Treace Medical Concepts, Inc.

Ladies and gentlemen, thank you for standing by. Welcome to Treace Medical Concepts Second Quarter 2026 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. And to ask a question during the session, you would need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. and to withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would like now to turn the conference over to Tripp Taylor, Investor Relations. Please go ahead.

Good morning, everyone, and welcome to our second quarter 2026 earnings conference call. Participating from the company today will be John Treace, Chief Executive Officer, and Mark Hair, Chief Financial Officer. On this call, John and Mark will discuss the second quarter financial results in 2026 Outlook. We'll then host a question and answer session following the prepared remarks. The earnings press release can be found in the investor relations section of our website at investors.treace.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 2025 Form 10-K and our Form 10-Q for the second quarter of 2026, filed before the market opens today, August 7th, which can be found in the investor relations section on our website at investors.treace.com for a detailed presentation of risks. With that, I will now turn the call over to John.

Thank you, Tripp. Good morning, everyone, and thank you for joining us on our second quarter 2026 earnings conference call. We are pleased with our results in the second quarter with our revenue growth rate improving sequentially and our focus on profitability generating stronger adjusted EBITDA and reduced cash usage over prior year. These results were driven by continued year-over-year case volume growth which accelerated to high single digits in the quarter and market share gains driven by increasing surge in adoption of our comprehensive bunion portfolio and early impact of our expanding line of new technologies now allowing us to tap into a broader range of procedures throughout the foot and ankle. We continue to focus on investing in growth initiatives to leverage this growing portfolio while driving improved profitability, positioning us for stronger growth expected in the second half of the year. As a result, we are raising our full year 2026 revenue guidance to be in the range of $204 million to $212 million, representing a decline of 4% to 0% compared to full year 2025. This compares the previous revenue guidance of $202 million to $212 million. Importantly, this outlook assumes ongoing expected dynamics including continued procedure volume increases and the lapping of the ASP mix shift dynamics related to our 2025 product launches and as we begin to benefit from our 2026 planned product launches. More specifically, this year we expect to return to positive revenue growth in our seasonally strongest fourth quarter. Now turning to our growth strategy. As we continue to prioritize penetration of the bunion market and maximize the impact of our expanded portfolio, we are focusing on three key initiatives. First, driving the adoption of our three new bunion systems launched in 2025 across our large customer base of over 3,300 existing surgeon customers. Second, to build upon our leadership position with Lapaplasty by advancing new technologies that appeal to existing and new surgeons. and third, continue to broaden our portfolio by launching new technologies allowing us to address adjacent procedures performed by our existing surging customers, enabling us to grow wallet share and expand our addressable market. And we continue to deliver these technologies through our sales channels that include our Focus Direct sales team, which accounts for approximately 80% of our revenue. Speaking now to our first initiative. Before reviewing our commercial progress, I'd like to briefly reiterate the strategic importance of the bunion technologies we introduced in 2025. We believe these new systems meaningfully expand our addressable market beyond lapoplasty and adductoplasty. Nanoplasty and percuplasty expand our reach into the high-volume osteotomy segment with differentiated 3D minimally invasive solutions designed to simplify adoption and deliver consistent three-plane correction. while our Speed MTP system extends our portfolio into the large and attractive MTP fusion market which overlaps with bunion pathology and is among one of the most common foot and ankle procedures performed. Across our large base of over 3,300 surgeon customers, we estimate Lapoplasty in recent years has captured around 25% of their bunion related procedure volume on average. Our three new platforms are designed to address the remaining 75% of their procedure volume, creating a significant opportunity to increase surgeon utilization and drive long-term growth across the estimated 4.4 million annual U.S. bunion sufferers. Importantly, we believe our strategy is working, and this continues to validate our confidence in the significant opportunity ahead of us. Through Q2, approximately 40% of our Lapoplasty surgeon user base has already utilized at least one of our three new bunion systems since their launch in the third quarter of 2025. This builds upon the 35% utilization rate we reported in the first quarter of 2026. In addition, approximately 30% of the growing number of new surgeons who first became Treace customers by using one of our three new bunion systems have also used Lapoplasty technology, demonstrating a pull-through effect to Lapoplasty technologies from this new surgeon cohort. Turning to our second initiative, our core Lapoplasty franchise remains a key strategic priority. As the recognized leader in the Lapidus fusion segment, which represents approximately 30% of the estimated 450,000 annual U.S. funding procedures, We are continuing to invest in innovation to improve our existing users' experience, appeal to new surgeons, and extend our market leadership. We remain on track for a limited commercial launch of our next-generation lapoplasty Lightning platform in the fourth quarter of this year. Lightning features new 3D correction instrumentation and speed TMT implants designed to simplify workflow, reduce procedure time, and enhance the surgeons' accuracy and their control over the 3D correction. Another key initiative for our lapoplasty strategy is our focus on increasing surgeon adoption of our Intelliguide technology, the industry's first patient-specific planning and cut guide system for lapoplasty bunion and adductoplasty midfoot corrections in the U.S. Intelliguide reduces steps and saves time and is particularly valuable in helping surgeons with treating complex deformities and revisional surgeries with greater confidence and control. We believe the combination of our Lapoplasty Lightning and Intelliguide PSI platforms provide a compelling and unique value proposition and can support further surgeon adoption and reinforce our category leadership in this key market segment. Now turning to our third initiative. We continue to broaden our portfolio beyond bunions to allow our sales force to more fully service a greater share of our surgeon customers overall foot and ankle procedures and product needs and grow our share of wallet. During the second quarter, we took an important step towards this initiative with the limited commercial release of our new SuperBite compression screw system. As a reminder, compression screws are a fundamental bone fixation technology utilized broadly throughout the foot and ankle. We continue to receive very positive feedback and encouraging early customer uptake from our early market release of SuperBite. Superbite features an innovative self-drilling and countersinking design that can reduce or in many cases eliminate the need for pre-drilling, improving OR efficiency, and simplifying the procedure. Superbite, which we expect to fully commercialize this quarter, enables our sales force for the first time to participate in a wide range of incremental foot and ankle surgical procedures from the forefoot to the midfoot and hindfoot, and these incremental Superbite cases often utilize additional Treace products. Building upon our recent access into the midfoot and hindfoot fusion procedures facilitated by SuperBite, we recently completed our initial cases utilizing our HyperPlate XM dynamic compression locking implant technology. Fusions of these larger joints in the mid and hindfoot can be challenging and have associated historically with higher nonunion rates. The HyperPlate XM's implant combination of locking screws and dynamic compression provides a highly stable construct with an anatomic shape designed to promote fusion in these larger midfoot and hindfoot applications. And consistent with our focus to provide innovative sterile instrumentation to make procedures more reproducible and more efficient, we developed and recently commercialized the Great Release XM instrument. Great Release XM is specifically designed to facilitate more efficient and thorough release of the soft tissues connecting these larger joints so that the joint surfaces can be accessed to prepare for fusion. And in the fourth quarter, we plan to further strengthen this mid and hind foot portfolio with the introduction of our new Cartoblaster powered joint preparation rasps. These single-use sterile-packed rafts connect with the powered saw handpiece and are designed to speed up and facilitate thorough removal of the cartilage from these larger joint surfaces to effectively prepare them for fusion. We believe HyperPlate XM implants, Great Release XM instruments, and Cartoblaster rafts, complemented by our SuperBite compression screws, present a differentiated, problem-solving portfolio to help surgeons advance their outcomes in their mid- and hindfoot fusion cases. In closing, we're pleased with the progress we made during the second quarter as we strengthened our leadership position in 3D bunion correction, advanced our portfolio, and increased our presence across the foot and ankle market. Our focus remains on unlocking the full potential of this broader portfolio while investing in our key growth initiatives. Looking ahead, our anchor position in the bunion market has presented opportunities to leverage our core capabilities into new procedural adjacencies and continue to more broadly service our surgeon customers. We will continue to develop innovative solutions to address our customers' unmet clinical needs, support our customers' outcomes with best in industry medical education, and service them with our direct focus sales team. As we execute this strategy, we believe we can drive sustainable long-term growth and create long-term value for our shareholders. With that, let me now turn the call over to Mark to review our financial performance. Mark?