Forensic Analysis · Healthcare / Pharmaceuticals / Biotech · as of Aug 12, 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

0.5

Distress distance

Clean

Earnings quality

Forensic signals

-5.1

P / E (ttm)

-67.6%

ROE

$308M

Market cap

0.00%

Dividend yield

1.6%

Revenue growth

This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.

Treace Medical Concepts, Inc. earns a D (Weak — demands caution) forensic quality grade, and its balance-sheet distress test reads 0.5, placing it in the Distress zone. 4 forensic signals were flagged in its latest SEC filings, led by return on invested capital.

What the filings flag

-28.3%

FY2025

Return on invested capital. Return on invested capital is -28.3% in the latest fiscal year and slipping from -25% — well below its ~10% cost of capital, so reinvested dollars may be destroying value, not building it.

+4.6%/yr

FY2022–FY2025

Share-count dilution. Diluted share count changed +14% over the last 3 years to FY2025 (+4.6%/yr). The count is growing: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~4.6% 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 ~13%.

320d

FY2024→FY2025

Inventory days. Days inventory outstanding moved from 304 to 320 FY2024→FY2025 (against cost of goods sold; inventory -8% vs +4% in cost of sales). Inventory is building a little faster than sales — watch for markdowns.

16% of rev

FY2025

Stock-based comp load. Stock-based compensation ran 16% of revenue in FY2025 — about $0.53 per diluted share. The cost of it is not in the cash flow — no cash left the business — it is in the count, and there it has run at about 4.7% a year and is falling.

Key fundamentals

Latest Revenue$212.7M

Revenue Growth YoY+1.6%

Revenue CAGR (3yr)+14.5%

Net Margin-27.7%

Free Cash Flow-$29.5M

Return on Equity-67.6%

Debt / Equity0.66x

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Data from SEC EDGAR public filings · metrics as of Aug 12, 2026. Forensic signals flag probability, not certainty.