Treace Medical Concepts, Inc. (TMCI) stock plummeted 5.04% in Friday's intraday trading session after the company's latest earnings call raised concerns over its future growth prospects.
The medical device company reported strong fourth-quarter results, with revenue growing 10.4% year-over-year to $68.7 million, driven by increased adoption of its newer technologies and an increase in active surgeons. However, the company's guidance for 2025 revenue and profitability fell short of expectations.
Treace Medical expects revenue growth of just 7% to 10% in 2025, with revenue ranging from $224 million to $230 million. The company also guided for breakeven adjusted EBITDA for the full year, which some analysts viewed as underwhelming given the company's focus on profitability and expense management.
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