Treace Medical Concepts Q1 2025 Earnings Call Transcript

Key Takeaways

  • Therese Medical delivered $52.6 M in Q1 revenue, up 3% year-over-year (4.5% adjusted for selling days), improved its adjusted EBITDA loss by 54% to $3.8 M, and reduced its net loss to $15.9 M from $18.7 M a year ago.
  • The company plans to commercialize three new bunion correction systems—Nanoplasty, Percuplasty 3D MIS osteotomy, and SpeedMTP fusion—in Q3, enabling it to address nearly 100% of surgeon and patient preferences across all four bunion deformity classes.
  • A robust pipeline includes IntelliGuide PSI patient-specific planning, SpeedPlate MicroQuad and SPEED Aiken implants, new sterile instruments, and a limited market release of the next-generation Lapoplasty Lightning system in Q4.
  • Therese reaffirms its 2025 guidance of $224 M–$230 M in revenue (+7% to 10%), expects to reach breakeven adjusted EBITDA, halve cash burn, and drive most growth in Q4 as new products ramp and seasonality benefits.
  • With a strengthened R&D engine and growing sales team, the company is executing its vision to become the “one-stop shop” for comprehensive, best-in-class bunion solutions.
AI Generated. May Contain Errors.
Earnings Conference Call
Treace Medical Concepts Q1 2025
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Operator

Good day, and thank you for standing by. Welcome to the Therese Medical Concepts first quarter twenty twenty five 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. To ask a question during the session, you will need to press 11 on your telephone.

Operator

You will then hear an automated message advising that your hand has been raised. To withdraw your question, please just press 11 again. Please be advised that today's conference call is being recorded. I would now like to hand the conference over to your first speaker today, Tripp Taylor, Investor Relations. Please go ahead.

Philip Taylor
Principal at Gilmartin Group

Thank you.

John Treace
John Treace
CEO, Founder & Chairman at Treace Medical Concepts

Good afternoon, everyone, and thank you for joining us on our first quarter twenty twenty five earnings conference call. We started 2025 with solid financial results and made significant progress on our strategy to comprehensively address the evolving needs of surgeons and patients with an expanding portfolio of best in class bunion solutions. Revenue in the first quarter was $52,600,000 representing 3% growth over the first quarter of twenty twenty four,

Philip Taylor
Principal at Gilmartin Group

Thank you, operator. Good afternoon, everyone, and welcome to our first quarter twenty twenty five earnings conference call. Participating from the company today will be John Treese, chief executive officer and Mark Hare, chief financial officer. During the call, John will offer commentary on our commercial activities, followed by Mark for a review of our first quarter financial results released after market close today. We will then host a question and answer session following our prepared remarks.

Philip Taylor
Principal at Gilmartin Group

Our press release can be found in the Investor Relations section of our website at investors.tris.com. This call is being recorded and will be archived in the Investors 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, end 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.

Philip Taylor
Principal at Gilmartin Group

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 Trieste 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 Form 10 Q for the first quarter of twenty twenty five filed after market close today, May 8, and can be found in the Investor Relations section of our website at investors.trice.com for a detailed presentation of risks. With that, I will now turn the call over to John.

John Treace
John Treace
CEO, Founder & Chairman at Treace Medical Concepts

Afternoon, everyone, and thank you for joining us on our first quarter twenty twenty five earnings conference call. We started 2025 with solid financial results and made significant progress on our strategy to comprehensively address the evolving needs of surgeons and patients with an expanding portfolio of best in class bunion solutions. Revenue in the first quarter was $52,600,000 representing 3% growth over the first quarter of twenty twenty four, and adjusted for one less selling day, growth was 4.5%. As expected, this was a difficult comp, and we're pleased with the overall performance, including early positive validation of our three new bunion systems. We expect 2025 to be a transformational year for Therese, and we're incredibly excited about what we will be delivering in the back half of this year and beyond.

John Treace
John Treace
CEO, Founder & Chairman at Treace Medical Concepts

From the early days of the company, it's been our strategy to evolve our business from a single technology lapoplasty company to a comprehensive bunion solutions company. Since our first cases in 2015, we're proud to have established a strong customer base of over 3,100 surgeon users, treated over 130,000 patients, propelled our company to over $200,000,000 in revenue, and established Trese Medical as the dollar share leader in The U. S. Bunion market. To date, our flagship lapoplasty and adductoplasty systems have enabled us to capture on average twenty five percent of our surgeon customers' bunion cases.

John Treace
John Treace
CEO, Founder & Chairman at Treace Medical Concepts

With the upcoming commercialization of three new best in class bunion correction systems, namely our nanoplastic and percuplasty three d MIS osteotomy systems and our SpeedMTP MTP fusion system, we gain more immediate and more targeted access to the remaining seventy five percent of our surgeons' cases. So beginning in Q3, we have the opportunity to target virtually one hundred percent of surgeon and patient preferences for bunion correction, with five best in class instrumented systems addressing all four classes of bunion deformities. In addition, this expanded portfolio allows us to appeal to incremental new surgeons who favor osteotomy approaches over lapoplasty. The positive feedback from surgeons participating in our limited market releases of these three new systems, as well as strong turnouts we've seen at our initial Bunyan Masters surgeon training labs, where all five of our systems are now featured, have exceeded our expectations. Additionally, we have high confidence in our inventory timing and volumes to support the customer demand for these three new systems, as well as our ability to meet demand going forward.

John Treace
John Treace
CEO, Founder & Chairman at Treace Medical Concepts

For all of these reasons, we have even greater conviction in the impact these new systems will have on our business starting in the back half of the year. These three new systems will be complemented by expanding commercial availability of several other new technologies, including IntelliGuide PSI, the industry's first and only patient specific pre op planning and cut guide solution for lapoplasty, bunion, and adductoplasty midfoot corrections. We've been getting rave reviews from surgeon users on the accuracy and the time savings they are experiencing in their cases with this advanced technology. Our SpeedPlate MicroQuad implant delivers robust dynamic fixation for small incision fusion approaches and provides the enabling implant technology to support driving our microlapoplasty and mini adductoplasty procedures. Our SPEED Aiken implant, an ultra low profile fixation solution for Aiken osteotomies, which are performed in high frequency with bunion cases, and particularly with MIS osteotomies.

John Treace
John Treace
CEO, Founder & Chairman at Treace Medical Concepts

We will also be launching several new sterile instruments in the back half of the year. These are complementary, procedure specific tools utilized in our bunion and midfoot cases. With this expansion of our portfolio, we've been receiving unprecedented interest from experienced foot and ankle sales professionals wanting to join Treece and participate in this next exciting wave of growth for the company. So, it's not just the great products we have coming, but the ever increasing strength of the commercial team we're assembling as we will be pushing this expanded portfolio into the marketplace in the back half of the year. Finally, we're excited to announce plans to initiate a limited market release late in the year of our next generation lapoplasty platform.

John Treace
John Treace
CEO, Founder & Chairman at Treace Medical Concepts

Our forthcoming lapoplasty Lightning system is another example of our commitment to continuously innovate our flagship systems, making them faster, easier, and to deliver an ever greater experience for our surgeons and their patients. Lightning is more than an incremental improvement. We believe it represents a revolutionary advancement for lapoplasty. We look forward to sharing more details with you on this next generation system later in the year. As you can see, our R and D engine is running open throttle and delivering a robust pipeline of new technologies that we believe will further extend our market leadership position.

John Treace
John Treace
CEO, Founder & Chairman at Treace Medical Concepts

As we envisioned from the start, this year we will be establishing Trees as the one stop shop with a suite of differentiated best in class bunion systems that will drive our top line growth this year into 2026 and beyond. Turning to our outlook, we are reiterating our revenue guidance for 2025. We continue to expect revenue to be between $224,000,000 and $230,000,000 representing growth of 7% to 10% over prior year. We anticipate our most substantial growth and contribution to come in the fourth quarter. In addition to seasonal strength driven by the timing of patient deductibles, we will have our new products fully available to more quickly penetrate all bunion classes.

John Treace
John Treace
CEO, Founder & Chairman at Treace Medical Concepts

As founder of the company, I want to emphasize the significance of this moment. This is the realization of a ten year vision at to become a focused, comprehensive bunion solutions company, and another big step ahead in our mission to improve surgical outcomes for bunion patients. I couldn't be more proud of the efforts of the entire team here at Trese and the surgeons involved in these projects to bring us this important milestone. Let me now turn the call over to Mark to review our financial performance. Mark?

Mark Hair
Mark Hair
Chief Financial Officer at Treace Medical Concepts

Thank you, John. Good afternoon, everyone. Revenue in the first quarter was $52,600,000 an increase of 1,500,000 or 3% over the prior year period. Adjusted for one less selling day in the quarter, growth was 4.5% compared to the prior year. Growth was mainly driven by an increase in binding procedure kits sold compared to the prior year.

Mark Hair
Mark Hair
Chief Financial Officer at Treace Medical Concepts

Gross margin was 79.7% in the first quarter of twenty twenty five compared to 80.2% in the first quarter of twenty twenty four. Total operating expenses were $57,500,000 in the first quarter of twenty twenty five compared to $59,900,000 in the first quarter of twenty twenty four. These reductions reflect continued execution on our expense management initiatives. First quarter net loss was $15,900,000 or $0.25 per share compared to a net loss of $18,700,000 or $0.30 per share in the first quarter twenty twenty four. Adjusted EBITDA loss for the first quarter was $3,800,000 compared to $8,300,000 in the first quarter twenty twenty four, an improvement of 54%.

Mark Hair
Mark Hair
Chief Financial Officer at Treace Medical Concepts

This marks our third consecutive quarter of adjusted EBITDA improvements and represents significant progress toward our improved profitability goals of 2025. Cash, cash equivalents and marketable securities were $76,100,000 as of 03/31/2025, compared to $75,700,000 as of 12/31/2024. Total liquidity, including access to an additional $22,500,000 of cash through our existing revolver, the balance of cash, cash equivalents and marketable securities will be approximately $98,600,000 as of 03/31/2025. We believe our balance sheet strength and flexibility is sufficient to continue executing our strategic and growth initiatives for the foreseeable future. We are pleased with our cash management efforts and note that the modest cash build in the quarter was due to seasonal timing of cash collections following our seasonally busy fourth quarter and timing of other expenditures.

Mark Hair
Mark Hair
Chief Financial Officer at Treace Medical Concepts

We do not expect this trend to continue through the year due to the seasonality of our business. However, we are pleased with the first quarter results, and we continue to focus on improvements. Before concluding, let me turn to our outlook for full year 2025. As John mentioned, we are reaffirming our full year 2025 revenue guidance of $224,000,000 to $230,000,000 which reflects an expected increase of 7% to 10% over 2024 revenue. Due to timing variability in scheduling procedures, we anticipate year over year growth in Q2 to be consistent with the growth rate in Q2 twenty twenty four and for revenue growth rates to step up sequentially in each of the following quarters of the year.

Mark Hair
Mark Hair
Chief Financial Officer at Treace Medical Concepts

We continue to expect breakeven adjusted EBITDA for full year 2025 and expect our cash burn to decrease by approximately 50% for full year 2025 versus 2024. Before we open the lines for Q and A, I'd like to touch on our limited tariff exposure. While the majority of our inventory is manufactured in The U. S, we have a reducing portion that is manufactured in Europe and subject to tariffs. We estimate that tariffs will result in an immaterial impact on cost of goods sold in 2025.

Mark Hair
Mark Hair
Chief Financial Officer at Treace Medical Concepts

With additional manufacturing moving to The U. S. This year, we expect our tariff exposure will remain at immaterial levels in 2026 as well. With that, let me now turn the call over to the operator to open the line for your questions.

Operator

Thank you. At this time, we will conduct a question and answer session. As a reminder, to ask a question, you will need to press 11 on your telephone, and then just wait for your name to be announced. To withdraw your question, please just press 11 again. Please stand by while we compile the q and a roster.

Operator

Our first question today, comes from the line of Ryan Zimmerman of BTIG. Your line is now open.

Iseult McMahon
Equity Research Associate at BTIG

Hi, everyone. This is Izzy on for Ryan. Thanks for taking the question. So Mark and John, it's been about a year since you first called out the increased competition in the bunion market. And I was curious to understand how you are feeling about your positioning in the overall market today since you've launched the new osteotomy products, whether or not you feel like you're better equipped to navigate competition going forward?

John Treace
John Treace
CEO, Founder & Chairman at Treace Medical Concepts

Hi, Izzy. John here. Thanks for your question. Not a lot has changed on the competitive front as we see it since last quarter. We previously noted there are several companies, big and small, that are participating in the market with lapoplasty knockoffs.

John Treace
John Treace
CEO, Founder & Chairman at Treace Medical Concepts

That said, those still tend to be these multi line companies that don't have the sole focus and expertise on servicing that bunion procedure and call point like we do. We still believe lapoplasty remains the superior option. It's the market leader and gold standard. It's backed by differentiating clinical outcomes data, supporting its efficacy and it's unique in that respect. And we believe we're really well positioned to drive growth and further differentiate ourselves with this new upcoming suite of innovative bunion technologies, including our SPEED MTP fusion system and the osteotomy systems.

John Treace
John Treace
CEO, Founder & Chairman at Treace Medical Concepts

And we're going be able to play very strongly across all fronts. Then towards the end of the year, we'll follow-up with an exciting new development with lapoplasty initiating our lapoplasty lightning LMR in the fourth quarter.

Iseult McMahon
Equity Research Associate at BTIG

Understood. That's helpful. And with all of these new product launches, are you starting to see any changes in how quickly you've been able to bring in or train new surgeon users and how quickly those users may be ramping up their utilization of products?

John Treace
John Treace
CEO, Founder & Chairman at Treace Medical Concepts

Yes, we certainly have. We've held several of our new Bunion Masters training programs through April. Turnouts at these events where we are featuring all five of our bunion technologies including the new three systems that we're launching. We've been oversold in these events. There is very strong interest.

John Treace
John Treace
CEO, Founder & Chairman at Treace Medical Concepts

That interest is spreading through the surgeon community to their peers and it's getting the sales force very excited. I would say the excitement level and the interest that we're seeing is palpable as we await the full launch of these new three systems in the third quarter.

Iseult McMahon
Equity Research Associate at BTIG

Thanks for taking the questions.

John Treace
John Treace
CEO, Founder & Chairman at Treace Medical Concepts

Sure. Thank you.

Operator

Thank you. Our next question comes from the line of Lily Lazada of JPMorgan. Your line is now open.

Lilia-Celine Lozada
Lilia-Celine Lozada
Analyst at JP Morgan

Great. Thanks so much for taking the question. Maybe I'll start with a question on cadence in the second quarter. Just doing the math on the growth that you threw out, I think it implies something like $47,000,000 in sales for the second quarter, which is 2,000,000 to $3,000,000 below the street. So any color on what explains that delta and any specific dynamics in the quarter to keep in mind?

Lilia-Celine Lozada
Lilia-Celine Lozada
Analyst at JP Morgan

And why isn't that growth a little bit higher as we start to lap the onset of the competitive headwinds that you saw starting last year?

Mark Hair
Mark Hair
Chief Financial Officer at Treace Medical Concepts

Hi, Lily. This is Mark. Great question and thanks for asking it. I gave those comments in my remarks really to help with the models and how we see this year playing out. There is a change to the gating.

Mark Hair
Mark Hair
Chief Financial Officer at Treace Medical Concepts

Maybe I'll let John talk about, what we're seeing in the marketplace and why we're so excited about the back half of the year. As I said in my remarks, see Q2 this year to look a lot like, last year, growing roughly 6%, and growth to be more back half weighted in the year, when we have more of our, in the time when we expect the peak supply of our new products meeting the highest demand. So for context, yes, there's a shift about 1% of our overall full year revenue from Q2 into Q4, into that season that we generally refer to as bunion season. John, maybe I'll turn it over to you for some market dynamics.

John Treace
John Treace
CEO, Founder & Chairman at Treace Medical Concepts

Sure, Mark.

John Treace
John Treace
CEO, Founder & Chairman at Treace Medical Concepts

Yeah, Lilly, what we've been seeing is some elective foot and ankle procedures, including bunions being pushed out a little bit. We've seen variability in timing and scheduling of procedures in prior years, and from our experience and consistent with others in the industry, when patients defer elective procedures, those aren't lost cases. They usually end up getting their surgeries a bit later in the year where their insurance deductibles have been met. And with the expansion of our portfolio and the timing of that, this dynamic actually plays into our favor. As I mentioned in my opening remarks, today we estimate we're getting on average only around twenty five percent of our surgeons bunion cases.

John Treace
John Treace
CEO, Founder & Chairman at Treace Medical Concepts

Starting in Q3 this year, with these three new systems we're going to be bringing into market, we will be able to more effectively penetrate into the remaining seventy five percent of their cases. So we're going to have five best in class solutions that can address virtually one hundred percent of the bunions that our surgeons encounter and also comprehensively address the preferences that their patients may have. So because all this and the momentum that we have building in the back half, although there are changes in the gating, our views for the full year have not changed.

Lilia-Celine Lozada
Lilia-Celine Lozada
Analyst at JP Morgan

Got it. That's really helpful. And then just as a follow-up, can you talk a bit about what you're expecting in terms of underlying lapoplasty volumes versus the contribution from some of these new MIS osteotomy products? Do you expect to see any cannibalization of the lapoplasty volumes? And is it fair to assume that lapoplasty growth stays around sort of that low to mid single digit growth level that you're seeing in the first half of the year, while the MIS osteotomy products drive the acceleration?

Lilia-Celine Lozada
Lilia-Celine Lozada
Analyst at JP Morgan

Any color on how to think about those two buckets would be really helpful. Thanks so much.

Mark Hair
Mark Hair
Chief Financial Officer at Treace Medical Concepts

Yeah, great question, Lily. This is Mark. I'll take the first shot at it and maybe John will follow-up as well. We haven't broken that out just yet. I think one of the main things to remember right now is we've been in what we call LMRs of the limited market releases of these new products.

Mark Hair
Mark Hair
Chief Financial Officer at Treace Medical Concepts

So John's talked quite a bit about some of the early reception and what we're seeing with surgeons and the optionality that they have now to approach bunion procedures in many different ways. So we're not right now planning to break that out specifically as we get into this year. I think there's a lot of learnings that we have, but I could say, generally speaking, that you're you're probably not too far off to say, you know, right now we're a company that is primarily a lapoplasty company. And so the growth rates that we're experiencing here are because of what we're what we are able to have in in in in our bag and what our sales reps are able to sell right now, which is primarily lapoplasty. And so as we get into the third quarter and we have these products now becoming more available, we think that can accelerate the growth in the back half of the year.

Mark Hair
Mark Hair
Chief Financial Officer at Treace Medical Concepts

So that's gonna be a primary and important driver. Anything else to add on that, John?

John Treace
John Treace
CEO, Founder & Chairman at Treace Medical Concepts

No, I think there's minimal cannibalization. These are addressing predominantly, especially in the early phase here, users that have really not had a bias towards lapoplasty or lapitus type procedures, they prefer to predominantly do osteotomies. And so that's really what we're seeing in our LMR, and I think progressively throughout the year.

John Treace
John Treace
CEO, Founder & Chairman at Treace Medical Concepts

Surgeons already have their algorithm in their minds for how much they're going to apply a lapoplasty or an osteotomy type of product. That's why in our 3,100 customers, we have surgeons that use lapoplasty for ninety percent of their bunions and we surgeons that use it for ten percent. And if you blend them all together, it's around twenty five percent. So by bringing these three new systems out, what we're going to do is fill the void in every one of those customers, whether they're a ten percent lapoplasty user or ninety, with a Nutris solution and expand our procedure volumes across our customer base.

Lilia-Celine Lozada
Lilia-Celine Lozada
Analyst at JP Morgan

Great. Thanks for taking the questions.

John Treace
John Treace
CEO, Founder & Chairman at Treace Medical Concepts

Sure thing.

Operator

Thank you. Our next question comes from the line of Richard Newitter of Truist Securities. Your line is now open.

Felipe Lamar
Felipe Lamar
Senior Equity Research Associate at Truist Securities

Hi, this is Felipe on for Rich. I was just wondering if you could help us understand how, the step up in hospital outpatient ASC reimbursement might have played a role in the first quarter performance and just expectations for the rest of the year. Thanks for taking the question.

John Treace
John Treace
CEO, Founder & Chairman at Treace Medical Concepts

Philippe, thanks. This is John.

John Treace
John Treace
CEO, Founder & Chairman at Treace Medical Concepts

It's still a little early to tell if and to what degree this is having our business on our business at this point. That said, it's definitely a positive given the value that we believe lapoplasty and lapoplasty like procedures bring to patients. We've had some anecdotals of surgeons talking about some positive impacts in the ASC setting early in the year here. These are things like access to our newer technologies, our more premium technologies such as SpeedPlate, but I think it's just a bit too early to quantify the impact of this reimbursement lift at this point in time.

Felipe Lamar
Felipe Lamar
Senior Equity Research Associate at Truist Securities

And I guess just to follow-up on speed plate, if you could just let us know like how that expands your addressable TAM, that'd be helpful.

Felipe Lamar
Felipe Lamar
Senior Equity Research Associate at Truist Securities

I mean, just like how that builds incremental momentum throughout the rest of the year. Thanks so much.

John Treace
John Treace
CEO, Founder & Chairman at Treace Medical Concepts

Sure, sure. We continue to drive Speedplay. It's the majority of our fixation mix today and we continue to convert more people from traditional fixation to our SpeedPlate technology.

John Treace
John Treace
CEO, Founder & Chairman at Treace Medical Concepts

We also are converting a lot of products out there that are offered by other companies. They're known as Nidinol staples to SpeedPlates because of SpeedPlates' superior strength and fatigue profile. There are lot of benefits of this technology. We recently announced our MicroQuad launch and we're increasing our supply of that in the market. This is a really differentiated product that can provide speed plate fixation through small incisions and small incisions are becoming more and more important.

John Treace
John Treace
CEO, Founder & Chairman at Treace Medical Concepts

That works really well hand in hand with our microlapoplasty and mini adductoplasty procedures. And we recently announced the launch of the Speed Aiken, and this is applying our SpeedPlate technology to Aiken osteotomies, which occur in a high frequency as a complementary procedure to the original bunion procedure, and they occur at a very high frequency level with MIS osteotomy. So this is an important additive to the bag and increasing our portfolio of options utilizing our Speedplay technology.

Operator

Alright. So I'm showing no further questions at this time. I would now like to turn it back to, Trip Taylor for any closing remarks. And just as I say that, we do have one more question. Standby.

Operator

Our Our next question comes from the line of Jaina Francis of UBS. Your line is now open.

Jayna Francis
Jayna Francis
Equity Research Associate at UBS Group

Hi. I'm on for Danielle today. Congrats on the good quarter here. One question for us is if you could just walk through the assumptions made to get to the top end of the guide and the low end of the guide one more time, just to help us frame how we're modeling.

Jayna Francis
Jayna Francis
Equity Research Associate at UBS Group

Yeah, this is Mark, and thanks for the question. You know, when we start the year off, we commonly say that we're giving a range, it's early in the year, there could be a lot of factors that are happening. We commonly say that we're comfortable with the midpoint of that range and the guide. And I would say that that still applies for us at this point. I think there are on the top end of the range is a lot of the things that John talked about.

Jayna Francis
Jayna Francis
Equity Research Associate at UBS Group

So as we're transforming from a lap of plastic company into a full suite of comprehensive bunion solutions, including two new MIS solutions and our speed MTP solution, To the extent we can really drive that at a faster rate than we could be higher than that midpoint. So that would be the opportunity for us right now. But I think given where we are in the year and that a lot of these products won't be in full supply until beginning of Q3, that I would say, the midpoint would be where we would feel comfortable.

Jayna Francis
Jayna Francis
Equity Research Associate at UBS Group

Got it. That's helpful. Thank you. And then you're making great strides and you're committed to the EBITDA breakeven in '25. Could you just talk about the drivers of positive leverage there as we progress through the year?

Jayna Francis
Jayna Francis
Equity Research Associate at UBS Group

Yeah. Great question. This is Mark again, and I'll start there. We talked, it's really a year ago now where we said we talked about plans to really recommit some of our, operational, efficiencies in the organization and to manage cash and to look at our expenses. And so we've been managing expenses.

Jayna Francis
Jayna Francis
Equity Research Associate at UBS Group

We saw a really significant increase in Q3 of last year, as well as Q4. We had the highest amount of adjusted EBITDA in Q4 last year that we've ever had. And so we feel like these efforts are really bearing fruit. We've seen it now in three consecutive quarters and you can see it throughout the P and L. We're looking for greater efficiencies in sales and marketing line.

Jayna Francis
Jayna Francis
Equity Research Associate at UBS Group

We've seen, some of those, come through, but not really at any expense to our ability to drive the top line. We're looking for efficiencies all the time and we are continuing and you can see it on the P and L that we will be building and adding more capabilities to our R and D, function. There's a lot of work that goes into releasing all of these products. So we'll continue to look for ways to enhance our R and D capabilities so that we can continue to release these products that we're talking about. John mentioned several products today with even a brand new platform for lipoplasty coming at the end of the year.

Jayna Francis
Jayna Francis
Equity Research Associate at UBS Group

So that's going to be one of the engines that's going to drive the success of the business. But I think we are committed to being efficient as a company to improve the profitability and we reaffirmed today that we're looking to reduce our cash burn by 50% this year. So I think so far, we're on track for those plans. Awesome. Thank you.

Operator

Thank you. So I'm showing no further questions at this time. I would now like to turn it back to Tripp for any closing remarks.

Philip Taylor
Principal at Gilmartin Group

On behalf of Trieste Medical, thank you for joining us today. This concludes our call, and we look forward to our next update following the close of the second quarter of twenty twenty five.

Operator

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.

Executives
    • John Treace
      John Treace
      CEO, Founder & Chairman
    • Mark Hair
      Mark Hair
      Chief Financial Officer
Analysts
    • Philip Taylor
      Principal at Gilmartin Group
    • Iseult McMahon
      Equity Research Associate at BTIG
    • Lilia-Celine Lozada
      Analyst at JP Morgan
    • Felipe Lamar
      Senior Equity Research Associate at Truist Securities
    • Jayna Francis
      Equity Research Associate at UBS Group