, and we are taking full advantage. Turning to our outlook, we are reiterating our revenue guidance for 2025. We continue to expect full-year revenue to be between $224 and $230 million, representing growth of 7% to 10% over the prior year. Before I close, we're excited to have reached yet another important milestone with the recent peer-reviewed publication of our Align3D Lapoplasty Clinical Study demonstrating successful patient outcomes out to four years. This long-term multi-center prospective study sets a high standard for clinical evidence and further differentiates lapoplasty in the marketplace with our surgeons and patients. We look forward to expanding our market-leading body of clinical evidence as we continue our focus on advancing the standard of care for bunion surgery. In closing, this is a transformational year for Therese Medical as we establish ourselves as the premier one-stop shop for surgeons by bringing to market a comprehensive suite of differentiated, best-in-class bunion systems. We've already made substantial progress on our strategic initiatives in 2025, which we believe positions us well for accelerating top-line growth in the back half of the year. And with a robust pipeline of future technologies and a strengthening commercial organization, we believe we have the right strategies in place to drive continued growth in 2026 and beyond. With that, now let me turn the call over to Mark to review our financial performance. Mark?