Forensic Analysis · Healthcare / Pharmaceuticals / Biotech · as of Jun 28, 2026
TREACE MEDICAL CONCEPTS, INC. (TMCI)
A forensic read on TREACE MEDICAL CONCEPTS, INC. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
D · Weak — demands caution
Forensic grade
Distress
Financial health
-1.8
Altman Z-score
Clean
Earnings quality
3
Forensic signals
-69.5%
ROE
$289M
Market cap
TREACE MEDICAL CONCEPTS, INC. earns a D (Weak — demands caution) forensic quality grade, and its Altman Z-score is -1.8, placing it in the Distress zone. 3 forensic signals were flagged in its latest SEC filings, led by return on invested capital.
What the filings flag
-28%Return on invested capital.Return on invested capital is -28% and slipping from -25% — well below its ~10% cost of capital, so reinvested dollars may be destroying value, not building it.
+4.8%/yrShare-count dilution.Diluted share count changed +14% over the last 3 years to FY2025 (+4.8%/yr). The count is GROWING — existing holders are being diluted. That's ~4.8% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2022 has been diluted ~14%.
16% of revStock-based comp load.Stock-based compensation ran 16% of revenue in FY2025 — about $0.53 per diluted share. Meaningful — reported free cash flow flatters the economics, since SBC is a real cost paid in shares.
Key fundamentals
Net Margin-27.7%
Debt / Equity0.66x
Free Cash Flow$-29.5M
Latest Revenue$212.7M
Return on Equity-67.6%
Revenue Growth YoY+1.6%
Go deeper — free with an account
The forensic grade and screens above are free — no account needed. An account adds the full interactive deep-dive on TREACE MEDICAL CONCEPTS, INC.:
🔒The written investment read — what the numbers mean, in plain English
🔒Ask anything about TMCI's filings — AI Q&A across the 10-K, 10-Qs & 8-Ks
🔒Interactive valuation — reverse-DCF sliders, Monte Carlo & scenario stress
🔒Calibrated 12-month price forecast, with the math shown