Shoulder Innovations (SI) Q2 2026 earnings summary

Executive summary

• Achieved Q2 2026 net revenue of $17.2M, up 56% YoY, driven by higher implant system sales, new surgeon onboarding, and customer expansion.

• Gross margin improved to 78.3% from 76.2% YoY, reflecting operational efficiency, higher average selling prices, and cost reductions.

• Net loss narrowed to $10.2M in Q2 2026 from $19.2M YoY, with improved Adjusted EBITDA loss of $8M.

• Raised full-year 2026 net revenue guidance to $67M–$69M (42%–46% YoY growth), citing robust customer activity and pipeline.

• Continued rapid expansion of commercial team, leadership, and product launches, including enabling technology and robotics.

Financial highlights

• Q2 2026 net revenue: $17.2M (56% YoY growth); six-month revenue: $33.9M (60.2% YoY growth).

• Gross margin: 78.3% (up from 76.2% YoY); Q2 gross profit: $13.4M.

• SG&A expenses: $20.1M (up from $12.8M YoY), driven by headcount, selling expenses, and public company costs.

• R&D expenses: $3.4M (up from $1.4M YoY), reflecting investment in new product development and robotics.

• Cash and equivalents plus marketable securities: $99M as of June 30, 2026; improved cash burn in Q2.

Outlook and guidance

• Full-year 2026 net revenue guidance raised to $67M–$69M (42%–46% YoY growth), up from prior $65M–$68M.

• Guidance reflects expected orthopedic seasonality, robust customer pipeline, and continued ASC adoption.

• Gross margins expected to remain strong for the rest of 2026, with some quarter-to-quarter fluctuations.

• SG&A as a percentage of revenue to rise in Q3, then decline in Q4; R&D as a percentage of revenue to moderate late in 2026.

• Sufficient liquidity projected for at least 12 months; future capital needs depend on growth, R&D, and market expansion.