Shoulder Innovations (SI) investor relations material

Market overview and growth

• Shoulder arthroplasty is a sub-$3 billion market growing at over 10% annually, with the reverse shoulder style now representing over 70% of procedures worldwide.

• Trailing twelve-month revenue reached $42 million at the end of Q3 2025, reflecting a 55% CAGR over the prior eight quarters and a 76% gross margin.

• Outpatient procedures, especially in Ambulatory Surgery Centers, are rapidly increasing, now accounting for over 30% of procedures after a positive CMS payment decision in January 2024.

• Growth is driven by high-volume surgeons, with 1,800 targeted specialists and 95% of revenue from core and contender customers growing over 50% year-over-year.

• Expansion into international markets is planned for the coming quarters, with all current revenue from the U.S.

Technology and innovation

• Proprietary InSet glenoid implant addresses glenoid loosening, reducing rocking horse motion by 87% and achieving up to 100% survivorship at nine years.

• AI-enabled ProVoyance 3D preoperative planning platform is fully adopted by surgeons and central to product deployment and customer engagement.

• Two Tray platform system simplifies surgical workflow, reduces costs, and is tailored for Ambulatory Surgery Centers.

• Recent product introductions include the I-135 platform for fracture indications and N22 Glenospheres for metal hypersensitivity, both in limited user release.

• Partnership with Interventional Systems enables a portable, robotics-as-a-service model, aiming for time-neutral, capital-light deployment in operating rooms.

Commercial strategy and future outlook

• Unique commercial model combines a 1099 indirect distribution network with a focused W-2 commercial and customer experience team.

• Focused on high-volume surgeons, with a man-demand approach to relationship building and product adoption.

• New products are positioned at higher price points, supporting price stabilization in a typically deflationary orthopedic market.

• Robotics solution is not yet in market but has generated significant interest and positive perception among surgeons.

• Future growth drivers include international expansion and potential entry into additional soft tissue indications.