Shoulder Innovations (SI) Q3 2026 earnings summary

Executive summary

• Q3 revenue grew 37.7% YoY to $16.2M, supported by surgeon additions, higher utilization, implant sales growth and higher ASPs through the typical summer slowdown.

• FY 2026 revenue guidance rose to $68M–$70M, implying 44%–48% growth over 2025.

Financial highlights

• Q3 revenue was $16.2M versus $11.8M; 9M revenue increased 52.2% YoY to $50.1M from $32.9M.

• Q3 gross profit was $12.7M versus $9.0M; gross margin increased to 78.5% from 76.2%.

• Q3 net loss narrowed to $7.0M from $8.7M and Adjusted EBITDA loss to $5.5M from $7.5M; operating loss was $7.6M.

• 9M net loss was $25.6M versus $32.6M; Adjusted EBITDA loss was $20.5M versus $29.1M.

• Q3 SG&A rose 13.7% to $17.1M and R&D rose 107.5% to $3.2M, reflecting commercial, personnel and product-development investment, partly offset by lower litigation costs.

Outlook and guidance

• FY 2026 revenue guidance increased to $68M–$70M from $67M–$69M, implying 44%–48% growth versus prior guidance of 42%–46%.

• Q4 guidance incorporates typical sequential volume improvement and a second-half procedure-mix shift that tends to lower reverse-procedure share and ASPs.

• Q4 gross margins are expected to remain similar to Q3; additive-manufacturing savings are expected to begin in 2027, with cost reductions of up to 30% on certain products.

• Cash burn is expected to rise moderately in Q4 with commercial and R&D investment; operating losses and cash use are expected to continue as operations scale.

• Existing liquidity, projected product-sale cash and available loan capacity are expected to fund planned expenses and capital expenditures for at least 12 months, subject to assumptions and risks.