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Treace Medical Concepts, Inc.. (TMCI) Fundamental Analysis & AI Grade 2026

TMCI Nasdaq Surgical & Medical Instruments & Apparatus FL CIK: 0001630627
Updated This Month • Analysis: May 10, 2026 • SEC Data: 2026-03-31
Combined AI Grade
C
88% Confidence
N/A
C
88% Conf
Pending
Analysis scheduled

📊 TMCI Key Takeaways

Revenue: $47.2M
Net Margin: -38.1%
Free Cash Flow: $4.2M
Current Ratio: 3.58x
Debt/Equity: 0.72x
EPS: $-0.28
AI Grade: C with 88% confidence
Treace Medical Concepts, Inc.. (TMCI) receives a C fundamental grade with 88% confidence from our AI analysis based on SEC 10-K filings. With revenue of $47.2M, net profit margin of -38.1%, and return on equity (ROE) of -23.3%, Treace Medical Concepts, Inc.. demonstrates mixed fundamentals in the Healthcare sector. Below is our complete TMCI stock analysis for 2026.

Is Treace Medical Concepts, Inc.. (TMCI) a Good Investment?

Claude

Treace Medical faces a profitability crisis with severe operating losses (-36.4% margin) despite strong gross margins (79.3%), indicating underlying operational inefficiency. Revenue growth is essentially flat (1.6% YoY) leaving no clear path to profitability, while the company carries $55.8M in debt with negative interest coverage and only $9.5M in cash.

Treace Medical Concepts, Inc.. Key Strengths (TMCI)

Claude
  • + Exceptional gross margin of 79.3% indicates strong core product economics and pricing power
  • + Positive free cash flow of $4.2M despite operating losses provides near-term runway
  • + Solid short-term liquidity with current ratio of 3.58x

TMCI Stock Risks: Treace Medical Concepts, Inc.. Investment Risks

Claude
  • ! Severe profitability crisis with -$17.2M operating loss and -38.1% net margin showing unsustainable operational structure
  • ! Stagnant revenue growth of 1.6% YoY provides no near-term path to profitability or earnings improvement
  • ! High debt burden of $55.8M with negative interest coverage ratio (-10.9x) creates financial distress risk and limits strategic flexibility
  • ! Depleting cash position relative to debt obligations and operating burn rate

Key Metrics to Watch

Claude
  • * Operating margin trajectory and operating expense reduction initiatives
  • * Revenue growth acceleration and market share trends in surgical device segment
  • * Cash balance depletion rate and debt covenant compliance status
  • * Operating cash flow sustainability given negative net income

Treace Medical Concepts, Inc.. (TMCI) Financial Metrics & Key Ratios

Revenue
$47.2M
Net Income
$-18.0M
EPS (Diluted)
$-0.28
Free Cash Flow
$4.2M
Total Assets
$184.1M
Cash Position
$9.5M

💡 AI Analyst Insight

Strong liquidity with a 3.58x current ratio provides a solid financial cushion.

TMCI Profit Margin, ROE & Profitability Analysis

Gross Margin 79.3%
Operating Margin -36.4%
Net Margin -38.1%
ROE -23.3%
ROA -9.8%
FCF Margin 8.9%

TMCI vs Healthcare Sector: How Treace Medical Concepts, Inc.. Compares

How Treace Medical Concepts, Inc.. compares to Healthcare sector averages

Net Margin
TMCI -38.1%
vs
Sector Avg 12.0%
TMCI Sector
ROE
TMCI -23.3%
vs
Sector Avg 15.0%
TMCI Sector
Current Ratio
TMCI 3.6x
vs
Sector Avg 2.0x
TMCI Sector
Debt/Equity
TMCI 0.7x
vs
Sector Avg 0.6x
TMCI Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is Treace Medical Concepts, Inc.. Stock Overvalued? TMCI Valuation Analysis 2026

Based on fundamental analysis, Treace Medical Concepts, Inc.. shows some fundamental concerns relative to the Healthcare sector in 2026.

Return on Equity
-23.3%
Sector avg: 15%
Net Profit Margin
-38.1%
Sector avg: 12%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.72x
Sector avg: 0.6x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

Treace Medical Concepts, Inc.. Balance Sheet: TMCI Debt, Cash & Liquidity

Current Ratio
3.58x
Quick Ratio
2.53x
Debt/Equity
0.72x
Debt/Assets
58.1%
Interest Coverage
-10.93x
Long-term Debt
$55.8M

TMCI Revenue & Earnings Growth: 5-Year Financial Trend

TMCI 5-year financial data: Year 2021: Revenue $94.4M, Net Income -$4.3M, EPS N/A. Year 2022: Revenue $141.8M, Net Income -$3.7M, EPS $-0.12. Year 2023: Revenue $187.1M, Net Income -$20.6M, EPS $-0.43. Year 2024: Revenue $209.4M, Net Income -$42.8M, EPS $-0.77. Year 2025: Revenue $212.7M, Net Income -$49.5M, EPS $-0.81.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Treace Medical Concepts, Inc..'s revenue has grown significantly by 125% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.81 indicates the company is currently unprofitable.

TMCI Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
8.9%
Free cash flow / Revenue

TMCI Quarterly Earnings & Performance

Quarterly financial performance data for Treace Medical Concepts, Inc.. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q1 2026 $47.2M -$15.9M $-0.25
Q3 2025 $45.1M -$15.4M $-0.25
Q2 2025 $44.5M -$15.9M $-0.28
Q1 2025 $51.1M -$15.9M $-0.25
Q3 2024 $40.8M -$12.3M $-0.25
Q2 2024 $42.0M -$12.3M $-0.20
Q1 2024 $42.2M -$13.5M $-0.23
Q3 2023 $33.1M -$9.0M $-0.22

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

Treace Medical Concepts, Inc.. Dividends, Buybacks & Capital Allocation

Operating Cash Flow
$7.2M
Cash generated from operations
Capital Expenditures
$3.1M
Investment in assets
Dividends
None
No dividend program

TMCI SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for Treace Medical Concepts, Inc.. (CIK: 0001630627)

📋 Recent SEC Filings

Date Form Document Action
May 28, 2026 4 xslF345X06/ownership.xml View →
May 20, 2026 8-K tmci-20260519.htm View →
May 19, 2026 4 xslF345X06/ownership.xml View →
May 19, 2026 4 xslF345X06/ownership.xml View →
May 19, 2026 4 xslF345X06/ownership.xml View →

Frequently Asked Questions about TMCI

What is the AI rating for TMCI?

Treace Medical Concepts, Inc.. (TMCI) has an AI grade of C with 88% confidence, based on fundamental analysis of SEC EDGAR filings.

What are TMCI's key strengths?

Claude: Exceptional gross margin of 79.3% indicates strong core product economics and pricing power. Positive free cash flow of $4.2M despite operating losses provides near-term runway.

What are the risks of investing in TMCI?

Claude: Severe profitability crisis with -$17.2M operating loss and -38.1% net margin showing unsustainable operational structure. Stagnant revenue growth of 1.6% YoY provides no near-term path to profitability or earnings improvement.

What is TMCI's revenue and growth?

Treace Medical Concepts, Inc.. reported revenue of $47.2M.

Does TMCI pay dividends?

Treace Medical Concepts, Inc.. does not currently pay dividends.

Where can I find TMCI SEC filings?

Official SEC filings for Treace Medical Concepts, Inc.. (CIK: 0001630627) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is TMCI's EPS?

Treace Medical Concepts, Inc.. has a diluted EPS of $-0.28.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.

What is TMCI's fundamental grade?

Based on our AI fundamental analysis in June 2026, Treace Medical Concepts, Inc.. has a C grade with 88% confidence. Review the strengths and risks sections above for full context. This is not investment advice.

Is TMCI stock overvalued or undervalued?

Valuation metrics for TMCI: ROE of -23.3% (sector avg: 15%), net margin of -38.1% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.

What is TMCI's AI grade for 2026?

Our dual AI analysis gives Treace Medical Concepts, Inc.. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is TMCI's free cash flow?

Treace Medical Concepts, Inc..'s operating cash flow is $7.2M, with capital expenditures of $3.1M. FCF margin is 8.9%.

How does TMCI compare to other Healthcare stocks?

Vs Healthcare sector averages: Net margin -38.1% (avg: 12%), ROE -23.3% (avg: 15%), current ratio 3.58 (avg: 2).

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: May 10, 2026 | Data as of: 2026-03-31 | Powered by Claude AI