The company achieved 64.9% year-over-year revenue growth in 2026Q1, though this is offset by a -53.7% operating margin driven by $18.2M in SG&A expenses.
| Sales/Revenue | 53.89M | 47.32M | 31.62M | 19.27M |
| Revenue Growth % | - | 49.63% | 64.07% | - |
| Cost of Goods Sold | 12.5M | 11.12M | 7.28M | 4M |
| COGS % of Revenue | - | 23.49% | 23.03% | 20.77% |
| Gross Profit | 41.4M | 36.2M | 24.34M | 15.27M |
| Gross Margin % | 76.81% | 76.51% | 76.97% | 79.23% |
| Gross Profit Growth % | - | 48.73% | 59.4% | - |
| Operating Expenses | 72.38M | 62.5M | 38.99M | 26.13M |
| OpEx % of Revenue | - | 132.09% | 123.31% | 135.59% |
| Selling, General & Admin | 62.47M | 54.77M | 34.51M | 23.11M |
| SG&A % of Revenue | - | 115.75% | 109.11% | 119.92% |
| Research & Development | 9.9M | 7.73M | 4.49M | 3.02M |
| R&D % of Revenue | - | 16.34% | 14.2% | 15.67% |
| Other Operating Expenses | 0 | 0 | 0 | 0 |
| Operating Income | -30.98M | -26.3M | -14.65M | -10.86M |
| Operating Margin % | -57.48% | -55.58% | -46.34% | -56.37% |
| Operating Income Growth % | - | -79.47% | -34.88% | - |
| EBITDA | -29.42M | -26.3M | -12.46M | -9.22M |
| EBITDA Margin % | -54.59% | -55.58% | -39.39% | -47.85% |
| EBITDA Growth % | - | -111.1% | -35.06% | - |
| D&A (Non-Cash Add-back) | 1.56M | 0 | 2.2M | 1.64M |
| EBIT | -45.11M | -26.3M | -14.3M | -11.89M |
| Net Interest Income | 733K | -70K | -1.32M | -761K |
| Interest Income | 0 | 0 | 0 | 0 |
| Interest Expense | -733K | 70K | 1.32M | 761K |
| Other Income/Expense | -13.1M | -14.06M | -966K | -1.79M |
| Pretax Income | -44.08M | -40.36M | -15.62M | -12.65M |
| Pretax Margin % | -81.78% | -85.29% | -49.39% | -65.66% |
| Income Tax | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | 0% | 0% | 0% | 0% |
| Net Income | -44.08M | -40.36M | -15.62M | -12.65M |
| Net Margin % | -81.78% | -85.29% | -49.39% | -65.66% |
| Net Income Growth % | - | -158.4% | -23.42% | - |
| Net Income (Continuing) | -44.08M | -40.36M | -15.62M | -12.65M |
| Discontinued Operations | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -2.13 | -0.52 | -0.77 | -0.63 |
| EPS Growth % | - | 32.47% | -22.22% | - |
| EPS (Basic) | - | -0.52 | -0.77 | -0.63 |
| Diluted Shares Outstanding | 20.65M | 78.32M | 19.92M | 19.92M |
| Basic Shares Outstanding | 20.65M | 78.32M | 19.92M | 19.92M |
| Dividend Payout Ratio | - | - | - | - |
High cash burn rate
According to the latest quarterly financial data, Shoulder Innovations achieved a 64.9% year-over-year revenue growth in 2026Q1, signaling that the company's InSet technology is successfully capturing market share from legacy orthopedic incumbents despite the inherent volatility of elective surgical procedure volumes in the US market.
The acceleration in top-line growth suggests that the company's specialized biomechanical fixation design is gaining traction among high-volume shoulder surgeons. Investors should monitor whether this growth trajectory remains sustainable as the company moves beyond early adopters and faces the higher customer acquisition costs associated with more conservative surgical practices.
As reported in recent income statements, Shoulder Innovations maintains a robust gross margin of 77.7%, which highlights the premium pricing power of its proprietary implant systems, yet this efficiency is currently overshadowed by an operating margin of -53.7% due to heavy investment in commercial infrastructure.
The consistent gross margin profile above 76% indicates that the core product unit economics are highly favorable and competitive with established medtech peers. However, the inability to translate this gross profitability into positive operating income suggests that the current scale of the business is insufficient to absorb the fixed costs of its specialized sales force.
Based on the provided financial figures, SG&A expenses have scaled aggressively to $18.2M in 2026Q1, outpacing the growth in gross profit and indicating that the company has yet to achieve the necessary operating leverage to reach a break-even point in its current commercialization phase.
The persistent gap between revenue growth and operating expenses suggests that management is prioritizing market penetration over immediate profitability. Investors should watch for a potential inflection point where revenue per sales representative begins to scale, which would be a necessary precursor to narrowing the current operating loss.
Analysis of the income statement reveals that stock-based compensation reached $726.0K in 2026Q1, which represents a significant increase from previous periods and warrants investigation into the company's long-term incentive alignment and the potential for future dilution of existing shareholders as the firm seeks to retain key talent.
While the net loss of $8.4M in the most recent quarter is driven primarily by operational spending, the rising trend in non-cash compensation expenses may mask the true cash burn of the business. Analysts should adjust for these items when evaluating the company's path toward sustainable profitability and cash flow generation.
Based on the reported figures, the company's reliance on a $26.8M cash cushion to fund a -55.58% operating margin suggests that the current growth strategy may be unsustainable without future capital raises, posing a significant risk to equity holders if market conditions for elective procedures deteriorate.
Short-term growth metrics may be misleading if they are fueled by aggressive sales force expansion that does not yield long-term surgeon loyalty. The market should be cautious about the company's ability to maintain its current growth rate while simultaneously managing the high cost-to-serve inherent in the orthopedic implant industry.
Quick answers to the most common questions about buying SI stock.
For fiscal year 2025, Shoulder Innovations, Inc. (SI) reported total revenue of $47.3M. This represents a 145.5% increase compared to $19.3M in 2023.
Shoulder Innovations, Inc. (SI) reported a net loss of $40.4M for the fiscal year ending 2025.
Shoulder Innovations, Inc. (SI) reported an operating income of $-26.3M, resulting in an operating profit margin of -55.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Shoulder Innovations, Inc. (SI) generated $36.2M in gross profit for the year, representing a gross profit margin of 76.5%. This demonstrates the company's core pricing power and production efficiency.